4K transmission via satellite – Today’s Trends and Tomorrow’s Evolution Christoph Limmer, Vice President Global Sales and Commercial Development, Video

Market environment

Key success factors & Commercial activites

AGENDA

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Over 800 Ultra HD channels within the next 10 years predicted*

With more than 2/3 of channels distributed, Direct-to-Home will drive Ultra HD roll-out*

Growth mainly driven by North America, Western Europe and East Asia

The eco-system for UltraHD is already more established by comparison to the initial HD development life-cycle

Prices for Ultra HD TV sets have already reached affordable price points and are largely available in-store

Broadcasters have already started launching commercial Ultra HD offerings to subscribers

ENCOURAGING MARKET OUTLOOK FOR ULTRA HD

*Nothern Sky Research, 2014 3

Over 800 Ultra HD channels within the next 10 years predicted with a CAGR of almost 50%*

Growth mainly driven by North America (40%), Asia (17%) and Western Europe (14%)

HTS will support roll-out in selected regions, notably in North America and Western Europe

PREDICTED ULTRA HD CHANNEL GROWTH

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100

200

300

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900

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

*Nothern Sky Research, 2014

Number of UltraHD Channels*

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SATELLITE TO DRIVE ULTRA HD CHANNEL GROWTH

*Nothern Sky Research, 2014

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100

200

300

400

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800

900

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

DTH Others

Both, in terms of channel numbers and revenues, DTH remains the largest opportunity for Ultra HD

With almost 70% of channels distributed via DTH platforms, satellite will drive Ultra HD roll-out*

For 2015, already 12 UltraHD channels via Satellite are expected

Number of UltraHD Channels by platform*

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NORTH AMERICA DRIVES CHANNEL NUMBERS

*Nothern Sky Research, 2014

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100

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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

NAM LATAM WEU EA RoW

By 2025, more than 550 Ultra HD channels being broadcasted via DTH worldwide*

Almost every second Ultra HD channel in 2025 via satellite will be broadcasted over North America

12% of channels will be transmitted over Latin America by 2025 and first channels are expected by 2016

Number of UltraHD Channels by region*

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PREMIUM VIDEO NEIGHBOURHOOD FOR LATAM

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New hotspot for LATAM at E65West A

Launch date: Q1 / 2016

Eutelsat E65West A will serve the expanding markets across Latin America and Brazil

E65 West A is a premium slot with excellent elevation angles and the most important neighborhood for Pay TV in Brazil

Satellite will support the roll-out of Ultra HD in LATAM and Brazil specifically

Market environment

Key success factors & Commercial activites

AGENDA

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The right content

The right standards

The right equipment

The right demand

The right distribution

KEY FACTORS FOR SUCCESSFUL ROLL-OUT

The role of satellite to drive

Pre-requisites for Ultra HD

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COMMERCIAL OFFERS ALREADY AVAILABLE

“Netflix launches 4KTV streaming offer”

“DirecTV first multi-channel provider to deliver 4K to home”

“The Weather Channel’s plans” to fully convert to 4K by 2018”

“Sky delivers first 4K TV broadcast in the UK”

“Sky Germany launches UHD demo for IFA 2014”

“Over-the-air 4K broadcast of (Roland Garros) French Open”

“Rai screens 1st UHD Documentary (Rossini) and “La Boheme””

“BBC showcases Wimbledon and Wildlife Documentary in 4K”

“Red bull gives wings to 4K”

“Tricolor TV launches 4K channel”

The right content

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Major feature films & sports events e.g. FIFA World Cup™ 2014 already captured in 4K

150 feature films and TV shows were available as UHD master copy and almost 800 in UHD source format by 2013

UHD expected to serve a growing segment of TV homes (with > 55’ screens)

The right content

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COMMERCIAL OFFERS ALREADY AVAILABLE

STANDARDIZATION ALLOWS PLANNING THE FUTURE

The right standards - UHD Phases

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more pixels

HEVC Main 10

3840 x 2160 pixels

at 50/60 fps

10-bit color depth

DVB standardized

Super Hi-Vison

7680 x 4320 pixels

e.g. by NHK

better pixels

Higher Dynamic Range (HDR)

at 100/120 fps

more colors

better audio

UHD-1 – 4K Phase 1 UHD-1 – 4K Phase 2 UHD-2 – 8K

Now in EU by 2016-2017 in EU by 2020

Technology development of Ultra HD is ongoing

Current data rate via satellite is about 25 Mbit/s with better encoders the bitrate can go down to 20 Mbit/s in 2015-2016 with HEVC bandwidth cost become affordable for broadcasters

Ultra HD is encoded in HEVC – High Efficiency Video Coding

CONSUMER EQUIPMENT “ULTRA HD” READY

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The right equipment

Production

Home Equipment

Ultra HD cameras and encoders are available; although still at higher price levels

Over 2000 UHD cameras units were shipped by April 2014

Companies such as Ateme, dbw, Ericsson, Grass Valley, Hitachi, Panasonic IDC, SMARDTV, Sony, TOYS etc. are actively supporting the Ultra HD trials and productions

Ultra HD–HEVC chipset are available from several manufacturers

Over 12 mill UHDTV sets already shipped globally by CE manufacturers such as Grundig, JVC, LG, Panasonic, Samsung, Sharp, Sony etc. Forecasts revised upwards, x 2 in 2014

First 4KTV STBs are coming to the market from different manufacturers such as Arris, Cisco, Humax, Pace, Technicolor etc...

