Extraordinary TV for Everyone

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1 Extraordinary TV for Everyone 1

2 What is YouView? Subscription free TV service with over 70 live digital channels Seamlessly combines seven day catch up on major UK on demand players: BBC iplayer, ITV Player, 4oD and Demand 5 Record, pause and rewind live TV functionality including HD a simple extensive search feature across live TV and on demand Access to a range of other on demand content Offered as part of broadband bundles from TalkTalk and BT and also available to buy from all major retailers in the UK 2

3 Why does YouView exist? To protect the future of free to air TV in the UK To seamlessly combine the best of live and on demand in one easy to use box via the main TV set To create new revenue streams for broadcasters, internet service providers and device manufacturers 3

4 Why is YouView different? Because we think the Killer App on TV is TV: it s about more TV on TV not the internet on TV It is open to all participants in the market on a fair basis: it works with any ISP connection Any manufacturer can make a YouView device Any content provider can run their own VOD service on YouView using their own revenue generating model We provide a standard and easy to use User interface with standardised navigation and importantly consolidated metadata so all content is curated 4

5 The structure A seven way equal JV governed by a complex Shareholder agreement Our shareholders cover broadcasting, broadband provision and infrastructure We work on an open basis negotiating all arrangements at arms lengths whether shareholder or not 5

6 What does YouView do? The set top box & user interface The back end systems The marketing function 6

7 What s in the Set Top Box? 7

8 At the heart of the YouView service is a metadata platform This provides all electronic programme guide information, menus, and cross-content provider search and parental control DTT DVB-T DVB-T2 Content Provider A B2B Interface YV STB Content Provider B Content Provider C Metadata Originating Party α B2B Interface YV CCO B2C Interface CP A APP CP B APP YV Platform + App STB Platform CP C APP 8 Content from CPs Content Cloud (CDN / OTT)

9 What does a customer need to get YouView? 1. Good broadband linespeed or you get video buffering - we specify a 3 Mbps average line speed 2. DTT reception normally through a roof aerial 3. We provide an availability checker that covers the entire UK and checks DTT coverage and line speed

10 Consumer benefits Provides a simple and easy way to upgrade for Freeview customers to next generation television ie the synthesis of linear and non linear content without losing any current services Very easy to use and very easy to install At its core its free so no subscription is required Provides a way to securely purchase additional premium content if wanted 10

11 The level of ambition Freeview is the prime television delivery mechanism for nearly 11 million UK homes Approximately 60% of them currently have a broadband connection with speeds capable of receiving a reliable YouView service Over time we would like all of those homes to have YouView as their prime source of television 11

12 Interoperability YouView took some time to get from initiation by the BBC to market in July 2012 As far as possible open standards were used but our development pre dates many current connected products so is not completely aligned We understand the benefit from economies of scale in using a base level of common standards Our device has some specific functionality to support our shareholders business models YouView includes a common, mandatory user interface, hardware based security and to allow dynamic serving of advertising and other content via a media player Metadata is delivered in a managed, standardised specification which YouView controls. This allows for rapid changes allowing us to support new features such as advanced search functionality and parental controls/child protection These additional features allow a broad range of business models and the delivery of premium as well as free to air content 12

13 Interoperability In some areas we are closely aligned with Hbbtv eg the DRM solution, the streaming technologies In others we are not: the presentation layer for content providers is Flash not html, the metadata interface for delivery to the device is managed by YouView and not standardised and we do mandate a common device User Interface It may be possible to align some additional elements of technology but given the specific commercial requirements of platform operators and content providers a single solution across all devices is not practical 13

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