Verizon FiOS• Verizon FiOS is consider a HybridTV service because it uses the traditional cable TV digital multiplex for delivering broadcast services, and MoCA (Multimedia over Cable) for interactive services such as VoD and widgets• Verizon chose a hybrid approach purely to avoid technology risk, the plan is to move to full IP with all services delivered over MoCA by 2015 4 2011 Alan Quayle Business and Service Development
Verizon FiOS TV Subscriber Growth Verizon has achieved remarkable growth in a saturated market. It is likely to account forbetween 8-10% of the PayTV market in the US by 2015. Its HybridTV approach allows low 6 technology risk for the core service,Alan Quayle Business and 2011 while providing a future-proof growth strategy. Service Development
Orange TV Learning• Control was critical to Orange for its Satellite service o No partnership, it owns the Satellite service – can not partner with Canalsat as they are the competition (10M subscribers) o Enables an integrated experience and avoids commercial risks o Only way to achieve near 100% penetration• France has a more competitive market than the UK, where Sky dominates o Currently there is a PayTV land grab against CanalSat and cable o FT is focused on achieving a dominant position as without scale it can not buy the necessary content hence IPTV will not be competitive• Satellite investment is significant and has impacted this year’s financial results o Dominating PayTV is one of the top 3 domestic consumer objectives• HD can be supported over Satellite, IPTV and DTT o Hybrid approach maximizes lifetime of their DSL investment, before fiber is required• Hybrid TV will remain FT’s core TV strategy o IPTV and DTT o Satellite and IPTV Orange TV clearly demonstrated the only way for a telco to be successful is with Hybrid TV (DTT and IPTV), 12 and that HBI (Satellite and OTT TV) 2011 Alan Quayle Business a Telco enabling near 100% coverage can also be success for and Service Development
Hybrid TV Market Dynamics: Shift to TV Everywhere and Over The Top• In May 2011 Sky Deutschland launched its Sky Go service. Sky Go allows Sky programming to be viewed in a second room, on the iPad, iPhone, or iPod Touch, or over the internet on a PC or laptop.• Six years ago that BSkyB in the UK first experimented with what most cable companies call TV Everywhere, the strategy of letting its existing users have a password to view content on multiple devices, mostly in the home. Sky Player was only for the benefit of its multi-room customers• Sky has taken its PC targeted service and its mobile TV cellular streaming service and merged it into one - targeting phones and tablets - and says that from July 6th all ten million of its customers can watch Sky TV channels and programs on PCs, laptops, mobiles and tablets at no extra charge. Each Sky home will be entitled to register up to two devices, and view live linear channels and some of the sky on-demand content.• Sky plans in August to launch Sky Go as a full Over The Top service to non-Sky customers with subscriptions priced from £15 to £40 a month.• Telecom Italia moved from IPTV to a CuboVision STB OTT service, to a CuboVision OTT app available directly on the TV Traditional Broadcasters are now delivering over the top services
Using its open API Netflix is embedded in 100s of devices at little or no cost to Netflix. Achieving the N-Screen Vision UNIFIED LIST/TITLE RESPONSE WITH PARTIAL RESPONSE BUILT IN AUTO-RENTAL SEARCH SIMILARS TITLE COMPLET QUEUEHISTORY ETC… LIST LIST LIST E LIST LIST LIST TITLE INFORMATION TITLE RECOMMEND TITLE DETAILS RATING STATE ATION
APIs enable Netflix to manage device fragmentation, and has created a positive feedback cycle transforming how people consume video across N-Screens Extend Customer ReachCustomer Insight API Sell More Great Experience
API Usage and Business Model• 10B requests in Nov 2010• Latest figure now at 28B, >20k requests per second• There is no ‘standardized’ agreement, from free to a one-off fee for sign-up ($24) o The platform providers motivation is simply around delivering customer value on their platform, e.g. Apple’s core motivation on its App Store• Increasingly Netflix is going direct onto platforms using Webkit (keep all its money)
Nielsen Data for the US in 2011Top Online Video Brands by Time per Viewer (January 2011, U.S.) / 250K Unique ViewerVideo Brand Time per Viewer (hh:mm) MOM % Change in TimeNetflix 11:08 22.9%Tudou.com 6:30 17.4%Hulu 5:35 13.9%Megavideo 3:39 15.6%StageVU 2:52 -65.9%Justin.tv 2:33 55.5%YouTube 2:23 -3.0%Veoh 2:16 99.7%Nickelodeon Family & Parents 2:06 11.5%Cwtv.com 1:44 -38.3%Source: The Nielsen CompanyRead as: During January 2011, the average U.S. video viewers spent 11 hours, 8 minutes watchingvideo content on Netflix In just 2 years the time spent watching online video has nearly 22 quadrupled – at this rate by 2016 Business and 2011 Alan Quayle online could reach broadcast Service Development
Nielsen Data for the US in 2011Top Online Video Brands by Unique Viewers (January 2011, U.S.)Video Brand Unique Viewers (000) MOM % Change in ViewersYouTube 112,764 -0.8%Facebook 32,328 2.0%VEVO 32,230 N/AYahoo! 25,511 2.5%MSN/WindowsLive/Bing 17,285 26.1%Hulu 11,924 -4.9%The CollegeHumor Network 10,020 -2.4%AOL Media Network 9,236 -4.5%Fox Interactive Media 7,597 1.6%Netflix 7,394 15.6%Source: The Nielsen CompanyRead as: During January 2011, 112.8 million unique U.S. viewers watched video content on YouTubeusing PC/Mac/laptops/tablets/mobile from home and work locations From a transactional perspective YouTube is still in the lead, but 23 continues to struggle with profitability 2011 Alan Quayle Business and Service Development
The Future• The two most successful IPTV deployments (Orange and Verizon) are Hybrid TV, representing 6M subscribers as of the H2 2010. Exceptional growth achieved in mature PayTV markets• OTT TV is proving highly successful >28M Netflix customers and >24B requests per month, 141M BBC iPlayer requests in April, 11 hours per week of Netflix viewing in the US• Content owners remain the puppet masters in this emerging ecosystem, their objective is a direct customer relationship to maximize $$$$ The market has clearly demonstrated Hybrid TV is the only solution for operators to be successful in TV services – but its slow linear growth… and 24 2011 Alan Quayle Business Service Development While OTT is doubling every year
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