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IPTV – Brave new World Alan Delaney IPTV Business Development Director Interactivity — media Portability Media Convergence (any content, any device, anywhere, anytime) Choice and control Mobility — voice Interactivity — transactional Expanding information access HDTV

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IPTV – Brave new World

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IPTV – Brave new World

Alan Delaney

IPTV Business Development Director


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Interactivity—media

Portability

Media Convergence

(any content,

any device,

anywhere,

anytime)

Choice and control

Mobility—voice

Interactivity—transactional

Expandinginformation access

HDTV

User-defined content

TV- commerce

VOD - PUSH and Pull

Unicast television

Contextual ad serving

Time-shifted TV (TiVo)

IPTV

Dial-up Internet

Fixed broadcast video & radio

Mobile phones

Digital Music (iPod)

Evolution of consumer media experience

Consumer demand

2007~

2004

2006

1950

1990

1995

2003

Enabling technology


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More content, more devices…

“Nokia N95 - What computers have become”


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More channels for media consumption


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UK Changes in Programme Consumption

  • “Steptoe & Son” – 28.5M (1966!)

  • ITV & BBC today - 11.5M & 9.2M highest viewing

  • BSkyB – USA Flagship programme Lost : 898k

  • Viewing is changing, as are the business models

  • You Tube – “Evolution of Dance” : 46.3M views


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Business model implications

  • IPTV was about “sending TV down the tubes”

  • Ground is shifting before IPTV is even established

  • Established DRM models changing (EMI DRM free)

  • Multiple routes to the consumer

  • Increasingly complex content business model navigation

  • IPTV: Friend or Foe?


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IPTV: Friend or Foe?

  • Historically perceived as foe

  • The solution: umbrellas !!!

  • 1 stop shop for content across multiple devices

  • Subscriber reacquisition prohibitively expensive

  • Deliver sticky services to reduce churn (triple/quad)


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Triple / Quad Play Reduces Churn

  • 1.3% reduction in per month churn from Triple Play

Source: Kagan, December 2003

  • 1M IPTV Subs

    • 15.6% reduction in annual churn, SAC of $x00/sub

    • Potentially tens of millions saved in revenue

    • Single % point reduction equates to millions saved


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New Advertising Business Models

  • Babelgum

    • $5 for each 1000 unique views of a clip

  • Google advertising (my guess)

    • $10 / 1000 unique views

    • Therefore 1 cent /page

    • If 100M pages / day viewed = $1M/day

    • Equates to >$360M / year

  • My Space – 1.5 Billion page views a day !

  • Comcast has served 3 Bn+ vod assets to date

    • Majority of which are free and ad supported

  • Power of advertising transitioning over to iptv and bbtv


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TANDBERG Television solutions


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HDTV

Video On Demand

Network PVR

Switched Digital Video

Interactive advertising

TANDBERG Television solutions


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Expanded TANDBERG Offering


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Summary

  • IPTV is happening

  • Disruptive business models

  • Embrace the change

  • Solutions are here to meet the market requirements

  • TANDBERG delivering solutions to meet those needs


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