canvas vod tdt
DESCRIPTION
TRANSCRIPT
Code-P0
The information contained in this document belongs to Value Partners S.p.A and to the recipient of the docum
ent.
The information is strictly linked to the oral com
ments which were made at its presentation, and may only be used
by attendees of that presentation. Unauthorized copying, disclosure or distribution of the material in this docum
ent
is strictly forbidden and may be unlawful.
Proje
ct Canvas
Nick Verkroost, Value Partners
Madrid, 12thMay 2010
1
Intr
oduction
•Explain the drivers behind the Project
Canvas initiative in the UK
•Introduction to Project Canvas, looking at
the technical standard, the platform
and
user experience
•Share the findings of Value Partners
Market Impact Assessment of Project
Canvas
For the conditions of use of this document please refer to the front page
2
•Launched BBC iPlayer mid 2007
-17m iPlayer views per month
from 3.6 million subscribers
-20% of total iPlayer views
TV-V
OD s
ervic
es in the U
K a
re d
evelo
pin
g rapid
ly w
ith p
ay-T
V
operato
rs a
nd m
anufa
ctu
rers e
nte
rin
g the m
arket
Virgin Media:
iPlayer via cable (launched 2008)
TV manufacturers:
Internet TVs (from 2009)
20.4
39.1
67.0
16.2
17.3
20.4
55.3
84.3
May 2008
May 2009
March 2010
Online and other
Virgin Media
•58% of subs use VOD (Q4 2009)
•Average of 35 views/user/month
Total iPlayer monthly streams (m)
Source:Value Partners analysis, BBC, Virgin Media, Sky, Press search, Screen Digest
•True VOD (Sky Player and
iplayer) via IP to TV STB
•New middleware (Fusion from
NDS)
-can handle web apps
(e.g. Flash)
-uses progressive downloading
Sky:
Project Darwin (expected 2010)
•Panasonic launched ibroadband-
enabled HDTV offering content
from online partner YouTube
direct to the screen
•Samsung with Yahoo! and Intel
developing web-based widgets
for broadband-enabled HDTVs
3
Fragm
ente
d m
arket presents
challenges for F
TA b
roadcaste
rs
and n
on-lin
ear c
onte
nt provid
ers
Freeview and
FreeSAT have
been slow to
evolve
No industry
agreed standard
for TV-VOD
Service
providers act as
gatekeepers
•Current DTT platforms offer only linear services
•Digital Television Group (DTG) Dbook6 standard enables VODbut does not to
support web based applications such as Flash
•Risk thatDTT proposition unable to compete
-Loss of investment in DTT platform
-Restricts TV-VOD to those users who are willing to pay for it
•Content providers must reversion contentfor different devices
•Electronics m
anufacturers build to individual specifications
•Risk of standards war (e.g. Blu-ray vs. HD DVD)
•Content providers must have a commercial relationship with the TV
platform
to obtain a route to m
arket
•Platform
operators control how and when users access content
Source:Value Partners analysis
Why do we need Canvas?
4
Proje
ct Canvas is a
partn
ership
betw
een c
onte
nt provid
ers a
nd
ISPs to b
uild a
n o
pen inte
rnet-
connecte
d T
V p
latf
orm
Source:Value Partners analysis, Project Canvas, BBC
•Joint Venture to promote the platform
to
consumers and the content, service and
developer community
•No commercial relationship
between the
consortium or any providers of content to the
platform
; consortium does not act as a
gatekeeperto content on the platform
Canvas consortium
•Agree with industry a technical standard
for TV-VOD
•Freely published
•Likely to form
the DTG’s Dbook7 standard
Technical standard
•Create a common and consistent UI
•Seamlessly link linear and non-linear content
•Owned by JV and licensed to m
anufacturers
Electronic Program Guide (EPG)
•Build, run and promote an open platform
•Provide an upgrade to existing DTT
•Provide route to m
arket for a wide range of
content and service providers
Open platform
1 2 3
5
Canvas d
elivers a
n o
pen p
latf
orm
for c
onte
nt provid
ers, built on
a c
om
mon technic
al sta
ndard
•Canvas combines
linear DTT
service, delivered
through broadcast
channel with non-
linear VOD and
web services,
delivered via
broadband
•Individual content
providers
design,
operate and
control their own
portals
for VOD
content and web
applications
Canvas platform
Linear
EPG
VOD
extension
VOD & web console
Individual
content
provider portal
Individual
content
provider portal
Individual
content
provider portal
Delivered through broadcastchannel
Delivered through broadbandchannel
Indiv
idual portals
develo
ped
by c
onte
nt pro
vid
ers
or
aggre
gato
rs
Exte
nsio
n o
f sta
ndard
lin
ear E
PG
to inclu
de
direct access to V
OD
conte
nt (e
.g. catc
h-u
p)
and w
eb a
pplic
ations
In lin
e w
ith e
xis
ting D
TT
sta
ndard
s (e.g
. Fre
evie
w)
Source:Value Partners analysis, Project Canvas, BBC
