Efficient Collaboration and Revenue Sharing ModelsOTT Content Providers and Operators.    Jay Klein, CTO1   May 24, 2012  ...
About Allot                         The Mobile OTT Ecosystem will be the place where operators,                         co...
A Late 90’s Perspective:What’s wrong with this Picture3   May 24, 2012
Old Way vs. New Way    MMS4   May 24, 2012
Old Way vs. New Way    New way: Instagram5   May 24, 2012
Old Way vs. New Way    Even a better way: Cinemagram6   May 24, 2012
What wrong with this offering?7   May 24, 20127
Israel: Mobile Operators May 2012Operator             Golan        Hot       Partner     Cellcom     PelephoneMonthly fee ...
LTE means More OTT                        3G vs. 4G Top Protocols by Volume3G                                             ...
10                                                                                                  9                     ...
Average per subscriber / per application bandwidthPre-Netflix                      Subscribers Avg Bandwidth (Kbps)  25  2...
Average per subscriber / per application bandwidthPost-Netflix                             Subscribers Avg Bandwidth (Kbps...
Operator Drivers:What Subscribers Want?      No buffering for      me, thank you!     All my video     is in HD     I’m OK...
OTT Provider Drivers:User Experience “4 Out of 5 Viewers Leave If a Stream Buffers Once*”                          * Tubem...
Above All, Users Want Simplicity     Pay WhatsApp     Pay Android     Pay Operator16   May 24, 2012
Time to Start the Peace Talks17   May 24, 2012
Revenue Sharing Business ModelsService-centric               Experience-centricAccess (reach)                ContentMobili...
Allot Enables Revenue Sharing ModelsWe Enable                        You CanVISIBILITY                       Track OTT con...
The Business Case for Revenue SharingOperator              Content / App      Subscriber                      providerLowe...
26% of operators have rev. sharing deals in placeThe H1 2012 Allot MobileTrends Charging Report is coming out in June 21  ...
Revenue Sharing Models: ContentTelia Sweden Spotify4-year partnership.App provider benefits:• 300% YoY increase in Spotify...
Partnering with OTT PlayersThe Way Forward     Operator drivers     ● Doing nothing leads to nothing     ● Deliver value &...
Allot Communications                      a mind for networks                          Jay Klein | VP & CTO               ...
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Day 1-t5-1530 jay-klein-20120523

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LTE World Summit Barcelona May 2012
Day 1

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Day 1-t5-1530 jay-klein-20120523

