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IPTV 2.0
The future of Broadcast Television
What is IPTV

IPTV (Internet Protocol Television)
Delivers television programming to households via
  a broadband connection using Internet protocols.
  It requires a subscription and IPTV set-top box,
  and offers key advantages over existing TV cable
  and satellite technologies. IPTV is typically
  bundled with other services like Video on
  Demand (VOD), voice over IP (VOIP) or digital
  phone, and Web access.
The Market
   The number of worldwide IPTV subscribers will grow to almost 49
     million by 2010 with worldwide IPTV-related revenue growing from
     $872 million to $13.2 billion from 2006 to 2010.
   –Source, Gartner Group

   Worldwide IPTV equipment revenue hit $423.9 million in the first
      quarter of 2007.
   -Source, Infonetics Research


•The number of IPTV subscribers is
forecast to hit 93 million worldwide by
2011

•Worldwide IP set-top box revenue
grew 10% in 1Q08 over 4Q07
IPTV World Market Projections




-Source, IPTVDAILY.COM
Market Landscape




 “Many options and many providers”
Paradigm Shift

  Broadcast is Dead
(Push to Consumer)



                         IPTV 2.0
                     (Consumer Centric)
                     (“Pull medium”)
IPTV a Marketers Dream

• Measurable metrics and the ability to interact with the
  target give the marketer exacting tools in the toolkit.
• Think of combining the impact of a TV advertisement
  in a prime time slot with the stats you get from a
  website.
• Internet telephony into the mix and imagine your
  client watching an advertisement for pizza on the TV,
  pressing the 'call me' button and getting a call within
  seconds from the takeaway around the corner to take
  your order.
IPTV (STB) Set Top Box Categories


• Computer based IPTV
    http://www.hulu.com/
    http://www.univision.com/content/channel.jhtml;jsessionid=JPPCBL5SIX210CWIAA4CFEYKZAAD0IWC?
    chid=19641
    http://beta.thewb.com/



• STB (Set Top Box IPTV)
•   http://www.scientificatlanta.com/
•   http://myhava.com/index.html
•   http://www.slingmedia.com/

• Game Console IPTV
•   http://www.xbox.com/en-US/
•   http://wii.com/
•   http://www.us.playstation.com/
The Technology

Components

•Data Center
•Middleware
•STB Set Top
Box
OpenSource IPTV

                           OpenSource IPTV


 Media Sharing




                                                  Social Media
                                                  Component




                                             Click to Chat



Examples: MythTV, Freevo
Marketing Opportunities
•   “We believe the global IPTV market will reach approx. “50.5 million
    subscribers in 2010,” said Gary Schultz, principal analyst at Multimedia
    Research Group.
•   IPTV offers significant advantages for highly targeted and interactive ads
    that cable cannot offer, meaning that telcos will have a technology
    advantage over cable – if they are savvy enough to use it.
•   Wireless companies will also have advertising opportunities, either
    integrated with traditional cellular use, or in new media such as mobile data
    and video.
Measurable Marketing

• IPTV has the ability to provide comprehensive
  and myopic analytical measurement
• There will be content measurement, Social Media
  measurement and Gaming measurement as
  focus areas.
• All data will have the inherent ability to be
  overlaid with Demographic, Ethnographic and
  Psychographic datasets.
The next steps in IPTV

IPTV INNOVATION
IPTV 2.0 What does the future Hold?


