Smarter Planet: Media and Entertainment

© 2009 IBM Corporation

Let‘s Build a Smarter Planet: Media and Entertainment

George Mattathil,

4/25/2011



The reality of living in a globally integrated world is upon us.

Frozen credit markets and limited access to capital.

Economic downturn and future uncertainty.

Energy shortfalls and erratic commodity prices.

Information explosion and risk/opportunity growth.

Slowing superpowers and emerging economies.

Increasingly complex supply chains and empowered consumers.

The world is connected:

economically, socially and technically.



The pace of change is accelerating.

On personal digital

devices annually.

$100 billion

spent On the internet by 2010—60%

will have broadband access.

1.6 billion

users Hosted by Yahoo daily in 2007.

100 million

video streams

Created in 2010—between

digital still cameras and

cell phones.

500 billion

images Online today and growing.

60 million

blogs Of storage is required for just

one hour of feature film in

high resolution.

74

terabytes



The opportunity for progress is clear.

Reduce

energy costs

20–30%

From 0 to 1M

subscribers in

first year Tata Sky launched a new direct-to-

home digital satellite television

service on a flexible business model

and scalable IT infrastructure. The

solution enabled Tata Sky to launch

the business with unprecedented

speed, in just 6 months, and reach

their ambitious target of one million

connections in the first year of

operations. The robust and scalable

infrastructure is supporting the

company's growth targets of

adding one to two million new

subscribers annually.

IBM clients are embarking on exciting

new approaches to reduce operational

costs and improve the efficiencies of their

workflow processes. Leveraging IBM‘s

expertise in Business Process

Management and Service Oriented

Architecture, these clients are deploying

unified digital media management

platforms and integrated content and

business systems processes. For one

media network client, IBM mapped a

‗future vision‘ digital workflow that

demonstrates labor savings of 20% to

50% and reduction in process cycle times

of 69%, improving profitability and

reducing costs.

Several IBM clients are

improving the performance of

their mission-critical websites,

while reducing operational costs.

IBM virtualization technology has

enabled one real-time sports

website to consolidate their 60

servers into just six, which has

reduced energy consumption by

23% and cooling load by 25%.

At the same time, website visits

have increased by 26% and the

cost of each visit has been

reduced by 38%.

69%

process cycle

time reduction



For media and entertainment companies, this means reshaping their business in response to uncertainty drivers.

Source: ―The end of advertising as we know it‖ IBM white paper. ―Navigating the media divide: Innovating and enabling new business models‖ IBM white paper.

INCREASED CONSUMER POWER

Consumers are increasing savvy

and harder to reach–shifting away from

traditional consumption patterns.

Fragmentation continues, as loyalty remains

a challenge. Providers transitioning from

―audience‖ to ―consumer‖ focus.

BUSINESS MODEL UNCERTAINTY

The adoption of the Internet is remaking the

landscapes of content delivery and

consumption. Technology players are

disrupting business and shifting revenue

flow (e.g. Yahoo News). Traditional players

are focused on protecting core revenues,

while growing digital opportunities.

EXPANDING IMPACT OF TECHNOLOGY

Technology players are evolving into media

companies, while media companies are

placing greater emphasis on technology to

deliver advantage. Both must navigate a vast

array of intelligent media devices, multiple

forms of digitized content and an increasing

volume of user-generated content

ADVERTISING TRANSFORMATION

There is a continued advertising revenue

shift from traditional to new media outlets

(e.g. Internet, online video sites, social

networks), a greater volatility in light of the

current economic situation and a broader set

of capabilities required to reach consumers.



To deliver on this potential, smarter media and entertainment companies are transforming business models, operations and customer experiences.

MEDIA AND

ENTERTAINMENT

DIFFERENTIATE THE

CONSUMER EXPERIENCE

Launching new innovative

services quickly, leveraging

relationships across channels

and using real-time analytics

to gain deep customer insights

and personalized offerings.

Revealing advertising values

and performance to optimize

channel strategies and

improve return.

INNOVATE

BUSINESS MODELS AND

SEIZE DIGITAL MARKET

OPPORTUNITIES

Developing new business

models and partner collaboration

by leveraging the continued

convergence of telecom, media

and Internet to strengthen core

businesses, improve competitive

position and generate new

revenues faster.

IMPROVE OPERATIONAL EFFICIENCIES

Achieving operational excellence by reducing infrastructure

and process complexity to enable improved profitability and

reduced costs, fund innovation, enable expansion into new

markets and support business transformation initiatives.



