1. STB DigiTimes Research e-mail tom.lo@digitimes.com Knowledge Creates Power, We Create Knowledge.

2. STB Digital TelevisionBroadcastingSet-Top Box Industry HardwareContent ChipSet De-ModulatorTunerMPEG OEMBranding RAMSTB Application MiddlewareCA RTOS SoftwareConsumer ElectronicDigiTimes Research 2005/4 -2- 3. STB DTVSTB CRT TV FPD TVFPD TV1930 19502000 DigiTimes Research 2005/4 STB -3- 4. STB STBSTBSTB HDTV PVR VOD-4- 5. STB-5- 6. Set Top BoxIf This is Desk Top Then, This is Set Top! -6- 7. STB SatelliteD/ATerrestrialCable STB -7- 8. STB SatelliteTerrestrialCable InternetSTB /STB-8- 9. STB1. 2.3. -9- 10. ISDB-TTerrestrialISDB-CCable DSSSatelliteISDB-S-10- 11. STBTerrestrial STB TV built-in TunerCableHDTV STB Satellite Internet -11- 12. STBSTB EPGPay TV STB CAEPG PPV STBSTB PPVPVREPGHDSTBPPVPVRSTBVODHDMulti-tunerEPG Electronic Program GuidePPV Pay Per ViewPVR Personal Video RecordingVOD Video on Demand -12- 13. STB1/2 STB STB STB STB Pay TV STB -13- 14. STB 2/2STBSTBOperator 1 STB Maker AOperator 2 STB Maker BOperator 3 STB Maker COperator 4 STB Maker DOperator 5 STB Maker E STB -14- 15. STB Pay TVFreeViewVODATSCPPVPVRSD/HDRecording-15- 16. STBSTB-16- 17. STBMiddleTunerIC CA OEM BrandingwareNDSMotorola STM Humax PhilipsVideoGuardOpenTV Thomson BroadcomAlps IrdetoAccess MediaHighway PacePhilipsThomson Nagravision PowerTV SA LSI Logic ..Samsung MediaGuard MicrosoftTVSONYZarlink NEC Viacess.. Tsunami Philips LiberateADB-17- 18. STB Tuner /MPEG-2 Demodulator de-multiplexerSDRAMSDRAM MPEG-2 decoder STBControllerROMSDMPEG-2-18- 19. STBSmart card /Tuner DemodulatorDescramblerCA Module MPEG-2 De-multiplexerSDRAM MPEG-2/4decoder GraphicsSTB processor CAMPEG-2 MPEG-4 CPUMiddleware Flashmemory -19- 20. STBTerrestrial Satellite Cablesolution STPVR MPEG Cable STB Cable Satellite Silocon Tuner Satellite SoCBroadcom gateway solutionPVRMPEGMIPS Core DOCSIS MAC HomePNA USB EthernetMAC Cable Satellite MultiLynx DOCSIS MACCable SoCLSI Logic C-Cube Microsystem MPEG decoder MIPS CoreMPEGTinyRISC Terrestrial CableSatellite STB solutionCable STBPVRConnexant Globespan VirataMPEG DOCSIS modem MPEG-2A/V encoderDigiTimes Research 2005/4 -20- 21. STBApplication 1Application 2Application3 MiddlewareCA RTOSHardwareDigiTimes Research 2005/4STBCondition Access CA MiddlewareMiddleware-21- 22. MiddlewareOCAP Open CableApplication Platform DigiTimes Research 2005/4 -22- 23. Condition Access System DirecTV, BskyB Stream,VideoGuardNews Datacom NDS Viasat, CCTV, Voom Telepiu StreamIrdetoIrdeto Access Multichoice Via Digital Quiero DishNagravisionKudelski SA NetworkSECA (Canal+ Canal+ Canal SatelliteMediaGuardTechnologies)ITV Digital TPS AB-Sat ViaccessFrance Telecom Arabesque SSR/SRGDVB-CI CableCARD -23- 24. ()OpenTV DVB MHP BskyB ViaDigital Senda OpenCable Stream TPS Noos ATSC DASE Echostar AT T JavaTVLiberate(TVATVEF AT T AOL Time WarnerNavigator) ATSC DVBComcast Cox MHP MediaOne Charter(WebTV ATVEF AT T UPC NTLMicrosoft TV)Telewest CWC TV Cabo CharterCanal+ DVB MHP CanalSatellite Ondigital(MediaHighway) ZeeTV AT TWorldGateNAAT&T Comcast(CableWare)Adelphia CoxPowerTV(SofaSOFT)NAAOL Time WarnerDigiTimes Research 2005/4-24- 25. STBSTB-25- 26. STB 2004STB 2004 STB Pioneer ADB Others 2%1% 4% DVN2% ThomsonPace 12% 3%EchoStarPanasonic11% 3%Hughes Other 8%Motorola 58%Humax 47% 7%Scientific- Atlanta38% Pace 2%UEC2%In-Stat 2004/10 -26- 27. STB STBSTB-27- 28. HDTV Euro1080 2004Sky 2006HDTV9 18 73Premeire 2005HDTV5733 10DVB 2004/11 Middle ware -28- 29. 200425% VOD PVR 8%67%Pay TVBroadcasting Flag FCCCableCARD-29- 30. 3.31.1 4CA Middleware STB2005 3,0002008 -30- 31. 