OTTCon 2010: ShiFt Happens Part 2

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  • Revise second bullet sub heading: less about Cisco, more about the marketThird
  • Revise second bullet sub heading: less about Cisco, more about the marketThird
  • Revise second bullet sub heading: less about Cisco, more about the marketThird
  • Revise second bullet sub heading: less about Cisco, more about the marketThird
  • Revise second bullet sub heading: less about Cisco, more about the marketThird
  • OTTCon 2010: ShiFt Happens Part 2

    1. 1. SHIFT HAPPENSFrom VALUE DESTRUCTION to VALUE CREATION<br />Dr. Ken Morse<br />CTO, Service Provider Technology Group<br />Cisco<br />
    2. 2. Traditional Video Competitive Landscape is in FluxNew Entrants, Everyday, in Online Video <br />Online Video<br />Video<br />Satellite <br />Companies<br />Mobile <br />Companies<br />Cable <br />Companies<br />Telco <br />Companies<br />
    3. 3. Online Video – Shifting the Balance of PowerMoving in Favor of Consumers and M&E Companies<br />POWER<br />M&E<br />Companies<br />Cable <br />Companies<br />Satellite <br />Companies<br />Telco <br />Companies<br />Mobile <br />Companies<br />M&E<br />Companies<br />Consumers<br />
    4. 4. Online Video is part of a broader“Viewer-Controlled” Video Trend<br />Total hours of Media Viewing by US population<br />Annual Share of Viewing<br />(person hours, in billions)<br />501<br />484<br />474<br />60<br />(13%)<br />105<br />(22%)<br />162<br />(32%)<br />2-3%<br />414<br />(87%)<br />379<br />(78%)<br />339<br />(68%)<br />LATENT DEMAND: Addressableby Online Video (e.g. catch-up TV)<br />* Online Video=Video watched via the Internet typically within an internet browser (ex. YouTube, Hulu, Daily Motion, Omroep.nl, …)<br />Source: BlackArrow estimates based on internal DVR/VOD deployment estimates and publicly reported data from Nielsen Media, Nielsen NetRatings, Comcast and comScore. <br />
    5. 5. User Survey Highlights Key Demand Drivers for Internet Delivery of Video to TV<br />“Which of the following might encourage you to start streaming or downloading TV programmes/movies online or, if you already do this, to watch more online TV programmes/movies than you currently do?” <br />44%<br />24% <br />41%<br />29%<br />40%<br />29%<br />23%<br />38%<br />38%<br />29%<br />27%<br />29%<br />26%<br />24%<br />Source: Olswang Convergence Consumer Survey, November 2008<br />
    6. 6. Online Video to the TV will be enabled by avariety of devices<br />130M Capable Homes, 40M Active Homes<br />Incumbents<br />Cable / Satellite / Telco<br />Competitors<br />Tru2Way<br />STB/PVR<br />Hybrid STB<br />TiVo<br />MCE<br />nDTV<br />Game Console<br />360M Capable Homes, 170M Active Homes<br />iSTB (NeuLion)<br />internet<br />Blu-Ray Player<br />PC<br />Source: TDG<br />
    7. 7. Fragmentation Takes Hold<br />BusinessModels<br />Consumer Experience<br />Content Fragmentation<br />Broadcast, Premium, UGC<br />Device & Screen Fragmentation<br />TV, PC, Mobile, Gaming, PDA<br />Interactivity Fragmentation<br />Lean back, Lean forward, Social<br />Subscription Fragmentation<br />Broadband, TV, Mobile, Movie rentals, OTT<br />Free vs. Paid<br />Ad Dollars Fragmentation<br />Transition from linear TV to online<br />
    8. 8. The Quest for Value Creation Propels a 3rd Wave: IP Video<br />1st Wave<br />2nd Wave<br />3rd Wave<br />IP Video<br /><ul><li>On-net or Off-net
    9. 9. TV, PC, Mobile
    10. 10. Highest Service Velocity
    11. 11. Business Model: B2B2C</li></ul>IPTV<br /><ul><li>On-net only
    12. 12. TV
    13. 13. Higher Service Velocity
    14. 14. Business Model: B2C</li></ul>Traditional Cable<br /><ul><li>On-net only
    15. 15. TV
    16. 16. Limited Service Velocity
    17. 17. Business Model: B2C</li></ul>More Open, More Flexible, More Monetization Opportunities<br />
