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Click to edit Master title style Evolution and Future of TV Presenter: Vishal
Click to edit Master title style
Evolution and Future of TV
Presenter: Vishal
Background, Global TV - Shipments and Revenue
Evolution of TV, Emerging Platform
Appendix - Emerging Trends and Standards
The Emergence of new TV platform services
Google vs Apple and Rest, Google TV Under The Hood
Changing Landscape, Battle Across TV Landscape
Value Chain, Hybrid TV, IPTV in the Living Room
IPTV Architecture, Opportunity For Service Providers
Evolution of IPTV, Triple Play
Status Today & Predictions - Gartner Hype Curve
Agenda
Background
Analog is Legacy - switch off is planned for the next decade around the world
Boom in Digital TV - terrestrial, cable, satellite, IPTV, in all forms
Source: BSI Report 2010, Future of TV
HDTV is becoming prevalent and technologies such as 3DTV and mobile TV are taking off
Shifting Consumer Behavior - access content wherever, whenever and on the device of their choice
* HDTV - Television with resolution substantially higher than traditional television systems (standard-definition TV, or SDTV, or SD), usually with a resolution of at least 720P
Global TV - Shipments and Revenue, 2009-2010
Source: Display Search, BSI Report 2010, Future of TV
6% increase in TV shipments, will rise from 205m units in 2009 to 218m units in 2010
Avg. selling prices for all TV technologies decreased 9% in 2009, the first year of declining average prices since the flat panel TV transition began.
Global TV - Revenue Source
Source: iDate, BSI Report 2010, Future of TV
2009 saw a drop in total TV revenues, with the global economic crisis particularly impacting on advertising revenue
Subscription fees overtake advertising revenue in importance and with the projected economic recovery.
TV industry to grow and hit total revenues of $450.3bn in 2013
Evolution of TV
Low High
Low
Hig
h
Choice/Convenience
Qu
alit
y
On Demand
Broadcast
Legend
Source: BSI Report 2010, Future of TV
3D TV
Blu-ray HD
HD On Demand
DTT Pay TV DVD
Color Cinema & Sound
Analog Broadcast TV
Mobile TV VOD
VHS
Emerging Platform
Four Platforms:
• Terrestrial
Source: iDate, BSI Report 2010, Future of TV
• Satellite
• Cable
* Terrestrial - transmission on earth from one point to another that doesn't make use of satellites.
• IPTV
Emerging Trends and Standards
HDTV• Moving from backlit LCD to LED & OLED, Kodak owns the patent, hampering the price and uptake• 3 Formats – 720p, 1080i (HD ready), 1080p (full HD, true)
Source: BSI Report 2010, Future of TV* p – progressive scan, i - interlaced, used by analogue
IPTV • Video stream encoded as a series of IP Packets, one programme sent at a time, requires a Set Top Box (STB)• Uses multicasting (IGMP V2) for Live TV and Real Time Streaming Protocol for On Demand• iTV - content distributed by via Web
3DTV • Success of Avatar and Alice in Wonderland is pushing Hollywood• Delivers 2 separate stream of - one for Left eye, other for Right eye, requires a specliaised glass• No Standards yet, though work is going on
Video On Demand (VOD)• Offered over converged IP network, offers a highly interactive, customised „anytime‟ video experience• most promising element of the multiplay service bundle, and can lead to an array of new, revenue-
producing services for providers such as the marketing and selling of DVD, customised content
Mobile TV• Video and voice content on a platform, capable of moving, provides personalised and interactive TV• Digital Video Broadcasting(DVB -H) - for Handheld terminals, Terrestrial Digital Multimedia
Broadcasting, Integrated Services Digital Broadcasting – Terrestrial• Delivered via, 2-way cellular network – 3G (Unicast) or 1- way dedicated broadcast (Multicast)
Source: iDate Consulting & Research- Understanding The Digital World, 2009
Evolution of IPTV
UsageALL Live
Collective On The TV Set
Broadcast TV
Public Funding, Advertising
Content OwnersBroadcast TV Channels
