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Monetizing OTT Video - OTTcon 2010

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Revenue security extends value proposition of pay-TV subscriber relationships
•Adaptive streaming standards successfully enable secure OTT services
•MultiRights approach builds inclusive service across broad range of devices

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Monetizing OTT Video - OTTcon 2010

  1. 1. Monetizing OTT Video Beyond Content Protection to Revenue Security Steve Christian VP Marketing and Product Strategy schristian@verimatrix.com
  2. 2. Online Video Delivery Landscape • 2010: – 81.6% of Internet consumers watch videos online – 25 Billion Video clips viewed – 9.7 Hours per viewer per month Source: comScore Video Metrix, 9/28/2009 • 2015: – 500 Billion hours of Video * – 12 Billion Connected Devices ** Source: * iSuppli, YouTube ** IDC,iSupply, Euromonitor But how do we retain subscribers and make money??
  3. 3. Reality Check Unsubstantiated Hyperbole on Today’s Internet Video Services • Commercial video content is ubiquitously available on the Internet • Consumers are rejecting traditional sources of video entertainment en-masse • The pay-TV business model is fundamentally broken
  4. 4. What’s Wrong with This Picture? Pay-TV service Internet TV service ????? Subscriber Account Web portal Delivery Broadband Network to home Network PC/Mac Specific STB Game console Phone
  5. 5. Pay-TV Market Trajectory Evolving Business and Operational Challenges • Extending the operator brand and subscriber relationship beyond the living room screen • Offering personalized choices and viewing models across growing number of devices • Enabling content delivery and monetization spanning multiple networks and geographies • Assuring subscriber loyalty, ARPU, and additional revenue streams
  6. 6. Verimatrix Snapshot Founded 2000 Scope Content and Revenue Security for multi-network, 3-screen applications: IPTV, DVB Broadcast, Hybrid, Mobile & Over-the-Top to STBs, PCs & mobile devices Headquarters San Diego, California, with satellite offices in Atlanta, Boston, Beijing, Singapore, Amsterdam, Paris, Nice, Moscow, Medellin Customers 280+ operator customers in 37 countries, including 18 Tier 1’s and 2’s – protecting more than 12 million screens for IPTV and DVB Hybrid Partners Over 100 ecosystem channel & integration partners including Ericsson, IBM, Motorola, Nokia Siemens Networks, Thomson and ZTE Investors Goldman Sachs, Mission Ventures, Crescendo Ventures, Cipio Partners, SunAmerica Ventures & JK&B Capital 6
  7. 7. 3-Dimensional Revenue Security Network Dimension – beyond broadcast, cable, telco, mobile network distribution silos, leveraging advantages of proven IP technologies Device Dimension Portability & transparency with network-centric key Protection Dimension management for Multi-layer security to flexible mix of devices enable rich business models, copy traceability and combat theft of service
  8. 8. Pay-TV Revenue Opportunities High value premium service options and consumption models Global subscription IPTV / DVB / Mobile & Multi-screen reach with OTT services Hybrid Service delivery content portability and transparency Value added services integration with open ecosystem
  9. 9. Supporting Multi-format Delivery Extending Pay-TV Revenue Security to OTT Services • Support for advanced compression and adaptive streaming formats – HTTP live streaming (“Apple” format for iPhone 3.x/QuickTime X) – Evolution to additional formats and players • Encoder pre-integration enables head-end solution for secure delivery – Example: VCAS + Envivio 4Caster C4 Convergence encoder – IPTV, Internet TV, Mobile • Verimatrix ViewRight client technology with adaptive streaming support – ViewRight Web browser plug-in – ViewRight Desktop PC/Mac player application – ViewRight STB – ViewRight Mobile
  10. 10. VCAS for IPTV + Internet TV Multi-Format Delivery with Single Content Authority TV PC / MAC VCAS Unified Head-end Broadcast Content IPTV or DVB (Managed Network) Verimatrix RTES ViewRight STB, Desktop, Mobile Subscriber Mgmt / Verimatrix Keys IP return path Middleware VCAS Authentication CSM Server And Key Mgmt Verimatrix MultiCAS / Adaptive PC / MAC iPhone Keys Internet TV (Over-the-top) Adapt Stream Encoder Web / Streaming Ex: Envivio 4Caster C4 Server Adaptive Streaming ViewRight Web Mobile, STB Linear content delivery model
  11. 11. Adaptive Streaming Plug-in
  12. 12. Adaptive Streaming Bandwidth Tracking
  13. 13. Adaptive Streaming as an Enabler Internet Innovation vs the Managed Network • Firewall transparency: reaches across the home network to all devices • Graceful degradation: eliminates many hard failure modes of managed network protocols • Roaming handover: enables in-home to mobile transition • Single URL: very broad range of bitrates and formats supportable – even HD
  14. 14. MultiRights™ DRM Support Mobile broadcast/VOD Multiple formats IPTV broadcast/VOD and content protection schemes for TV, PC and Mobile worlds Single logical content source VCAS and rights management OMA DRM VCAS Portable / Mobile VCAS PlayReady DVB broadcast/VOD DRM VCAS VCAS Wi-Fi portable Marlin DRM VCAS PlayReady PC/Mac broadcast/VOD
  15. 15. VCAS MultiRights for Pay-TV + Internet TV VCAS Support for PlayReady/Silverlight Devices Broadcast VCAS Unified Head-end TV PC / MAC Content IPTV or DVB (Managed Network) Verimatrix RTES ViewRight STB, Desktop, Mobile Verimatrix Keys IP return path CSM & MultiCAS VCAS Authentication And Key Mgmt Subscriber Mgmt / Verimatrix Middleware Server SEI MultiRights PlayReady Server PC / MAC Smartphone Keys Keys Internet TV (Over-the-top) Adapt Stream Encoder Web / Streaming Ex: Envivio 4Caster C4 Server Adaptive Streaming Silverlight / PlayReady Clients
  16. 16. Summary Internet Innovation vs the Managed Network • Revenue security extends value proposition of pay-TV subscriber relationships • Adaptive streaming standards successfully enable secure OTT services • MultiRights approach builds inclusive service across broad range of devices
  17. 17. Thank You Steve Christian schristian@verimatrix.com www.verimatrix.com

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