OTTCon 2010: ShiFt Happens Part 2

OTTCon 2010: ShiFt Happens Part 2

• 1.
  SHIFT HAPPENSFrom VALUEDESTRUCTION to VALUE CREATIONDr. Ken MorseCTO, Service Provider Technology GroupCisco
• 2.
  Traditional Video CompetitiveLandscape is in FluxNew Entrants, Everyday, in Online Video Online VideoVideoSatellite CompaniesMobile CompaniesCable CompaniesTelco Companies
• 3.
  Online Video –Shifting the Balance of PowerMoving in Favor of Consumers and M&E CompaniesPOWERM&ECompaniesCable CompaniesSatellite CompaniesTelco CompaniesMobile CompaniesM&ECompaniesConsumers
• 4.
  Online Video ispart of a broader“Viewer-Controlled” Video TrendTotal hours of Media Viewing by US populationAnnual Share of Viewing(person hours, in billions)50148447460(13%)105(22%)162(32%)2-3%414(87%)379(78%)339(68%)LATENT DEMAND: Addressableby Online Video (e.g. catch-up TV)* Online Video=Video watched via the Internet typically within an internet browser (ex. YouTube, Hulu, Daily Motion, Omroep.nl, …)Source: BlackArrow estimates based on internal DVR/VOD deployment estimates and publicly reported data from Nielsen Media, Nielsen NetRatings, Comcast and comScore.
• 5.
  User Survey HighlightsKey Demand Drivers for Internet Delivery of Video to TV“Which of the following might encourage you to start streaming or downloading TV programmes/movies online or, if you already do this, to watch more online TV programmes/movies than you currently do?” 44%24% 41%29%40%29%23%38%38%29%27%29%26%24%Source: Olswang Convergence Consumer Survey, November 2008
• 6.
  Online Video tothe TV will be enabled by avariety of devices130M Capable Homes, 40M Active HomesIncumbentsCable / Satellite / TelcoCompetitorsTru2WaySTB/PVRHybrid STBTiVoMCEnDTVGame Console360M Capable Homes, 170M Active HomesiSTB (NeuLion)internetBlu-Ray PlayerPCSource: TDG
• 7.
  Fragmentation Takes HoldBusinessModelsConsumerExperienceContent FragmentationBroadcast, Premium, UGCDevice & Screen FragmentationTV, PC, Mobile, Gaming, PDAInteractivity FragmentationLean back, Lean forward, SocialSubscription FragmentationBroadband, TV, Mobile, Movie rentals, OTTFree vs. PaidAd Dollars FragmentationTransition from linear TV to online
• 8.
  The Quest forValue Creation Propels a 3rd Wave: IP Video1st Wave2nd Wave3rd WaveIP VideoOn-net or Off-net
• 9.
  TV, PC, Mobile
• 10.
  Highest Service Velocity
• 11.
  Business Model: B2B2CIPTVOn-netonly
• 12.
  TV
• 13.
  Higher Service Velocity
• 14.
  Business Model: B2CTraditionalCableOn-net only
• 15.
  TV
• 16.
  Limited Service Velocity
• 17.
  Business Model: B2CMore Open, More Flexible, More Monetization Opportunities
• 18.
  How do weget there?Key Architectural Tenets for IP VideoNext Generation PlatformNext Generation Platform Built on Web Services ProtocolsAccelerates universal reach and 3rd party innovationLarge-scale UnicastVideo Intelligence Common Client ArchitectureManaged / Unmanaged
• 19.
  How do weget there?Key Architectural Tenets for IP VideoNext Generation PlatformContent networks scale exponentially for large-scale unicast servicesLeveraging multicast technologies for efficient distributionLarge-scale UnicastVideo Intelligence Common Client ArchitectureManaged / Unmanaged
• 20.
  How do weget there?Key Architectural Tenets for IP VideoNext Generation PlatformVideo intelligence propagates deep into the network edge Providing media, device, and network awarenessLarge-scale UnicastVideo Intelligence Common Client ArchitectureManaged / Unmanaged
• 21.
  How do weget there?Key Architectural Tenets for IP VideoNext Generation PlatformCommon Client ArchitectureMulti-device support – for PCs, set-tops, gaming consoles, mobile devices, etc. Large-scale UnicastVideo Intelligence Common Client ArchitectureManaged / Unmanaged
• 22.
  How do weget there?Key Architectural Tenets for IP VideoNext Generation PlatformServices Across Managed and Unmanaged NetworksCommon experience no matter where the user connectsLarge-scale UnicastVideo Intelligence Common Client ArchitectureManaged / Unmanaged
• 23.
  IP Video reshapesvideo distribution architecturesIP CoreEdgeAggregationVoDVoDVoDSP Services/ContentThird-Party Services/ ContentMediaData CenterMediaData CenterRegionalMedia Data Center / VHORegionalMedia Data CenterConnected HomeBusiness
• 24.
  MedianetThe Architectural Blueprintfor Delivering Next Gen IP Video Services ConsumptionContributionProductionDistributionPost ProductionSecondaryPrimaryDirect To HomeHeadendNews GatheringTelcoConsumersHeadendCableStudio to StudioIngestHeadendMobileSport EventsMedia Data CenterIPIPIPIPCore IPNetworkContent ProvidersService ProvidersTighter Linkages Between Core, Data Center and Edge
• 25.
  Core + E-MSECore+ E-MSEMedianetThe Architectural Blueprint for Delivering Next Gen IP Video Services ConsumptionContributionProductionDistributionPost ProductionSecondaryPrimaryDirect To HomeProximity RoutingHeadendMedia Data CenterNews GatheringTelcoAggregation RouterConsumersHeadendCableStudio to StudioIngestReal-timeTranscodingData CenterSwitchDistributionRouterAggregation RouterHeadendMobileSport EventsAggregation RouterDistribution RouterMedia Data CenterIPIPIPIPCore IPNetworkAggregation RouterContent ProvidersService ProvidersStorageStorageTighter Linkages Between Core, Data Center and EdgeVideo ProcessingConsumer AppsNRT TranscodeSvc. DeliveryBillingDevice MgmtEncryptionUCSStorageStorageStorage
• 26.
  Shift Happens: WillSPs Lead an Eco-system Searching for Value Creation