sdv overview 042706

1© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialSession NumberPresentation_ID

Bandwidth Management andSwitched Digital Video

Lorenzo Bombelli

Director, Product Strategy and Management

Scientific Atlanta, a Cisco Company


Evolution of Cable Networks

• What is driving network evolution?

• How have networks evolved to meet demand?

• What alternatives are available to MSOs?


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19821985

19871990

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20042006

20082010

20122014

2016

Lo

g S

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Bit

Rat

e(0

00’s

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Lesson Learned: Data rates have risen … for 22 straight years

Hayes Modemintroduced

ADSL2+ becomes available

Cox’s new Standard PIR

First Proprietary

Cable Modem

AOL Growth Explosion

DOCSIS Introduced

“Consumer-Grade”Peak Offered Data Rates

The Need for Speed


HDTV is penetrating the mainstream market

• HD programming is expanding

14-18 HD channels in most major markets today

DirecTV by 2007 will offer 150 national channels in HD and 1,500 local broadcasts

Dish adding 7 new HD channels on February 1, totaling 25 HD channels

More niche networks launching HD (MTV just launched; HGTV and Food Network launching HD programming by mid’06)

• Consumer purchase of HD televisions on the rise

Roughly 40% of U.S. homes to have 1 or more HD televisions by end of 2007

Prices of HDTV sets continue to decline

0

50

100

150

200

250

300

350

400

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Analog TV sets

HDTV sets

283M/16M HDTV

Only 6-7 M televisions connected to HD Service

(2.6 TV per HH)

353M(2.8 TV per HH)

256M

96M

TV sets in US HH (mil.)

Source: Kagan, 2005, CEA, S-A Estimates

0

50

100

150

200

250

300

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Analog TV sets

HDTV sets

283M/16M HDTV

Only 6-7 M televisions connected to HD Service

(2.6 TV per HH)

353M(2.8 TV per HH)

256M

96M

TV sets in US HH (mil.)

Source: Kagan, 2005, CEA, S-A Estimates

$100K+23%

Under $25K21%

$50K-$75K19%

$25-$50K22%

$75K-$100K15%

HH Income ofHDTV owners

Source: Forrester's Consumer Technographics ™ Q2 2005 North American Survey


The Long Tail

Mass Appeal

NicheContent

http://www.nbc.com/

http://transfer.go.com/cgi/transfer.dll?name=GNAV_HOME_LOGO&srvc=abc&goto=http://abc.go.com/index.html

http://www.starwars.com/

http://www.heretv.com/index.php

http://offices.colgate.edu/communications/images/daily/cricket.jpg

http://www.ifilm.com/

http://images.google.com/imgres?imgurl=http://www.animatedbliss.com/FORUM/uploads/joshualane/5C9_home-movies.gif&imgrefurl=http://www.myspace.com/index.cfm?fuseaction=user.viewProfile&friendID=2729516&Mytoken=20040720115926&h=216&w=390&sz=18&tbnid=6tOjlOJp3GEJ:&tbnh=66&tbnw=119&hl=en&start=27&prev=/images?q=home+movies&start=20&hl=en&lr=&sa=N


Example: DirecTV has suggested that “niche” content is helping to drive their growth

• “…our PARA TODOS product added 120,000 net subscribers in the quarter…”

• “We now have 700,000 subs in the PARA TODOS package, that is double where we were at the beginning of ’04.”

Source: May 2, 2005 DTV – Q1 2005

The DirecTV Group, Inc. Earnings Conference Call


Niche experience: Dish Networks now offers extensive international programming

African

ABN America - $14.99/mo.

Armenian

Armenia TV - $14.99/mo.

Arabic

15 channels - $39.99/mo.

Al Jazeera Kuwait TV

Chinese


Farsi


French

3A Telesud - $14.99/mo.

German

Polish

1 channel - $14.99/mo.

Greek


Israeli

Israeli Network - $19.99/mo.

Italian


Japanese

TV Japan - $25.00/mo.

Korean



Portuguese Russian South Asian Tagalog Urdu

TV Globo - $19.99/mo. 2 channels - $24.99/mo. 6 channels - $49.99/mo. 1 channel - $14.99/mo. 3 channels - $34.99/mo.

The high price of these offerings demonstrates the value to niche consumers.


