Iabm keynote 5 december 2013

What Technology Strategies To Thrive? Martin Guillaume, Ericsson Broadcast Services London 5th December 2013

A fast changing TV landscape

Ericsson |

+8%

›  YouTube, Apple, NetFlix, YouView, BT Sport, LoveFilm, Hulu, …

›  New (internet) players have deep pockets, a good understanding for one to one marketing, deliver well across all channels and devices.

›  Seek to secure access to premium and original content (sports, series, etc…) with disastrous inflation on these properties

Dramatic increase in competition

NetFlix controls 66% of the rental market 80% of NetFlix rentals are of TV shows NPD Group

CAGR for TV sports rights from 2005 – 2012 Ericsson Research

Ericsson |

Radical consumer shifts

44% 29%

Visit social network sites while watching TV programmes as well as during commercial breaks

Check related information online for a programme they are watching on TV

34% Check sport scores while watching other TV programmes.

34% Use their tablets to check sports / news when they are at home

Source: STATE OF THE MEDIA: U.S. DIGITAL CONSUMER REPORT (Q3-Q4 2011) by Nielsen mincite Source: Media Leaders Discuss the Consumer Shift to Cross-Platform, Nielsen, June 27, 2012

Ericsson |

› Ad market shifts to online – Nearly three in every four ad dollars flowing into online and OTT

video is coming from TV money (*)

›  Increased capital expense requirements – To acquire (or produce) original content due to increased number of

bidders – To create a compelling experience across a broad array of devices

and channels

›  Increased cost of technology to enable new models – Experimentation 20% or more of consumers across all three countries [UK,

Canada, US] are willing to pay $5-$7 per month for advertising-free access to streaming premium video content (TV shows, movies and events). QuickPlay Media survey

(*) AOL's global branded content platform Be On

Adverse effect on fundamentals

Ericsson |

›  Unfair fight: Formidable adversaries with deep pockets, rooted in successes outside of media – their fundamentals don’t include making money with content (i.e. iTunes)

›  Fast learners, House of Cards stunned the industry. They’re able to get there quickly.

›  They know how to build personalised experiences & penetrate a market very fast (NetFlix numbers in Europe)

“live” is the broadcasters’ strategic differentiator

live is defined as news + sports + events + premiere a.k.a. ‘previously un-experienced content’

new entrants making big progress

Ericsson |

› Extend into mobile “Connected Consumer”

– Profiles users to improve the experience.

– Optimise ad placement across devices

– Delivers relevant discovery –  Interesting and tailored second

screens – Weaves in Social media – Local content, contextually

relevant is key

› Differentiate on “Live Experiences”

– Based on “appointment viewing” viewers all experience the same thing at the same time be it sport, a music concert, a reality show or a serie premiere; fostering a sense of community.

– Emphasise a deep rooted and intimate relationship centered in the living room = most intimate and immersive

– Extend onto other devices as opposed to other devices controlling the TV.

Broadcasters need A unique experience

Ericsson |

Is it Time to redesign their experiences?

Adopting a consumer-centric approaches creates a plethora of needs; which change over time.

Consume Service Transact Aware Join Renew

Pre teenager Teenager Young Adult Mature

DEFINE your viewers (with an

eye towards lifetime value)

Middle age

Pierre Jennifer Vincent Philippe Lili

2

1

Aware Join Transact Consume Service Renew





DESIGN a PERSONAL

experience for each stage for each segment

Ericsson |

What are analysts saying?

Key business and technical principles of Ercisson’s offerings

Across devices Seamless Personalized Targeted Social Innovative Agile New models Consumer insight Live

Ericsson |

Agile Integration imperative

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Decide what you must own, justify.

Adopt a standard and flexible integration capability – it is your backbone

Benchmark often, invest in intelligent decision / arbitration

The promise of service orientation is here, even for media content.

Playout / DISTRIBUTION

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OVP Online Video Platform

OTT in a few words

•  Secure delivery •  Ingest •  QC •  Transcode •  Describe / enhance

Acquire content

•  Protect (DRM) •  Encode •  Originate and

Optimise CDN •  Deliver

Deliver Experience •  Enroll

•  Receive payment •  Record incident •  Deliver credit •  Couponing

Service Subscriber

1 2 3

MAM Media Asset Management

CRM Customer Relationship Management

Services

Offer a portfolio of services which can be “knitted” into a business offering.

Ericsson |

› Model your approach after our telecom & play-out services, not an IT project with ballooning costs and deadline; offer a documented SLA with predictable opex costs

›  Service “building blocks” which can be assembled into new experiences owning as much or as little as you want. You pay for what you use, you shut down or scale up as needed.

› Guaranteed to work across a broad and growing array of devices; Integrates with your existing infrastructure

OFFER A Different Delivery Model

Ericsson |

› Keep your capital, we just need OPEX –  You pay for what you use, not idle infrastructure.Reduce your technology risk

› Try new models quickly and affordably –  Assembling new experiences is fast, you can respond to market demands quickly and win

› Remain in control of the changing consumer experience

–  Optimal rendering of video across a broad and growing number of devices and channels –  always the most cost effective CDN: Media Delivery Network: CDN capacity planning. –  Optimal recommendation : collect, analyse and power your business decisions with a rich array of

intelligence about your content and consumption

OTT Example: COST Relief & Innovation

“there is nothing more powerful than an idea whose time has come” V. Hugo

Iabm keynote 5 december 2013

Software

Transcript of Iabm keynote 5 december 2013