Fraunhofer Institut
Web Media Symposium
November 5°, 2010
The role of Telcos
in the new, Social App-Enriched
TV Ecosystem
...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
The Sofa Screen is under Siege
Millions of connected ...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
The Device-Related aspect tells only a part of the Sto...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
Backend players: Simple guys, Complex guys
After a fi...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
The new kids on the block
 “Cannibalizers”: Google TV...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
Different Aims, Different Strategies
Broadcasters
Cons...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
The Role of Telcos
 The Gap between TV and the
Intern...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
Distribution solutions are increasingly getting taylor...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
There’s new room for business in the emerging user tre...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
3
1
Three
Possibile
Scenarios
OTT TV: “Open”
 WebApps...
Fraunhofer Institut
Web Media Symposium
November 5°, 2010
Thank You!
Antonio Pavolini
Senior Analyst, Media Industry
anton...
Fraunhofer Institut
Web Media Symposium
November 5°, 2010
Backup
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
No need of an App Store, if you don’t crowdsource in a...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
App Stores and Willingness to Pay: Tiered Offers a Win...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
Cross Device Experience
In the OTT-TV arena a Telco c...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
Playing with Flexibility and Scarcity
As the current ...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
The Era of Polarized Models
PAY: Mainstream Content Pr...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
The new engagement rules with content providers
A new
...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
Focus: Google TV: cannibalizing all biz models?
19
► G...
Fraunhofer Institut
Web Media Symposium – Berlin, November 5th 2010
Focus on Blip.tv: Platform Provider is an OTT thing?
2...
Upcoming SlideShare
Loading in...5
×

The role of Telcos in the new, app-enriched TV ecosystem

1,214

Published on

Web Media Symposium, Fraunhofer Institut
Berlin, Nov. 5th 2010

Published in: Business
2 Comments
4 Likes
Statistics
Notes
No Downloads
Views
Total Views
1,214
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
56
Comments
2
Likes
4
Embeds 0
No embeds

