1. HD is coming to Europe…
…how to prepare your hotel
HTNG Europe conference, November 2008
2. CONFIDENTIAL Professional and Business Solutions, June, 2008 3
Royal Philips Electronics
Facts
– Founded in 1891, HQ in Amsterdam, the Netherlands
– No. 1 in Global Lighting and Patient Monitoring,
diagnostic imaging and male shaving
– Among the world top 3 Consumer Electronics
companies in served markets (€ 26,7 bln in 2007)
– Owner of 60,000 active patents
– No. 42 of the world’s most valuable brands
– No. 38 of the world’s most innovative companies
– Sustainability as the cornerstone of its strategy
PROPRIETARY
3. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 4
– Installed more than 7 million Hotel TVs worldwide
– More than 28 years of experience and commitment in the
Hospitality market
– 200 employees worldwide working dedicated for
hospitality
– Reached preferred supplier status with several of the
major international hotel chains
– Very close working relations with most System
Integrators, offering Hotel TV entertainment
– Proven backwards compatibility over time
Philips Hospitality
5. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 6
History of HDTV in the US (1/2)
Market has completely switched from CRT to LCD
– LCD revealed poor quality of analogue broadcast signal
FCC has guided the market to move to new digital standard
– FCC has directed the market to digital (NTSC > ATSC)
This paved the way for HDTV as well
NTSC
PAL
HD
All covered with ATSC
6. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 7
History of HDTV in the US (2/2)
For the consumer, switching-barriers were kept low..
– Built-in digital tuner is now mandatory in the US (for 20” and larger)
– Government offered set-top box vouchers, for people unable to buy new TV
– For cable and satellite set-top boxes were often offered by the provider
Buy HD-ready flat screen Change subscription to digital Watch digital TV
HD became common for US consumer
as it was part of the digital package
7. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 8
There’s no central European legislation (like FCC)
– Countries pick their own time for analogue switch-off
– Countries pick their own distributions standards
(DVB implementation differs per country)
Many languages, many different channels
– All countries have their own channels in their language
– There’s no European must-carry regulation
What is happening in Europe (1/3)
Europe is different…
8. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 9
What is happening in Europe (2/3)
Planning analogue switch-off*
2010 2007
2007
2008
2010
2006
2012
2008
2010
2012
2011
2010
2012
Determined
by region.
Between
2008 and 2012
*Terrestrial / over-the-air
9. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 10
What is happening in Europe (3/3)
DVB-T MPEG4 developments
Denmark, 2009
MPEGP4 SD
MPEG2 switch off 2010
Sweden: MPEG4
SD mux added in 2008?
MPEG4 HD follows in
2010?
Estonia / Lithuania:
MPEG4 SD channels
since Dec.2006
Latvia still MPEG2
Poland: 7 MPEG4
channels in mid 08?
Hungary: MPEG4
selected , launch
expected 2008-2009
Slovenia: MPEG4
selected, launch in 2008
UK, commercially 2009?
Ireland start end 2008,
beginning 2009
France: 3 HD FTA
channels in Q4 08/
pay-DVB-T platform
Portugal: spring 2008?
Spain: Trial,
commercial 2010?
After ASO Italy: Trial
10. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY
Technical standards for consumer market all in place
– Blu-ray disc, HDCP, HDMI, HD ready / Full HD
All major studios now releasing new movies in HD on Blu-ray Disc
Nevertheless…
HD is coming to Europe anyway (1/2)
11
11. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 12
HD ready penetration of European TV-households
is already 23% (2007 EOY)
– 37mio HD ready TVs sold so far, from which 22mio in 2007
Already > 135 HD broadcast-channels available in Europe
– And many other broadcasters preparing
Nevertheless…
HD is coming to Europe anyway (2/2)
HD will soon be common
for European consumers as well !
13. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 14
TV is a must for hotel guests…
Score 6-7 with 7
meaning fits perfectly
Ambience
Infotainment
N-5408, US, Germany and China
Ideal technical amenities/aspects guest room
14. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 15
But often…
Perceived as ‘below standards’
Aspects below standards in the real world
N-5408
Score 1-2 with 1
meaning almost
always below
15. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 16
Ignoring HD
– will drive this experience even further away from the
guests standard, as HD will be perceived as a standard by
consumers soon
Offering HD
– will enable the hotel to meet customer expectations on
in-room-entertainment again
– will enable the hotel to maintain and increase room rates
and occupancy, as guests will return to hotels,
that do meet their expectations
So next step to HD…
Cannot be ignored by hotels (1/2)
16. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 17
So next step to HD…
Cannot be ignored by hotels (2/2)
– “With the rise of competing media like internet and mobile
devices, the role of TV in the guest-room is changing.
Among all these alternatives, the differentiator for the TV
will be high quality picture & sound. I therefore believe
that HD will be the new standard for TV. For hotels, today
it will still be a differentiator. Tomorrow however, HD will
be a must, just like it happened with wireless internet. And
tomorrow always comes sooner than we think. “
David Esseryk,
Innovations & Technology Manager
Accor Hotels
17. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 18
1. In the US the (consumer) market was smoothly guided to HD
With the forced transition to digital
2. In Europe the transition to digital and HD is more fragmented
Everything differs per country, no European legislative
directives
3. Nevertheless, HD is coming to Europe anyway
Both living rooms and content providers are ready
4. And this cannot be ignored by hotels
TV is a must for hotel guests, and often already perceived as
below standard
What have we learned so far
18. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 19
What does it take to offer HD
In your hotel
19. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 20
What does it take to offer HD
In your hotel
1. HD TV channels
Already 136 channels available in Europe
2. HD TV VoD movies
First HD movies now available for release in early hotel window
3. HD prepared infrastructure
System integrators are now preparing for HD
4. HD prepared TVs
New Professional TVs for hospitality market are all HD ready
IPTV
20. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 21
Learings from HDTV in the US
Hotels were different…
Hotel-chains were seen as an “extension” of the consumer market
– Hotel televisions were categorized as “consumer” under FCC guidelines
– Content security was not at the forefront of the FCC agenda
Hotel-chains were NOT able to make the move to HD
– Infra-structure in hotels was not prepared for content-protected movies
– Content Protection measures were still very immature
Hotel-chains did not meet customer expectations anymore
– Digital TV and HD had become common in the living room
– Hotel guest rooms were still analogue
21. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 22
HD requires additional
Content Security measures
– “The protection of content is first and foremost in the
minds of both Filmbank and the film studios it represents
for all its markets including content distributed via hotel
in-room systems.
With the advent of HD being available in hotel rooms, the
protection of copyright is further heightened and any
system which provides a great level of security for all
available content is gladly received by both Filmbank and
the copyright owners (the film studios).”
Majella Griffin,
General Manager
Filmbank Distributors Limited
22. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 23
HD requires additional
Content Security measures
– “We are in discussions with the various right owners in
order to be able to offer HDTV programmes to guests in
Premiere Hotels as well.
However, the Hollywood studios in particular
require a special protection for HD content,
which, at present, cannot be sufficiently guaranteed by us.
We are already working on technical solutions together
with the right issuers as a matter of urgency.”
Tonio Fruehauf,
Vice President Hotel & Gastronomy
Premiere Hotel Entertainment GmbH
23. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 24
4. HD prepared TVs
New Professional TVs for hospitality market are all HD ready
5. HD Content Security
HD requires additional Content Protection…
5. HD Content Security
…and Content Identification measures
IPTV
25. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 26
Current HD content security solutions
There are lots of content security solutions already available,
these are however…
– Often mass-market focused
– Often Video on Demand focused
– Often lacking session-based content identification
– Often suited either for RF or for IP distribution only
– Often set-top box only
None of these solutions
truly covers all hospitality market needs
26. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 27
Specifically developed for hospitality market
Widely applicable
– Can be implemented in a set top box, as well as directly in the TV.
