Ginga  and  Digital  TV  Business  TQTVD  

13.9%  

Company History  

247  

173      12.4%CMMI  

 490        21.9%  18.4%  

2004   2005   2006   2007   2008  

Acquisi6on  

 Acquisi6on  Midbyte e BCS  

760  

20.6%  

2009  

25.2%  

1.080  25.6%  

1.233  

IPO      392  

24.1%  

Leadership  Founda6on   Strengthening  

1983   1986   1989   1992 1995   1996   1997   1998   1999   2000   2001   2002  

 106    6.5%  

98      8.4%  63    

10.0%  35  

9.8%  17  

Proprietary  Technology  

Microsiga    Startup  

Franchise System  

Argen6na        24  

 Acquisi6on        Mexico  

Focus    in Results  

   126    110    10.6% 12.4%  

2003  

DNA  

Integrated Systems for    Microcomputers  1st IT IPO in      La6n    America  

R$ 1 Billion Sales    in 2010  

2010 2011  

1.343  

Global Ref.  

2012...  

Internat.    Phase II  

 TOTVS  PlaIorm  

Branding  TOTVS  

 Social  Network            M&A  

   Scalable  Businesses          Industry    Oriented  

(1) EBITDA Margin does not include extraordinary expenses DistribuQon Channel    UnificaQon  

Incorporatedtech.    From Logocenter  

2011 -­‐ Integra6on:  • Brands  • Channels  • SoluQon PorIolio  •  Technology  •  Shared Services    Center  

 Gross  Reven

ues  (R$

 Millions)  and

 EBITD

A  Margin  (%

)  

TOTVS World Relevance

Source:    TOTVS  InsQtuQonal  PresentaQon,  Feb/Mar  2012  

     

     

Cross-­‐Selling  

(1)  Does  not  include  close  to  4,000  employees  of  our  franchises  (2)  Includes  Infrastructure,  HR  BPO,  EducaQon  and  Service  Desk  

Core  Synergies   Synergies  

TOTVS  Customer  Service  and  Rela6onship  

SoYware  –  Base  and  New  Clients   Services  Expanded  Business  Technology  

ERP   CRM   Business  Intelligence  

Ver6cal  Modules  

     

ConsulQng    

Value-­‐Added    Service2  

   

74  Full  TOTVS  Distribu6on  Channels  

   

+  30,000  customers  ~  6,000  direct  employees¹  Flexible  Technology  

Digital  TV  

Structure of TOTVS Business

Product & Tech – Technology PlaIorm  

TOTVS | Plaborm  Plaborm based on  proprietary technology and  industry standards for  soYware development in  mul6-­‐plaborm, scalable and  cloud compu6ng  

TOTVS Digital TV Unit

TQTVD in-a-nutshell

•  Created in 2007 - 70 employees mainly Engineers

•  Part of TOTVS S/A group.

•  TQTVD is totally dedicated to Digital TV products and services

•  Flagship product: AstroTV, an 100% compliant implementation of the ISDB-TB Ginga middleware standard

•  AstroTV is the 1st complete Ginga implementation on the market. It supports both Ginga-J (JAVA) and Ginga NCL (NCL/LUA)

•  Vision: transform TV into the ultimate entertainment experience

•  Mission: foster interactive TV experience everywhere, anywhere

Strategic Alliances

Broadcasters Chipset/ODMs

TQTVD & Partners / TQTVD Alliances

DTV  in  Brazil  and  LaQn  America  

ISDB-­‐Tb  AdopQon  

(1)  http://www.dtv.org.br (2)  http://pt.wikipedia.org/wiki/ISDB-TB

11  countries  in  LATAM  +  Phillipines  (1)  

PopulaQon  ISDB-­‐Tb  Latam:  354M  (2)  