Proliferation of Devices

Joysticks

Video/InternetPhones

Internet Radios

InternetPortals

Web Tablets

Internet/IP Appliances

Home Organizers

Telephony

802.11xTelephones

Laptops

Cable Modems

Traditional PC

PC’s & Media PC’s

Wireless Headphones

Cell Phones

IP/Video Cell Phones

Data LinkWatches

MP3 Players

Portable Electronics

PDAsPC Connected Peripherals

Keyboards Game Players

Printers Web Cameras

Home Media Gateway

Home Control & Monitoring

SecurityCameras

Alarm Systems Lighting

Heating& A/C Sprinkler

Systems

Meter Reading

Intercom Systems

DigitalCameras

Wireless Speakers

Digital Camcorders

IntelligentRemotes

Media Servers

Multi-Disk DVD/CD Players & Changers

StereosReceivers

Home Audio/VideoBaby Monitors

Networking Gear

Routers

Car Audio

Memory Stick Portable

Media Players

http://www.archos.com/products/overview/gmini_400_interface.html


Consumer Choice…No End in Sight

MSOs

New Services• HDTV

• VoIP

• Niche Content Tiers

• Premium Sports

• iTV

• Mobility

Service Expansion

• HSD Speeds

• On Demand

DBS• HDTV

• Niche Content

• Premium Sports

• iTV/Enhanced TV

Telco• Speed

• IPTV

New Entrants?

• Wireless

• DSL/FTTx• 25-50 Mbps

• Fast Channel Change• Mosaics/Navigation• iTV• “The internet”

The“Long Tail”

• 50+ Channels?• Local HD

The “Red Button”

• Opportunity or threat?

• Video-to-go• Cellular partnerships?


Cable’s Challenge: Bandwidth Management

Digital Tier

Digital Tier

2004 2006

50MHz

550MHz

750MHz

EOD

Analog Tier

(78- 98 CH)

Analog Tier

(72- 86 CH)

Analog Tier

(80 CH)

HSD/VoIPHSD/VoIP

HSD/VoIPEOD

EOD

HDTV

HDTV

HDTV

Digital Tier

Including SDB

Bandwidth Savings

25-30%Contention

64 kbps per Subscriber

40-50 HD Channels

Including Digital

Simulcast

5-10%Contention

8 kbps per Subscriber

10-20 HD Channels

~2009What Customers are

Saying…


Bandwidth Management Options

Digital Simulcast

HDTV

Maintain Analog

Improve

Bandwidth

Efficiency

Expand Existing

Bandwidth

Encoding and Statmuxing

Switched Digital Video

1GHz Bandwidth Enhancement

2005/2006

2005-2008

2006/2007

MSOOptions

KeyDrivers

Consumer

Demand

Competition

BandwidthManagement


Why Switched Digital Video

• Powerful bandwidth management toolDecouples bandwidth from offered content

• Works on existing MPEG-based set-topsFully supported on existing S-A set-tops

• Enables new programming offeringsPremium, ethnic tiers – enables “the long tail”

• Transparent to consumersMore choice - no change in viewing experience

• Improves visibility to consumer demandProvides detailed viewership data

Can be used to enhance targeted advertising

• A key component of Next Generation Networks


• SDV is an end-to-end system solution

• Open architecture is essential for success

• System integration is a key requirement

Headend

ServiceGroup

AHE-to-HubTransportNetwork Service

GroupB

Hub

Only channels that are being

“watched” by that group are

transmitted to each service group

Custom lineup switched to each

service group according to real-

time demand

HFC

HFC

Saves HFC BandwidthSaves HFC Bandwidth

Works on existingMPEG

Set-tops

How SDV Works in HFC Networks


Switched Digital Video

Switched Channels Everyone could get

their own special channels: increased

appeal of overall package to ALL

subscribers

Broadcast Channels

Next 10

5-10 Viewers

Next 30

1-5 Viewers Next 200+

< 1Viewer

Within any service group, NOT every

channel is watched all the time

Typical Viewership at a node

Top 4

>30 Viewers

Au

die

nce

Broadcast Channels

Current Analog & Digital Broadcast Approach

Only the most popular channels are offered due

to capacity constraintsUnused

Capacity

SDV Drives a Paradigm Shiftin Bandwidth Management

“The Long Tail”