– Compatible with both DVB (over RF) as well as IP (over ethernet).
Easy to implement
– Can be implemented on existing encryption and decryption hardware.
Open
– Will be made available to the industry (system integrators, head-end
providers, STB providers and TV providers) through a licensing model.
A new open standard
for hospitality is proposed… (1/2)
27. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 28
VSecure (Content Protection)
– Ensures protection of content against interception & copying
while being distributed (in digital format) in the hotels
infrastructure
VTrack (Content Identification)
– Enables detection of illegal analogue copies afterwards, by
incorporating an imperceptible watermark in the content before
presenting it in the TV-screen
A new open standard
for hospitality is proposed… (2/2)
28. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 29
A new open standard
for hospitality is proposed
IPTV
VSecure
Content Protection
VTrack
Content Identification
30. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 31
Approved by content providers…
– “Filmbank welcome the launch of the new Philips security
system into the technology marketplace.
The Philips system has been tested and approved by a
number of studios represented by Filmbank Distributors,
meaning that a wide variety of content will be available to
hotels who implement the system into their rooms.”
Majella Griffin,
General Manager
Filmbank Distributors Limited
31. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 32
Embraced by system integrators…
– “The ability to provide HD content in the hotel room will over
time become the de facto standard and Quadriga recognise
that the protection and security of this HD content will be a
pre requisite for the content owners. To ensure that going
forwards Quadriga can continue to offer a compelling
selection of entertainment for hotel guests it is critical that a
robust and secure mechanism is in place. Quadriga
therefore welcome Philips initiative to introduce a specific
open content protection solution for the hospitality market.”
Marc Budie
Technology Director
Quadriga
32. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 33
Embraced by system integrators…
– "We strongly believe in the importance of offering HD
content in the next generation hotel room and are hence
pleased that Philips will introduce a complete and cost-
effective content-security platform for HD in hotels. As it is
an open and easy-to-implement solution, we think this is
a serious challenger to become a standard in the
European hotel market. We therefore intend to support
this solution in the future."
Lorenzo Baroni
Group Managing Director
VDA Multimedia
33. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 34
Embraced by system integrators…
– “At the moment, we are a forerunner in offering HD
content in hotel environments, with several
implementations up and running already. Therefore we
are thrilled with Philips introducing an approved and open
HD content security solution for the hospitality market and
intend to implement this solution in the near future”.
Markus Hiebeler
CEO
Deuromedia
34. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 35
Embraced by system integrators…
– “We strongly believe in the importance of offering HD
content in the hotel room and are therefore excited that
Philips will introduce a complete and cost-effective
content-security solution for HD in hotels. Since it is
specifically suited for the hospitality market and open to
the industry, OTRUM welcomes and fully supports this
solution”
Nigel Bateson
Vice President products
Otrum
35. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 36
Embraced by system integrators…
– “We strongly believe in the importance of offering HD
content in the next generation hotel room and are
therefore excited that Philips will introduce a complete
and cost-effective content-security solution for HD in
hotels. We have already committed on supporting &
implementing this solution as soon as available”
Alistair Forbes
CEO
Acentic
36. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 37
Embraced by head end providers…
– "VideoPropulsion is proud to be a launch and
development partner in the Philips VSecure System. We
strongly believe that adding Philips VSecure digital
content protection technology to our products will help
expand the market for High Definition Linear and VOD
services in hotels around the world. VSecure's
combination of Open Standards, Advanced Technology
and High Security make it a great choice for Hoteliers and
service operators."
Don Woelz
Vice President Marketing
VideoPropulsion Interactive Television
37. CONFIDENTIAL Professional and Business Solutions, June, 2008
PROPRIETARY 38
…and built-in…
In new Philips hospitality range
Philips Ultimate HD
With VSecure & VTrack
Coming next year...