Brazil  Government  Mandates  Ginga  

Government  changes  PPB  for  televisions  to  include  Ginga  interac6ve  soYware    24/02/2012    Brasilia  (February  24)  -­‐  From  2013,  the  Brazilian  interacQvity  soeware  Ginga  must  be  installed  in  75%  of  televisions  with  liquid  crystal  display  manufactured  in  the  Manaus  Free  Zone.  Companies  that  want  to  start  producQon  this  year,  between  July  1  and  December  31,  may  deduct  such  producQon  from  the  quota  in  2013.  The  requirement  for  inclusion  of  the  soeware  increases  to  90%  of  producQon,  from  2014,  according  to  the  Ordinance  published  in  the  Official  Gazeje  on  Monday  by  the  Ministries  of  Development,  Industry  and  Foreign  Trade  (MDIC)  and  of  Science,  Technology  and  InnovaQon  (MCTI)  .    Ministerial  Ordinance  No.  140  amends  the  Basic  ProducQve  Process  (PPB)  that  already  exists  for  televisions  with  liquid  crystal  display  and  sets  the  schedule  to  be  followed  by  manufacturers  for  inclusion  of  Ginga  in  devices.    It  is  from  the  PPB  that  the  government  sets  the  domesQc  content  that  a  company  must  meet  to  be  eligible  for  tax  benefits  granted  to  companies  established  in  the  Industrial  Pole  of  Manaus  and  to  manufacturers  of  computer  items  installed  anywhere  in  the  country.    About  Ginga    In  2004,  the  federal  government  started  to  promote  the  development  of  the  Brazilian  System  of  Digital  Terrestrial  Television  (SBTVD-­‐T),  which  has  interacQvity  as  one  of  its  principles.  Ginga,  soeware  developed  by  a  group  of  researchers  from  Brazilian  insQtuQons,  allows  for  the  operaQon  of  interacQve  applicaQons  on  TVs  and  for  open  source,  which  does  not  require  royalty  payments,  and  may  be  adopted  by  other  countries.  In  ArgenQna,  for  example,  Lifia  (Federal  University  of  La  Plata)  is  providing  the  soeware  for  the  government.    ParQcipaQng  in  the  development  of  Ginga  were  researchers  at  the  University  of  Sao  Paulo,  Federal  University  of  Pernambuco,  Federal  University  of  Paraiba,  NaQonal  InsQtute  of  TelecommunicaQons  (Inatel),  Federal  University  of  Minas  Gerais,  Coppe-­‐UFRJ  and  PUC-­‐Rio.  The  group  gave  scope  to  the  soeware  specificaQon,  now  an  internaQonal  standard  validated  by  ITU  (InternaQonal  TelecommunicaQon  Union)  and  regulated  at  the  naQonal  level  by  a  set  of  standards  of  the  Brazilian  AssociaQon  of  Technical  Standards  (ABNT).    For  the  Brazilian  government,  the  implementaQon  of  Ginga  in  digital  TV  will  encourage  the  interacQve  soeware  industry  in  the  country  and  will  be  an  opportunity  to  connect  public  policies  to  support  innovaQon  and  development  of  producQon  with  value  added  based  on  local  content.    hjp://www.mdic.gov.br//portalmdic/siQo/interna/noQcia.php?area=2&noQcia=11331  

DTV  in  Brazil:  Demographics  

(1)  Computer Industry Almanac / IBGE (2)  Telecom/ IBGE (3)  WWW.eletros.gov.br

Terrestrial  TV:  96%    of  Brazilian  homes  (3)  

Broadband:  20%  of  Brazilian  homes  (2)  

PC  penetraQon:  55%  of  Brazilian  homes(1)  

DTV  Market  

Number  of  TVs  Current  esQmate  is  more  than  100  million  TVs  with  a  coverage  of  about  65  million  households.  Manufacturers  sold  12  Million  TVs  in  2011  (10  million  TVs  are  LCDs  /  Plasma).  From  2012  to  2014  numbers  will  grow  in  preparaQon  for  World  Cup  2014  and  later  for  2016  Rio  Olympic  Games.  

TV  Market  

Source: 2008, 2009, 2010, 2011 and 2012 (SUFRAMA) - in million of units

0 0 0,5 2,5

5

9,7

13

3,9 4,1

8

8,7

7,5

4

1,9

7,9 4,9

4,6

2,5 1,2

0,3 0,1

2008 2009 2010 2011 2012 2013 2014

CRT

LCD/Plasma

LCD/Plasma (GINGA)

The  World  Goes  Digital  

0  

200  

400  

600  

800  

1000  

1200  

1400  

1600  

2006   2010   2016  

Analog  Homes  

Digital  Homes  

Source:  Digital  TV  Research  Ltd.,  June  2011  

2010:    -­‐  42.5%  digital  -­‐  Only  Finland  fully  digital    2016:    -­‐  80.0%  digital  -­‐  33  countries  fully  digital  

Millions  of    Households  

The  World  Is  Switching  to  Digital  TV  

In  the  next  five  years,    TV  set  shipments  will:    grow  2.2%  per  year  in  LaQn  America,  Eastern  Europe,    MEA  &  Asia  Pacific    decline  in  Japan  &  Western  Europe    be  flat  in  North  America  

Source:  IMS  Research,  August  2011  

Emerging  Markets  Will  Drive  DTV  Market  

0  

20  

40  

60  

80  

100  

120  

140  

2010   2011   2012   2013   2014   2015   2016  

Primary  pay  DTT  Primary  FTA  DTT  Analog  terrestrial  Digital  free  DTH  Pay  DTH  Pay  IPTV  subs  Analog  cable  subs  Digital  cable  subs  