An opportunity for media and entertainment companies

to think and act in new ways.

+ + =

Achieve growth by

innovating business

models and seizing

digital market

opportunities.

Gain a competitive

advantage by

differentiating the

consumer experience.

Reduce costs and enable

expansion into new

markets by improving

operational efficiencies.



Smart media and entertainment: Innovating business models and seizing digital marketing opportunities.

SMART IS

Having the flexibility to introduce new

products and services, revamp business

processes and enter or create new

markets, as quickly as opportunities

appear, or as soon as you happen

to envision them.

SMART IS

Consolidating and streamlining

complex financial processes to ensure

successful compliance and regulatory

management practices.

SMART IS

Creating cost-efficiencies in traditional

supply chains in order to continue

investment in high-growth, cross-

channel distribution.

SMART IS

Having a holistic and trusted view of

media assets across the enterprise,

and meaningful metadata search and

asset retrieval capabilities in order to

repurpose and monetize assets.



Tata Sky: TATA Group, one of India‘s oldest and

most respected business conglomerates, wanted to

become a pioneer in the country‘s newly opened,

direct-to-home satellite TV market. To become a

major player in the new market, TATA had to launch

an entirely new business—beginning with no

infrastructure or existing processes at all—and do it

very quickly, in order to beat out the competition.

TATA chose IBM to help launch a new business

starting from scratch, Tata Sky. The service-oriented

architecture-based business, resulting from this first-

of-a-kind ―green field‖ project, was launched in only

six months. Within a year of its operations, the

company had signed up its one-millionth

connection—a world-record growth rate for direct-to-

home broadcasting.

Consumer Electronics Company: To complement its

new and future product lines, the client engaged IBM

to develop a cloud-based service infrastructure and

portal through which their new generation of TVs can

seamlessly access favorite Web services as well as

broadcast TV.

The company is working with IBM to develop a first-of-

a-kind service known as Internet-TV, an embedded

feature of its newest televisions which—in addition to

traditional television broadcasts—enables viewers to

access and navigate Internet content with a standard

remote. What the client needed from IBM was an

advanced, intelligent infrastructure on which to

establish and support a dynamic community of

users and service providers.

Smart media and entertainment: Innovating business models and seizing digital marketing opportunities.



Smart media and entertainment: Differentiating the consumer experience.

SMART IS

Applying real-time knowledge of

consumer preferences to provide

better personalization of content and a

more compelling experience.

SMART IS

Using context information and

social networking to optimize the

consumer experience.

SMART IS

Building a complete picture of

consumer preferences and

interactions, and identifying rapid

changes in demand.

SMART IS

Moving away from traditional, one-to-

many, broadcast-style delivery

processes and channels to Web-

centric business models.



Smart media and entertainment: Differentiating the consumer experience.

IMPIRE AG: An IBM solution helps IMPIRE rapidly generate

new statistical information and develop cutting-edge services.

With IBM Software, IMPIRE manages, integrates and

analyzes sporting-event data and leverages that content in its

products, such as its unique Web-based sports ticker, which

communicates real-time event data and statistics to

consumers more quickly than even a live broadcast.

To achieve its objectives, IMPIRE needed to replace its

complex and expensive-to-manage database infrastructure

with a highly available, high-performance solution that could

rapidly load data and provide data mining. A flexible data

model and development environment allows IMPIRE to

capture live sporting events statistics, distribute them in real

time, store large amounts of new and historical data from

various sources, analyze and publish that data in near real

time, and quickly develop new applications.

The Palace Museum: IBM and the Palace Museum

in Beijing, China, have launched The Forbidden City:

Beyond Space and Time, the first complete virtual

world created for a major historical and cultural

attraction. The online environment is a fully

immersive, interactive world that corresponds

architecturally and historically to the vast grounds of

the current Palace Museum, allowing visitors to

experience three-dimensional representations of

cultural artifacts and places.

The Forbidden City: Beyond Space and Time is an

open, extendable platform that represents the next

evolution of Web 2.0 applications, where rich

content, educational storytelling, community and

social networking features converge into a unique,

online, multi-user, 3D interactive experience.



Smart media and entertainment: Improving operational efficiencies.

SMART IS

Having a technology infrastructure that lets

you to pick the best solutions from the most

innovative industry solution providers and

easily ―snap‖ them into your workflow.

