This presentation, given by JC Morizur at TVNext 2012, outlines how service providers can use high quality multichannel audio to help them improve the quality of experience (QoE) and quality of service (QoS) of their multiscreen entertainment offerings. Topics covered in this presentation include the following: • What consumers are looking for in their multiscreen viewing and listening experience. • How delivering a high quality multi-channel audio experience enhances overall video QoE? • How providers are using adaptive audio and video bit-rate switching that seamlessly adjusts to bandwidth availability while maintaining a high quality experience. • Examples of how some vendors and service providers are using sound to differentiate their products and services. • How the audio experience impacts ad delivery and content monetization.

1. Sound Matters in Multiscreen Content
Delivery and Monetization
Jean-Christophe Morizur: Senior Director, Professional Solutions

2. Agenda
• Consumer Trends
• Provider Challenges
• Sound Matters
• Delivering High Quality Multi-channel Audio
• New Avenues for Multi-Screen Revenues

3. Multiscreen Consumer Trends
• Demand for Quality
• Demand for anytime access to video content
• Demand for advanced video services in the home
• Demand for anywhere access to video content
• The Living Room continues to rule
by 2016 about 352 million individuals will
be paying to access OTT internet TV
programming
80% of US Pay TV subs have access to
Multi-screen services
*Source: Generator Research - Digital Media Insight 2012

4. A new consumption model
From “what’s on right now”
To “what do I want to watch right now”
To “ who else is watching right now”
CONTENT
ROLE OF DEVICES?
CONSUMERS THINK IN TERM OF
EXPERIENCING CONTENT,
NOT THE SPECIFIC TECHNOLOGY
*Source: Ericsson TV Consumer Lab Study - 2011

5. Sound Matters
80 million
US consumers iden9fy themselves as audio enthusiasts
CEA Consumer Survey, 2011
39%
of all consumers are willing to pay more for higher quality audio
“Sound is 50% of the movie experience”
– George Lucas
“Long ago we realized sound was your “special friend”
because sound does at least 50% of the job.”
– Francis Ford Coppola
“You need to hear the athletes running, the bat cracking the ball. You
should be able to close your eyes and know what sport is on TV, whether
it is gymnas9cs, track and field, badminton, whatever.”
-­‐ Dennis Baxter, Emmy-­‐winning sound designer for the Olympics broadcasts

6. Opportunity for QoE improvement in Audio
Consumers increasingly are using mobile entertainment devices,
but do not believe these devices provide excellent sound quality.
Percentage of US consumers who
believe mobile devices provide
excellent sound quality*
*Source: CEA 2011 14% 8% 10%
Content delivered with wide dynamic range (e.g.: movies) are resulting in
a very poor playback experience on smartphones & tablet speakers.
Not loud enough Speakers sound muffled
No surround sound Can’t connect to my
Home Theater

7. Service Provider Opportunities
• Level up with the reference – HD PayTV and Blu-ray
• Drive end user expectations for quality video/ audio
– Service Providers can deliver a much better experience
– Consumers aren’t sure what’s possible or available for quality audio
• Deliver an optimal audio experience for all use cases:
– Cinematic surround sound in the living room
– Loud and clear playback over device speakers
– Immersive surround experience over headphones
• Ad Insertion – revenue opportunity

8. OTT/Online – Challenges
USER EXPERIENCE
QUALITY OF SERVICE
LIVE AND FILE (VOD) SERVICES
CONTENT DELIVERY COSTS
WORKFLOWS
COMPLEXITIES
DEVICE FRAGMENTATION
MONETIZATION MODELS

9. Delivering a Quality Experience
All elements of the ecosystem need to be aligned to
support a high Quality of Experience

10. Choosing a Multi-channel Audio Solution
Operational Requirements
Codec Adaptive Bit Device
One Stream
Scalability Rate playback
for All
and Support and decoder
Devices
Efficiency Ad Insertion behavior
Business Requirements
Consumer
Content Consumer CALM Act
Device
Availability Experience Compliance
Support

11. Support Adaptive Bit Rate Switching
ENHANCE QoE/QoS LOWER CONTENT DELIVERY COSTS
MPEG DASH
5.0Mbps 5.1 384Kbps APPLE HLS
SMOOTH STREAMING
QoE
3.5Mbps 5.1 192Kbps
1.5Mbps 5.1 192Kbps
1.0Mbps 5.1 128Kbps
QoS 0.8Mbps 2.0 96Kbps
0.0Mbps 1.0 32Kbps

12. Ad Insertion
• Unicast enables personalized ad insertion à $$$
• But … Ad Insertion must be “seamless”
• Main feed carries 5.1 – Ads are produced with stereo mix
• The Problem? Switching from 5.1 to 2.0 without “glitches”
5.1 5.1 5.1 5.1
2.0 2.0

13. The guarantee that it works
… in an open ecosystem
ENCODER CODEC A Testing Framework DECODER
ONE decoder Implementation
Tested for all devices
1
END-TO-END SOLUTION
Encoder
Transcoder
X
MULTIPLE decoder
Implementations
No guarantee it works
Poor QoE/QoS
ENCODER CODEC B No testing framework DECODER

14. Broad Support in Consumer Devices
Game
PC
Console
TV
Set Top
Smart Phones
Tablets
Blu-­‐ray
Home Theatre
OperaKng Systems
Apps Developers
Note: Above companies are representaGve samples and not an exhausGve list.

15. Fixing the playback shortcomings
Surround Sound VirtualizaKon
Dialog Enhancer
Immersive surround sound over: Stereo Dialog volume boosted
headphones and speakers
background noise subdued
Volume Leveling
Audio Regulator
CALM compliance
Prevents Audio Distor9on
Volume OpKmizer
5.1 Pass-­‐Through
Fine Tune Speakers playback
Connect to Home Theaters

16. New Revenues Opportunities
• Why is Surround Sound Essential?
• Compete effectively against other HD services and
packaged media (Blu-ray, UltraViolet, PayTV)
• Offer the best viewing and entertainment
experience
– Increase ARPU and customer base
– Develop offering and living room experience
• Enable Targeted personalized Ad Insertion
– Needs to work seamlessly

17. Bringing It All Together
17

18. Q&A