Source:  Digital  TV  Research  Ltd.,  June  2011  

Free  to  Air  DTT  will  grow  faster  than  DTH  or  digital  cable  

Millions  of    Households  

Free-­‐To-­‐Air  TV  Will  Lead  in  LaQn  America  

Brazil  

In  2016,  Brazil  Will  Be  5th  Largest  DTV  Country  

Ginga Deployments

Deployments - 2010

LG - 4 TV set models

Deployments - 2010

SONY - full product line

Deployments - 2010/2011

PHILIPS - full product line

Deployments - 2010/2011

PANASONIC - 5 TV set models

Deployments - 2010/2011

SEMP TOSHIBA - WL800 line

Deployments - 2011

From early 2010 to early 2012  3 Million Ginga TV Sets sold in Brazilian Market.

 Almost all main TV manufacturers have already launched.

 Most TV manufacturers use TOTVS AstroTV Product. Samsung has their own in house Ginga implementation.

 All 5 main terrestrial FTA broadcaster networks are transmitting Ginga applications on their live signal, in several state capitals (Sao Paulo, Rio, Brasilia, etc.) generally tied to prime time programs.

Ginga Deployments - Summary

TQTVD solution for Integrated and Hybrid Broadcast & Broadband

Innovative Solutions

A complete inclusive solution   Is based on an up-to-date, open standard already

embraced by global standard organizations such as ITU (see: ITU-T J.205 – Integrated Broadcast and Broadband).

  Includes an application store concept / model.

  Is prepared for on-demand video content distribution via broadband access to content providers or broadcasters’ portals.

A Ginga-J App Store

The behavior of many users today in front of the TV has changed:

Now it unifies the collective TV experience with the personal Internet experience

Trends  of  TV  user  behavior  

SQckerCenter  2nd  Screen  

StickerCenter 2nd Screen shows how Ginga can be used to enable synchronized interactivity on the 2nd Screen. It is compatible with IOS e Android and uses: •  Ginga – enabled TVs •  TV and devices connected in the same Wi-Fi network •  Seamless synchronization techniques

SQcker  Center  2nd  Screen  -­‐  InteracQvity  

•  Accesses the interactive application transmitted by the broadcaster in the 2nd screen.

•  Can Identify the user.

•  To the broadcaster it represents the convergent scenario between normal TV interactivity and the 2nd screen use.

•  To the sponsor: consumer data / feedback and target advertising.

•  To the user: combines communal TV use with personal 2nd screen

Ongoing Debate/Battle: Java

Ginga  specificaQon  according  to  ABNT  NBR  15606  standards.  

Ginga  Middleware  Ginga-­‐NCL  

BRIDGE

 

Ginga  COMMON  CORE  

NCL  Formaj

er  

LUA  Scrip

t  

XHTM

L  +  CSS  +  EC

MAS

cript  

SMIL  TransiQon

s  

Mon

o-­‐med

ia  Players  

Ginga-­‐J  

JVM:  CDC  1.1  /  FP  1.1  /  PBP  1.1  

APIs  br.o

rg.sbtvd  

JavaTV  1.1  

JMF  

JavaDTV  LWUIT  

Ginga Technologies

Big Challenges

Ginga-J and Java role in the Digital TV market  Java is being questioned.

 Java TV TCK is mandatory.

 A use of an ME profile JVM is mandatory.

 Oracle is seen as a having secured a monopoly on parts of a standard that should be an international Open Standard.

 Brazilian government is pressing the industry to try to reach a consensus with Oracle.

 Argentina is deciding to go on a different path, advocating dropping Ginga-J from the standard.

Big Challenges

Ginga-J implementation licenses / issues Several manufacturers are now asking: 1.  Why this cost (Commercial license for a compatible JVM, JavaTV

TCK, etc.)? 2.  What are the possible licenses? 3.  Is it possible to do a clean room implementation of the whole

Ginga-J (including JavaTV)? 4.  Is there a way to get an independent JavaTV TCK provider? 5.  Is it possible to commercially use a GPL-based JVM

implementation (like PhoneME)? 6.  Is it possible to strike out the “Java” inheritance inside Ginga-J

and call it something else? 7.  Is it possible to take out Ginga-J entirely, maybe making it

optional?

Ginga-­‐J  and  Digital  TV  in  Brazil  

       

TQTVD  –  TOTVS  Digital  TV  Unit    Aguinaldo.boquimpani@totvs.com.br  

www.totvs.com  www.tqtvd.com