ott & multiscreen - entertainment vs. the internet, turning threats into opportunities

Gabriel Dusil Chief Marketing &

Corporate Strategy Officer Visual Unity Global

cz.linkedin.com/in/gabrieldusil

gdusil.wordpress.com [email protected]

Entertainment vs. The Internet

Turning Threats into

Opportunities

©2013 [email protected] gdusil.wordpress.com

Download the Original Presentation - Entertainment vs. The Internet, Turning Threats into Opportunities

View this video presentation from our Digital Video Forum ’13, or download the native PowerPoint slides, here: • http://gdusil.wordpress.com/2014/01/27/entertainment-vs-the-internet-

turning-threats-into-opportunities • http://gdusil.wordpress.com/

Additional presentations, white papers, and winning solutions can be found on our corporate web-site, here: • http://www.visualunity.com/en/resources/

http://gdusil.wordpress.com/2013/12/09/entertainment-vs-the-internet-turning-threats-into-opportunities
















http://gdusil.wordpress.com/

http://gdusil.wordpress.com/

http://www.visualunity.com/en/resources/

http://www.visualunity.com/en/resources/


Digital Industry Evolution

Capacity 100+ Exabytes* 70% is video

Entertainment 1.8b+ TV’s Connected**

Devices 30b+ Devices*** “Internet of Things”

Connectivity

Data

People

Internet Generation

90’s &

00’s 10’s

Digital Society

Sources: *Cisco, **Informa, ***ARM, by 2016


Industry Wars

Front Lines • Subscriber Ownership • Industry Relevance • Revenue Protection

Computing

Entertainment Communication


Broadcast Over the Top

Internet

Broadcast Services TV

Cloud Services

STB

router

“Over the Top”

PC

Tab

let

mo

bile


61% 79% 9%

1% 0

200

400

mil

lio

ns

Inte

rnet S

ubscribers

('1

2) ISP OTT

Sources: Sandvine, Cisco, GCI, Internet World Stats Netflix penetration numbers are for the USA only.

As sales in OTT increase, ISPs

have the burden to invest in

bandwidth to keep up with demand

13

45 80 160+ 0

50

100

150

Eu

rop

e

No

rth

A

me

rica

Ne

tflix

H

D

To

p

1%

GB

pe

r M

on

th

Inte

rnet U

sage

Penetration

Op

po

rtu

nit

y


Net Neutrality Internet Governance

Video will be 70% of Global Traffic by 2016 • 11.0 billion HD movies*

0

20

40

60

80Exabytes

Other Data Web, email, Data P2P File Sharing

Internet Traffic Forecast

Other Video TV & Live Internet Short-form Video Long-form Video

Cisco - Visual Networking Index, Forecast & Methodology ‘11–’16 * Using an average of 6GB for a 1080p movie

Internet Governance:

Data Discrimination, Traffic Shaping, Bandwidth Caps,

Blocking & Filtering, Premium Rates, etc.


Mobility Apps

Mobile Telephony

Interaction

3 apps: voice, text, contacts

Distribution Operator

Mobile Operator Differentiation

High (speed & performance)

Handset Differentiation

Reliability & Quality of Service

Purchasing Phone-centric

Mobile Lifestyle

1+ million apps: all needs

Internet

Low (price & consumption)

User Experience, Efficiency & Flexibility

App-centric


BitTorrent 12%

Cyber lockers 5%

Legitimate 76%

eDonkey, gnutella, other P2P, UseNet,

7%

Pornography 36%

Films, 35%

TV, 13%

Games, 7%

Software, 4%

Music, 3%

Anime, 1%

Other, 1%

Top 10K torrents

Internet Piracy Entertainment Industry

Envisional - An Estimate of Infringing Use of the Internet (11.Jan)


Napster Shuts down @26m users

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

1999

BitTorrent Inc. announces 150m active users (Jan ‘12),

growing at 50% per year

Internet Piracy Epidemic?

Napster KaZaA Megaupload BitTorrent

KaZaA peaks @34m users

Megaupload shuts down @180m users


Relative Release Windows for Premium Content

USA USA

USA

USA

USA USA

24 1 2 3 4 5 6 7 0

Own Rent Pay TV TV

months

Cinema

International

VoD

Int’l Int’l

Int’l Int’l

Int’l

Head-end

Long-tail

Reven

ue


Broadcast Centric Social Centric

Social

Apps

Broadcast


Computing

OTT Binds All 3 Digital Industries

Entertainment Communication


OTT Evolution - Content Discovery

Viewing Stats

Social Media

Buying Behavior

Preference “Likes/

Dislikes”

Media, News, &

Ads

Collaborate “viewers also liked”

“Friend’s Viewed & Liked”

A Recommendation Engine is not just about Content Suggestions

It’s about Meaningful & Personal Engagement


Coms

Video

Music

Gaming

Storage

Productivity

Social Media

OTT Evolution – More Than Video

OTT will bring the future of

Entertainment to tomorrow’s Digital Society


OTT, 9%

TV & Video, 91%

2017

OTT - 37b US$ by 2017

Market - Broadcast & OTT

CAGR = Compounded Annual Growth Rate

TV & Video market estimated at $395b globally, by 2017

0

10

20

30

bil

lio

n U

S$ Transaction

SubscriptionAdvertising

Global OTT Forecast '11-'17


OTT Evolution - Vertical Tiers

Tier 1 • National Broadcasters

Tier 2 • Regional Broadcasters & Affiliates • Content Aggregators • Telco & MSO (i.e. Cable)

Tier 3 • Corporations & Government • Education & House of Worship • etc.


USA

Europe, Canada, Asia 18-24 months behind USA

Emerging Markets 36-48 mths behind USA

OTT Evolution – Geographic Tiers

cz.linkedin.com/in/gabrieldusil gdusil.wordpress.com [email protected]


Synopsis – Entertainment vs. the Internet, Turning Threats into Opportunities

• The entertainment landscape has changed more in the last decade,

than in the 60+ years of broadcast. Much of this disruption can be attributed to the growth of the internet. From this infrastructure, several battles are raging under the feet of consumers; Broadcast has a new adversary called OTT (Over the Top Video); ISPs are struggling to keep up with bandwidth demands of video; mobile infrastructures have also witnessed significant changes in consumer behavior as applications overshadow handset features. This presentation explores the various battles taking place between the communication, computing and entertainment industries. The global landscape in subscriber behavior continues to change rapidly, and OTT has the potential to be at the center of it all.


Tags - Entertainment vs. the Internet, Turning Threats into Opportunities

• BitTorrent, Blu-Ray, Broadcast, Connected TV, Copyright Infringement,

Digital Millennium Copyright Act, Digital Rights, Digital Video, DMCA, DRM, File Sharing, Gabriel Dusil, Internet Piracy, Internet Video, KaZaA, Linear Broadcast, Linear TV, Megaupload, Megauploader, Motion Picture Association of America, MPAA, Multi-screen, Multiscreen, Napster, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, P2P, Peer to Peer, piracy, Piratez, PlayReady DRM, Recording Industry Association of America, RIAA, Search & Discovery, Search and Discovery, second screen, Smart TV, Social TV, TV Everywhere, Visual Unity