•   Location-based traffic and weather reports
•   IM buddy lists
•   Real-time chat
•   Local theater tickets, ringtones
•   Live polls
•   Amazon-style e-commerce
•   Create and share home videos
•   Doctor and nurse house calls
Game Console IPTV

•   Xbox
     – Has the ability to download TV shows on demand and stream
        content as well. With their recent partnership with Netflix this
        platform will be a platform to watch.
•   Wii
     – The Wii doesn't have a strong IPTV capability however it does have
        the ability to view site like YouTube and hulu. There is a requirement
        of paying fro and downloading a web browser that is based on
        Opera technology.
•   PS3
     – In the Gaming console market Sony understands what IPTV is and
        how to leverage its technology. Sony is planning a major
        announcement with IPTV innovation in mind.
The Challenges
Long Term Challenges
What clients should know

• There is a very measurable and interactive medium that
  will yield deeper interactions with Brands. (IPTV)
• This is a paradigm shift from the traditional push
  methodology to a more viewer centric personalized
  experience.
• Ecommerce, polling and voting, increased social
  interactions, will all be part of the short term future of
  IPTV.
• The big picture is that all of the technology integration will
  enable consumers to have a digital relationship with
  multiple Brands and those Brands that exists in this
  sphere will be the “Digital Brands of the future”
What this means to Clients

• Myopic measurable marketing
• Real-time analytics
• Ability to cast polls, voting and receive more
  instant feedback
• Planning media buys will be more challenging
  due to dynamic media pricing models
• Will enable a more personal relationship with the
  brand (digital couponing, brand preferences)
Challenges in the IPTV Market


•   Infrastructure Costs to the Home
•   Cost for deployment/upgrades (GPON/TPON)
•   Telco implementation of IPTV infrastructure
•   Telco’s are interested in the average revenue per
    customer (ARPU) *Erosion is a major concern here.
•   Market Demand (Urban vs. Suburban)
•   Advertizing Models (Revenue Models?)
•   Premium Content (Sustainability?)
•   Competitive Services WIMAX (Satellite?)
IPTV Telecommunications Providers

TELECOMMUNICATIONS
INFRASTRUCTURE
IPTV Innovation



    Games              Social         Media         Location

                       Media          Sharing        Based

                                                    Services


   Game               IPTV +         Personal       Location
 Platform              Social         Media          Bases
Integration            Media                        Services
                                 •     Photos
•Xbox360          •   Facebook   •    Personal   • Order a Pizza
•Playstation 3    •   Myspace         Movies     • Schedule a
•Nintendo Wii     •   LinkedIn   •     Music         Doctors
                                                   Appointment
Interconected Services

  Faster                                   Buzz
                           Measurable
Downloads                                Marketing
               Loyalty &    Revenue
              Engagement




Quality of     Content        IPTV        Social
 Service                   Advertizing    Media
Raymond A. Monaco PhD
 www.armadadigital.com