    18. 18. How do we get there?Key Architectural Tenets for IP Video<br />Next Generation Platform<br />Next Generation Platform Built on Web Services Protocols<br />Accelerates universal reach and 3rd party innovation<br />Large-scale Unicast<br />Video Intelligence <br />Common Client Architecture<br />Managed / Unmanaged<br />
    19. 19. How do we get there?Key Architectural Tenets for IP Video<br />Next Generation Platform<br />Content networks scale exponentially for large-scale unicast services<br />Leveraging multicast technologies for efficient distribution<br />Large-scale Unicast<br />Video Intelligence <br />Common Client Architecture<br />Managed / Unmanaged<br />
    20. 20. How do we get there?Key Architectural Tenets for IP Video<br />Next Generation Platform<br />Video intelligence propagates deep into the network edge <br />Providing media, device, and network awareness<br />Large-scale Unicast<br />Video Intelligence <br />Common Client Architecture<br />Managed / Unmanaged<br />
    21. 21. How do we get there?Key Architectural Tenets for IP Video<br />Next Generation Platform<br />Common Client Architecture<br />Multi-device support – for PCs, set-tops, gaming consoles, mobile devices, etc. <br />Large-scale Unicast<br />Video Intelligence <br />Common Client Architecture<br />Managed / Unmanaged<br />
    22. 22. How do we get there?Key Architectural Tenets for IP Video<br />Next Generation Platform<br />Services Across Managed and Unmanaged Networks<br />Common experience no matter where the user connects<br />Large-scale Unicast<br />Video Intelligence <br />Common Client Architecture<br />Managed / Unmanaged<br />
    23. 23. IP Video reshapes video distribution architectures<br />IP Core<br />Edge<br />Aggregation<br />VoD<br />VoD<br />VoD<br />SP Services/Content<br />Third-Party Services/ Content<br />Media<br />Data Center<br />Media<br />Data Center<br />Regional<br />Media Data <br />Center / VHO<br />Regional<br />Media Data Center<br />Connected Home<br />Business<br />
    24. 24. Medianet<br />The Architectural Blueprint for Delivering Next Gen IP Video Services <br />Consumption<br />Contribution<br />Production<br />Distribution<br />Post Production<br />Secondary<br />Primary<br />Direct To Home<br />Headend<br />News <br />Gathering<br />Telco<br />Consumers<br />Headend<br />Cable<br />Studio to <br />Studio<br />Ingest<br />Headend<br />Mobile<br />Sport <br />Events<br />Media Data <br />Center<br />IP<br />IP<br />IP<br />IP<br />Core IPNetwork<br />Content Providers<br />Service Providers<br />Tighter Linkages Between Core, Data Center and Edge<br />
    25. 25. Core + E-MSE<br />Core + E-MSE<br />Medianet<br />The Architectural Blueprint for Delivering Next Gen IP Video Services <br />Consumption<br />Contribution<br />Production<br />Distribution<br />Post Production<br />Secondary<br />Primary<br />Direct To Home<br />Proximity Routing<br />Headend<br />Media Data Center<br />News <br />Gathering<br />Telco<br />Aggregation <br />Router<br />Consumers<br />Headend<br />Cable<br />Studio to <br />Studio<br />Ingest<br />Real-time<br />Transcoding<br />Data Center<br />Switch<br />Distribution<br />Router<br />Aggregation <br />Router<br />Headend<br />Mobile<br />Sport <br />Events<br />Aggregation <br />Router<br />Distribution <br />Router<br />Media Data <br />Center<br />IP<br />IP<br />IP<br />IP<br />Core IPNetwork<br />Aggregation <br />Router<br />Content Providers<br />Service Providers<br />Storage<br />Storage<br />Tighter Linkages Between Core, Data Center and Edge<br />Video Processing<br />Consumer Apps<br />NRT Transcode<br />Svc. Delivery<br />Billing<br />Device Mgmt<br />Encryption<br />UCS<br />Storage<br />Storage<br />Storage<br />
    26. 26. Shift Happens: Will SPs Lead an Eco-system Searching for Value Creation<br />

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