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-perview 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 wired Connection Numerous Proprietary provider protocols Network limited to cable Proximity Numerous Proprietary provider protocols Internet Global Proximity IPv4 Multi-point to Point Global Proximity Peer to Peer Networks IPv4 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 Television – 10 million International film archives –100,000 Hollywood archives – 10,000 Hollywood’s latest - 100 Long tail Short tail