  1. 1. Efficient Collaboration and Revenue Sharing ModelsOTT Content Providers and Operators. Jay Klein, CTO1 May 24, 2012 May 24, 2012
  2. 2. About Allot The Mobile OTT Ecosystem will be the place where operators, content providers and consumers work in harmony to create, deliver, and experience excellent mobile Internet services & applicationsAllot’s goal is to facilitate the interactions that make it work When the ecosystem works in harmony, everyone thrives1 Billion Subscribers | 150 Countries | 600+ Fixed Providers | 50+ Mobile Operators 2 May 24, 2012
  3. 3. A Late 90’s Perspective:What’s wrong with this Picture3 May 24, 2012
  4. 4. Old Way vs. New Way MMS4 May 24, 2012
  5. 5. Old Way vs. New Way New way: Instagram5 May 24, 2012
  6. 6. Old Way vs. New Way Even a better way: Cinemagram6 May 24, 2012
  7. 7. What wrong with this offering?7 May 24, 20127
  8. 8. Israel: Mobile Operators May 2012Operator Golan Hot Partner Cellcom PelephoneMonthly fee 20 18 36 40 30 (Euro)Voice Min. Unlimited Unlimited 1300 Unlimited 2000 conv. SMS Unlimited Unlimited 1300 Unlimited 15000 Internet 2GB/Speed Unlimited 5cent/MB 500MB+4 6 Euro Euro/250MB 3.5GB/Speed 8 May 24, 2012
  9. 9. LTE means More OTT 3G vs. 4G Top Protocols by Volume3G 4G* Allot Service Gateway Data over 48h, March 2012 9 May 24, 2012
  10. 10. 10 9 8 7 6 5 4 3 2 1 0 Jan 01 2012 00:00:00 Jan 04 2012 00:00:00May 24, 2012 Jan 07 2012 00:00:00 Jan 10 2012 00:00:00 Jan 13 2012 00:00:00 Jan 16 2012 00:00:00 Jan 19 2012 00:00:00 Jan 22 2012 00:00:00 Jan 25 2012 00:00:00 Jan 28 2012 00:00:00 Jan 31 2012 00:00:00 Feb 03 2012 00:00:00 Feb 06 2012 00:00:00 Feb 09 2012 00:00:00 Feb 12 2012 00:00:00 Feb 15 2012 00:00:00 Feb 18 2012 00:00:00 Feb 21 2012 00:00:00 Feb 24 2012 00:00:00 Feb 27 2012 00:00:00 Mar 01 2012 00:00:00 Mar 04 2012 00:00:00 Mar 07 2012 00:00:00 Mar 10 2012 00:00:00 Mar 13 2012 00:00:00 Mar 16 2012 00:00:00 Mar 19 2012 00:00:00 Netflix vs. iPlayer during trial phase Mar 22 2012 00:00:00 Mar 25 2012 00:00:00 Mar 28 2012 01:00:00 iPlayer NetFlix
  11. 11. Average per subscriber / per application bandwidthPre-Netflix Subscribers Avg Bandwidth (Kbps) 25 20 15 10 5 0 11 May 24, 2012
  12. 12. Average per subscriber / per application bandwidthPost-Netflix Subscribers Avg Bandwidth (Kbps) 40 35 30 An average active subscriber amount of 25 0.015% of the user base generated 2+% of total traffic in launch week 20 15 10 5 0 12 May 24, 2012
  13. 13. Operator Drivers:What Subscribers Want? No buffering for me, thank you! All my video is in HD I’m OK with ads as long as the content is free Do they have a service plan for gamers?14 May 24, 2012
  14. 14. OTT Provider Drivers:User Experience “4 Out of 5 Viewers Leave If a Stream Buffers Once*” * Tubemogul, Dec, 200915 May 24, 2012
  15. 15. Above All, Users Want Simplicity Pay WhatsApp Pay Android Pay Operator16 May 24, 2012
  16. 16. Time to Start the Peace Talks17 May 24, 2012
  17. 17. Revenue Sharing Business ModelsService-centric Experience-centricAccess (reach) ContentMobility InformationBilling relationship Interaction 18 May 24, 2012
  18. 18. Allot Enables Revenue Sharing ModelsWe Enable You CanVISIBILITY Track OTT contentReporting App DownloadsNetwork intelligence StreamingPOLICY Guarantee QoE &ENFORCEMENT Special OfferingPriority Zero rate trafficQoS/QoE Zero streaming stallsAPPLICATION- Settle with OTTBASED CHARGING providerQuota Per volume of trafficCharging Per EventAd Insertion 19 May 24, 2012
  19. 19. The Business Case for Revenue SharingOperator Content / App Subscriber providerLower churn/ User acquisition Simplified billingHigher tractionCost reduction Guaranteed QoE Improved experienceTraffic Free-to-premium Personalization, PayMonetization conversion for valueMarket Ad revenue Off-quota datadifferentiation usage, freebies (loyalty) 20 May 24, 2012
  20. 20. 26% of operators have rev. sharing deals in placeThe H1 2012 Allot MobileTrends Charging Report is coming out in June 21 May 24, 2012
  21. 21. Revenue Sharing Models: ContentTelia Sweden Spotify4-year partnership.App provider benefits:• 300% YoY increase in Spotify subscriptions sold through Telia*.• 5% of Spotifys Premium users in Sweden acquired through Telia.Operator benefits:• 1 in 5 Telia smartphone users - a Spotify subscriber.Content provider benefits:• “We now see a bright future for music in Sweden.” - Mark Dennis, CEO of Sony Music Sweden.22 May 24, 2012 *2011
  22. 22. Partnering with OTT PlayersThe Way Forward Operator drivers ● Doing nothing leads to nothing ● Deliver value & differentiate ● Monetize traffic OTT provider drivers ● Improve user experience ● Broaden customer reach & customer value Revenue sharing models ● It’s also a question of infrastructure23 May 24, 2012
  23. 23. Allot Communications a mind for networks Jay Klein | VP & CTO jklein@allot.com24 May 24, 2012

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