cloud storage for personal video recording
DESCRIPTION
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Singapore Telecom’s Cloud Storage System Service. Storing recorded videos from a cable TV service on the cloud can provide users with more value than can storing them on a set-top box. Users can access them from any device and they don’t need to purchase an expensive set-top box. Storing the recording videos in the cloud also provides advertisers with more value because data on when and how often users access the videos can be made available to advertisers. These slides describe the specific value proposition for viewers and advertisers and other aspects of the business model such as the method of value capture, scope of activities, and method of strategic control.TRANSCRIPT
Business Model
for Cloud
Personal Video
Recording
(Cloud PVR)Wang Xiaoxu (A0055839R)
Wu Bo (A0056024R)
Xu Jingru (A0133732M)
2
Agenda
Introduction
Customer Selection
Value Proposition
Scope of Activities
Value Capture
Strategic Control
Introduction
3
What is Cloud PVR?
Cloud PVRPVR
4
What is Cloud PVR?
Cloud Personal Video Recording
Any device
Any content
Any location
Any occasion
With
Stable network
Simple interface
At
Lower cost
Unlimited Space
Cloud PVRANY CONTENT
ANYWHERE
5
Problems Solutions Subscription fee for
existing Recording service
Limited disk space to
store TV series
Large size and low
portability
Poor Viewability &
Controllability
Values Added
First 20Gb free for end user
Scalable and easily
expanding storage space
High portability andcompatability with multiple
devices
All your viewing history with
high tracability
6
Market Trend & Demand
TV, Home desktop
Portable personal computer
Mobile internet, internet TV
Inter-linked personal smart devices & TV
Con
cept
of
Virt
ualiz
atio
n
Clo
ud
App
licat
ion
IaaS
, Paa
S,
Saa
SThe increasing trend of multiple smart
devices and maturity of cloud computing
technology imply a demand for moving
video storage into the cloud.
Architecture Innovation: Cloud PVR
Customer
Selection
8
Customer Selection
Customer Selection
Subscribers
1. Existing users of PVR
2. Cable TV user (not using any recording service)
3. Other potential users
Advertisers
3rd Party Video
Apps formobiledevices
9
Existing users of PVR- Upgrading to cloud PVR
Transition cost is low,
willingness to upgrade
to cloud PVR is high
Familiar with PVR user
interface
Reduce their cost of
renting the hardware
Subscribers
$8 /Month
rental for
hardware
Free
within
20G
10
Cable TV user (Non PVR user)
Cloud PVR is a new
attractive function for
them
No cost increase
Setup is smaller than PVR
More resources of video
contents at anytime
Subscribers
45
55
All Cable TV users
Cable TV
Users like to
use Cloud
PVR
11
Other potential users
Online video viewers
transfer to cloud PVR
More contents(Sports)
More stable(TV Cable)
Readily organized
contents
Subscribers
12
Advertisers
Based on data
analysis of Subscribers
Based on pre-
processing of content
Better wayto reach
specificallytargetedmarket
About Fashion
ClothesAbout
Makeup
About Women’s healthy food
Nearest
LocationInformation
13
3rd party Video Apps formobile devices
Rent server memory space to
them
Sell content access right to
them
14
Cloud PVR Google TV Internet Video
Player
Customers who
need video
service to be
Simple
Stable
High definitionReadily organized
Reliable contents
Young gamers who
need video
service to be
Cheap, with
GamesThey are OK with
Quality & Speed
not guaranteed
Long time spent on searching
&irrelevant Ads
Young, know what
they would like to
watch
Cheap
They are OK with
Quality & Speed not
guaranteed
Long time spent on
searching
&irrelevant Ads
Compare potentialcustomers’ requirements
Value
Proposition
16
PVRCloud PVR
Value Proposition
17
Flexibility
