Home of the Future & Mobile Cloud

Presented by

Rob Caruso, VP Device Application Engineering

Consumer Technology Group, HBO
Jack Gallagher, Ex. Director, Corporate Technology, Verizon

Mobile World Congress 2012

1
HBO Inc. Overview
Agenda
• HBO is the largest Pay TV service in the US
• Together with its sister brand, Cinemax, the
company has over 93 million worldwide
subscribers - 40m subscribers domestically and
53m internationally
• The core business distributes our programming
via our affiliates – IPTV, cable and satellite
partners – 26 linear multiplex feeds, On
Demand, HD, HBO GO, and MAX GO products
• Additionally, we have Home Entertainment
(DVD/BluRay/EST), licensing and merchandizing
revenues
• HBO’s award-winning programming includes
Game of Thrones, True Blood, Sopranos and
Sex and the City
2
Verizon Overview
Agenda

• Verizon Communications Inc., headquartered in New

York, is a leader in delivering voice, data and video
products and services over intelligent wireless,
broadband and global IP networks that meet
customers' growing demand for speed, mobility,
security and control

• Verizon provides services to mass market, business,

government and wholesale customers

• Verizon Wireless is the largest wireless carrier in US

with over 100 million connections

• Verizon FiOS is the most advanced, 100% fiber-optic

network serving a rapidly growing customer base of
over 4 million

3
HBO and Verizon Partnership
Agenda
• Verizon TV subscription content extends beyond the traditional TV
viewing experience;
• Video on Demand content is now available on multiple screens through
the Flex View service
• Live streaming content is available on XBOX
• HBO content is available to Verizon subscribers through the HBO GO App
on multiple devices

4
HBO and Verizon Partnership
Agenda

• Verizon’s multi-platform Flex View also allows access to HBO content

across multiple screens
• Individual HBO episodes can be purchased a la carte via the Verizon FiOS
On Demand website, within the Home Entertainment Portal

5
HBO and Verizon Partnership
Agenda

• Authenticated HBO / Verizon subscribers can choose to watch via the HBO
GO website or apps

6
HBO GO Demo
Agenda

7
Mobile platforms are a major driver for HBO GO - over half of the
Agenda
HBO GO registrations each month occur on mobile devices

8
Agenda
Mobile viewership is more frequent, but for shorter time period

9
Smartphones account for just over half of all HBO GO mobile
Agenda
plays in a given month

10
HBO subscribers are finding different content to watch across
Agenda
available platforms – HBO GO skews to HBO original programming

11
TV Everywhere strategy is working – the availability of HBO GO on
Agenda
mobile devices increases overall HBO satisfaction and loyalty

12
 Video/Network Demands are Skyrocketing
Agenda

Mobile Data Traffic & OTT Video Growth

7 250
• Mobile data traffic expected to
6 grow at a compound annual
Data Traffic
200 growth rate of 92%1
5
OTT Videos
• OTT Video expected to grow by
Exabytes/Month

33%2

Billion Videos
150
4
• CE/Mobile Devices continue to
3 become powerful
100
• A single tablet device
2 generates as much traffic as
50 122 basic-feature phones1
1

0 0
2010 2011 2012 2013 2014 2015
Year

Verizon Enablers

• LTE • IP Backbone Improvements

• Fiber to the Cell site • Verizon Digital Media Services (CDN, etc.)
• LTE & Video Capable Devices • Consumer services (Verizon Video, Flex View)
• FiOS Internet
1 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015
2 ABI Research 13
Verizon LTE Expansion
Agenda

Verizon LTE Expansion - 2012

500

400
Number of Markets

300

200

100
1Q 2Q 3Q 4Q

• Verizon to continue aggressive LTE expansion throughout 2012

• Complete nationwide LTE rollout by 2013
• Opened state-of-the art LTE Innovation Center
• Pursuing additional spectrum to expand capacity
14
Verizon FiOS
Agenda

150M / 35M
50M / 20M
30M / 5M
year

2004 2005 2006 2007 2008 2009 2010 2011 2012

• More than $20 billion invested

• Fastest consumer broadband service in the U.S.
• Downstream speeds of up to 150 Mbps and upstream speeds of up to 35 Mbps (Market
average download speed is 10Mbps)
• Potential to further enhance bandwidth per market needs
• Successfully completed field trial of an advanced fiber-optic transmission technology
(XG-PON2) delivering 10 Gbps both upstream & downstream
• Launched live streaming TV on Xbox
15
Verizon
Agenda Digital Media Services

• Digital Rights
Management options
for preserving value

• Deliver millions of
individualized, on-
demand content
streams to any
Delivers A Higher Quality of Experience customer, on any device
on any network

• Leverages economies of
scale & provides an
automated solution for
digital retailers

Verizon Digital Media Service Enablers

• Deliver a Higher Quality of Experience
• Enable On Demand Entertainment on a Massive Scale
• Harness Verizon-class Security
16
Future Trends Impacting Mobile Content Delivery
Agenda
Content Distribution
Now • Second screen apps / • 4G LTE
Interactive content • OTT delivery

• HTML5 web apps • Cloud and content lockers

• Increasing quality • IP backbone improvements
• Increase in breath of content • Edge caching
• Increase device caching

• Universal authentication • Hybrid distribution

• Seamless cross-platform • Enhanced compression

availability efficiency
• Standardization
Longer • 3D content • 3D distribution
Term
• Ultra high resolution

17