The Underdogs - Information technology and Entertainment
1. Entertainment and Information Technology The Underdogs Micheal Hoffman Eric Solon Joshua Smith Homero Cardenas Upahar Sood
2. Early Technologies 1895 First public display of a motion picture 1901 Tuned or Syntonic telegraphy –(Led to Radio) 1936 First Television broadcast made 1977 First personal computers were available to public 1992 The Internet was made available to the public 1997 First streamed videos over the internet 2001 3G cell phones are introduced with ability to stream media
3. The Computer Age The computer age is driven by Moore’s Law Advances in IC’s, memory, connectivity has made streaming media possible Portable devices becoming more powerful at cheaper prices iPods Smart Phones Laptops Tablets
4. Traditional Media Distribution Media was distributed via: Hard copies (Cassettes, CDs, DVDs) Cable TV Radio Albums and movies sold in retail stores Required stores to hold inventory Maintain a supply chain.
5. Digital Media Distribution The Internet has allowed alternative ways to distribute media Universal availability of music and video Online digital media stores (iTunes) YouTube Pandora Radio On demand video streaming Netflix Hulu Google TV
6. Competition Between Providers Comcast (Hulu, NBC) vs Netflix (Level 3 Communications) ABC, NBC, CBS vs Google (Google TV) Cable Providers vs Internet/ Network Providers
7. Media Consumption The Internet has changed the way people consume and share media Digital media is easier to share Sharing with the world, not just your friends Post YouTube videos Live streams and podcasts Peer-to-Peer sites Digital media is easier to copy Copies made by a click of a mouse
9. Digital Rights The need for digital rights protection Copyrights and piracy Napster Pirate-Bay Digital Rights Management (DRM) Apple/Real Networks controversy
10. Effects on the Industry Factors hurting the industry: Online piracy Poor market conditions Incomes are shifting as the business model of entertainment changes Content delivery over the internet vs. traditional stores Incomes that come from distribution of the media are most affected
11. Royalties vs. Licensing Royalties are generated by sales of media (CDs, DVDs) Typically low payouts to the artists Licensing revenue is generally from commercials and movies Higher payouts to the artists iTunes Store sales are considered licensed content
12. Increasing Internet Traffic In 2010 almost 2 billion people around the world connected to the Internet Internet traffic is increasing by 27% a year, but carrier’s revenue only by 5% a year By 2014, video transmission will be 90% of all internet traffic Wireless cellphone traffic is expected to increase 65 times by 2014, most in the form of streaming digital video
13. Can Networks Keep Up? Carriers need to increase their investments by 20% every year The carrier’s business models break down in 2014, when investments exceed revenue growth The influx of video traffic could also grind networks to a halt 3G and 4G networks won’t be able to support the bandwidth requirements
14. Possible Solutions Private sector solutions: Technological advances More service providers Government intervention FCC regulations Subsidies
