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20 years Int'l Sales & Marketing. Check out my blog "Digital Video for the Digital Generation": www.dusil.com <br><br>The entertainment landscape has changed more in the last decade, than in the 60 years of broadcast. Much of this disruption can be attributed to the growth of the internet. From this infrastructure, several battles are raging under the feet of consumers; Broadcast has a new adversary called OTT (Over the Top Video); ISPs are struggling to keep up with bandwidth demands of video; mobile infrastructures have also witnessed significant changes in consumer behavior as applications overshadow handset features. This presentation explores the various battles taking place between the communication, computing and entertainment industries. The global landscape in subscriber behavior continues to change rapidly, and OTT has the potential to be at the center of it all.
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Entertainment vs. The Internet Turning Threats into Opportunities Gabriel Dusil Chief Marketing & Corporate Strategy Officer Visual Unity Global cz.linkedin.com/in/gabrieldusil gdusil.wordpress.com gabriel.dusil@visualunity.com
Download the Original Presentation - Entertainment vs. The Internet, Turning Threats into Opportunities View this video presentation from our Digital Video Forum ’13, or download the native PowerPoint slides, here: • http://gdusil.wordpress.com/2014/01/27/entertainment-vs-the-internet- turning-threats-into-opportunities • http://gdusil.wordpress.com/ Additional presentations, white papers, and winning solutions can be found on our corporate web-site, here: • http://www.visualunity.com/en/resources/ ©2013 gabriel@dusil.com gdusil.wordpress.com Page 2
Digital Industry Evolution Internet Generation Digital Society Capacity 100+ Exabytes* 70% is video People 90’s & 00’s Entertainment 1.8b+ TV’s Connected** Data 10’s Connectivity Devices 30b+ Devices*** “Internet of Things” ©2013 gabriel@dusil.com gdusil.wordpress.com Page 3 Sources: *Cisco, **Informa, ***ARM, by 2016
Industry Wars Front Lines • Subscriber Ownership • Industry Relevance • Revenue Protection Entertainment Communication Computing ©2013 gabriel@dusil.com gdusil.wordpress.com Page 4
Broadcast Over the Top “Over the Top” Cloud Services Internet router Broadcast Services TV S T B mobile Tablet PC ©2013 gabriel@dusil.com gdusil.wordpress.com Page 5
ISP OTT 0 Internet Subscribers ('12) 61% 79% 1% 9% Penetration Opportunity 200 150 GB per Month As sales in OTT increase, ISPs have the burden to invest in bandwidth to keep up with demand 100 millions Internet Usage 400 50 13 45 80 160+ 0 America Europe Top Netflix 1% North HD Sources: Sandvine, Cisco, GCI, