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Chris Matichuk
Program Manager
Microsoft Corporation, eHome
Gerry Kaufhold
Principal Analyst
In-Stat, http://www.in-stat.com
Multimedia PC users take for granted
that TV just works
Consumers with a TV Tuner
Are 5 times more likely to
use Media Center daily*
Have 2 times more
multimedia content*
* Compared to the average Windows with Media Center PC buyer
(Microsoft, U.S. data, July 2006)
Tuner
Half of the U.S. consumers who do not
get a TV tuner with their PC express
interest after hearing the feature
description
(Microsoft, U.S. data, July 2006)
Windows with Media Center proliferation
PC OEM advertising
System logo
Semiconductor integration
Low cost per feature
PC is accepted as a viable TV platform
All free to air broadcast formats supported
Driver quality, reliability, and availability
Mainstream TV tuners will generate increased
opportunities
Multiple tuners
Hardware encode
Advanced codecs
H.264, VC1
Transcode
Placeshifting
HD-DVD/
Blue-Ray burning
IHV
CM
Software
Hardware
Build Tuner
Retail
Channels
IHV
Hardware
Semi
Chips and
Interfaces
Reference Designs
Driver Maintenance
Premium content
Cable, Satellite
Conditional access descrambling
Digital rights management
CM
Build Tuner
ODM
PC
OEMs
Build and Sell
Tuner Solution
Semi = Semiconductor Manufacturer
ODM = Original Development Manufacturer
CM = Contract Manufacturer
Moving PC-TV Tuners into the Mainstream
Gerry Kaufhold
Principal Analyst
http://www.in-stat.com
Hardware
Semiconductors
Reference Designs
PCs with Tuners
Broadcasters offering special services
Software
Operating System
Device Drivers
Applications
Maintenance and Updates
PC-TV only viewed as a hobby, with
“some user assembly” required
Countries rolling out Digital Terrestrial TV
(DTT) services with unique features
Need for multiple PC-TV Tuners in each
PC to support user’s expectations
Programming guides need to be
more automated
People like their PCs, and like to
customize their TV Viewing experience
People with PC-TV Tuners regularly use
more rich media, they are the hot market
PC-TV Tuners are being integrated into
smaller footprints, prices coming down
The mobile segment is taking off
Place shifting seems like a natural
extension for Broadband PCs
Europe
Largest market, driven by Free-to-Air
(FTA) Terrestrial and Satellite TV services
Laptop and Mobile computing segments
showing strong growth
Europeans ride public transportation,
giving them time to view rich media on
their portable laptops and other devices
Digital Terrestrial TV also driving growth
Asia
Digital Terrestrial still getting its legs-DTT
to take off in late 2009
Japan rapidly transitioning from NTSC
to ISDB
China market exploding for analog tuners
Small living quarters encourage using a
PC for the family entertainment center
Mobile segment is taking off
North America
U.S. ATSC Digital Terrestrial not popular
Cable TV MSOs moving slowly with Clear
QAM and Digital Cable Ready (DCR)
Not much Free-to-Air satellite service
Pay-TV services provide PVR STBs
Satellite TV may lead the way with
Broadband PCs that include tuners
Intel Viiv™ and AMD Live
promoting Tuners
Units
Regional
Shipments of
PC-TV
Tuners
2007
2008
2009
2010
North America
Europe
Asia
Row
Worldwide
(Thousands)
Source: In-Stat 03/07
49,700
2011
U.S. Dollars
Regional
Value of
PC-TV
Tuners
2007
2008
2009
2010
North America
Europe
Asia
Row
Worldwide
(U.S.$
Millions)
Source: In-Stat 03/07
$3,298.9
2011
PC-TV Tuners need to bridge the gap from
hobby products to mainstream
Digital Terrestrial TV and Free-to-Air Satellite will be
key technologies that need support
Mobile reception adds new opportunities
Country-specific solutions will arise
Combo PC-TV Tuners are coming
Support for multiple video streams
Support for DTT, analog, and broadband
Broadband PCs can support interactivity
Drivers for all this still need to be managed
Interactive Program Guides (IPGs) on the
PC provide improved search capabilities
