Transcript Document
Creating a New Age of Video Entertainment
Telecom at NAB
April 15, 2008
What is Building B?
• New entertainment services company
• 1st Complete next generation TV offering
– Comprehensive content lineup, including
traditional TV, internet and movies
– Seamless integration of live, stored,
downloadable and internet video
– Centered on on-demand viewing
– Personalized and tailored to the individual
viewer
• Distributed through broadband service
providers and national retailers
Major Disruptions in the TV Industry:
A Catalyst for Consumer Change
70 million consumers will make Digital TV choice over the next 4 years
Mobile
Video
DVR
Internet
Content
HDTV
Triple
Play
Digital
Transition
Complaints Include High Prices, Inflexible
Bundles and a Poor Experience
Value is
critical
Simplicity is
key
Opportunity to
improve the
experience
Upgrade
to HD
Inflexible
bundles
Too
expensive
Inconvenient
Movie
Difficulty
start times
selection
making
(on-demand)
everything
work together
Can’t find
something
of interest
to watch
The picture
Poor
quality does
navigation
and usability not meet my
expectations
Current Approaches are Not Working
• Broadband is challenged to deliver HD
television
• A pile of special purpose boxes
‒ Television STB / DVR
‒ Movie boxes
‒ Internet video boxes
• Legacy systems are difficult to upgrade
Upgrading Existing Infrastrucure is
Prohibitively Expensive
IP backbone providers will not be able to economically
light the existing and new fiber necessary to deliver broad
based TV access at reasonable consumer prices.
- 2007 Telecom Predictions Report, Delloite and Touche Consulting
The Key: Align the Network with Content Viewership
53%
Broadcast
Networks
Leading Networks
% of TV Viewing
34%
7%
0%
Internet
Video
ABC, NBC, CBS, FOX,
Univision, Telemundo, My
Network, CW, Telefutura,
other independents
Short-Tail (87% of TV viewing)
Source: Nielsen HH ratings 2005-2006 TV season
Niche
Networks
Long-Tail
Premium
Content &
Movies
Video Delivery Cost Optimized by
Combining Broadcast and Broadband
Digital TV Spectrum
Broadcast
Group Delivery
Unicast
Direct
Viewers
Deliver to All
Private Broadcast
Broadband
Least
Expensive
Most Expensive
Video Imperatives for the Broadband
Industry
• Differentiated television offering
• A complete content lineup (including HD)
• Works in America’s homes today—with existing broadband
• Limited infrastructure investment
• Enhanced brand and customer relationships
Simple
Self-Install
Comprehensive
Content
Wireless
Time Shifting
and
On-Demand
Relevant
Advertising
Breakthrough
Video
Entertainment
Solution
Personalization
and
Intelligence
Compelling
Pricing
Unlocking the Next Generation of Television
Breakthrough video entertainment service to be launched in 2008
Accessible
Personalized
Experience
• Low entry cost
• Simple out of the box setup
• Tailored to individual viewer's routines and preferences
• High Definition and On-Demand
• Community and Web Features
Comprehensive
Content
• Broadcast networks and local channels
• Cable networks
• Studio library channels
• PPV movies and events
• Internet content
Works in
Homes Today
• Delivered straight to the living room television
• No need for a PC
• Works with any broadband service
The Industry Has an Opportunity to Capitalize
on a New Chapter of Consumer Video
Broadcasters:
Content Providers:
Receive returns on their digital Extend content
to new
Content
Broadcasters
investment
platforms
Providers
Revitalize their business with
Leverage brand in an
targeted and interactive ads
on-demand world
Advertisers:
Broadband Service Providers:
Deliver higher value
Offer a differentiated
Broadband triple playadvertising on television
Advertisers
Service Providers
Avoid expensive infrastructure Improve the effectiveness of
advertising
Promote their brand
Building B is A Turn-key Video Solution for
Broadband Service Providers
Triple Play
Telco's and ISP’s
+
=
Differentiated video services
DSL and 4G Wireless
High-capacity wireless
network for content delivery
Voice & data services
Marketing & distribution
Building B Partnership Model
Partnership Roles
Co-Branded
Partner
&
Customer Relationship
Partner
Bundling and Pricing
Partner
Customer Acquisition
Partner
Set-top-box ownership
Partner
Network & content operations
1st and 2nd tier customer support
3rd tier technical support
Partner
The Time is Now
• Major partnerships complete
‒ Broadband providers
‒ Content providers
‒ Advertisers
• Created nationwide content distribution network
‒ Broadcast partners in initial launch markets
‒ Infrastructure Partners
‒ Announced with Harris Corporation and Sun Microsystems
• Commencing trials for commercial pilot
Creating a New Age of Video Entertainment
Telecom at NAB
April 15, 2008