1. © CHR Solutions. All Rights Reserved. Over the Top 2012 ACE School and RUS Symposium Sam Harlan, P.E. Vice President Engineering CHR Solutions, Inc.

2. © CHR Solutions. All Rights Reserved. Over the Top Services Over-the-top is a general term for a service offered over a network that is not offered by that network operator. It's often referred to as "over-the-top" because these services ride on top of the service you subscribe to and does not require any business or technology affiliations with a network operator.*network operator *itvdictionary 2

3. © CHR Solutions. All Rights Reserved. OTT Devices TiVo AppleTV GoogleTV Microsoft Xbox 360 Amazon Fire Nintendo Wii Playstation Roku Vudu Some HDTV Sets – 25% world wide have capabilities Some DVD/BluRay Players PC, Tablets and Smartphones 3

4. © CHR Solutions. All Rights Reserved. Content Netflix - $7.99/month streaming – older releases Amazon Prime – $79 per year = $6.59/month Rhapsody Flickr Twitter VUDU – Walmart $1.00 to $5.99 per video. No subscription Hulu - free Hulu + - $7.99 YouTube – UGC free iTunes - $3.99 to $5.99 per video no subscription 4

5. © CHR Solutions. All Rights Reserved. Codecs and Bit Rates SourceCodec Highest resolution (W×H) Total bit rate/bandwidth Video bit rateAudio bit rate Amazon Video On Demand Amazon Video On Demand (formerly "Unbox") VC-1 [2] 1,280×720 [3] [3] 2.5 Mbit/s [3] [3] BBC iPlayerH.264 [4] 1,280×720 [5] [5] 3.2 Mbit/s [4] [4] 3 Mbit/s [4] [4] 192 kbit/s [4] [4] CBS.comCBS.com/TV.com (720p)TV.com1,280×720 [6] [6] 2.5 Mbit/s [6] [6] CBS.comCBS.com/TV.com (1080p)TV.com1,920×1,080 [6] [6] 3.5 Mbit/s [6] [6] DaCastVP6VP6, H.264 [7]H.264 [7] 7680×43205 Mbit/s [8] [8] HuluOn2 Flash VP6 [9] 1,280×720 [10] [10] 2.5 Mbit/s [11] [11] iPlayerHD FLVFLV, Quicktime H.264, MP4 H.264 [12]QuicktimeH.264 MP4H.264 [12] 1,920×1,080 [13] [13] 5 Mbit/s [14] [14] iTunesiTunes/Apple TVApple TVQuickTimeQuickTime H.264 [15]H.264 [15] 1,280×720 [15] [15] 4Mbit/s [16] [16] Netflix Watch InstantlyVC-1 [17] 1,280×720 [18] [18] 5 Mbit/s [19] [19] 2.6 Mbit/s and 3.8 Mbit/s [20] [20] PlayStationStore Movies & TV Shows H.264/MPEG-4 AVC [21] 1,920×1,080 [21] [21] 8 Mbit/s [21] [21] 256 kbit/s [21] [21] VimeoH.264 [22] 1,920×1,080 [23] [23] 4 Mbit/s [24] [24] 320 kbit/s [25] [25] VuduH.264 [26] 1,920×1,080 [27] [27] 4.5 Mbit/s [28] [28] YouTubeH.264/MPEG-4 AVC4,096x2,304 [31] [31] 5

6. © CHR Solutions. All Rights Reserved. How Large are the Files? A 2 hour Standard Definition Movie is about 2 Gig. A 2 hour High Definition Movie is about 4 Gig. U.S has > 23 million subscribers In total, Netflix has over 1 Petabyte of data stored on Amazon, and the data are sent to content delivery networks (including Akamai, Limelight, and Level 3) that feed the content to local ISPs.*Petabytecontent delivery networksAkamaiLimelightLevel 3 OTT Downloads are large, generally occur between 7:00 PM and 10:00 PM when traditional web traffic is high. *Netflix 6

7. © CHR Solutions. All Rights Reserved. And Traffic is Exploding

8. © CHR Solutions. All Rights Reserved. How is OTT Consumed? Viewing Devices – Movies on Large Displays – PC’s – Tablets – Mobile Phones – 3G and 4G LTE Locations – Home – Hotels – Airports – Mobile – Tractors 8

9. © CHR Solutions. All Rights Reserved. How Many Connected Devices? Over-the-Top (OTT) video entertainment via broadband connections is set to nearly triple from 2011 to 2015. By 2015, OTT capable product shipments are anticipated to rise to 731 million units, up from 258 million in 2011, according to IHS iSuppli Consumer Platforms. OTT capable devices are projected to reach 384.8 million units, up nearly 50 percent from 2011. The expansion this year of the OTT market comes on top of a remarkable 68 percent increase in 2011. 9

10. © CHR Solutions. All Rights Reserved. 10

11. © CHR Solutions. All Rights Reserved. How to Monetize OTT? Compete for the Broadband Pipe Local Content using a web portal or VOD server – High School Sports – Community Plays Paid Local Content via PPV – Relatives in Distant Areas Manage the Entertainment Experience Any Other Options? 11

12. © CHR Solutions. All Rights Reserved. Summary OTT is not going away, many devices and many providers Movies and TV Shows are vastly different than web browsing Large payloads Poor quality is very apparent Move toward streaming instead of downloading Usage is usually during Prime Time OTT usage is increasing Quantity of Devices and Displays are increasing Greatest Increase in Mobile (SmartPhones and Tablets) MUST MANAGE BANDWIDTH and BACKHAUL!!!!!! 12

13. © CHR Solutions. All Rights Reserved. 13 Questions