MAXIMIZING QUALITY – WHAT IS NEEDED TO MAKE IT HAPPEN?

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The right equipment - at home

HEVC demo channels up to (50/60 fps)

First commercial channels (50/60 fps) HEVC (single tile)

DTH channels via satellite

2013 2014 2015 2016 UHDTV 1 (4k TV)

Demo channels Quad HD (MPEG-4)

UHDTV Game stations

UHDTV Game stations

UHDTV Camcorders

UHDTV Consumer Camcorders (up to 30 fps)

Ultra HD Blu-ray players

Ultra HD Blu-ray players and discs (with HEVC + HDR)

TV sets with DVB-S2 &

HEVC decoder

UHD TV sets with DVB-S2 & HEVC decoder (up to 60 fps)

UHD TV sets HDMI 1.4 (30 fps) UHD TV sets with HDMI 2.0 (up to 60 fps)

UHDTV HEVC Set Top Boxes

UHD HEVC (30 fps) UHD HEVC STBs (50/ 60 fps)

SCREEN PRICES IN COMPARISON MORE AFFORDABLE

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The right equipment - at home - price trends

UHD screens saw a 36-41% price decrease between April 2013 and April 2014

The price comparison shows that UHD screens exhibit a similar price entry point and price decrease as Full HD screens did when first introduced

F-HD & UHD Price Comparison (EUR)

HIGH CONSUMER ACCEPTANCE

16 * Source: GfK, IHB, Ericsson Consumer Lab, Strategy Analytics 2014

The right demand

2/3rd of consumers would like to have an UHD screen once they have seen it

Every 4th consumer would be ready to pay more for receiving High or Ultra High quality (Ericsson Consumer Lab 2013)

55% of European consumers would buy U-HDTV (Strategy Analytics Consumer Metrix 2014)

8%

39% 12%

19%

22%

MEA APAC LATAM NAM EUROPE

UHD Screen Sales per Region in 2020

DISTRIBUTION VIA SATELLITE PROVIDES KEY ADVANTAGES

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COVERAGE IMAGE QUALITY TIMETABLE BANDWIDTH

AVAILABILITY

Satellite +++ +++ ++ +++

Cable + +++ ++ +++

DTT ++ +++ + +

IPTV + ++ +++ +

OTT ++ + +++ +

The right distribution - Status of Ultra HD per infrastructure

Satellite performance against terrestrial networks

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Eutelsat is driving 4KTV partnerships globally

EUTELSAT ACTIVELY SHAPES THE ULTRA HD ENVIRONMENT

Network Partners Device Partners Content Partners

The UHD Alliance is a global coalition of leading film studios, TV brands, content distributors, post-production and technology companies that aim to create a unified criterion for premium UHD, from devices to content including next generation features like as 4K resolution, High

Dynamic Range, Wide Color Gamut, High Frame Rate and Immersive Audio.

Market forces team-up for 4KTV mass market

INDUSTRY JOINS FORCES

UHD Alliance Members:

DIRECTV

Dolby

LG

Netflix

Panasonic

Samsung

Sharp Corporation, Sony

Technicolor

Walt Disney Studios

Twentieth Century Fox

Warner Bros. Entertain.

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CONCLUSIONS

* Source: GfK, IHB, Ericsson Consumer Lab, Strategy Analytics , NSR Research 2014

UHDTV growth worldwide

By 2020

By 2025

200 UHD channels

100 mil UHD screens

50 mil HEVC STB’s installed

+800 UHD channels

>500 mil UHD screens

400 mil HEVC STB’s installed

UHD will become mass market in the next decade by 2025 half of all screens and STB’s sold will be UHD

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CONCLUSIONS

Ultra HD availability is already much higher than what immediately comes to mind

Ultra HD devices are already in the living environment and actively used

Chinese manufacturers offer Ultra HD TV sets for less than US$1,000

Film studios already produce massively Ultra HD content

Ultra HD is in a much better position moving forward compared to the initial HD development life-cycle

Eutelsat satellites are UHD ready and do already deliver Ultra HD direct-to-home and to other infrastructure (feeding and de-congesting)

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Thank you very much for your attention

For further information or questions please visit us at

EUTELSAT Stand SU6713

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