Inclu
des lin
ks to
indiv
idual V
OD
portals
, w
eb
applic
ations a
nd
centralis
ed
functionalit
ies
(e.g
. searc
h)
Designed
and
controlled
by content
providers
Designed
and
controlled
by Canvas
consortium
PVR
Web
apps
6
Centr
al to
the C
anvas p
ropositio
n is a
com
mon u
ser inte
rfa
ce
that seam
lessly
lin
ks b
roadcast and b
roadband c
onte
nt
Source:Project Canvas, BBC
7
Vid
eo O
n D
em
and E
PG p
rovid
es a
ccess to indiv
idual porta
ls
Source:Project Canvas, BBC
8
Conte
nt provid
ers reta
in full c
ontr
ol of th
eir V
OD p
orta
l (1)
Source:Project Canvas, BBC
9
Conte
nt provid
ers reta
in full c
ontr
ol of th
eir V
OD p
orta
l (2)
Source:Project Canvas, BBC
10
Web a
pplications p
rovid
e a
ccess to p
opula
r o
nline s
ervic
es a
nd
oth
er featu
res s
uch a
s g
am
es, new
s feeds, and a
pps
Source:Project Canvas, BBC
11
Web a
pps m
ay p
rovid
e a
n o
pportu
nity for s
ervic
e p
rovid
ers to
develo
p a
ccount m
anagem
ent porta
ls a
nd s
ale
s c
hannels
Source:Project Canvas, BBC
12
Canvas c
reate
s n
ew
opportu
nitie
s for p
ay V
OD, in
clu
din
g the
develo
pm
ent of ‘p
ay-a
s-y
ou-g
o’e-w
allets
Source:Value Partner analysis
Indicative Only
13
BBC T
rust m
ust w
eig
h u
p the p
ublic v
alu
e o
f Canvas a
gain
st an
assessm
ent of m
arket im
pact, p
erfo
rm
ed b
y V
alu
e P
artn
ers
Source:Value Partners analysis, BBC Trust
Process
Public Value Assessment
•Value to licence fee payer
•Value to society through
BBC’s Public Purposes
•Value for money
Market Impact Assessment
•Assess likely impact of
Canvas on the m
arkets it
influences
TV market
VOD market
ISP market
1 2 3
14
Canvas is forecast to
reach 4
m h
ousehold
s b
y 2
015, securin
g
investm
ent in
the D
TT p
latf
orm
Forecast DTT households, millions
Source:Value Partners analysis
1
TV market impact
Non-Canvas HHs
Canvas HHs
Impact on subscriber base, in 2015
rela
tive to a
world w
ithout C
anvas 2-4%
4-8%
DTT
platform
5-9%
up to 100%
1.8
2.9
4.0
10.3
10.2
9.8
9.2
8.0
6.8
10.4
10.6
10.8
11.0
10.9
10.8
1.0
0.4
2010
2011
2012
2013
2014
2015
15
80%
12%
12%
11%
3%
5%
8%
83%
85%
Without
Canvas
Canvas
base case
Canvas
high case
VCR
VOD
PVR
Linear
Canvas to increase V
OD v
iew
ing to 5
-8%
of to
tal vie
win
g b
y
2015, pavin
g the w
ay for n
on-lin
ear p
ay s
ervic
es
Share of television viewing in 2015, %
Source:Value Partners analysis
2
VOD market impact
Opportunities for pay VOD
Catch-up PPV
“Freemium”content,
including reality shows
and ‘play along’game
shows
“Archive”PPV,
series stacking, DVD
rental direct to TV
Preview window, for
a premium
“watc
h the n
ext
epis
ode n
ow
”
16
Canvas is lik
ely
to s
ignific
antly increase the d
em
and for
capacity, but not necessarily increase n
etw
ork c
osts
Total data traffic in peak hour, Gbps
Source:Value Partners analysis
3
ISP market impact
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000 2010
2011
2012
2013
2014
2015
Canvas
No Canvas
23% increase
in data traffic
LLU ISPs
Non-LLU ISPs
•LLU ISPs are provisioning their network
capacities for significant increases in usage
regardless of Canvas entering the market
•The increase in broadband traffic resulting from
Canvas would not necessitate any further
increases in capacity
•Canvas would be unlikely to increase
network costs
for LLU ISPs
•Costs increase in line with usage
Bitstream products on usage-based pricing
•As such, Canvas would increase network
costs
as the amount of network usage
increases
•Limitations in cost increasescould be
achieved through CDN technologyto
efficiently transmit data across the network
17
Reflections on
Project Canvas
Engagement
along value
chain is vital
Lessons learned
Creates value
for broadcasters
Need a catalyst
to drive project
forward
Secures
investment in
DTT platform
Determines
single standard
Public sector
involvement can
delay process
Source:Value Partners analysis
18
Thank y
ou for lis
tenin
g…
For the conditions of use of this document please refer to the front page
Nick Verkroost
Email: nick.verkroost@
valuepartners.com
Tel. +44 (0) 20 7630 1400
Company profile:
Value Partners is a global management consulting firm which draws on 400 professionals from
25 nationalities. W
e are the leading company in the Digital Media, Broadcasting and Telecoms
sectors, supporting the top m
anagers of multinationals engaged in change, globalisation and
innovation. W
e deal not only with strategy, but with all those issues which are strategic for our
clients. Our clients span all sectors of the rapidly evolving digital market-place including
television, mobile telecoms, music, new m
edia, the Internet, radio, fixed telecoms and sports.