Features of Open SDV Architecture

• Current SDV trials based on proprietary MPEG architecture:Load-on-boot settop client

Cumbersome encryption support

High cost per stream

No QAM sharing between applications

Stand-alone management and resource allocation

• MSOs defined open IP-based SDV architecture:Separates SDV server from switch

Enables use of standard server hardware (Dell) and software (Linux)

Based on IP multicast

Enables use of standard IP switch-routers to perform SDV switching

Enables use of IP backbone for distribution of video to edge

Features open, standard interfaces to all network elements

Enables multiple vendors to supply SDV elements including the client, servers, switches & QAMs

Enables QAM Sharing between SDV and VOD

Leverage excess capacity for SDV during non-peak VOD utilization and improved reliability


BulkEncryptor HFC

Network

Open IP Architecture forSwitched Digital Video

Settop with

SDV Client

VideoContent

IP Network

MiniCarousel

ControlIP Network

Video Sources

Channel Change

Message

SessionBinding

GroomedVideo IGMP Join

Out-of-BandChannel

In-BandChannel

Server Interactive Session Request

EncryptedMulticast

Video

StagingProcessor

SDVServer

MasterSRM

EdgeQAM

QPSK

ContentSources

SDVManager

Management& Provisioning

ShellSessionSetup

Open Interface Specification

Video Content

Management

All interfaces are open and published

• Separates server from switch

• Based on IP Multicast• Separates switch from QAM


2) Reserve 37 for VOD

2) Join multicast for SDV ch8

DNCS w/App-Independent

Session and Resource

Manager (SRM)

GQAM

VODPump

0) Channel change

to SDV ch8 (HD)

3) SDV ch8 (HD)

-3) Give me 36x 625kb/s sessions

-6) set up CBR SPTSIP unicasts to Netcrypt

-1) Take sessionIDs 1-36 on GQAM X

-2) Reserve sessionIDs 1-36

“shell sessions” for SDV

1) Use sessID 12 for HD-SDV ch8incl: actual bit rate andmulticast addresses

4) SDV ch8

1) Buy VOD“Movie”

3) Send VOD “Movie”to GQAM X

4) “Movie”5) “Movie”

6) “Movie”

ServerInteractiveSessRequest/response

“Movie”37

Headend

SDV / VOD Session Setup Messages

DCMStaging

Processor

2) MiniCarousel

SDV ch8 (HD)12

SDVManager

-4) Provision SDV Servers

-5) set up multicast

CF sessions on Netcrypt

-5) DNCS sendsSourceIDs, multicast

addresses,bit rates to SDV

Manager

2) Tune toGQAM X

DNCS 4.2Master SRM

SDVManager

SDVServer

Netcrypt

DCMStaging

Processor

Hub


Optimizing the Design Parameters

• Minimize BlockingProvide enough stream capacity in a service group…

• Maximize EfficiencyUsing the right mix of programming content and resource sharing…

• Maintain FlexibilityWhile preparing for future growth in content and services…

• Optimize ValueWith an understanding of Total Cost of Ownership.

ServiceGroup Size

RF channelsAllocated

SDV ContentOffered

QAMSharing

SystemResiliency


Importance of QAM Sharing

• Better utilization of QAM resource

• Lower probability blocking with less combined overhead

• Better network resiliency with larger QAM pool

• Planning by aggregate demand

• No stranded capital


QAM Migration Strategy

Phased Approach = Minimize Stranded Capital

VOD

VOD

SDV

VOD/SDV

VOD/SDV

Narrowcast QAM Allocation by Service

VOD/SDV/Data

SDVVOD

VOD SDVSDVStage 1No QAM Sharing

SDV

SDV

VOD

VOD

Data

Data

Data

Stage 1.5Incremental VOD/SDVQAM Sharing

Stage 2VOD/SDVQAM Sharing

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

Data

Data

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

Stage 2.5Incremental VOD/SDV/DataQAM Sharing

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

Data

Data

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV

VOD/SDV/Data

Stage 3 VOD/SDV/DataQAM Sharing

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

VOD/SDV/Data

QAM sharing in GQAM provisioned by DNCS 4.2

QAM sharing improves system robustness


Network Attached Appliances

Establish foundation for next generation networks

Leverage Moore’s Law for cost/performance

Minimize Stranded Capital

Pay as you grow

IP/GbESwitch/Router

StagingProcessor

BulkEncryptor

LocalContentSources

BulkEncryptor

BulkEncryptorStaging

Processor

StagingProcessor Future

Appliances

RemoteContentSources

LocalContent Routing Network

ManagedIP Backbone

Add New Network Features

Add capacity for:• new programs• increased targeted advertising


Encoder Family

SD

HD

MPEG-2 MPEG-4 (H.264)

