2006. 11

TU Media Corp

Mobile TV broadcasting Development and Experience

in Korea

I. Recent Revolution of new Media

III. TU Media’s Experience and Finding

1925

1935

1930

1920

1995

1940

1990

1945

1950

1955

1960

1965

1970

1975

1980

1985

Analogue Radio Broadcasting

Analogue TV Broadcasting

2005

2000

Analogue Color TV Broadcasting

Cable TV Broadcasting

Satellite TV Broadcasting

Portable TV

Webcasting

DABDigital Terrestrial Broadcasting

Evolution of Broadcasting Technologies

[source : IEEE Broadcast Technology Society Newsletter, Spring 2006 ]

PodcastingMobile TV

IPTV

DMB

DVB-H

MediaFLO

Satellite DMB(Satellite Digital Multimedia Broadcasting)

Interactive • Convergence of Telecom. and Broadcasting

• Variety in Contents (Video, Audio and Data)

Mobile• Any place and Any situation(Even in a moving vehicle at the speed of

more than 300Km/h)

Personal • Personalized Media(Television for me)

DMB is new form of ‘personal & interactive’ media, displayed via diverse platforms of digital devices, to meet increasing mobile broadcasting demand.

What is DMB

Key Changes in media industry

Evolution of broadcasting technologies changes people’s behaviorsand attitudes while consuming contents.

How to watch Baseball game in Korea

Terrestrial TVTerrestrial TV

Cable TVSatellite TV

Mobile TV: S-DMB, T-DMBComputer TV : Yahoo TV, Gom TVVOD-TV : Hana TV, Megapass TV

Terrestrial TVCable TVSatellite TV

Before 1990 1990-2004 2005-

“ Satellite DMB Soars on Baseball Frenzy” - Korea times

Computer TV : 5M viewers

-Yahoo Media : 3 Million people watched WBC Baseball game live through Yahoo Media- Pandora TV : 650,000 daily visit.-Gom TV : 400,000 people watch at least one program per day from Gom TV.

There are 30M Internet usersand 40M Mobile phone users

In Korea.

More than 80% of new mobile phone is expected

to have Mobile TV function

WBC Baseball Game is watchedmore from

“Internet and Mobile TV”than

“Conventional TV”.

Mobile TV : 3.1M viewers

-TU Media : 900,000 paid subscribers-T-DMB : 2.2M users

VOD based TV : 100,000 viewers

-Hana TV : 50,000 subscriber in 3 months,target 250,000 by the end of 2006-Megapass TV : Driven by KT with various content.

Non-Mainstream Media’s Rebellion Gathering Force

Content distribution strategy changes, Different Approaches exist

In house Creation

DistributionThrough

OwnChannels

Raising Value of Channel

Previous and EXCLUSIVE APPROACH

In house Creation

&Outsource

Maximum exposurethrough

allplatforms

Raising Value of Content

Current and ONE SOURCE, MULTI-USE APPROACH

7 ways to watch Desperate Housewives in Korea

(2) => Free to Air Terrestrial

=> Cable Channel

=> Direct to Home Satellite

=> Pay TV Channel

=> Satellite DMB

DVD => Buy or Rent

Internet => www.abc.com

DMB triggers advent of “NEW” or “Non-Mainstream” Media

Market Demand for DMB

4203,100

5,783

16,034

18,794

20,519

8,687

12,314

0

5000

10000

15000

20000

25000

2005 2006 2007 2008 2009 2010 2011 2012

DMB USERS

(Thousand users)

(year)

[Source : MIC,2005 ]

Revenue Opportunities for DMB

149296

457

887

51136

276

628

911

1,180

1,368

1,352

0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009 2010

Terminal SalesService

(Million USD)

[Source : Electronic Information Center, 2005 ]

I. Recent Revolution of new Media

III. TU Media’s Experience and Finding

TU Media as a frontier in New Media

TU MEDIA prepared Mobile Broadcasting servicesince 2001

The international register for

satellite network was applied

Technical Specification of Satellite DMB

Terminal released

The policy direction

for satellite DMB was determined by the KBC

Technicalstandards for

satellite DMB were established by MIC

(System-E)

TU Media Corp. was

established.

The broadcasting Law was revised.

Hanbyul satellitefor DMB service

was successfully launched in Orbit.

TU Media Corp. was authorizedas Satellite DMB Service Provider

TU Media Corp started

Satellite DMB Field Trial.

