Download - Myths, Misunderdstandings and BS: A presentation from Sigma Systems Evolve 2010 Conference
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Myths, Misunderstandings
and BS
What’s Next: Accelerating Services
Innovation
Alan Quayle,
www.alanquayle.com/blog
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Outline
• LTE ≠ 4G
• Fast ISP ≠ ISP with sustainably higher revenue
• Current pricing model ≠ sustainable model
• Interactive Advertising ≠ Ad insertion technology
• Cloud ≠ Hosting
• OK, so what are we supposed to do then?
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LTE ≠ 4G
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Fast ISP ≠ ISP with sustainably higher revenue
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Current pricing model ≠ sustainable model
(yet)
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2008 Alan Quayle
Customer’s Critical Math (US Focused) • Cost of premium Cable per year ($137.5) $1650
• Cost of premium Satellite $1460
• Cost to Replace Cable
– Digital antenna (local free to air) Free-$50
– Hulu+ $120
– Joost, YouTube, Fox, other websites Free
– Netflix on Demand $120
– Cost of box (TiVo, PS3, Wii, Xbox, DVR) Free-$80
– Amazon VoD $778
• (one show per week night in HD, 2:99)
• Total $1018-1148
• Cost of laziness $632-312
In the US people are already starting to migrate to interactive consumption: generally tech-savvy early adopters, especially where Sports Package is not a decision criteria.
GoogleTV and AppleTV are bringing this awareness to the mass market.
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Interactive Advertising ≠ Ad insertion technology
Interactive Advertising
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http://www.intac.net/a-comparison-of-dedicated-servers-by-company_2010-04-13/
Cloud ≠ Hosting
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Get the User Experience Right on the EPG
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A Fundamental Difference in Business Models
Customer
Provider
Means to
an End
$
Hardware & Services
$
Inventory
Advertiser
$
Services
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2008 Alan Quayle
Why Aren’t Your Customers Already
Using These Applications?
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Summing it up
• Get the Customer Experience right – Store front, recommendations, community, search,
integrated across phone and tablet/PC
• Use third parties to innovate on non-core services – They care about their services much more than you
ever could
– However, focus on the services / apps that are at the core of your business (EPG and communications) – there’s only a couple of hundred
• You must take control of your destiny!
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2008 Alan Quayle
Service Provider
Utility Connectivity
We’ve been talking about it for over a decade, but now its the customer that’s going to decide