SMART IS

Increasing speed to market by being able to

quickly configure production and distribution

processes to meet your ever-changing

business requirements.

SMART IS

Combining the power, flexibility and cost

advantages of open Information Technology

with media industry-specific workflows, to

reduce the cost of production and streamline

business and content processes.

SMART IS

Use of standard IT-based components to

dramatically reduced cost compared to

proprietary technologies. Significant savings

accrue from workflow efficiency, lower fixed

cost for storage and storage media, reduced

floor space, heating and cooling, and

potential labor savings.



Smart media and entertainment: Improving operational efficiencies.

Australian Open: Since 1993, IBM has been the

Official Technology Partner of the Australian Open, playing a

major role every year by providing the event infrastructure

and manpower to support all facets of the tournament—from

event management to the scoring system that feeds all of the

organization's information channels, including the Web site,

on-court scoreboards, results kiosks, graphics interface for

television broadcasters and the Match Update Centre.

To help enable AustralianOpen.com to be 100% available,

scalable and secure, IBM uses a flexible,

self-managing infrastructure based on service-oriented

architecture (SOA) and multiple geographically dispersed

servers, virtualized as one, to scale up to support a massive

increase in traffic more than 100 times its typical volume

during the event and scale down when the tournament is

over—all without the need to make a large and permanent

infrastructure investment.

Vlaamse Radio and Televisie: Belgian radio and

television broadcaster faces the same challenge that

most entertainment and news companies face—deliver

content quickly or lose viewers. Previously, the

organization had struggled to provide new content to the

public (especially on its Web site) due to a tape-based

system that required manual management and that

limited content access to one user at a time.

Working with IBM, VRT deployed a unified digital media

management platform built on a service-oriented

architecture (SOA) for creating, editing, airing and storing

video content materials. The new system affords VRT

the ability to capture, reuse and share its digital files, and

convert them into multiple formats—producing 50% more

programming assets—opening up more opportunities to

reach new customers.



Consumers are demanding experiences across the spectrum of media, at any time and in many combinations.



A smart media and entertainment company will use raw data about consumer, usage and interests to generate actionable insights.

COLLECT MANAGE

INTEGRATE ANALYZE

Data

Insight



These insights will drive the creation of new value for the consumer.

Data

Insight

New products

and services

Targeted

communications

Personalized

offerings

COLLECT MANAGE

INTEGRATE ANALYZE



They will also lead to core business benefits and new opportunities for the media and entertainment company.

Data

Insight

New products

and services

Targeted

communications

Personalized

offerings

Greater speed to market

Operational efficiencies

New business models

Collaboration opportunities

COLLECT MANAGE

INTEGRATE ANALYZE



IBM‘s solution strategy is aligned with the needs of media and entertainment stakeholders.

MEDIA AND ENTERTAINMENT

PRIORITIES ARE… IBM IS INVESTING IN…

Innovating business models

and seizing digital market

opportunities.

Differentiating the consumer

experience.

Best practices helping develop and implement new business models

Global outsourcing capabilities to fund innovative business approaches

SOA-based infrastructure for the media industry that is designed to

manage the increasing complexity of running a content-focused business

from the point of creation to the distribution of digital content

R&D and Media Solution Labs around the world to bring pioneering

technologies to clients

Global financing to support innovation and change

Web and consumer analytics to reveal customer insights for better targeted

services

Advertising transformation and cross-platform ad analytics to help clients

develop strategies and roadmaps for new digital realities, pricing strategies

and delivery mechanisms

Web-centric business innovation to deliver content and unique experiences

to consumers (both B2C and B2B) across channels

End-to-end customer and master data management

Improving operational

efficiencies.

Modernization and optimization of legacy systems

Integrated digital content and meta-data management

Digital workflow and back-office process efficiencies and transformations

to create an agile and flexible business infrastructure

Open, standards-based, integrated environments and processes

Application management and outsourcing



Let‘s work together to drive

real progress in our world.

We‘ve only just begun to uncover what is possible on a smarter planet.

The world will continue to become smaller,

flatter and smarter. We are moving into the

age of the globally integrated and intelligent

economy, society and planet.

From helping magazine publishers change

their business model so subscribers have

the flexibility to change what gets delivered,

to enabling comic creators and producers to

interact in real-time and discover new talent,

to making it economical for broadcast

networks to digitally archive major sporting

events in HD. Being smart about media

allows the world‘s media companies to lower

the barriers to entry and the costs of creating,

managing and distributing digital content.



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