New Media & Internet as an alternative to DTT broadcasting

Daniel Tarasov daniel.tarasov@entriq.com Mobile: +44.783.631.6973 

Sales Manager Digital Media SoluBons www.irdeto.com 

Agenda

  What is New Media   Internet’s role in New Media   Web Television & Internet Enabled Television   Web TV – why is it interesting?

  YouTube vs. Hulu   MediaZone   Viasat on Demand

  Internet Enabled Television – new concepts   Sky   Maxdome   Fetch TV

  Summary

What is “NEW MEDIA”?

one – to – one one – to – many many – to – many

Communication

Mass Media   Publishing   Radio   Television

What role Internet plays in this change?

Internet does not exist by itself – it is the services that attract the users

* www.internetworldstats.com

  1.6 billion internet users in the World* (24% of population)

  6.7 million internet users in Ukraine* (15% of population)

Web TV & Internet enabled Television

User experience

Web TV

www

Internet enabled

Television

not IPTV

Web TV – why is it interesting?

Why are people watching TV on the Web?

U.S. Market, Integrated Media Measurement Inc., 2008

Who are the players on US market?

Top 10 US online properties*. April 2009

* Source: comScore Video Metrix

Property Videos (000) Share (%) of Videos 1 Google Sites 6,831,957 40.7 2 Fox Interactive Media 512,872 3.1 3 Hulu 396,953 2.4 4 Yahoo! Sites 355,231 2.1 5 Viacom Digital 315,177 1.9 6 Microsoft Sites 288,301 1.7 7 Turner Network 272,709 1.6 8 CBS Interactive 202,810 1.2 9 Disney Online 132,212 0.8

10 AOL LLC 121,431 0.7 Total Internet 16,785,432 100

  16.7 billion videos watched in US in April 2009

What is at stake in US?

Online video advertising market to reach $1.3 Billion by 2010

USA

What is at stake in Ukraine?

Ukraine

2007 2008 2009 2010 Ukraine online Ad spending $(m) $ 12 $ 21 $ 32.6 $ 45.6

Growth (%) 75% 55% 40%

Ukraine online video Ad spending $(m) $1.11 $1.96

* www.gemius.com/pl/news/2008-10-03/02 2009-2010 entries are projections: Irdeto

Online video advertising market to reach $1.2 million by 2010

  Substantially under-develop market   Massive potential   Growing Broadband penetration (6.7 million people)

  Decline of TV advertising revenue   Reshaping of Advertising budgets

What is popular online?

  FREE content   UGC

  Catch-up TV

  News

  Paid Content   Sports

  Films

  Adult

YouTube vs. Hulu

  Content

  Number video streams

  Ads sold against video

  Estimated Ads revenue

6.8 billion* 396 million*

4 - 6% 100%

$200 mln** $90 mln**

User generated Professional

*source: comScore video Metrix **source: estimation Michael Learmonth, www.businessinsider.com

Premium Content – Sports

Business models

  Pay-per-View   Subscription (recurring: monthly; yearly; Season pass)

Content

  Live (sport events)   On-demand (massive VOD library)

Premium Content – TV Shows, Series, etc

Business models

  FREE with Advertising (video-ads; banners; rich-media)

  DTR (Download to Rent; 24/48 hours; 14 days)

Content

  On-demand

Premium Content – TV Shows, Series, etc

2008 ©ENTRIQ | This document contains information that is privileged or confidential

VIASAT on Demand

Business models   FREE with Advertising   Pay-per-View   SVOD (Subscription VOD)   Film Packages (per genre/ per actor/ etc)

Content   Live sports   On-demand

  Films   TV Series   Erotic

Sweden Norway Denmark Finland

Web TV – why is it interesting?

  Everything on one screen:   TV   Emails, Social Networks   Gaming, shopping, etc

  Everything on-Demand – no schedule   What you want   When you want

  Big variety   Free or paid   Hollywood content or User generated content   World News or Local news, etc

Internet Enabled Television – new concepts

What drives the industry?

  Change in consumer content consumption Alternative video content sources are becoming mainstream for consumers

  Operators are directly affected by this change

  Rise of new concepts:   multi-platform   multi-device   Hybrid networks

Everything Is A Video Platform…

BSKYB

  UK’s largest pay-media provider   9m+ subscribers   Brands include:

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BSKYB – what was the problem?

  Many outlets for content….online, mobile, digital signs…   ….but the workflow was broken and inefficient   Production was slow, complex, labour intensive, prone to human

error….which made it very expensive!   High overheads limited opportunities: content processing cost more

than the revenue earned from syndication

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BSKYB – today: multi-platform & multi-device

  Sky on Satellite

  Sky on the Web

  Sky Podcasting

  Sky on the train stations

  Sky on Mobile   Orange   Vodafone   Three   T-Mobile

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HD

Maxdome – VOD platform on PC & STB

Business models   DTR (Download to Rent)   Pay-per-View   SVOD (Subscription VOD/ packages)

Content   Films   TV Series   Sports   Adult

Maxdome on PC

Maxdome on STB

Internet Set-top-Box (over-the-top environment)

  Standard definition (SD)   High Definition (HD)

  One user account for PC & STB

Fetch TV – hybrid networks (DVB-T & Internet)

  A digital video recorder offering a combination of broadcast and broadband programmes   Live TV via DVB-T   VOD via Internet

  It can be connected to any broadband service provider.

  There are also movies and programming available on a pay-per-view basis.

  Enabled service

Internet Enabled Television

  The market for Internet Enabled Television to be properly shaped in the coming years

  Stand-alone services are pushing the industry towards standardization

  Positive experience of implementations in Western Europe shows the huge potential for other markets

Summary

  Think Global, Act Local

  Monetize each step

  No limits except for content territorial rights

THANK YOU!

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