No notes for slide

The role of Telcos in the new, app-enriched TV ecosystem

  1. 1. Fraunhofer Institut Web Media Symposium November 5°, 2010 The role of Telcos in the new, Social App-Enriched TV Ecosystem Antonio Pavolini Senior Analyst, Media Industry antonio.pavolini@telecomitalia.it
  2. 2. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 The Sofa Screen is under Siege Millions of connected devices (TVs in the first place) make it possible for Web Videos, in all their forms, to be enjoyed on the sofa screens As a consequence of that, a new OTT TV ecosystem – where biz models are still to be defined - emerges alongside the traditional ecosystem based on vertically integrated video distribution Pure OTT players are therefore obliged to rethink their web applications, born as “social”, towards a Lean Back proposition… …whilst traditional broadcasters , on the other hand, must find new value propositions able to compete in the new context (on demand, catch up TV, “deep” digital identity, social applications…) Telcos, a.k.a. those who manage the infrastructure and distribution platforms, are looking for an “ideal role” in the new scenario
  3. 3. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 The Device-Related aspect tells only a part of the Story… BB STB Apple TV Game console Es: xBos 360, PS3 Lettori Blu-ray/ DVD Broadcast: Satellite, Cable BroadBand Network Internet IP (Unmanaged) BB STB “Ibrido” (DTT, Sat, Cable, IP) Es: Tivo, CuboVision Traditional Set Top Boxes: Cable, Sat, DTT , hybrid,IPTV BB STB Open Es: Roku TV set Internet-enabled Es: Sony Bravia, Philips Net TVTV set DTT Embedded TELCO IPTV OTT TV BOXES IP (Managed) The traditional Pay Tv Set Top Box is only one of the many ways consumers can access rich video content on the sofa screen . A whole new set of devices are aimed at allowing Online Video consumption on TVs through the Broadband connection “Over The Top TV Boxes” Internet Enabled Tv Sets
  4. 4. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 Backend players: Simple guys, Complex guys After a first wave of free, best effort solutions, the web video market is increasingly populated by OTT “managed” solutions , that require a more complex distribution platform with the aim of keeping the pace with the increasing volumes and ensuring Quality of Service Cost & Complexity of distribution solution AudiencexSingoloContenuto Block busters Managed Distribution Video Sharing Platforms Mainstream Web TV Best effort Independent Content Providers IPTV OTT Video Streaming PlatformsUGC Online Stores
  5. 5. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 The new kids on the block  “Cannibalizers”: Google TV  “Splinternet makers”: Apple Tv (Take 3)  Aggregators: (Mainstream & Independent) 1 2 3 5
  6. 6. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 Different Aims, Different Strategies Broadcasters Consumer Electronics Telcos Aim Non duplicable Assets Strategy  Offer Diversification  Better market segmentation aimed at increasing its value  New Device Sales  Defence of native egemony on the home environment  Offering Diversification  Incentive to broadband subscription upgrades  Finding new revenue sources  Premium Content  Brand  User Experience Control  Brand  QoS  3 screens  Client base and tools to manage it (CRM, billing…)  Lock-in on exclusive content, keeping control on the user experience on online content (intermediation)  Lock-in on Devices, allowing selective openings to Widgets and OTT Applications  Partnership with Telcos, aimed at offering Quality of Service  Pay: two-side business model offrering differentiated QoS to Independent and/or not vertically integrated Content Providers  Free: Best Effort and Rev-Share from Context & Targeted Ads  App Store with OpenSDK  User Experience as leverage between Premium and Open Sea
  7. 7. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 The Role of Telcos  The Gap between TV and the Internet is narrowing  Content Owners endorse Web Distribution  New Advertising Technologies offer fresh opportunities (tracking, interactivity, targeting, tailoring, etc.) Scenario Service Providers enable Multiplatform Video Content Distribution From Walled Garden To Open Platform
  8. 8. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 Distribution solutions are increasingly getting taylored 8 Distro solutions are increasingly taylored depending on the nature of the content Biz models diversify on the basis of the upstream costumers carachteristics (in this case Content Owners) Telco operators tend to offer wholesale solutions to vertically integrated players… …and more complex solutions, where they can leverage their distinctive assets along the chain (QoS, CRM, Deep Digital Identity, recommendation, Billing, Context-based ADV…) to independent content providers Broadcast Wholesale CDN Wholesale CDN+ Custom solution Different models, different revenue sources for every upstream segment Distribution Platform: CDN + Digital Identity + CRM
  9. 9. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 There’s new room for business in the emerging user trends Long Form/Short Form Lean Back/Lean Forward Discovery/Search Pay per View/Pay To Own Audio/Video Growing content interaction and consequent attention scarcity determine a crisis for log form content at the benefit of short form Long form finds a safe haven in richer (and closed) UX environments (Blu-Ray, Theaters, 3D) Mainstream TV and Radio mainstream suffer from time schedule fragmentation Independent Content Providers, free from time schedule ties, take advantage of “daily spare time segments” that were not dedicated to media consumption The challenge to turn desktop- born, high-interaction, lean- forward content into something “sofa friendly” and “lean back” is getting more important (Yankee Group, 2010) Solution has nothing to do with ergonomics (remote control)… …and has a lot to do with a better overall UX (OVEC, 