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Voip video business models



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  • 1. VoIP & Video Business Models Fast Forward Your Development
  • 2. Overview • Challenges VoIP • Solutions & Trends Portal • Portal Video Challenges Video • Solutions and Trends Biz • VoIP Models • Video Fast Forward Your Development
  • 3. VoIP Solutions and Trends VoIP status VoIP Trends Fast Forward Your Development
  • 4. VoIP Status PC VoIP History PC VoIP by two parallel paths for personal and business use: •Enterprise Phone switches offered PC VoIP extensions PC VoIP •Large IM Portals offered VoIP Personal Enterprise VoIP VoIP Upgrade IM Enterprise Pure VoIP Phone Client Clients Extension Fast Forward Your Development
  • 5. VoIP Status Enterprise Personal VoIM PC VoIP started as PC phone Large portals with IM extension for enterprise clients started offering •Avaya VoIM •Cisco •Single Client IM •Nortel •IRC, ICQ •AOL AIM •MSN Messenger •Yahoo! Messenger •Jabber •Converged IM Yack! •Meebo •Trillian •Gaim Fast Forward Your Development
  • 6. VoIPStatus VoIP Challenges • VoIP subscription fees are: •None •Very low per minute rates •Low Monthly/Yearly Flat rate •Client acquisition costs are very high •Vonage–$150-200 according to CEO interview •Offerings of “VoIP subscriber for sale” $ 200 per head •Churn is very high •No Differential factors: if I’m on a 19.99 flat package I could turn to a different vendor for 18.99 •(Ask Vonage) Fast Forward Your Development
  • 7. VoIPTrends VoIP Trends Personalization All Platform New Models • Avatars • Mobile VoIP • Pay Per Call • Social Networks • Converged VoIP • Call-to-Expert • Call statistics Fast Forward Your Development
  • 8. VoIP Trends Personalization Skype Offers Klonies with Comverse More Avatars by • Combots •WeeMe •IDT Fast Forward Your Development
  • 9. VoIP Trends Mobile VoIP Usually free calls between subscribers PC over current Portal VoIP networks Lower than standard rates for mobile calls EQO - Widget for MySpace for Mobile Fring – Leading Israeli Mobile VoIP Company iSkoot – Deal with Skype Mobile Fast Forward Your Development
  • 10. VoIP Trends Messaging Convergence Cerulean Studios’ Trillian Connects to leading IM services: •MSN •ICQ •Yahoo VoIM convergence •Farsight Fast Forward Your Development
  • 11. VoIP Trends Connect to Expert/Service Palore • Call and rate services like restaurants or plumbers BitWine • Connection to experts Kasamba • connect to expert, bought by LivePerson for $ 40M June 2007 Fast Forward Your Development
  • 12. Video Trends •Video overly advertisement •Video understanding and tagging •Media discovery Fast Forward Your Development
  • 13. UGCVideo Today UGC Video Today Is this the best video delivery system we can create? A $1.4B system? Where are the Videos I like?? Fast Forward Your Development
  • 14. Video Challenges Portal Video Challenges • Revenues are mostly based on Advertisement: •No Focus or Ad personalization per Content User •Low CTR Clients wants to see video and not buy Cola or a new phone •High expenses •“CDN costs are killing us” •Personalization – Nada ! •Aggregated search mechanism - No •Personal recommendations – No •“Save” option •Low stickiness Fast Forward Your Development
  • 15. Video Solutions Solutions •Specialized niche videos • Example: 5Min, Café-Confidential in Metacafe •Video overly advertisement • Example: YouTube - August 2007 •Video understanding and tagging • Examples: VeoTag, Blinkx • Better Search results • Better Advertisement targeting •Social discovery web sites • Discover people with the same taste Fast Forward Your Development
  • 16. Trends Content Creates Creator Content Distributer Broadcast User Content Recommendation Systems Creator close the loop between content creator/distributors and the users Recomm. System Distribut er User Fast Forward Your Development
  • 17. Video Solutions Internet Video Trends Process Past Present Future Distribution Broadcast UGC / Pre defined My Customized Pre defined channels channel channels Consumption Lean Back – open Lean Forward Lean back loop Text search of clips Content type Premium Content UGC content + UGC + Legal Stolen Premium Premium content + content Meshups Fast Forward Your Development
  • 18. Financial issues in scaling ● Revenues models ● Expenses ● IPR Issues ● Development issues Fast Forward Your Development
  • 19. Revenueissues in scaling Financial Models • Advertisement • Google, MetaCafe, YouTube and most of Web 2.0 services • Subscription fees • Business service – LinkedIn • Content download - Rhapsody music service by real • Per interaction model • iTunes – per song payment ~ $1 • Guba – per video payment ¢45-99 • Requires attention to client retention • Requires very low cost of billing handling (~¢1 ) • No revenue model – Exit Fast Forward Your Development
  • 20. VoIP and Videoscaling Financial issues in startup scaling Idea Garage +Alpha 10K users Web 2.0 development Full scale Commercial commercial Dev. + Beta deployment 100K users Scaling 1M users Fast Forward Your Development
  • 21. Financial issues in scaling Community oriented Startup Create a Community • Socialization Create • Information sharing Communities Community Bonding/Gluing • Socialization and search tools • Stronger relations and interactions between Social Service community members Bridging Communities • Creating mutual interest spaces • Bridging technological Gap Fast Forward Your Development
  • 22. Financial issues in scaling Community Creation Technology oriented premium bridging services Free Services Premium Services •Goals •Goal •Group creation •Revenues •Group Scaling Bridging •border crossing •Identity •Presence – Mood •Connection Bonding •Personalization •Basic communication •Presence Community •Cross technology services •VoIP<->PSTN •VoIP over Mobile •Free WLAN Community free services Fast Forward Your Development
  • 23. Financial issues in scaling Expenses What Should be the cost of the model? What is the delta-expense between 1M and 10M users? • Linear • Semi-linear • Flat Linear Cost • IP and Patents for media coding and processing Semi linear • Support, Infrastructure Flat • Development costs Fast Forward Your Development
  • 24. Financial issues in scaling IPR Costs •As engineers we tend to see only development •For large scale deployment, IPR (Royalties) are the largest expense (ask Adobe and Skype) •Payment for IPR: • Codec Patent rights (G729, G723.1, MPEG4) • Developer royalties for companies developing our: • Signaling • Multimedia codecs Fast Forward Your Development
  • 25. Financial issues in scaling Ownership problems – 3rd Party IP •Standard media codec and many algorithms used for media coding are protected IP and requires payment to patent owners. •Although after the community is large enough there are revenues from premium services, they do not cover IPR costs How to finance this gap? Subscribers Subscribers IPR Costs Revenues Revenues IPR Costs Fast Forward Your Development
  • 26. Development in scaling review Financial issues Models Deciding which option to choose affects the development cost, scaling costs and TTM Development Pros Cons Internal Create IP for the company Time-to-market No Royalties / 3rd costs Development risks Development Large initial cost Buy Time-to-market IPR if exists Low initial cost Relay on other (royalties) companies No development risks Outsource Low development risks Hmmm… Time-to-Market No Royalties / 3rd costs Fast Forward Your Development
  • 27. Financial issues in scaling Project Mapping into development option space Development Outsourcing risk Develop + Make/Internal Time-to-Market Consulting development Long-term/IP cost Buy Fast Forward Your Development
  • 28. Financial issues in scaling Summary •Pay attention to scalability and IP ownership issues •Rapid Development • Use open source for rapid prototyping and demos • Buy or outsource whatever you can’t develop fast. • Don’t get stuck because on technology issues •Mix technological breakthrough, product features, client behavior understanding and innovative GUI Technology to get ahead of the pack Biz Model Scaling Idea Fast Forward Your Development
  • 29. DSP-IP Contact information Download slides at: www.dsp- Course materials & lecture request Adi Yakov Training Manager adi@dsp- +972-9-8651933 972- Projects development services: Alona Ashkenazi Development Services www.dsp-ip. alona@dsp- Mail : info@dsp-ip. +972-9-8850956 972- Phone: 972- 8850956, Phone: +972-9-8850956, Fax : +972-50- 8962910 972-50- Fast Forward Your Development