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