Transcript Business Model Agility

The New Imperative of
Business Model Agility
15th July, 2008
Communications, Media and Entertainment
Terry Hinton
1
17 July
July
17,2015
2015
Chief Technologist, Office of the CTO
Agenda
− Industry Transformation
− New Dynamics in Video and Data
Distribution
− Advertising Business Model dynamics
− Infrastructure Implications
− Maturity steps
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17 July 2015
The splitting of the transmission and
service planes
1970 – Services embedded in networks
•
− Geographic and alignment of services with
network reach
− High capability of network infrastructure to
support business services and SLAs
− All service value returned to network provider
Today – Separation of the service and
transmission planes
•
− The old model still exists but there is a new
OTT model enabled by the Internet
− Over the top model – non geographic - few
SLAs, multiple networks; addresses a
community. But the OTT model has limited
capability to deliver services or end to end
service management.
− Little of the service value in the OTT model
goes to the infrastructure providers
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17 July 2015
The end to the double infinities ??
Bandwidth
Price
With infinite bandwidth
the OTT Services could deliver
TELCO
all types of services ??
Time
Demand for online video websites such as YouTube and the BBC's iPlayer are putting the
internet under so much strain it may collapse within two years, experts have revealed.
The success of the BBC's iPlayer is putting the internet under severe strain and
threatening to bring the network to a halt, internet service providers claimed yesterday.
April 10, 2008
• Three years from now, Internet video traffic will be twenty times what it was in 2006.
• Driven by video, Internet traffic will quadruple by 2011.
• In 2011, online video will generate 1 billion DVDs worth of traffic each month.
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17 July 2015
Video Content Distribution
Legacy Model
Content
Owner
Studios, Networks,
Broadcasters
Network+Content
Distributors
Content
Consumption
Cable, Sat,
Broadcasters
STB, Antenna,
Receiver
•Proprietary and single threaded content flow
•Very limited competition for content distribution
•Content relationships multiyear, highly protected, exclusive deals
•Broadcasters and Networks get majority of the ad revenue based on a
sampling of viewing performed by Nielsen
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17 July 2015
Video Content Distribution
Legacy Model
Content
Owner
Studios, Networks,
Broadcasters
Network+Content
Distributors
Content
Consumption
Cable, Sat,
Broadcasters
Telco (IPTV)
STB, Antenna,
Receiver
•Proprietary and single threaded content flow
•Very limited competition for content distribution
•Content relationships multiyear, highly protected, exclusive deals
•Broadcasters and Networks get majority of the ad revenue based on a
sampling of viewing performed by Nielsen
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17 July 2015
Video Content Distribution
Emerging Model
Over the top
Content
Joost, Amazon, Google
Sezmi, Netflix, Blockbuster Distributors
Content
Owner
Network+Content
Distributors
Content
Consumption
Network
Enabled
TV
Studios, Networks,
Cable, Sat,
STB, Antenna,
Broadcasters.
Broadcasters
Receiver,
User generated content, Telco (IPTV)
Tivo+Amazon Unbox
i.e. YouTube
•Emerging model - radically different competitive landscape
•Higher bandwidth to the home will further enable disruptive competitive field
•DMAs & Game Controllers are new set-top + service competitors
•Subscriber data mining = targeting = monetizing = market advantage
•Younger
generation not wedded to appointment TV
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17 July 2015
…last 90 days
•
Netflix to ship $99 STB with Streaming HD
• Hulu passes all online networks after 1 month with 63M
streams in 1 month
• Amazon Unbox & TIVO plan to begin HD downloads
• Blockbuster announces plans to offer a Set-top to stream
movies
•
Building B announces a Set-top that integrates broadcast,
broadband, network programming, and an integrated 1Tb
DVR
• Blyk gets 100,000 subs 6 months ahead of target
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17 July 2015
Video Content Distribution
Emerging Model
Over the top
Content
Joost, Amazon, Google
Sezmi, Netflix, Blockbuster Distributors
Content
Owner
Network+Content
Distributors
Content
Consumption
Network
Enabled
TV
Studios, Networks,
Cable, Sat,
STB, Antenna,
Broadcasters.
Broadcasters
Receiver,
User generated content, Telco (IPTV)
Tivo+Amazon Unbox
i.e. YouTube
•Emerging model - radically different competitive landscape
•Higher bandwidth to the home will further enable disruptive competitive field
•DMAs & Game Controllers are new set-top + service competitors
•Subscriber data mining = targeting = monetizing = market advantage
•Younger
generation not wedded to appointment TV
9
17 July 2015
Video Content Distribution
Emerging Model
Over the top
Content
Joost, Amazon, Google
Sezmi, Netflix, Blockbuster Distributors
Content
Owner
Network+Content
Battle
for the last GUI
Distributors
Content
Consumption
Attention Economics
Network
Enabled
TV
Studios, Networks,
Cable, Sat,
STB, Antenna,
Broadcasters.