D9032•Dual Pass/High video Quality•IP and ASI Outputs•Open & Closed Loop Architectures•Shipping since Feb 2005

D9154•Dual Output (MPEG-2 & MPEG-4)•IP and ASI Outputs•Shipping since June 2005

D9034•H.264 encoder•IP and ASI Outputs•Available Feb 2006

D9050•IP and ASI Outputs•Open & Closed Loop Architectures•Shipping since March 2005

D9054•IP and ASI Outputs•Open & Closed Loop Architectures•Available May 2006


Next Generation Network-Attached Video Processors

• IP Network-attached

Add capacity as you need it, when you need it

Pooled resource

• High Density packaging

• 20 times the processing power

Transrating of up to 2000 streams SD (500 HD)

DPI Splicing capability of 1000 streams SD (250 HD)

• Improving at Moore’s Law pace


New Applications for Video Grooming

System Initiatives Effects on System

• More streams in system

• More transrating to improve b/w efficiency

Digital Simulcast

Growth of VOD

Growth of HD

Digital Ad Insertion

Switched Digital

• Many more simultaneous splices

• Hubs serving multiple ad zones

• Bandwidth Pressures

• Advertising on HD

• Bandwidth Pressure

• Advertising on VOD

• More stream processing

• Rate clamping (VBR to CBR)

Required Solutions

• Substantial increase in stream processing capability

• Improved Transrating quality

• Increase in simultaneous digital program insertions

• HD Digital Splicing

• Ability to process H.264 and VC1 codes

• Transrating of VOD streams

• Support of extensive redundancy reliability architectures

• Replicating multiple formats of the same streamContent Repurposing

•Multiple formats

•Stream replication


Business Benefits of SDV

Business Benefit Network Requirement Key Feature• Switched multicast

• QAM Sharing • Bandwidth efficiency

• Switched multicast

• QAM Sharing

• Integrated System

• Bandwidth efficiency

• Ease of adding new programs

1. Bandwidth Reclamation

2. Incremental Program Revenue

• SDV viewership data

• Network-attached next generation DPI

• Increased visibility to consumer demand

• Cost-effective DPI

3. Increased Targeted Advertising

• Network-attached appliances

• Multiple vendors

• Moore’s Law improvements in DPI

• Choice of DPI vendor

4. Personalized Advertising

• Network-attached appliances

• Multiple vendors• Ease of adding new features

• Choice of vendors5. New Competitive Features


• SDV offers important business benefits:

Bandwidth reclamation

Revenue from new niche and premium content

Revenue from targeted advertising

Migration to personalized advertising

New competitive features

• An open architecture - the essential first step

Standards-based IP multicast with open interfaces to all components

Features network-attached appliances that:

Leverages Moore’s Law cost/performance

Enables “pay as you grow”

Minimizes stranded capital

Stimulates innovation by enabling multiple vendors

Conclusions


NetCrypt HFCNetwork

S-A’s Switched Digital Video Solution

Settop with

SDV Client

VideoContent

IP Network

ControlIP Network

DCM

SDVServer

GQAM

QPSK

ContentSources

DNCS 4.2Master SRM

& SDVManager

4. QAM sharing with multiple applications

10. End-to-End System Solution and Integration

6. Standards-based session QAM

5. Standards-based Intel/Linux Server with N+1 redundancy

8. Next-generation video grooming

2. Master SRM for multiple applicationswith SSP2.3

3. Distributed SRM for scalable real-time performance

9. Planning and Operational Tools and Services

7. Standards-based Switch/Routers with IGMPv3 SSM

1. Fully Integrated SDV Client

sdv overview 042706

Technology

cisco systems

cisco company2

hd service2

hd mtv

new hd channels

hd channelsmore niche

us hh mil

idevolution of cable