These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Singapore Telecom’s Cloud Storage System Service. Storing recorded videos from a cable TV service on the cloud can provide users with more value than can storing them on a set-top box. Users can access them from any device and they don’t need to purchase an expensive set-top box. Storing the recording videos in the cloud also provides advertisers with more value because data on when and how often users access the videos can be made available to advertisers. These slides describe the specific value proposition for viewers and advertisers and other aspects of the business model such as the method of value capture, scope of activities, and method of strategic control.
4. 4
What is Cloud PVR?
Cloud Personal Video Recording
Any device
Any content
Any location
Any occasion
With
Stable network
Simple interface
At
Lower cost
Unlimited Space
Cloud PVR
ANY CONTENT
ANYWHERE
6. 6
Market Trend & Demand
TV, Home desktop
Portable personal computer
Mobile internet, internet TV
Inter-linked personal smart devices & TV
Concept of Virtualization
Cloud Application
IaaS, PaaS, SaaS
The increasing trend of multiple smart devices and maturity of cloud computing technology imply a demand for moving video storage into the cloud.
Architecture Innovation: Cloud PVR
8. 8
Customer Selection
Customer Selection
Subscribers
1. Existing users of PVR
2. Cable TV user (not using any recording service)
3. Other potential users
Advertisers
3rdParty Video Apps formobiledevices
9. 9
Existing users of PVR-Upgrading to cloud PVR
Transition cost is low, willingness to upgrade to cloud PVR is high
Familiar with PVR user interface
Reduce their cost of renting the hardware
Subscribers
$8 /Month rental for hardware
Freewithin 20G
10. 10
CableTV user (NonPVRuser)
Cloud PVR is a new attractive function for them
No cost increase
Setup is smaller than PVR
More resources of video contents at anytime
Subscribers
45
55
All Cable TV users
Cable TVUsers like touse CloudPVR
11. 11
Other potential users
Online video viewers transfer to cloud PVR
More contents(Sports)
More stable(TV Cable)
Readily organized contents
Subscribers
12. 12
Advertisers
Based on data analysis of Subscribers
Based on pre- processing of content
Betterwaytoreachspecificallytargetedmarket
About Fashion
Clothes
About Makeup
About Women’s healthy food
Nearest
LocationInformation
13. 13
3rd party Video Apps for
mobile devices
Rent server memory space to them
Sell contentaccessright to them
14. 14
Cloud PVR
Google TV
Internet VideoPlayer
Customerswho need video serviceto be
Simple
Stable
High definition
ReadilyorganizedReliablecontents
Young gamerswho need video serviceto be
Cheap,with
Games
They are OK with
Quality&Speednotguaranteed
Long time spenton searching
&irrelevant Ads
Young,knowwhattheywouldliketowatch
Cheap
They are OK with
Quality&Speednotguaranteed
Long time spenton searching
&irrelevantAds
Compare potential
customers’ requirements
21. 21
Value Proposition
Werentstorage incloudwith low price
Weprovideaccessrighttovideos
Wemanageandmaintainforthem
22. 22
Video Delivery Value Chain
Content Creation
Content Packaging
Content Distribution
User Interface
End User
Independent Producers
ServiceProvider
BroadcastTV Stations
TV
Subscribers
Producers, User Uploads
Barely processed
Internet
TV, PC, Tablet,Phone
Subscribers, Downloaders
Independent Producers
Customized pre-processing
Cloud
Connected Smart Device
Consumers
User upload via 3rdpartyapps
3rdparty’s own control
Cloud
TV, PC, Tablet, Phone
Subscribers, Downloaders
Traditional
NewAlternatives(eg. Internet Video Players, Google TV)
Cloud PVR
25. 25
Scope of activity
Our company
cPVR
Viewer/ Subscriber
Advertiser
Content Provider
3rdParty Video App
Extended cPVR
suppliers
26. 26
Scope of activity
DataanalysisContentpreprocessing
cPVR
Supplier
Viewer/ Subscriber
Advertiser
Content Provider
3rdParty Video App
Extended cPVR
Live TV & Video
Viewer Data
Infrastructure
&ProfessionalService
Accessrighttocontent
29. 30
Current Value Networks
cPVR
Service Provider
Viewer/ Subscriber
Advertiser
Content Provider
Social Network
Data Analysis, Content Processing
Service Provider
Viewer Data & preference
Bid for Slot
Pay Per Content
Live TV & Video
Video Content
Video Recording
Subscription fee
$
$
$
User-end
Hard Disk
Replay
30. 31
New Value Networks
cPVR
Service Provider
Viewer/ Subscriber
Advertiser
Content Provider
3rdParty Video App
Social Network
Data Analysis, Content Processing
Service Provider
Extended cPVR
Viewer Data & preference
Bid for Slot &
Pay Per View
Pay Per View
(Partially subsidized by Viewer data)
Live TV & Video
Viewer Data
Recommendation
Customized Content
Video Recording
Pay By Usage
Content Uploading & Retrieving
Pay Per View
(cross subsidized by advertiser)
$
$
$
$
Customized Ad
31. 32
Partners within Value
Network
cPVR Service Provider / ISP
Advertising Bid & PPV
Subscription fee for no Ad video
Metered Cloud Service to 3rdParty App
Content Provider
Embedded Advertising
3rdParty App Developer
Advertising
Premium Content Sales
Etc. (within 3rdparty’s own control)
Advertisers
Sale of Products
How we enable our partners to make money?
$
33. 34
Nature of Technology
Complexity
•Hard to achieve
Barrier Entrance
•Massiveinfrastructure
Network Effects
•Make use of social network
Economies of scale
•MemorySpace
•Content pre- process
•Data analysis
First mover
•Competitive advantage
Strategic Control
Nature of Technology
Nature of Technology
34. 35
Legal Mechanisms of Protection
Legal mechanisms of protection
ExistingCable/Fiberinfrastructureandbandwidth-scarceresources
Strategic Control
35. 36
Control of industry architecture and complementary assets
Company capability
More bandwidth for our viewers
Strong appropriability of infrastructures
Complement cloud PVR service with other telecomservices
Long tail benefit
Small adverting companies
Content pre-process & data analysis
Strategic Control