TU Media Corp started commercial

broadcasting of Satellite DMB Service

Reach 840,000

subscribers

Sep.2001

Mar.2004Dec.2003Apr.2003

Feb.2003Nov.2002

Dec.2004 May.2005Jan.2005

Commercial Broadcasting

Launched the satellite

Oct.2006

FoundationPeriod

FoundationPeriod

Formation of Consortium(November 2003)

Foundation of New Entity(May, 2003)

Paid-in Capital: $230 million

Compositionof Stakes

Compositionof Stakes

Company CompositionRatio

Remark

MajorShareholder

• Responsibility for management• Providing Network 29.6%

LargestShareholder

• Foreign Strategic Partner5.9%MBCO

Content Providers, Terrestrial Broadcasters

Manufactures, Distributors

24.7%

30.1%• Samsung, LG, MBC,SBS,CJ and other key companies.

Others

9.7%

OtherShareholder

• Key business partner in the Supply Value Chain

SK Telecom

TU Media formed a consortium with USD$230M.

( East longitude 144 )

ProgramProvider Vehicle Receiver Mobile Receiver

Terminal

Ku-B

and

13.82

4~13

.883G

HzS-band

2.630 ~2.655GHz

Ku-Band12.214~12.239GHz

S-ba

nd

Satellite DMB Broadcasting Center

Satellite

Gap FillerVideo

Audio

Data

TU Media’ S-DMB Network Structure

To satisfy and attract customers : Better QoS level

95%(As-Is S-DMB)

96% 97% 98% 99%(As-Is Mobile Phone)

Customer’s requested QoS level : 97.7%

Satellite Hanbyul

SEOUL/PUSAN Subways

To satisfy and attract customers : Better and affordable terminals

B-100Launch : Jan 2005123.1(L)X49(H)X25(W)171g

B-500Launch : August 2006100.6(L)X51.5(H)X13.5(W)100g

54% smaller in size compare to first proto type.

42% lighter compared to first proto type.

NEWS(2)

DRAMA(2)

SPORT MOVIE

CH.BLUE

TUBOX(PPV)

GAME

ENTERTAINMENT(4)

EDUCATION ANIMATION

DJ ZONE (5)

MelonBugs

P.StationKISS

MUSE

VARIETY ZONE

NONSTOP ZONE(16)

POPHIP 90th7080 Hit

TROTKorea POP

JAZZ/Classic

Ch.JoinsGAG Station

EnglishArirangUreka

To satisfy and attract customers :More & Better contents.

15 VIDEO Channels 19 AUDIO Channels

CH.Green

TU Lady

HIT Album

Build Partnership and Profit Share Model.

Subscription Fee New Subscription

BasicVideo

Audio

Basic Channel • Monthly Fee : 11,000 won• Pay per View : 2,000 w on

• Only impose to a new subscriber• Initial Fee : 20,000 won ($20)Basic

Pricing Scheme

Subscriber

Mobile

Operator

&

Own

Agency

Network Installer

(Satell ite)

Program Provider

Contents Provider

Operation Fee

Contents

Profit Share

Commission

Subscriber Fees

BroadcastService

•Broadcasting•Contents Sourcing & Development

•Network & Platform Mgt.

DistributionService

•Getting Subscribers•Terminal Sales•Distribution Channel

Mgt.

Quick summary of commercial S-DMB in Korea - Subscribers

[ thousand subscribers]

820750

700680640

600540

498444416

372301

251203

14610979

44

MAY JULY SEPTEMBER NOVEMBER JANUARY MARCH MAY JULY SEPTEMBER

850

Over 4029%

Quick summary of commercial S-DMB in Korea - Demographic

Suburb18%

Urban82%

,

Fema le, 35%

Male , 65%

Sex Age Place

Male users are 65% Age Group of 20~30’s are 64% of total user

82% of customers resides in Urban areas

Female, 35%

Male, 65% 25~2921%30~34

16%

Under 197%

35~3913%

20~2414%

* Sport Video Channel showed low view rate as an average but becomes most powerful channel with big sporting event.

Ch.Blue GameMovie MBC

DramaSBS

DramaKorean

latest MusicSportsAnimation

SBS Drama

Korean Baseball - the finals

※ Note : Based on TU Subscr ibers on ’06.10

Quick summary of commercial S-DMB in Korea - Contents

Soccer - National Team

Video vs Audio

audio35%

video65%

Video 65% Audio 35%

■ Popular Channel

■ Popular Content

■ VIDEO VS AUDIO

MBC Drama- Comedy

Pride FC

Quick summary of commercial S-DMB in Korea - Behaviors

64.6Minutes

October

60Minutes

August

62.3Minutes

Average

Usage (Minutes)

■ Daily Average Usage (Source : VAS Data)

■ Average Usage time by date

61.5 60.76263.5

62.665.2 63

40

45

50

55

60

65

70

MON TUE WED TH U FRI SAT SUN

■ Daily usage per time slot

■ Usage Situation

Usage Situation

(CustomerSurvey)