2009) From schedules to queues to personalized or reccomendation- based playlists Desktop keeps being the ideal connected TV configuration environment , but… …mobile application increase their role in social features On the Sofa Screen (TV), or while driving a car (Radio) users still prefer to “Stumble Upon” interesting content, in the typical Discovery Mode that has been governed by traditional broadcasters for years... …but linear TV and Radio are not anymore the only ones who decide “What’s in the Discovery”; recommendation engines and friends lists gain a growing mole in creating the User’s playlists Search still remain the preferred access approach to content on Desktop and Mobile devices. Italy is the Country where PTO is the less preferred pay model for digital content (OVUM) Italy has an high willingness to pay for enjoying the content regardless of owning it:therefore PPV and rentals can be successful(Yankee Group 2010) Italians accept pre-roll advertising , due to their long standing exposure to commercial television (OVUM) Italy presents good opportunities in offering OTT TV features as a premium service, in cluded in a tiered offering with a premium price to be paid for accessing the application store. (“all you can eat”) Text/StillPics Digitization moves text content towards connected devices Devices are specialized for content nature : ebook (long) tablet (short + medium) others (short) Tablets create new “consumption areas” in the home environment (fourth screen) Both in mobility and on the “home fourth screen”, text-based long form content basically remain “Lean Back”, as they don’t require frequent user interaction Short/medium form (newspapers, blogs, magazines, pics) are more engaging , and are more friendly to targeted/context based adv Text based content is still governed by the search access approach, better if integrated with a powerful reccomendation engine (Kindle Amazon, iTunes) aimed at increasing the purchase decision rate Ebook publishers are reluctant to introduce “all you can eat “, subscription based, access to their online stores, as it happened with some music offerings Newspapers and magazines, instead, are distributed as “applications”, paid a monthly basis. Short form content (blog, online paper versions, etc.) are ad funded and rely on the blogger’s self marketing needs
  10. 10. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 3 1 Three Possibile Scenarios OTT TV: “Open”  WebApps Public APIs are called by all devices, on device-based applications  Users and developers get full control of the opportunity that lies behind diversification of apps and content OTT-TV: “CE-driven/Splinternet”  Hardware manufacturers “taylor” online content and services in order to optimize them for selected devices, taking full control of UX  Users and developers lose control of the “long tail” opportunity; in exchange, they obtain a more affordable UX environment OTT-TV Open/Telco Driven:  Telco operators create an open environment for Users and Developers, (where content and apps choice is free) ,but offer differentiated services on a two-sided platform for content owners and downstream customers 2 Three roads to OTT TV 10
  11. 11. Fraunhofer Institut Web Media Symposium November 5°, 2010 Thank You! Antonio Pavolini Senior Analyst, Media Industry antonio.pavolini@telecomitalia.it
  12. 12. Fraunhofer Institut Web Media Symposium November 5°, 2010 Backup
  13. 13. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 No need of an App Store, if you don’t crowdsource in an open way  As the iPhone case widely demonstrated, an open Application Store that can leverage on crowdsourcing, with an SDK open to third party developers (keeping control on what apps are phisically distributed on the official store) is key to reaching a critical mass not only on “service” applications but also on “content applications” that offer CPs a personalized environment for distributing their “signed” library  This solution is ideal to generate value from free content with public APIs, as it transfers the effort of building the application to the developer’s community  At the same time, it gives users access to the widest possible free catalogue (a problem for broadcasters, not for telcos).  When Premium (Pay) Content is involved, the developement of an application (that leverages on the high powered telco backend), can be part of the Telco’s proposition to Content Providers 13
  14. 14. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 App Stores and Willingness to Pay: Tiered Offers a Winner? 14 “Uptake of internet TV will probably result in a hike in broadband prices in the UK. “When services such as YouView and Apple TV arrive on the scene, it won’t be long before there is considerable consumer demand for Internet TV. Thompson suggests that while it might give ISPs ‘the excuse they’ve been looking for’ to shift broadband prices away from the ‘all you can eat’ model, it will potentially also necessitate the investment in next-generation broadband services which the country needs.” Mark Thompson, Director General BBC
  15. 15. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 Cross Device Experience In the OTT-TV arena a Telco can develop a cross-device proposition aimed at getting benefit from its exclusive capability to offer a seamless experience in any place at any time, on any device At Home Far from Home Third party STBDedicated Set Top Box Connected TV Mobile Devices Any Web Access  Strategy on width of User Base  Widgets on connected devices, selecting those with the most open platform  Total control of Digital Identity  Focus on “dead time maximization” for “lean forward” interaction activities
