SeaChange International customer OnDemand TV, Inc. is launching the world's first IPTV on-demand service to offer high-definition programming encoded in the H.264 video compression standard. Beginning next month, FTTH-connected subscribers around Tokyo and Osaka will have access to on-demand libraries of high-definition movies, sports and other programming.

Also known as MPEG-4 AVC (Advanced Video Coding), the H.264 standard enables television operators to deliver demanding high-definition video streams in less than half the bandwidth required by MPEG-2 and other standards over a wide variety of network environments including DSL and wireless. Among its chief advantages, H.264 empowers OnDemand TV to slash bandwidth usage to 8mbps for high-definition on-demand assets. The OnDemand TV service, capitalizing on SeaChange's IPTV Systems since early 2005, continues to deliver MPEG-2 streams for standard-definition movies and programs in conjunction with the range of new H.264-encoded high-definition choices, which incorporate AAC (Advanced Audio Coding) surround sound.

"Higher compression ratios are allowing network operators to efficiently push multiple services through a single home connection and our use of H.264 now makes long anticipated high-definition content a leading feature of our competitive offering," said Yasuyuki Taniguchi, Chief Manager, Engineering Department, OnDemand TV. "The SeaChange platform we had in place readily supported our expansion to H.264. This openness is one of the main reasons we chose SeaChange."

The rapid development of broadband networks throughout Asia is spurring a range of telecommunications and cable providers to offer video services to attract new subscribers and capture a larger share of the steadily growing pay-television market, which is forecast to reach US$32B within four years. With Japan's FTTH subscribers projected to grow to 33 million by 2010, driven in part by the government's recent approval for the re-transmission of high-definition terrestrial broadcasts over FTTH, the country is cited as the region's top growth and revenue generating market(1).

OnDemand TV, Inc., a joint venture of Japanese conglomerate ITOCHU Corporation and telecommunications provider Nippon Telegraph and Telephone Corporation West (NTT-West), is focused on using new standards to advance its competitive position. At its commercial launch in March 2005, OnDemand TV became the world's first on-demand service delivered over IP v6 fiber optic networks, taking full advantage of the SeaChange IPTV System's capabilities for delivering multiple media formats and bit rates. OnDemand TV today provides thousands of movies, sports, dramas, music videos, cartoons and other programs from content partners such as Sony Pictures and Warner Bros. Service is expanding across Japan on NTT-East and NTT-West networks which, combined, connect more than 60 million telephone and broadband subscribers.

OnDemand TV and SeaChange are also collaborating to bring on-demand services to hotels and other multi-dwelling units. SeaChange's long-standing distribution partner, Itochu Technoscience Corporation (CTC), is chief system integrator for OnDemand TV.

The SeaChange IPTV System

SeaChange's IPTV System automates entire on-demand services from content intake right down to set-top applications. It combines fault-resilient and highly-scalable SeaChange MediaCluster servers with SeaChange Axiom video operation system software. Axiom manages sessions and resources for all video network functions, including streaming and application network services, thereby ensuring that bandwidth is optimized and providing seamless access for settop applications. In OnDemand TV's deployments, the SeaChange IPTV System works in conjunction with locally developed Buffalo digital set-top boxes and subscriber navigation from Square Enix.

(1) From the study "Asia Pacific Pay TV & Broadband Markets 2006" by Media Partners Asia Limited.