for upcoming TV shows, and for content
stored on the PC
IPGs can access up-to-the-minute web
Content that enhance users’ experiences
Broadband-connected PCs with PC-TV
Tuners can provide interactivity-Imagine
pausing a TV show and watching a Honda
ad from the Internet
Huge opportunities will arise
Nexus: n, Tie, Link, Connection
PC-TV Tuners provide access to great TV
Content from many sources
Broadband PCs bring in the Internet
Provide greatly enhanced search for IPGs
Provide access to Internet video
Permit sharing of video and social
networking
The Future of TV may come from PC-TV
Tuners on Broadband PCs
PC-TV Tuner Ecosystem must adopt “in
box” drivers to provide the best support
Semiconductor manufacturers need to lead
the technology to drive standardization and
ramp up volumes
PC-TV Tuner products need to be as
standardized as printers, DVD ROMs,
video cards, and disk drives
Microsoft Vista sets the stage
Windows Update fulfills the promise
In-Stat contacts:
Gerry Kaufhold,
Gkaufhold @ reedbusiness.com
Chris Kissel,
Ckissel @ reedbusiness.com
http://www.in-stat.com
Chris Matichuk
Program Manager
Microsoft Corporation, eHome
In-Stat (2007) forecasts 22.3M tuners in 2007
growing to 49.7M in 2010
Is there opportunity for higher growth?
Consider that the Total Available Market will reach
several hundred million units by 2010/2011
What’s The Tipping Point? *
Product and price improvements?
Promotion improvements?
Can we learn from high attach rate geographies?
In 2005 timeframe, the tuner attach rate in Japan was
~90% consumer desktops with tier 1 OEMs
* See “The Tipping Point”, by Malcolm Gladwell, Back Bay Books
Most U.S. consumers are unaware of
TV tuner options at the time of
purchase
Half of the U.S. consumers who did
not get a TV tuner with their system
express interest after hearing the
feature description
Promoting PC-TV features in retail will increase TV
tuner attach rate and drive higher multimedia usage
(Microsoft, U.S. data, July 2006)
Integration will result in single chip hybrid tuners
Would a sub-$10 BOM for a WW analog/digital, free to air, single
chip, low power tuner lead to mass adoption?
Added value differentiators will include transcoding,
hardware encode, dual and quad tuners, advanced
codecs, premium content, conditional access, and digital
rights management
Analog
Hybrid Hybrid
Promotion
Price
Point of sale
consumer
education, flashy
TV demo’s
Promote
aftermarket tuner
upgrades
TV tuner as a
standard feature
on multimedia
systems
Tuner logo
System logo
Semiconductor
integration
More features at
the same price
Lower cost form
factors
Analog software
encode
Integrated IR
Motherboard
Tuner
Product
TV just works
Broadcast formats
DVB-S2, ATSCM/H,
QAM, DMB, DVB-H
Premium
ISDB, Cable,
Satellite
Categories
Transcoding
Networked
Mobile
Reliability, distribution
Improved reference
drivers
Inbox drivers
Windows Update
Drive PC-TV tuner adoption
Ship PC-TV as standard with every multimedia
PC
Actively market PC-TV features in retail outlets
Invest in new TV Tuner formats and categories
that will continue to expand the business
Continue to improve the end user
experience by ensuring the most reliable
drivers are available
Promote tuners supported by Inbox Drivers
Require the most recent approved/tested driver
Microsoft
Contact: Chris Matichuk wintvdev @ microsoft.com
http://www.microsoft.com/whdc/device/stream/AVstream.mspx
http://winqual.microsoft.com/HCL/ProductList.aspx?cid=111
http://www.microsoft.com/windowsxp/mediacenter/partners
http://www.microsoft.com/windowsxp/expertzone/communities/
mediacenter.mspx
In-Stat
Contacts:
Gerry Kaufhold
Chris Kissel
Gkaufhold @ reedbusiness.com
Ckissel @ reedbusiness.com
http://www.in-stat.com
http://www.in-stat.com/catalog/mmcatalogue.asp?id=212 (content)
http://www.in-stat.com/catalog/mmcatalogue.asp?id=162 (equipment)
http://www.instat.com/descriptions/semiconductor.asp (research)
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