  16. 16. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 Playing with Flexibility and Scarcity As the current Broadband network cannot sustain the growing demand for online video consumption, the value of managed distribution solutions grows Managed OTT efficiently addresses the subset of online video content on which the building of new biz models for the sofa screen is possible These are the editorial quality contents that are not bound with the traditional distribution chains, that have always been controlled by vertically integrated broadcasters In a new Ecosystem centered on editorial quality prosumer content (Independent Content Providers) there is no “One size fits all” business model, just because it’s not anymore the distributor to set all the chain rules Multiplatform Managed OTT-TV is a very promising opportunity for a Telco operator to build a Two-Sided Business Model Many Content Provider that are currently integrated in the traditional chains may be willing to migrate towards online distribution, with the aim of getting more independence The telcos own the only business elements that are horizontal to all online distribution business models: Quality of Service 3 Screens Digital Identity Management CRM and Billing Management Telcos can expose these assets to Independent Content Providers in order to maximize the business models that THEY build TWO GOOD NEWS
  17. 17. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 The Era of Polarized Models PAY: Mainstream Content ProvidersFREE: Independent Pro Content Providers Content Category If the Content Provider is also the Content Owner (ex. PGA or Formula 1) it’s the sponsor who subsidize the QoS, Billing and Caring Platform provided by the Telco Operator. As the user directly pays the Content Owner, the traditional Media chain is disintermediated Telcos can provide CPs with a white label platform allowing content to natively reach three screens Free content can be made available through a “Pay Just Once” application (iPhone/BBC model) in rev-share with Content Providers Model Description Two-sided: il Content Provider pays the Telco for a Platform ensuring QoS… ...while users pay a fee that can be shared by Telco and Content Provider Online Video Free Services, natively released on public APIs for desktop use, can be redistributed on OTT TV with third party apps written by Content Providers themselves. Telcos can expose their digital identity platform and their recommendation engine to return value to the application and offer context-based advertising (preroll, display) Variables Rev. Share Fee + Quality of ServiceRevenue Share from Advertising
  18. 18. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 The new engagement rules with content providers A new paradigm As OTT TV is a distribution platform open to all Content Providers (with no cultural obstacles, as broadcasters have, aimed at defending mainstream/premium content ) business models primarily depend on Content Owners This means that Service Providers have to build a Business Model around the nature of the content alongside with the Content Owner, looking for “shareable” sources of revenue If a Service provider has the ambition to place itself at the center of the new Ecosystem , new engagement rules with Content and Application providers have to be set These rules go far beyond the traditional negotiation process with majors/publishers What the Telcos can Offer What the Telco are looking for Quality of Service and Quality of Experience even in condition of Traffic Congestion Reach of a big multiplatform customer base multipiattaforma (ADSL on fixed lines, 3G for mobile lines) Anytime, Anywhere, Cross-Device Parental Control and DRM Billing, CRM e Tech Support Mass Market Proof Marketing /Communication Resources Digital Identity Management (recommendation engine, context based adv) aimed at maximizing Client Contact AND Application Value Content : Professional Rights Cleared Strongly differentiated by mainstream TV able to reach a wide public individually, or a critical mass of niches, able generate significant revenue That does not require a strong localization effort (dubbed/subtitled) o language-neutral (ex: Music, Vimeo, Arte Live Web) Applications: That do not create discontinuity in the UX That do not set new knots for the Ecosystem
  19. 19. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 Focus: Google TV: cannibalizing all biz models? 19 ► Google is to launch its own OTT TV software- based proposition (Google TV) ► Based on Chrome, this software will allow navigation on the sofa screen among all the video content that is normally available via desktop browser, as Open Source Applications like Boxee have already made possible ► Google TV will also provide a TV-friendly interface for popular Social Media apps like Facebook or Twitter ► A SDK will help independent content providers develop widgets to access their content, and – most important – participation in the advertising rev- sharing program, the real core of the biz model as already happens with AdSense on desktop apps ► Google announced Partnerships with Sony (Connected TVs) and Intel (chipset for a future dedicated STB) ► The big 4 broadcasters (NBC, ABC, CBS and FOX) seem reluctant to sign a distro agreement with Google *Source: The New York Times 1
  20. 20. Fraunhofer Institut Web Media Symposium – Berlin, November 5th 2010 Focus on Blip.tv: Platform Provider is an OTT thing? 20 “We are not an internet company: we are a media company. Our competitors are not the likes of internet startups. Our competitors are NBC or CBS. Our business model is not complex: we sell advertising and retain a revenue share”. Dina Kaplan, CEO & Co-founder Blip.tv 48.000 Prosumer shows Best shows receive 100.000$ + of rev share every year Top prosumer show received 1.000.000$ in 2010  Distribution agreements with Sony Bravia, iTunes, AOL, Boxee, Roku, Vimeo, TiVo. Myspace TV, YouTube…  “Aggregators and audience multipliers” 3
  1. ¿Le ha llamado la atención una diapositiva en particular?

    Recortar diapositivas es una manera útil de recopilar información importante para consultarla más tarde.

×