Transvision Co-Branding

H y b r i d M e d i a s e r v i c e
CONTENTS I. Overview

II. Our Plans

III. Co-Branding
- Business Plan

- Pricing Strategy 1

IV. Transvision’s Contents

V. Scope of Work

VI. Project Milestone

VII. Opportunity Analysis

1. Overview

Indonesia ISP operators Overview

◆ ISP’s interest in media is increasing due to Telco’s FMC movement and OTT’s direct B2C approach to users

◆ Some ISPs initiating their own OTT services, but success still questionable.

▪ Business model of ISPs should be subscription, but unclear who this service models is for.

▪ They ignore the importance of basic contents they must provide, not for STB sales, but for customer loyalty

* Learn from Korea IPTV Pay TV operators

▪ More than 60% of expenditure was invested for contents to maintain the subscription recurrency.

▪ To Succeed PayTV service = No benefit, no high recurrency

2. Our Plans

Multicast

Cibinong Satellite center ISPs and End users

Mux Widevine
RMS Hybrid
system CAS DCS MLR
STB

❖ Widevine CAS : commercialized at linknet @2020
▪ Offers no license cost – no impacts to SoC & STB price
❖ RMS : Remote management system
▪ Offers smart way to manage STB & customers
▪ True white labeling service to be supported
❖ DCS _ Dish convergence system : Satellite to IP multicasting
❖ MLR & FCZ solution : multicast loss recovery and fast channel
zapping solution
❖ Hybrid STB : Best user interface & user experience
▪ Offers Google youtube and 3rd party apps
2. Our Plans

Solution proven in Korea IPTV PayTV market covering

Millions of subscribers

❖ User’s new trend : “Cord shaving” as opportunity in Korea vs OTT invasion

Korea PayTV operators movement to support user’s “Cord-shaving”
• Constant demand for higher definition live channel increase
• IPTV is price-wise approach to deliver HD video with less burden of bandwidth

Platform operators combining OTT services

• POP (platform of platform), for users to experience various OTT services in ONE platform

Live channels as main BGM (back ground media)

TVSTORM is confident in technical aspects &

trust that this can be adopted in Indonesia market.
Transvision contents standing on top ecosystem as a main BGM
2. Our Plans

Hybrid Media Service with Multicast

◆ Difference between multicast and unicast service for linear contents

▪ Multicast requires the bandwidth based on the number of channels.

- For PayTV service, It is necessary to build a multicast network that can provide QOS guaranteed Live channel service.
- Network(CDN) costs can be reduced when deploying media service over multicast.

▪ 2. Unicast requires the bandwidth based on number of users & request.

- Must expand the CDN system as Subscriber grows
- Even installing multiple caching servers at one edge, eventually will meet the limitation.

◆ Theory, but true ..

▪ In case of live service with unicast

- Bandwidth per a Live channel : 2M
- Required network bandwidth on ISP : 1000 Subs x 2M = 2G
10,000 Subs x 2M = 20G
100,000 Subs x 2M = 200G
* Of course, the required bandwidth decreases depending on the caching rate of the CDN.

▪ In the case of live service with multicast : 200MB enough.

2. Our Plans

Why Multicast / Bandwidth Wise

ISP with multicast ISP with OTT

FIXED DYNAMIC DYNAMIC

Bandwidth for Bandwidth for VOD or Bandwidth for VOD or
channel services 3rd party services 3rd party services
INTERNET INTERNET
Network Network
Bandwidth Bandwidth

VS.
Additional
VAS
IPTV SERVICE USER GROUP OTT SERVICE USER GROUP

NETWORK
MANAGEMENT
EFFECTIVENESS INTERNET SERVICE USER GROUP INTERNET SERVICE USER GROUP

A. MULTICAST Hybrid media service

1) Utilize the fixed BANDWIDTH area for true high definition CHANNEL services
2) From the operator's point of view, network traffic can be predicted
- Possible to increase the number of subscribers with little burden.

B. OTT SERVICE
1) As it adopts a unicast method, individual streaming data transmitted from the server could burden the network.
2) As the number of subscribers increases, more network costs are likely to be incurred
2. Our Plans

Why Multicast / Business Wise

ISP USER
VERIFICATION
TVSTORM
GENERAL
WV CAS
WV CAS ID ID / PW OTT BOX
STB

SERVICE PROVISION BASED ON PROVISION OF SERVICES BASED ON

STB INFORMATION USER ACCOUNT INFORMATION
STB AUTOMATICALLY checks whether a user has permission OTT BOX MANUALLY checks whether a user has permission to use
to use ISP services through WV CAS ID

SUBSCRIBER
MANAGEMENT A. FEATURES OF SERVICE ACCESS
EFFECTIVENESS 1) WV CAS APPLIED PLATFORM
: User’s ACCOUNT INFO. is important in the subscription business, Operator can easily manage user together with CAS information.
: Users cannot churn their subscription by, such as, selling STB to others and subscribing as a new user.
2) OTT PLATFORM : Since the user directly manages the account information, transfer or service churn is relatively easy.

