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The Coming of Age: Internet VOD

The Coming of Age: Internet VOD. Todd Johnson VP of Broadband Services VeriSign, Inc. Former CEO of Kontiki. The VeriSign Mission. Enable and Protect the World’s Networked Interactions. VeriSign Portfolio of Services. Communications. Information. Security. Website Authentication

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The Coming of Age: Internet VOD

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  1. The Coming of Age: Internet VOD Todd Johnson VP of Broadband Services VeriSign, Inc. Former CEO of Kontiki

  2. The VeriSign Mission Enable and Protect the World’s Networked Interactions

  3. VeriSign Portfolio of Services Communications Information Security • Website Authentication • User/Content Authentication • Network Security • Internet Naming • Real-Time Publishing • Intelligent Supply Chain • Content Distribution • Intelligent Messaging • Network Connectivity Intelligent Infrastructure Services Directory Connectivity Security Mediation

  4. Global Media Enablement Leader! Broadband Mobile • Video content delivery system for consumer and enterprise applications • Peer delivery capability across DSL, Cable, WiFi, Fiber and 3G networks • 30+ million PC peer client downloads across U.S. and UK • 40,000+ pieces long-form video content • 6 years of commercial experience • Mobile services: music, commerce, messaging and personalization • 600+ million accessible mobile subscribers globally • 75+ direct carrier connections for SMS, PSMS, content delivery • 400,000+ mobile content catalog items • 7+ years of commercial experience

  5. The Evolving Set of Challenges • Cost Effective vs. Profitable • Moving from cost centers or marketing expenses to PL’s • Managing the remix of content licensing • Settling on a business model: ad supported, pay per view, subscription • Content Quality – Not about short crappy content… in most places • Delivering TV/DVD/HD Quality Content • Optimize delivery for wide range of uses • Scalability - Meeting the 5x-10x-10x scalability challenge in less than 2 years • 5x higher encode rate; 1.5-3Mbps instead of 300-600kbps • 10x more views; millions per day • 10x in average video length; 22-44 minutes instead of 1-3 minutes • Managing the End User Experience • Path to the Plasma TV • Disc space usage • Local content management (consumer desktop) • These are Global Businesses

  6. Online Video Consumers by Region - Asia? Subscribers (millions) Note: Aggressive forecast. Some of these will be dial-up users, as many dial users view video today in Flash format, etc. Source: ABIresearch, 3Q 2006

  7. Online Videos Viewed by Region Videos Viewed (millions) Note: Aggressive forecast. Source: ABIresearch, 3Q 2006

  8. Online Videos by Revenue Model - Ads, Ads, Ads! Revenue (millions) Note: Aggressive forecast. Source: ABIresearch, 3Q 2006

  9. Online Video Users by Device Users (millions) Note: Aggressive forecast. Source: ABIresearch, 3Q 2006

  10. Mobile iTV Campaigns Voting, PollingSweepstakes Broadcast Integration Mobile Storefront Contestant Voice Tones Performance RingtonesContestant Graphics PC TV Internet VOD HD Broadcast Replays Contestant Profiles HD Performance Archive The 3-Screen Experience – Not One Piece, 3 Screens

  11. US Broadband Video Landscape Matrix Source: ABIresearch, 3Q 2006

  12. BBC > > HIGHLIGHTS All the BBC’s popular TV shows are made available online at the time of original broadcast Electronic Program Guide (EPG) is very sophisticated and allows for user rating, meta tag search, etc. Service will initially be a free service for UK residents (uses IP blocking for geography filtering) Ultimately similar services will be rolled out under ad supported and premium subscription business models Kontiki powers the complete delivery and end–user experience infrastructure

  13. AOL Hi-Q and In2TV > > HIGHLIGHTS 100s of TV Quality downloads from Warner Bros, Nickelodeon, Comedy Central, A&E, MTV, … Kontiki is the delivery infrastructure that powers the AOL Hi-Q system and the more recently launched In2TV content portal Kontiki is fully integrated with the ad serving solution at the point of origin Kontiki is also integrated with the DRM facility used to protect the rights held content distributed through Hi-Q/In2TV AOL Hi-Q supports a mix of business models including: free, ads supported free, pay per download and subscription based models

  14. British Sky Broadcasting > > HIGHLIGHTS Sky service built as a cross-medium experience offered free to their premium satellite TV customers Offers over 300+ movie titles and 100+ unique pieces of sports content on a regular basis User experience/EPG is very smooth and was built in flash on top of the extensible Kontiki framework Users are authenticated via the Sky billing system in place for satellite subscribers Kontiki fully integrates with the Microsoft DRM system at the point content origin

  15. Why It Is Still Hard….

  16. Thanks • Questions?

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