42%

31%

17%

31%

10%

To relax/entertain oneself

To pass the time

To stay updated (Select Channels

through EPG) Watch selected

channels

Passive User(73%)

Active User(27%)

•Mobile Broadcasting do not shows specific prime time while fixed broadcasting shows two big prime times

※ Note : Based on TU Subscr ibers on ’06.10

02468

10121416

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

TUFIXED

(%)

(H)

Quick summary of commercial S-DMB in Korea - Economic Gains

- Terrestrial- Cable- Satellite

- Satellite DMB- Terrestrial DMB

FixedBroadcasting

Mobile Broadcasting

Promoting Social Welfare- Meet public demand for watching TV in mobile environments.

- Provide efficient communication toolin case of emergent situation.

- Offer effective tools for education by delivering educational programs.

Promoting Industry

- Contribute to contents industry by offering new market.

- Stimulate IT and Manufacturing industry.

- Lead to growth of national economic.

Quick summary of commercial S-DMB in Korea - 120 delegations from Overseas

18%30%

12%22%

Mobile Network Operators

Broadcasters

Government Delegation & Regulators

18%Satellite Operators

Press etc.50%

50%29%

18%

Asia PacificEU

America

As a pioneer in Mobile Broadcasting industry, TU Media is willing to share our experience and know-how with other countries upon request.

TU Media is will further challengeto develop & promote Mobile TV.

Well designed Marketing and

Promotion Strategy

Technical Know-How and New Interactive and Data service

S-DMB

Contribute to Industry

&Social

Welfare

Develop innovativetechnology

Marketing Strategy

Contents Strategy

Service Strategy

Terminal Strategy

Develop mobile

contents

Cooperation with

TerrestrialBroadcasters

Cooperation with

Major MNOs

Create Interactive

Service

Createright contents for

mobile environment

Suitable and Affordable

Terminal for DMB Service

TU Media Corp.http://www.tu4u.com ( yoakim94@tu4u.com )

Korea Government authorized two types of Mobile TV service – S-DMB & T-DMB.

Network Service Coverage Network Service Coverage

TerrestrialNetwork

Satellite Broadcasting Pay Service National-wide

Terrestrial Broadcasting Free Service Regional

Frequency : VHF Band (TV ch7~ch13, 174~216MHz) T-DMB Block Allocation : 3 Blocks on 1 TV Channel (6MHz)

ch7 ch8 ch9 ch10 ch11 ch12 ch13

U1 mediaT-DMBensemble

YTN DMB MBC DMB KBS DMB SBS DMB

KBS2 MBC EBSKBS1

High-VHF TV Channels

8A 8B 8C 12A 12B 12C

TV 2 Data 1

TV 1 Radio 2 Data 1

TV 1 Radio 2 Data 1

TV 1 Radio 3 Data 1

TV 1 Radio 3 Data 1

TV 1 Radio 3 Data 3

T-DMBChannel

Korea DMB

Total : TV 7, Radio 13, Data 8

Future Perspective & TU Media’s key Challenges

CustomersPower is shifting from Channels to Customers

Providing customers’out-of home

need

Success Factors Future Perspective Key Challenges

Mobile TelcosMobile TV as

key Application.Everything

“CONVERGENCE”

MoreValues & Revenues

to Mobile Telcos

Content IndustryAt the end of the day,

Content isKing

Position TU Media as key platform to serveOut-of home marketto content industry

Terminal Industry

More powerful Mobile devices

to receiveMobile TV

Powerful Mobile Devices in right price to customers.

Alliance with key Manufacturers.

OverseasMobile TV service

available in most countries

in next 5 years

Form alliance topromote Mobile TV.

Expand S-DMB Platform

Evolution of content distribution platforms

Motion PictureRadio

TV

VCR

DVDColor TV

Cable TV

Car TV

2.5G

S-DMB3G4G

T-DMBDVB-H

IPTVBroadbandVODDownload

Before 1900 2005-

Satellite TV

I-pod video

1920

Analogue

Radio

Broadcasting

Cable TV

Broadcasting,

Satellite TV

Broadcasting

Evolution of BroadcastingEvolution of Broadcasting

2000

1980

1960

1940

Analogue

TV

Broadcasting

Analogue

Color TV

Broadcasting

Portable TV,DAB,

Digital TerrestrialBroadcasting,Webcasting

IPTV,Podcastng,

DVB-H,DMB

Media FLO 2005

Emerging Broadcast Services: Personal media at any place, anytime, anywhere Conventional Broadcasting: Users have limitations of space, place, and time to watch TV

Evolution of Broadcasting Technologies

[quote : IEEE Broadcast Technology Society Newletter,Spring 2006 ]