Themed channels, Time shifted TV
Pay TV Networks, Multichannel providers
Multichannel TV, VOD
TV Channels SubscriptionTV Package Subscription
Advertising
Content Owners, Cable Channels, Pay TV Networks
Any Time, Any where Any Terminal
Pay TV network bypassed,direct channel/content
owner relationship
Personal TVSocial TV
Program Advertising Program Purchase
Content Right holders Device Manufacturers
Search Engine (Google)Social Networks
Access
Services
Funding
Key Players
Terminal - TVNetwork - Broadcast
Gatekeeper - TV Channel
Analog TV Digital TV IPTV
IPTV
A viable platform for digital TV services - driven by telcos’ desire to deploy triple-play services in order to reduce customer churn levels and boost ARPU
Internet enabled TV sets are expected to reach 93m units by 2013, compared with 14.9m in 2009
Source: BSI Report 2010, Future of TV
Companies are creating widgets to embed their services within connected TVs. Skype will be embedding its service in a number of HDTVs
Consumer habit - evolved from passive consumption of TV to an interactive user experience
Global subscribers will grow 31% (CAGR), from 28m in 2009 to 83m in 2013
Internet video now accounts for approximately 1/3 of all consumer Internet traffic
Games, Video on Demand
Mobile, Home
Surveillance
Internet
TV(Video)Telephony
(Voice)
Triple or Multiple Play
Source: BSI Report 2010, Future of TV
Battle Across TV Landscape
Customers
Studios
Google, Amazon, Microsoft
TIVO
Consumer Electronic
Manufacturer
Telcos
Source: Report 2010, TV Delivery Evolution, Alan Quayle
Network Power
ComputingPower
Content Provider
Device Power
Youtube, Facebook
Hulu
BroadcastOr
Cable
The Emergence of new TV platform services
Rightholders
TVChannel
EPG/OSContentPackager
Network Terminal Consumer
New services providersmanaging the content
Source: iDate Consulting & Research- Understanding The Digital World, 2009
Changing Landscape
Rightholders
TVChannel
EPG/OSContentPackager
Network Terminal Consumer
Source: iDate Consulting & Research - Understanding The Digital World, 2009
Advanced STB to move into the
digital home (T-Box, T-Hub)
Securing exclusivecontent
Gaining space shelve on all
platforms
Controlling the
eco-system
New competitors on the VOD marketTheme channels challenged by OTT servicesTriple-play value proposition threatenedDirect distribution of (non premium) programming by US majorsNetwork congestion
IPTV in Living Room
BB STB Apple TV
Game consoleEs: xBos 360, PS3
Lettori Blu-ray/DVD
Broadcast: Satellite, Cable
BroadBand Network
Internet IP(Unmanaged)
BB STB “Ibrido” (DTT, Sat, Cable, IP)Es: Tivo, CuboVision
BB STB Open Es: Roku
TV set Internet-enabledEs: Sony Bravia, Philips Net TVTV set DTT
Embedded
TELCO IPTV
OTT TV BOXES
Source: Telco2.0 2010 Forum
The traditional Pay Tv Set Top Box is only one of the many ways consumers can access rich video content on the sofa screen
Traditional Set Top Boxes: Cable, Sat, DTT ,
hybrid,IPTV
A whole new set of devices are aimed at allowing online Video consumptionon TV through the Broadband connection• Over The Top TV Boxes• Internet Enabled Tv Sets
IP (Managed)
Broadcast NetworkCentric
Network Agnostic
Hybrid TV Landscape
Source: Report 2010, TV Delivery Evolution, Alan Quayle
One Way CableTerrestrial TVSatellite TV
Hybrid TelcoTerrestrial + IPTVHybrid CableCable+ IPTVHybrid Satellite Satellite + IPTV
Telco IPTV
Internet TV or Over The Top TV (OTT)
Terrestrial/Satellite + OTT
Telco/Cable + OTT
Opportunity for Service Providers
A newparadigm
A distribution platform open to all Content Providers (with no cultural obstacles, as broadcasters have, aimed at defending mainstream/premium content ) business models primarily depend on Content OwnersService Providers have to build a Business Model around the nature of the content
alongside with the Content Owner, looking for “shareable” sources of revenue If a Service provider has the ambition to place itself at the center of the new Ecosystem ,