400Asia Pacific Europe Latin AmericaNorth AmericaTotal350 369.8300250200144.1150116.1 93.7100 50 2.301995 2003 20042005 2010 Informa Media Group 2004/11 2004 49 2010 3120042936200411 201036.3 20041.16 122010 3.7 34-31- 32. 60Asia PacificEuropeNorth AmericaLatin America Global50 49.9 49.1 45.940 42.138.8302820 22.4 15.1151012.5 0 2001200220032004 20052006 2007 2008 2009 2010Informa Media Group 2004/11 20062010 -32- 33. STB120CableSatellite Terrestrial Total10099.55 89.8 89.55 80 81.4 81.7 66.5 69.471.365.4 62.9 6057.7 45.7 40 2011.75 17.15 9.811.4 1111.9 11.1 7.8 8.511.32.2 4.60 2003 2004 2005 200620072008 In-Stat 2004/10 -33- 34. STB2018 Terrestrial Cable Satellite17.716 151412 12.510 10.4 8 65.4 5.4 4.3 4.64.7 4 3.92.1 3.23.1 2 1.6 1.3 00 0.0320.45 20032004 20052006 20072008STB 2003 2008Satellite5% 25%In-Stat 2004/10DigiTimes Research 2005/4Cable 16%42% Terrestrial 0% 31% -34- 35. STB STBSTB HDTVSTB PVR VOD-35- 36. STB SDHDHD HDTV+PVR40GSTB160GPVR/SVOD/NVOD STBTVOD/IVOD-36- 37. 5HDTV 5,200 ATSC ATSCISDBATSCHD1,5501,000 DVB20042005 2009 DigiTimes Research 2005/4 -37- 38. HDTV30 base 30 for 1080i, 60 25 base 25 for 1080i, 50for 720p for 720p HDTV Euro1080 2HDTV HDTVMPEG-2MPEG-4H.264HDTV MPEG-2 MPEG-4/H.264-38- 39. HDTV HDTV STB+HDTV set+HDTV DVR HDTVDigiTimes Research 2005/4-39- 40. CableCARDHD STB CableCARD STBDigital CableReady TVCableCARDSTBYesYesYesHDYes PPV NoYesEPGNoYes VOD NoYes NoYes package NoYesTime Warner DigiTimes Research2005/4 CableCARDDigital Cable Ready CableCARD STB -40- 41. CableCARD CableCARD2004 Cable Ready CableCARD Total CableCARD TotalCableCARDBrand Brand Model Model Model Model100BenQ 0 6 RCA1620 Epson 0 2 Samsung 8 8 Hitachi2222Sanyo2 2 JVC 6 6Sharp 1516 3 LG4 8SONY1624CableReady TV CableCARDMitsubishi1415 Toshiba 9 9CES 2005/2Panasonic 1316Zenith 0 9 CableCARD Pioneer 6 6CableCARD CEA HDTV Guide2005/1-41- 42. PVR140.0 Total120.0 114.831%100.0 80.0 60.0 40.0 15.8 20.04.9 9.20.020032004 2005 2010Media Research 2004/102004PVR 900PVRSTB2005 1,500PVR 2010PVR31 -42- 43. PVRPVRBroadcastingBroadcasting PVR Internet PVR DigiTimes Research 2005/4 PVR InternetPVR-43- 44. PVRSTBSTB TV OperatorSubscriber TV Set PVRPVR STBTiVo 70%DirectTVDirecTV PVRSTBComcast Motorola PVRTiVoTiVo-44- 45. PVR 7%120109100 81% 80 6025 40PPV 2080PVRDigiTimes Research 2005/3 -45- 46. PVR PVRTiVo 2004 PVR4 Europe3rd MillionAsia Pacific9% 4%53 Latin America2nd Million0%121st Million51NorthAmerica87%03Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 DigiTimes Research 2005/3TiVo DigiTimes Research 2005/3 Sky Canal plusPVR TiVo -46- 47. STB PVRSTB-47- 48. STBDVDSTBSTBtuner tunerDVD DVDDVD DVDtunerDVDDigiTimes Research 2005/4-48- 49. PVR92%PVR60% PVR-49- 50. PVR200770 70 2050PVR Time Warner PVR STB -50- 51. VOD350 Cable NVODSatellite NVOD Cable VOD DSL VODTotal300327250200 137150109 91100 500 20032004 2005 2010Informa Media 2004/7-51- 52. VODVOD SVOD NVOD TVODSTBIVODVOD VOD VOD PC TV VODSTB VOD-52- 53. VOD VODSubscriptionVODNear Video on STBDemand10True Video onDemandInteractiveVideo onDemandDigiTimes Research 2005/4-53- 54. VOD 2004 VODAsia Pacific 16%VOD North ComcastAmerica2004450%EuropeVOD 54.5M 30%Latin America 4%DigiTimes Research 2005/4-54- 55. VODDisney MovieBeam SONY Picture 2006Service STB100STB $8.99$1.99 3.99160G Samsung Moviebeam terrestrial STB (MTR-1120U)MGM Paramount SonyUniversal Studios Warner BrosDisneyMovieLink$2.99 4.99 -55- 56. STB STBSTB STBSTBSTB-56- 57. STB 1/2A. B. STB DTV BroadcastingSTB CESTB ++tuner DVDBuilt-in tuner -57- 58. STB 2/2STBtuner PVR STB Living RoomRoom 1 Room 2 STB -58- 59. STBSTB Pay TVinhousePaySTB TV STB STB STB STBSTBPower user STBSTB STBSTBSTBSTBSTB STB-59-