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The Future of IPTV

  • 1. IPTV 2.0 The future of Broadcast Television
  • 2. What is IPTV IPTV (Internet Protocol Television) Delivers television programming to households via a broadband connection using Internet protocols. It requires a subscription and IPTV set-top box, and offers key advantages over existing TV cable and satellite technologies. IPTV is typically bundled with other services like Video on Demand (VOD), voice over IP (VOIP) or digital phone, and Web access.
  • 3. The Market The number of worldwide IPTV subscribers will grow to almost 49 million by 2010 with worldwide IPTV-related revenue growing from $872 million to $13.2 billion from 2006 to 2010. –Source, Gartner Group Worldwide IPTV equipment revenue hit $423.9 million in the first quarter of 2007. -Source, Infonetics Research •The number of IPTV subscribers is forecast to hit 93 million worldwide by 2011 •Worldwide IP set-top box revenue grew 10% in 1Q08 over 4Q07
  • 4. IPTV World Market Projections -Source, IPTVDAILY.COM
  • 5. Market Landscape “Many options and many providers”
  • 6. Paradigm Shift Broadcast is Dead (Push to Consumer) IPTV 2.0 (Consumer Centric) (“Pull medium”)
  • 7. IPTV a Marketers Dream • Measurable metrics and the ability to interact with the target give the marketer exacting tools in the toolkit. • Think of combining the impact of a TV advertisement in a prime time slot with the stats you get from a website. • Internet telephony into the mix and imagine your client watching an advertisement for pizza on the TV, pressing the 'call me' button and getting a call within seconds from the takeaway around the corner to take your order.
  • 8. IPTV (STB) Set Top Box Categories • Computer based IPTV http://www.hulu.com/ http://www.univision.com/content/channel.jhtml;jsessionid=JPPCBL5SIX210CWIAA4CFEYKZAAD0IWC? chid=19641 http://beta.thewb.com/ • STB (Set Top Box IPTV) • http://www.scientificatlanta.com/ • http://myhava.com/index.html • http://www.slingmedia.com/ • Game Console IPTV • http://www.xbox.com/en-US/ • http://wii.com/ • http://www.us.playstation.com/
  • 10. OpenSource IPTV OpenSource IPTV Media Sharing Social Media Component Click to Chat Examples: MythTV, Freevo
  • 11. Marketing Opportunities • “We believe the global IPTV market will reach approx. “50.5 million subscribers in 2010,” said Gary Schultz, principal analyst at Multimedia Research Group. • IPTV offers significant advantages for highly targeted and interactive ads that cable cannot offer, meaning that telcos will have a technology advantage over cable – if they are savvy enough to use it. • Wireless companies will also have advertising opportunities, either integrated with traditional cellular use, or in new media such as mobile data and video.
  • 12. Measurable Marketing • IPTV has the ability to provide comprehensive and myopic analytical measurement • There will be content measurement, Social Media measurement and Gaming measurement as focus areas. • All data will have the inherent ability to be overlaid with Demographic, Ethnographic and Psychographic datasets.
  • 13. The next steps in IPTV IPTV INNOVATION
  • 14. IPTV 2.0 What does the future Hold? • Location-based traffic and weather reports • IM buddy lists • Real-time chat • Local theater tickets, ringtones • Live polls • Amazon-style e-commerce • Create and share home videos • Doctor and nurse house calls
  • 15. Game Console IPTV • Xbox – Has the ability to download TV shows on demand and stream content as well. With their recent partnership with Netflix this platform will be a platform to watch. • Wii – The Wii doesn't have a strong IPTV capability however it does have the ability to view site like YouTube and hulu. There is a requirement of paying fro and downloading a web browser that is based on Opera technology. • PS3 – In the Gaming console market Sony understands what IPTV is and how to leverage its technology. Sony is planning a major announcement with IPTV innovation in mind.
  • 18. What clients should know • There is a very measurable and interactive medium that will yield deeper interactions with Brands. (IPTV) • This is a paradigm shift from the traditional push methodology to a more viewer centric personalized experience. • Ecommerce, polling and voting, increased social interactions, will all be part of the short term future of IPTV. • The big picture is that all of the technology integration will enable consumers to have a digital relationship with multiple Brands and those Brands that exists in this sphere will be the “Digital Brands of the future”
  • 19. What this means to Clients • Myopic measurable marketing • Real-time analytics • Ability to cast polls, voting and receive more instant feedback • Planning media buys will be more challenging due to dynamic media pricing models • Will enable a more personal relationship with the brand (digital couponing, brand preferences)
  • 20. Challenges in the IPTV Market • Infrastructure Costs to the Home • Cost for deployment/upgrades (GPON/TPON) • Telco implementation of IPTV infrastructure • Telco’s are interested in the average revenue per customer (ARPU) *Erosion is a major concern here. • Market Demand (Urban vs. Suburban) • Advertizing Models (Revenue Models?) • Premium Content (Sustainability?) • Competitive Services WIMAX (Satellite?)
  • 22. IPTV Innovation Games Social Media Location Media Sharing Based Services Game IPTV + Personal Location Platform Social Media Bases Integration Media Services • Photos •Xbox360 • Facebook • Personal • Order a Pizza •Playstation 3 • Myspace Movies • Schedule a •Nintendo Wii • LinkedIn • Music Doctors Appointment
  • 23. Interconected Services Faster Buzz Measurable Downloads Marketing Loyalty & Revenue Engagement Quality of Content IPTV Social Service Advertizing Media
  • 24. Raymond A. Monaco PhD www.armadadigital.com