Delivering the Nextgeneration Television over Internet and Mobile: The Benefits and the Challenges

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Delivering the Next-generation Television
overInternet and Mobile The Benefits and the
Challenges
Vidya S NathSenior Industry Analyst, Digital
MediaFrost Sullivanvnath_at_frost.com
NetEvents APAC VIP Service Provider
Summit Singapore, 2009
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• "Nobody knows the future. If anybody tells you
  what the future is going to be, don't believe
  them. Ultimately it's the consumers that decide
  that, not prognosticators."

Jason Killar, CEO, Hulu LLC at the CTAM Summit,
2009
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Digital Media Value Chain
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The Potential Market Indicators
Broadband Subscriber Penetration, (2006-2012),
World
Video Handset Shipments, (2007-2013), World
Note All figures are rounded. The Base year is
2008. Source Frost Sullivan
Note All figures are rounded. The Base year is
2008. Source ITU, Frost Sullivan

• Nearly 600 million broadband subscribers globally
  in 2009
• On an average- broadband speeds in many countries
  over 2 Mbps in some, over 5Mbps
• Nearly 600 million video-handsets to be shipped
  in 2009
• Over 40 of these handsets are expected to be
  smartphones

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Transition Popular Phenomenon Adapted at the
Business-end
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Video CDN Market Forecasts
Source Frost Sullivan

• CAGR well over 30
• Exponential growth from quarter of a billion
  dollars to over 1Bn

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and that is just a pie of the entire value chain
Frost Sullivan Digital Media Value Chain
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Several Industry Stakeholders
Storage, Video Conversion, Video Optimization,
ASPs, PaaS, CAS, DRM, DAM, Ad servers, VOD, WAN
Optimization, Media Players, CDNs, Set-top
Boxes.
Vendors
System Integrators, Software Companies, Telcos,
Broadcast Equipment Vendors, ASPs
System Integrators
Broadcasters, Movie Studios, News Agencies
Content Creators
Cable, Satellite, Telco, Wireless Service
Operators, Web Portals, Movie Portals,
Broadcasters, Social Networking, Device Portals
Service Providers
Consumers
Source Frost Sullivan
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Broadband Video Market Life Cycle Analysis

Market Value
Profitable Video Distribution
UGC, Movie Portals, Broadcaster/Studio Websites,
Device Portals (iTunes)
Movie Portals, Studio Portals, Studio Websites,
Service Providers, Device Portals
Moving towards business-based distribution
UGC, Movie Portals, Game Portals, Studio Portals,
Studio Websites
Niche Websites, Streaming Video
UGC Web Portals, E.g. YouTube, Metacafe
P2P, Torrents, Niche Websites
Time
Maturity
Development
Growth
Decline
Source Frost Sullivan.
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Mobile Video Market Life Cycle Analysis

Market Value
Popular to Business- based Models
Content Aggregators, Service Providers Unicast
Streaming Mobile Broadcast
Studios, UGC, Web Portals Unicast Streaming,
Mobile Broadcast, Off-deck Video
Increase in more popular avenues
Streaming Video
Content Aggregators, Service Providers Streaming
Video
Time
Maturity
Development
Growth
Decline
Source Frost Sullivan.
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Significant Challenges

• Lack of concrete business models Limited RoI
• High content licensing costs
• High technology licensing costs
• Advertising still nascent
• Conflicting business-environment (service
  providers vs service providers service provider
  vs broadcasters)

• Country-specific regulations on content
  distribution
• Country-specific spectrum allocation
• Rules moderating type of content
• Anti-piracy rules
• Country-specific business regulations

• Piracy
• Bandwidth penetration
• Mobile penetration

• Self-hosted vs Outsourcing
• Expanding workflows
• Multiple operating systems
• Growing demand for high-resolution
• Multiple regional standards and formats
• Technology Licensing
• Live versus on-demand

. Scale 0 to 10, where 0 is low impact 10 is
high impact.
Source Frost Sullivan.
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how to balance them out?- The Discussion

• Panelists
• Brendon Mills, CEO, President, Ripcode
• Alex So, VP Marketing, Century Sage Scientific
  (CSS)
• Angus Robertson, Director, Spirent Communications