We have recently worked for the BBC, Vodafone, Ofcom, BT, Virgin M
edia, ITV, O2 and the
Premier League.
19
Conta
ct in
form
ation
valueteam.com
valuepartners.com
Nick.Verkroost@
valuepartners.com
Sydney
King Street Wharf, Suite 302
45 Lime Street
Sydney NSW 2000
Australia
Tel. +61 2 9279 0072
Fax +61 2 9279 0551
Singapore
7 Temasek Boulevard
Suntec Tower One #26-04
038987
Singapore
Tel. +65 6820 3388
Fax +65 6820 3389
HongKong
1806 Vicwood Plaza
199 Des Voeux Road Central
Sheung W
an
Hong Kong
Tel. + 852 2103 1000
Fax + 852 2805 1310
Beijing
Tower A, Suite 1702,
Vantone Centre Jia 6
Chaoyangmenwai Avenue
Chaoyang district 100020
Beijing
People’s Republic of China
Tel. +86 10 5907 0616
Fax +86 10 5907 0383
Shanghai
Fortune Gate office building,
Unit 02, 25/F
1701 Beijing Rd (W)
200040 Shanghai
People’s Republic of China
Tel. +86 21 6132 4230
Fax +86 21 6132 4238
Mumbai
8thfloor, C block
Devchand House, Shiv Sagar Estate
Dr. Annie Besant Road
Worli, M
umbai -400 018
India
Tel. +91 22 6611 9700
Fax +91 22 6611 9988
Rio de Janeiro
Rua da Candelária 60
10ºandar
Centro
Rio de Janeiro -RJ
CEP 20091 -020
Brazil
Tel. +55 21 2213 9191
Fax +55 21 2213 9190
Helsinki
Vilhonkatu 6 A
00100 Helsinki
Finland
Tel. +358 9 4780 1300
Fax +358 9 4780 1301
Rome
Via Della Grande M
uraglia 284
00144 Rome
Italy
Tel. +39 06 526 131
Fax +39 06 526 133 14
São Paulo
Avenida Brigadeiro Faria Lima,
201 (12 Andar)
05426-100 São Paulo -SP
Brazil
Tel. +55 11 3817 2200
Fax +55 11 3817 2210
Buenos Aires
Alicia Moreau de Justo 550
4 Piso
C1107AAL -Buenos Aires
Argentina
Tel. +54 11 4314 4222
Fax +54 11 4314 6111
Rio de Janeiro
Rua da Candelária 60
10ºandar
Centro
Rio de Janeiro -RJ
CEP 20091-020
Brazil
Tel. +55 21 2213 9191
Fax +55 21 2213 9190
São Paulo
Rua Padre João M
anuel 755
1°e 2°andares -cjs. 11, 12 e 21
Cerqueria Cesar
São Paulo
Brazil
CEP 01411-001
Tel. +55 11 306 809 99
Fax +55 11 308 141 38
Istanbul
Sunplaza
Dereboyu Sk. No:24 M
aslak
34398 Istanbul
Turkey
Tel. +90 212 276 98 86
Fax +90 212 276 98 82
Dubai
PO Box 503025 -DMC 9
Business Central Towers-Suite 1304 A
Dubai Media City
Sheikh Zayed Road
Dubai –United Arab Emirates
Tel. +971 50 788 0187
Istanbul
Sunplaza
Dereboyu Sk. No:24 M
aslak
34398 Istanbul
Turkey
Tel. +90 212 276 98 86
Fax +90 212 276 98 82
Munich
Maximilianstrasse 35a
80539 M
unich
Germ
any
Tel. +49 (0) 89 24218 445
Fax +49 (0) 89 24218 200
Milan
Via Vespri Siciliani, 9
20146 M
ilan
Viale Cassala 14 A
20143 M
ilan
Italy
Tel. +39 02 489 851
Fax +39 02 489 4898 5999
London
Greencoat House
Francis Street
London SW1P 1DH
United Kingdom
Tel. +44 (0) 20 7630 1400
Fax +44 (0) 20 7630 7011
Rome
Via di Porta Pinciana 1
00187 Rome
Italy
Tel. +39 06 697 6481
Fax +39 06 697 648 51
Milan
Via Vespri Siciliani, 9
20146 M
ilan
Italy
Tel. +39 02 485 481
Fax +39 02 485 48 720 / 725