Connected mobiledevices to enrichwatchingexperience
Large storage space
Parallel recording
PVR PVR PVR PVR
Value Proposition
18
Back-up of personal content
Supported by robust infrastructure
Trust-worthy
Value Proposition
19
Lower set-top-box (STB) costs
$8/Month toFree
Easier Inventory
Management & Logistics
Centralized Storage & Network
Maintenance
Value Proposition
20
More
targeted &
personalized advertising
Value Proposition
21
Value Proposition
We rent storage incloud with low price
We provide accessright to videos
We manage andmaintain for them
22
Video Delivery Value Chain
Content Creation
Content Packaging
Content Distribution
User Interface
End User
Independent
Producers
Service
Provider
Broadcast TV
Stations
TV Subscribers
Producers,
User Uploads
Barely
processed
Internet TV, PC,
Tablet, Phone
Subscribers,
Downloaders
Independent
Producers
Customized
pre-processing
Cloud Connected
Smart Device
Consumers
User upload via
3rd party apps
3rd party’s own
control
Cloud TV, PC,
Tablet, Phone
Subscribers,
Downloaders
Traditional
New Alternatives (eg. Internet Video Players, Google TV)
Cloud PVR
23
Value Proposition
0
1
2
3
4
5
6
Google TV
Internet video
player
Cloud PVR
Scope of
ActivityPartly a cost decision,partly
a strategic decision.
25
Scope of activity
Our company
cPVR
Viewer/
SubscriberAdvertiser
Content
Provider
3rd Party
Video App
Extended cPVR
suppliers
26
Scope of activity
Data analysisContent preprocessing
cPVR
SupplierViewer/
SubscriberAdvertiser
Content
Provider
3rd Party
Video App
Extended cPVR
Live TV & Video
Viewer Data
Infrastructure& ProfessionalService
Access right to content
Value
Capture
29
Sources of Income
Cross-Subsidization by advertisers
No subscription fee for end user
Advertiser pay for customized service
More sources of money
3rd Party Apps
Money Inflows
$8
30
Current Value Networks
cPVR
Service
Provider
Viewer/
SubscriberAdvertiser
Content
Provider
Social Network
Data Analysis, Content
Processing
Service Provider
Viewer Data & preference
Bid for Slot
Pay Per Content
Live TV & Video
Video Content
Video Recording
Subscription fee
$
$ $
User-end
Hard DiskReplay
31
New Value Networks
cPVR
Service
Provider
Viewer/
SubscriberAdvertiser
Content
Provider
3rd Party
Video App
Social Network
Data Analysis, Content
Processing
Service Provider
Extended cPVR
Viewer Data & preference
Bid for Slot &Pay Per View
Pay Per View(Partially subsidized by Viewer data)
Live TV & Video
Viewer Data
Recommendation
Customized Content
Video Recording
Pay By Usage
Content Uploading & Retrieving
Pay Per View(cross subsidized
by advertiser)
$
$
$
$
Customized Ad
32
Partners within Value Network
cPVR Service Provider / ISP
Advertising Bid & PPV
Subscription fee for no Ad
video
Metered Cloud Service to 3rd
Party App
Content Provider
Embedded Advertising
3rd Party App Developer
Advertising
Premium Content Sales
Etc. (within 3rd
party’s own control)
Advertisers
Sale of Products
How we enable our partners to make money?
$
Strategic
Control
34
Nature of Technology
Complexity
• Hard to achieve
Barrier Entrance
• Massiveinfrastructure
Network Effects
• Make use of social network
Economies of scale
• Memory Space
• Content pre-process
• Data analysis
First mover
• Competitive advantage
Strategic Control
Nature of Technology
Nature of Technology
35
Legal Mechanisms of Protection
Legal mechanisms of protection
Existing Cable/Fiber
infrastructure and
bandwidth - scarce
resources
Strategic Control
36
Control of industry architecture and
complementary assets
Company capability
More bandwidth for our viewers
Strong appropriability of infrastructures
Complement cloud PVR service with other telecom services
Long tail benefit
Small adverting companies
Content pre-process & data analysis
Strategic Control
37
The End