B. SUGGESTED MARKETING STRATEGY WITH WV CAS

1) ISP as operator with IPTV platform, would be easier to manage longer subscription business
2) It will be expected TO PREVENT CHURN USERS by setting, such as, 1) a penalty for subscription churn within the
contracted period, and by applying larger discounts by 2) subscribing period, or 3) when using internet services together
2. Our Plans

◆ Transvision’s new approach to market

▪ Transvision’s new approach to ISP’s Subscription oriented business that support Less churns and High Recurrency

OTT True Hybrid ❖ What Transvision can offer to ISPs and telco ?

lean forward ▪ True high quality and premium live channels : no

U High expectation
= Netflix syndrome
S subscription business
E
R
S ▪
Main config Home or sign in menu
Easy to initiate, difficult
ISPs
to retain users
* Easy come easy go
Biz MAU driven
- Monthly active users
model
- 3rd party apps
lean back
bandwidth or CDN stress
Lower expectation (patient) ▪ Management of the STB with CAS ID : helps ISP
▪ Widevine CAS will not increase STB license cost
White labeling services
▪ Multicast loss recover solution with Fast channel zapping
+ experiences to satisfy the end users
▪ Ready STB for deployment (MOQ ?? )
▪ Attract new subscribers and upsell bandwidth / data
FHD Live channels plans to existing customers
▪ Optimize / save bandwidth via multicasting technology
Difficult to initiate,
easier to retain users ▪ Fast channel zapping & avoiding jitter (packet loss) for
customer satisfaction
▪ No need for contents and its management investment
Subscription
▪ 3rd party apps revenue share
- Subscription oriented
- ARPU
- 3rd party apps
3. Co-Branding Business Plan

ISP/Telco
Operator
Collaboration with tvstorm
USD “X” USD “Y”

Bundling monthly
subscription with broadband
subscription

◆ USD X : total content subscription & device rental

◆ USD Y : total content subscription and device rental – ISP/Telco revenue share
◆ Minimum contract of ??? years with option to renew another ??? Years between ISP/Telco & Transvision
◆ Minimum device order per batch is ???? Units
◆ Subscribers minimum contract 2 years
3. Co-Branding Pricing Strategy 1

ISP/Telco
Operator
Collaboration with tvstorm
USD “X” USD “Y”

Bundling monthly
subscription with broadband
subscription

Broadband package USD “X” USD “X” USD “X”

Internet Speed Basic Standard Premium

Media package policy Full HD ?? Ch + SD ?? Ch

Transvision subscription USD ????

Transvision STB rental USD Y (Revenue share with ISP/Telco) / incase ISP/Telco do not purchase the STB

Final retail price USD “X” + Transvision Subscription + “Y”

4. Transvision’s Contents

◆ Simple the Best, Single High QoS quality Channel + VoD + Catch up package that hard-bundle with internet service package

Contents
Live tv

SVOD

Catch up TV

Music & Radio

Etc
5. Scope of Work

Transvision & ISP/Telco Roles and Responsibilities

◆Transvision
▪ Provide Co-branding label on Transvision’s hybrid media service
▪ Turnkey Head end system infrastructure for OTT and Hybrid media service, including back end management and contents digital right
management (DRM) + Conditional access system (CAS)
▪ Contents pool and license management
▪ STB development and its enhancement
▪ Support ISP/Telco’s remote STB and customer management via RMS solution
▪ 24hours*7days service monitoring based on agreed SLA

◆ISP/Telco
▪ FTTH Network management
▪ Sales marketing and retaining customers including the billing
▪ API for subscribers management and billing system integration with Transvision’s back end platform
▪ MLR/DCS device purchase and its installation and fiber connection to Transvision’s Cibinong Satellite center (for main or back up signal)
▪ STB management ; installation and replacement
6. Project Milestone

Project milestone for “Go-live” (service launch)

◆ Milestone 1 : Business Engagement

▪ Business and feasibility study including content package pricing : 1 week, MoU/LOI sign

▪ Initiate POC for network analysis : 2~ 3 weeks

▪ Management decision process : 1-2 weeks

▪ Contractual Process : 2 weeks

◆ Milestone 2 : Platform deployment

▪ Technical requirement and assessment study : 2 weeks

▪ System Provisioning and integration : 6~8weeks

▪ Internal trial : 2 weeks

◆ Milestone 3 : Go live
▪ Trial (for selected customers) : 2 weeks

▪ Go live (commercial live)

7. Opportunity Analysis

◆ Transvision is indeed offering revolutionary and optimized to suite current digital life style demand unlike conventional tv offerings.

◆ Capital expenditure for ISP/Telco to invest in getting Transvision’s hybrid media service platform is almost negligible as compared to

incumbent IPTV player offering

◆ Transvision Platform’s broadcast-grade with sophisticated architecture, The cutting edge technology DCS (Dish convergence system),

MLR(multicast loss recovery) & FCZ (fast channel zapping) provides simplified solution that meet the huge traffic demands ; proven from

korea Satellite to IPTV market

T h a n k y o u

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