What Video Optimization Experts Are Not Telling You

Seth GreenbergDirector Corporate Marketing, Mobixell

2012

Teresa CottamChief Analyst, Telesperience

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About Mobixell

Global leader in mobile Internet and rich media service delivery platforms

Established in 2000

Unique video and rich media optimization expertise

Over 400 mobile operator deployments worldwide

Proven track record and excellent customer delivery

• USA (Americas’ HQ) • UK (EMEA’s HQ)• China• India• Switzerland• Israel • Germany• Italy• Indonesia• Japan• Singapore

Worldwide Offices

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About Mobixell – Product Lines

Mobile Internet Gateway/Multiservice Platform Video Optimization & Congestion Management Web Acceleration Mobile Network Monetization Tools Mobile Video and Content Delivery Solutions

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Our Commercial Deployments (Partial List)

AMERICAS EMEA & CIS APAC

Over 400 Mobile Operator Installations WorldwideOver 400 Mobile Operator Installations Worldwide

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Agenda

Mobile Video: Killing the Network or Killer App? – Teresa Cottam

Poll: Spotting the Myths

Busting the Myths – Seth Greenberg

What You Need to Know about Video Optimization

Q&A

Dark, darker, darko

• The world is ending!

• Our future is to be a bitpipe

• It’s up to us to choose the method of our

destruction…

Video – killer app or network killer?

• Global mobile data traffic grew again in 2011• Mobile video traffic is an increasingly large

proportion of this• x28 more traffic on 4G than

non-4G connections• Scissor diagram shows

widening gap betweenrevenues and usage… revenues

traffic

Revenue gap

So why aren’t we dying?

• Mobile industry revenues = $1.9 trillion in 2015• 9.1 billion connections by 2015• Some carriers now reporting that revenue and traffic

growth more aligned e.g., Vodafone

• Offloading, LTE, tariffing, better traffic management

• Customer centricity

• Enormous new revenue potential

• …but we need to ensure we also maintain profitability

A business problem, not just an operational problem

• Video has been seen purely as an operational problem

• But…many customers like it! (Irony = killing the killer app!)

• The real problems:- Providing video on a commercial basis- Providing an acceptable quality of experience

• Shift from bottom line to top line• Quality of experience is very important to customers,

but is not an absolute (how do we measure it?)• Not all customers are consumers

Video not a single application

The value proposition is different…

• YouTube v NetFlix v videoconferencing

• Under 18 v adult (value v ability to pay)

• Time of day

• Consumer v enterpriseWhat do they need/want? What value do they place on it? How do we meet that need profitably?

Question: how do we turn a network killing app into a killer app?

What we need is a hero…

Who ya gonna call?

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What are your video optimization goals?

Compress video to free up bandwidth Give users noticeably improved video performance

…But not a change in quality Accelerate browsing performance Consistent, high quality user experience Control CAPEX investment

Good start…

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Video Optimization Myths Busted

Myth #1Video optimization will solve the capacity crunch Is there actually a capacity crunch or a congestion crunch? Will LTE solve network capacity and speed problems? Serve more sessions to more concurrent users Differentiate with performance and quality Shift from bottom line maintenance model

to top line revenue generation model

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Listen to your customers – Video as a differentiator

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Listen to your customers – Video as a differentiator

74% of mobile users see operators as responsible for poor video experience*

Up to 69% of mobile users would like their video optimized to achieve smoother viewing experience*

*According to a user survey conducted Nov 2011 by independent research company On Device Research for Mobixell

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Video Optimization Myths Busted

Myth #2More video optimization means better video performance Too much optimization can reduce revenue Do you target optimization at the right video?

At the right time? For the right users? Video performance Perception of Network quality

Rate of Churn Revenue Accelerated browsing performance, too Better video optimization means better video performance

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How Do You Define Visible Performance Degradation?

Example: A 3G cell site has a total throughput of 10 Mbps Standard 360p YouTube Video requires 1 Mbps

Users per cell Available Bandwidth Best Video Quality

1 10 Mbps/User No buffering

5 2 Mbps/User No buffering

10 1 Mbps/User No buffering

20 500 Kbps/User Requires buffering for 360p

Visible Performance Degradation When Users Experience Buffering or Slow Page Loading

Visible Performance Degradation When Users Experience Buffering or Slow Page Loading

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Will LTE Improve Video Performance?