Broadcasters
Receiver,
User generated content, Telco (IPTV)
Tivo+Amazon Unbox
i.e. YouTube
•Emerging model - radically different competitive landscape
•Higher bandwidth to the home will further enable disruptive competitive field
•DMAs & Game Controllers are new set-top + service competitors
•Subscriber data mining = targeting = monetizing = market advantage
•Younger
generation not wedded to appointment TV
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17 July 2015
Business Model at the Services Layer
Hosting
Genealogy
Wordprocessing
Encyclopedia
Reviews
Currency Calculators
Recipes
Spreadsheets
Currency Calculators
DIY
Graphics Shopping
Travel Blogs
Medicine
Infinite sea of
new services
that are
compelling,
reliable and
free for the end
user
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17 July 2015
Social Networking
Games
Search
Search
Music
Encyclopedia
Health Books
Maps
VOIP
News
Directions
Financials
Movies
User Video
Directory Assistance TV Shows
Photos
TV Guide
“Better than Free”
•
Immediacy
•
Personalization
•
Authenticity
•
Accessibility
•
Embodiment
•
Patronage
•
Find-ability
Source: Kevin Kelly, Editor Wired
Magazine
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17 July 2015
Service Provider Advertising Business
Drivers & Constraints
Privacy Protection
•Legal
•Perceptual
Current Subscription
Models Under Pressure
•Web 2.0 largely free,
ad-sponsored
•Operators need to
deliver new IP Services
to an audience with free
expectations
Constraints
ARPU
Constraints
$800B - $1TAd Run-rate
•Money being shifted among
ad categories
•Operators have rich
subscriber info for contextual,
behavioral, location targeting
of ads
$
Advertiser Spending
Criteria
Advertising Elegance
•Audience “Reach”
•Not intrusive
•Addressability
•User value
•Measurability
•Engagement
13
17 July 2015
Service Provider Advertising Business
Drivers & Constraints
Privacy Protection
•Legal
•Perceptual
Current Subscription
Models Under Pressure
•Web 2.0 largely free,
ad-sponsored
•Operators need to
deliver new IP Services
to an audience with free
expectations
Constraints
Business Model
ARPU
Agility
Constraints
$600B - $1TAd Run-rate
•Money being shifted among
ad categories
•Operators have rich
subscriber info for contextual,
behavioral, location targeting
of ads
$
Advertiser Spending
Criteria
Advertising Elegance
•Audience “Reach”
•Not intrusive
•Addressability
•User value
•Measurability
•Engagement
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17 July 2015
Advertising Platforms and Channels
Mobile
Coupons
MMS Ads
WAP Ads
Video
Gaming
Video
Linear Ads
VOD Ads
Telescoping
DA
Interactive
Loyalty
Coupons
SMS Ads
Contests
Broadband
Banner
Video
Search
Other
Yellow Pages
Signage
Digital Cinema
Gaming
Search
Multiple Platforms with unique advertising channels
Varied stages of maturity
Unique ecosystems of value chain enablers
Fragmentation high, Standards low in less mature segments
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17 July 2015
Advertising Integration Platform
Building a shared architecture
Mobile
Coupons
MMS Ads
Video
Gaming
Broadband
Linear Ads
Video
Banner
VOD Ads
WAP Ads
Video
Telescoping
DA
Interactive
Loyalty
Coupons
SMS Ads
Contests
Search
Other
Yellow Pages
Signage
Digital Signage
Gaming
Search
Advertising Integration Platform
Offline Analytics
Ad Network Integration
MetaData
Dashboard
RT Decision Analytics
Privacy Assurance
CentralView
Insight Manager
Universal
Campaign
NeoView
Usage Mediation
Manager
VIP Broker
Customer Data
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17 July 2015
HLR
Contracts/Billing
Interfaces to
core
infrastructure
SDP
s such as
SDP,
OSS/BSS
ISM
Legend
HP
3rd Party
Value Chain
•
Advertiser
• Creative agency
• Ad agency
• Ad network
• Publisher
• Operator
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17 July 2015
Mobile advertising models
•
Operator-centric CPM
mobile advertising
model
Source : Ovum
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17 July 2015
•
Non-operator-centric
CPM mobile advertising
model
Source : Ovum
Privacy & Intrusiveness
•
Legal
− Country based
− FTC & EC
•
Perceptual
− Context based
•
Experience disruption
− Context based
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17 July 2015
Maturity Process
1
2
3
4
Overarching Strategy
5
6
Personalization services
20
Play-out Prioritization
Data Infrastructure
Privacy policy and plan automation
Automated intelligent Play-out
17 July
July
17,2015
2015
The New Imperative of
Business Model Agility
15th July, 2008
Communications, Media and Entertainment
Terry Hinton
21
17 July
July
17,2015
2015
Chief Technologist, Office of the CTO