Expanding Media Distribution PlatformsJanne Yli-Äyhö

COO, Yle

Yle - for all the 5.4 million Finns

2013 Annual budget: 467 million euros, 3,100 employees

National services• 4 + 1 TV channels• 6 radio channels• Online services

Regional services• Regional radio services: 20 in

Finnish, 5 in Swedish and 1 in Sámi

• Eight regional TV centres

Services in several languages and for special groups

Majority of TV viewing is linear

Source: Tv-meter/Finnpanel and comScore - Yle Media Unit

Linear TV Broadcast91 %

News, Current affairs, Sports, Events, Other scheduled content

TV catch-up 7 %

Web TV on demand2 %

Movies, Drama, Series, Children

Scheduled TV Catalogue content

But things are changing …

Linear / live events are driving people to internet services

Case Sochi

Case Sochi

• Everything HD

• BIG remote production

• Special emphasis on internet services

Sochi Arena

Sochi Arena• ALL the material from Sochi

• 700 hours of live broadcast• Finnish, swedish and english audio• Catch-up, on-demand• Max quality1024x576 @1500 kB

• Highlights as video clips

Some statistics• Sochi-Arena application downloads 380.000• Arena live tv 750.000 different browsers• 40 M video starts• 22.3. at 19.15 2,3 M viewers in broadcast TV• Companies filtering network traffic

Sochi internet services were very popular

FIN-USA

FIN-RUS

Women10 Km

Technology evolution

Radical change is in the air

Digitalization of content and processes

IP and cloudConsumer behaviour

Competition

• New competitive strategy needed• New internal operating model• Ensure innovation capability

From local to global competition

Content production

Aggregation Distribution

Customer behaviour is changing

How to reach all the customers

FragmentationIncreased competition on attentionNew screens

All the screens need content

Everything everywhere all the time

More flexibility needed

Yle Areena, teevee.fi

Customer relationship in transition

• 100-90-80 – Yle for everyone• 45+ devoted linear TV viewers (so

far), younger consume media increasingly otherwise

• Teenagers a special challenge• Big Data is changing the

broadcasting industry• Docventures, #lovemilla

Customer interface needs to be mobile and provided from the cloud

• Content to all the screens – mobile first

• Better content discovery and social media tools

• Everything High Definition (4K not quite there yet)

• Getting ready for Big Data

Broadcast technologies are needed also in the future

• Unicast video and even audio blocks networks

• Live high quality video needs broadcast• Future of radio - Multimedia Broadcast

Multicast Services (MBMS) ?? – 5 Mbit/s stream enough to support radio in Finland in future networks

Changes in the broadband usage• Multiple video streams in a household• More live streaming• Mobile broadband expanding to new spectrum. LTE

Broadcast emerging.• New CDN solutions needed from operators• Capacity needs

• Now 2-10 Mbit/s (1-2 SD streams)• Tomorrow 10-20 Mbit/s (1-2 HD streams)• 3+ years from now 40+ Mbit/s (4K + …)

Production processes are in transition

TV production is getting polarized

Production methods are developed heavily

IP and Cloud substituting traditional technologies

New thinking is needed in every part of the media value chain

• Past and present competitive advantages turn easily into disadvantages

• Disruptive innovation is needed

Change or Perish