Example: An average LTE site has a total throughput of 40 Mbps HD 1080p YouTube Video requires 8 Mbps

Users per cell Available Bandwidth Best Video Quality

5 8 Mbps/User No buffering

6 6.3 Mbps/User Requires buffering for 1080p

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Targeted Optimization

Device-aware video optimization User-aware video optimization Content-aware video optimization Network-aware video optimization Congestion Management Policy-driven video optimization Network–aware

Video Optimization

User–aware Video Optimization

Content–aware Video Optimization

Policy-drivenVideo Optimization

Device –aware Video Optimization

Congestion Management

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Device-Aware Optimization

One (video) size does NOT fit all (devices) Different screen resolutions – OR NOT Different capabilities and limitations

E.g., OS, CPU, Protocols, Formats, Codecs

Automatic Mobile device detection Optimization profile based on device

capabilities and limitations

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User-Aware Optimization

Optimize only frequently accessed video Statistical Optimization Applied only as a supplemental filter

1x 4x

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Content-Aware Optimization

Set target quality level Apply more compression to low-motion scenes

vs. high-motion scenes

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Network-Aware Optimization: Smooth DBRA

Identifies congestion: Senses bandwidth available per device Continuously optimizes output bitrate vs. pre-defined stream Also effective for insufficient cell coverage and physical barriers Smooth DBRA

Fast response to bandwidth fluctuations (1-2 sec vs. 3 sec) Multiple possible bitrate levels

0

20000

40000

60000

80000

100000

120000

0 50 100 150 200 250

Output Bitrate

Network available Bitrate

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Policy-Driven Optimization

Tight integration of optimization platform with PCRF Only optimize what is necessary

Time of day Type of customer – pre/post-paid Status: E.g., In-network/Roaming By content type – Live streaming, HD, by application… Network conditions – 3G/LTE, congestion threshold By device type – Handset, Tablet, Laptop

Create personalized optimization options

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Video Optimization Myths Busted

Myth #3Video optimization reduces CAPEX Can defer CAPEX investment Targeted optimization means:

Intelligent, effective CAPEX investment Better control of expenses Less waste More budget available for innovation

Improved customer experience Critical component in creating new revenue from data services

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Video Optimization Myths Busted

Myth #4Video will kill your network. Optimize it, or else! Video optimization helps to control CAPEX Differentiation through better Quality of Experience Improved quality means more data consumption Control of quality creates new data monetization opportunities Video can save your network – It’s up to you

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Mobile Monetization – The Obvious

Advertising

Extensive subscriber data is an ad targeting value multiplier

Services

Virus protection, data security, spam filter, interactive parental control

Mobile Payment

Revenue sharing with merchantsCross-selling content and services

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The Less Obvious – Family Charging Plans

Family charging plans Data sharing – Bucket plans User-controlled resource allocation Dashboard view for account owners

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The Less Obvious – Value-based Charging

Family charging plans Value-based Charging

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The Less Obvious – Service-based Charging

Family charging plans Value-based Charging Service-based Charging – Flat rates

for specific services Consumers Enterprise

VPN

Video Conferencing

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The Less Obvious – Customer Engagement Tools

Family charging plans Value-based Charging Service-based Charging – Flat rates

for specific services Customer Engagement Tools

Clientless Browser Overlay Server-side - No download needed

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The Less Obvious – Video Stretch

Family charging plans Value-based Charging Service-based Charging – Flat rates

for specific services Customer Engagement Tools Video Stretch – User control of optimization levels

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The Less Obvious – Dynamic Charging Packages

On-the-Spot Tier Shifting Based on perceived value of content HD movie Video conferencing Catch up on episodes during lunch

Variable pricing based on current, local congestion conditions

10 Mbps5 Mbps2 Mbps

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What’s Next in Data Monetization?

Revenue sharing with CDNs Premium quality content Reduced latency Smooth video playback Congestion Reporting to CDN for dynamic content delivery

Premium VOD Targeted Ad-supported TV Original content

All demand video optimization

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What you NEED TO KNOW about Video Optimization

Myth #1Video optimization will solve the capacity crunch It’s a congestion crunch

LTE will not solve capacity/congestion problems

Video optimization helps you serve more high-performance sessions to

more concurrent users

Myth #2More video optimization means better video performance Subscribers hold operators responsible for video performance

Targeted video optimization means better video performance

Too much video optimization can harm user experience

and even revenue

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What you NEED TO KNOW about Video Optimization

Myth #3

Video optimization reduces CAPEX Video optimization can defer CAPEX

Targeted optimization helps to control expenses and reduce waste

Video optimization does not have to be expensive

Myth #4

Video will kill your network. Optimize it, or else! Video Optimization is critical for creating new data service revenues

Mobile customers like video – Video can save your network

Q&A

Thank you

Seth GreenbergDirector, Corporate Marketing, Mobixellseth.greenberg@mobixell.com

www.mobixell.com

Teresa CottamChief Analyst, Telesperiencepod.telesperience.com/index.php/category/contact