new engagement rules with Content and Application providers have to be setThese rules go far beyond the traditional negotiation process with majors/publishers
What the Telcos can Offer What the Telco are looking for
• Quality of Service and Quality of Experience even in condition of Traffic Congestion
• Reach of a big multiplatform customer base Anytime, Anywhere, Cross-Device
• Parental Control and DRM • Billing, CRM, eTech Support• Mass Market Proof Marketing /Communication
Resources• Digital Identity Management aimed at
maximizing Client Contact AND Application Value
Content :• Professional• Rights Cleared• Strongly differentiated by mainstream TV • able to reach a wide public individually, or a
critical mass of niches, able generate significant revenue
• That does not require a strong localisation effort (dubbed/subtitled) language-neutral (ex: Music, Vimeo, Arte Live Web)
Applications:• That do not create discontinuity in the UX• That do not set new knots for the Ecosystem
Source: Telco2.0 2010 Forum
Opportunity for Service Providers
Source: Telco2.0 2010 Forum
Generating value from
User Generated Data
In the most favourable regulatory scenario, Telcos can take advantage of the quality/quantity of data generated by Users while consuming online video, in the perspective of an accurate management of their Digital Identity on threescreens (Desktop, Mobile, TV) Telcos can rely on a wide consumer base and a pervasive set of capabilities:
3- screens IP ProfilingPresenceLocationBilling
Business Impact
• Integrating these capabilities in the User Experience Management on the main TV Screen means:• Maximizing video ADV returns, on a degree hardly allowed by other video distribution platforms
(context based, behavioural based) • Returning Value To Services and Applications through User Generated Data• Maximizing personalized offering value (Ex: Pay VOD)• Chance to expose User Data as part of Upstream offering to Third parties (Content Providers but
also Merchants)• This kind of strategy is possible only if:
• Privacy-related regulation allows User Data Management (User Opt-in on selected Services)• IP profiling is validated by the two key markets involved (Advertising e Marketing Services)
Opportunity for Service Providers – App Store
As the iPhone case widely demonstrated, an open Application Store that can leverage on crowdsourcing, with an SDK open to third party developers (keeping control on what apps are phisically distributed on the official store) is key to reaching a critical mass not only on “service” applications but also on “content applications” that offer CPs a personalized environment for distributing their “signed” library
This solution is ideal to generate value from free content with public APIs, as it transfers the effort of building the application to the developer‟s community
At the same time, it gives users access to the widest possible free catalogue (a problem for broadcasters, not for telcos).
When Premium (Pay) Content is involved, the developement of an application (that leverages on the high powered telco backend), can be part of the Telco’s proposition to Content Providers
Source: Telco2.0 2010 Forum
Source: PCWorld
Google TV
Google launched its own OTT TV software-based proposition (Google TV)
Based on Chrome, this software will allow navigation on the sofa screen among all the video content that is normally available via desktop browser, as Open Source Applications like Boxee have alreadymade possible
Source: Telco2.0 2010 Forum
Provides a TV-friendly interface for popular Social Media apps like Hulu, Facebook, Twitter
SDK for independent content providers to develop widgets to access their content, and – mostimportant – participation in the advertising rev- sharing program
Announced in partnerships with Sony (Connected TVs), Logitech and Intel (chipset for a future dedicated STB)
Users can use their Android phone or iPhone to control Google TV instead of using a remote control
Google TV
Source: Endgaget
Status Today - Gartner Hype Curve
Source: Gartner Hype Curve - 2010
