The document discusses the impact of OTT video services and mobile technologies on content consumption, highlighting trends such as the rise of wireless-only households and the increase in mobile data use. It outlines significant shifts in viewership patterns, with many users preferring streaming options like Netflix and YouTube over traditional cable. Key points include the proliferation of connected devices, fast internet speeds, and the evolving landscape of media distribution and consumer preferences.

1. OTT Video: Perspectives
from a Global Deployment &
Next Gen Services
2013 NAB Info Session
Monday, April 8
10:00 am - 12:00 pm
[ moderator: ryan petty // evio.com @eviogroup ]

2. 2
 Stefan Jenzowsky – head of multimedia business unit at siemens cvc
 Brook Longdon – director of systems integration at ARRIS
 Steve Oetegenn – chief sales and marketing officer at verimatrix
 Jeremy Toeman – founder and ceo of dijit
 Les Wilson – director of global media sales at oracle
 Keith Wymbs – Vice president of marketing at elemental technologies
Panelists

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Proliferation of Choices is Blurring Value Proposition
That was then… This is now

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Durable Trends
• 1B+ users
• 600M on mobile (access FB 2X PC)
• Avg user has 305+ friends
• 20M installed apps per day
• 17B location tagged posts
• Netflix 60,000 titles (estimate)
• Amazon Prime 33,000 titles
• iTunes has 190,000 TV episodes
• Most US studios license content
for OTT
• YouTube 72 hours uploaded /
min
BANDWIDTH
MOBILITY / DEVICES
SOCIAL
CONTENT
• US mobile networks at 80%
capacity*
US family averages 30GB/month
• M2M Communication
• Fastest product ever to 1M units
• iPad & iPhone drove AT&T‟s
wireless data traffic up 8,008%
since their launches
• Mobile payments $617bn market
opportunity
• Mobile advertising $2.61bn in the
US. Dominated by Google
OTT
*Credit Suisse

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Mobile Demographics
 Of Note
» Renters (43%) are more likely to cut cord than
homeowners (14%) [CDC/NCHS]
» 55% of mobile video audience is aged 25-49
[Nielsen]
 Questions
» How does growing up wireless-only (and now
smartphone only) influence home entertainment
behavior?
» What is the affinity of wireless-only, twenty-
somethings to cable?
» What do we have/can create that they want?
 About 50% of adults aged 25-29 are wireless-only [CDC/NCHS]. The population with
a fixed phone has conversely grown older, with adults aged 50+ making up 66% of
landline poll samples in 2010 vs. 49% in 2005 and 36% in 1995 [Pew].
 Though adults classified “poor” and “near poor” have greater propensity to be wireless-
only than those “not poor,” the percentage of wireless-only HH more than doubled for
each status between 2006 and 2009 [CDC/NCHS]

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Cord-Cutting
 Questions
» What drives cord-cutting:
macroeconomic, one number, one
device?
» Does cord-cutting affect all CSPs
equally: ILECs, MSOs, OTT content?
» Does consumer perception of a fixed
triple-play change over time?
 Cisco projects ~20% of population mobile-only data by 2014. (Concurrent with rise to
50% of HH wireless-only; and 50% of age 25-29 adults are wireless-only voice today.)
 ~30% of all HH are now wireless-only [Citi, CDC/NCHS, Centris]
 ~1% of HH are disconnecting landline service every quarter [Citi]
 “Wireless-mostly” HH are another 15%; of HH with wired phone, 26% take most calls
on wireless phones [CDC/NCHS]
 Of Note
» LTE covers 75% of US. 410+ cities
» (Verizon) 35% of data over LTE, 50%
soon

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OTT Content is Growing
 Of Note
» Netflix $1B deal with Epix for 5-year period
» Ubiquitous stream-capable devices: TiVo,
Wii, Xbox, Roku, Sony, Samsung, LG, more
» Streaming: Netflix 60,000+ titles, Amazon
VOD 50,000+ titles
 Questions
» How durable are content models as the
user base scales?
» Will or when can MediaCos be motivated to
reduce or replace linear PayTV distribution?
 Variety of free, paid, and freemium OTT models available: Hulu/Hulu Plus,
iTunes/Apple TV, Google TV, Amazon Instant Streaming, Netflix others
 Netflix subscriber base 33m in 40 countries as of Jan „13. Estimates as high as 70M+
by 2017 (35-40% penetration)
 Growing media company belief in OTT as a viable platform
Source: company reports

8. 8
Web Video Continues to Grow Rapidly
• YouTube video limit increased 50% (10 to 15
minutes) in July 2010; In 2011 increased to 10
hours! (with mobile auth)
• Over 800 million unique users visit YouTube each
month
• Over 4 billion hours of video are watched each
month
• 72 hours of video are uploaded to YouTube every
minute
• 70% of YouTube traffic comes from outside the US
• YouTube is localized in 43 countries and across 60
languages
• In 2011, YouTube had more than 1 trillion views or
around 140 views for every person on Earth
 The launch of YouTube in early 2005 sparked a revolution in web video, pushing
Internet traffic to massive levels
Source: YouTube
Traffic from mobile devices tripled in 2011
More than 20% of global YouTube views come from mobile devices
3 hours of video is uploaded per minute to YouTube from mobile devices
YouTube is available on 350 million devices

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Video Is the Majority of Internet Traffic
 Of Note
» YouTube viewer: ~4.5 hours/month vs. TV
consumer: ~158 hours/month [ComScore,
Nielsen]
 Questions
» Does web video squeeze or supplement
legacy video entertainment?
» How does our broadband business change
when video is 75% of Internet traffic?
95%?
» Embrace, resist, co-exist, opt out?
» Is the network a platform?
 News and entertainment sites now feature embedded video (Flash, HTML5, etc)
 Video advertisements launch upon reaching other sites; a company‟s own brands,
cross-promotion of partners, third-party ads
 ~50% of current web traffic is now video, growing to 80%+ by 2014. YouTube alone
grew from 4% of online video traffic in 2006 to 20% in 2007, and 40% in 2009 [Cisco]
Source: Wired magazine

10. 10
Connected Devices are Growing
 Of Note
» 5 devices per home average
» Total network usage per consumer:
36 hours per day now, 48 by 2013 [Cisco]
 Questions
» Devices: accelerate, grow, slow?
 Internet-connected devices have steadily made their way into homes, beginning with
gaming consoles. The iPhone, iPad and competitors, including various Android
implementations, have popularized untethered in-home connectivity.
 iPad sales exceeded many analysts‟ expectations in both of its first two quarters.
Copycat devices now in market (Samsung Galaxy Tab, Amazon Kindle, etc).
» Apple sold 35MM+ iPads from launch in 2010
Source: RCBG analysis of NPD, Canalys, Piper Jaffray estimates, company reports.

11. 11
Access Speeds Increase
 Of Note
» Access speed ~20% CAGR from 1997-2009 [FCC]
» At faster speeds, users‟ time online and average
data consumption increase
» Comcast recently doubled the speed of its two top
tiers to 50Mbps & 105Mbps
 DOCSIS 3 and VDSL2 are bringing ultra-fast broadband to the mass market; speeds of 50
Mbps and even 305 Mbps can now be deployed
 Comcast will substantially complete D3 upgrades throughout its footprints by EOY; Verizon
FiOS buildout will reach 18MM HH target by EOY [company statements]
 Google FTTH project at Kansas City is first of announced effort to build 1-Gbps access to
50−500,000 people. Company continues pushing FCC to boost US broadband speeds.
Source: FCC

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My Family

13. Thank You