The future of TV The future of TV

							The future of TV

         Ulf Essler¹ and Marcus Bäcklund
  ¹ Center for Information and Communications Research
        Stockholm School of Economics, Sweden
               ² Investment Deseven AB
Transforming the 10’ Experience
Transformation begin by understanding User
Behaviour, then identifying the impacts of
new behaviour on the Services which then in
turn put demands on New Network Solutions.

The PC/Internet based user behaviour e.g.
“On demand”, “I am in control” etc. will
hypothetically transform the 10’ experience
i.e. the regular TV living room user behaviour.
Behaviour-driven Transformation




      Behaviour      Transformation
                     Source: FITCE Congress 2008 call
Re-Regulation and Convergence:
    Telecom+Internet+TV= IPTV?
The PC changed user behaviour!

The Internet changed user behaviour!

The IPTV changes user behaviour again?

            “IP traffic should nearly double every two years through
            2011...with consumer IP traffic growing at 58% and
            business IP traffic growing at 21% ...key drivers will be
            high definition video + high speed broadband
            penetration.”
                                             Source: Cisco Systems Inc.
       New business models
    To meet the new user behaviour with new
services:
Instant play-, Video on Demand-, Pay-per-
view services in the 10’ environment
    To be accomplished by:
Transforming the network (The Internet)
Delivering high bit rate linear data over the
open Internet (IPv4) with quality of service
Behaviour-driven transformation of the PC
   resulting in The Internet Revolution
            Point to Point has evolved to Multi-point to Point


                                                                 TODAY




  BUS - Hard                               Internet
     wired            Network          Global Proximity     Multi-point to Point
  Connection         limited to              IPv4            Global Proximity
   Numerous             cable                                  Peer to Peer
  Proprietary        Proximity                                   Networks
    provider         Numerous                                      IPv4
   protocols         Proprietary
                       provider
                      protocols
      IPTV delivery solutions
                                      ISP X

    Publisher


    $           Seed


                Internet




Brings content down to end user level
No bandwidth or storage costs – but
still Quality of Service
   Project Objectives and Impact
Demonstrate the viability of new business models and new
value constellations at European level
 – Develop and trial services at three major cities identifying
   customers and business models

Transforming the experience of sound and motion pictures
 – customer experience research
 – Social appropriation of services

Define protocols and requirements for platforms and
technologies
 – Integrate media with interpersonal communication services
 – Define service formats across interaction, content and
   communication
         Research Methodology
Customer Perspective
– Identify novel experiences for the customer
– Support in a continuum person-to person, groups and communities
– Investigate social appropriation of new technology

Business Perspective
– Identify relevant value constellations and business models
– Identify the customer and the customer groups and their needs
– Identify the customer and the customer groups and their willingness
  to pay

Technology Perspective
– Create a standardized protocols
– Explore technological implications
– Define infrastructure requirements
               Project Summary
Viewers an on-demand living room experience from an open
internet video service
 – Instant Play in SD & HD
 – Guaranteed Quality of Service
 – Accessed with the regular remote control

Consumer Electronics providers recurring revenue from living
room devices
 – Balances support costs on sold goods
 – Differentiates box in retail
    Project Summary Continued
Content Owners recurring revenue from all their archived media
–   Free publishing of full inventory and back-log (the “long tail”)
–   High margin revenue share opportunity
–   Full content protection


Advertisers individually targeted TV commercial insertions –
“Google ads on steroids”
–   The power of TV ads with the efficiency of search-word
    advertising
–   Full transparency statistics on all ad viewing – where, when, how,
    who?
–   No-cure-no-pay model, pay only for documented target group hits
Project Partners - To be completed
 (Content provider/Production firm) Game firms, Swedish
 Television, Strix AB, Film/TV firms

 (Content aggregator) Value Constellation Gap?

 (Service provider/Distributor)

 (Infrastructure supplier) Telecommunication operator -

      Tele2, 3 Italy, Teliasonera, Telenor. T-Mobile

 ( Broadcast network operator) Operators -

      Comhem, Canal Digital, Teliasonera, Viasat, Boxer
Project Partners - To be completed

Advertising firm - ICA, Volvo

(Consumer electronics supplier) Philips, LyngBox, Siemens

Investment Deseven AB - Marcus Bäcklund

Stockholm School of Economics - Ulf Essler



Timeframe: 2008-01-01 - 2010-12- 31
Thank you!
Back-up slides
The short versus long tail
             Hours of content


User generated content – 1 billion        Long tail


       Television – 10 million
   International film archives –100,000

         Hollywood archives – 10,000

            Hollywood’s latest - 100      Short tail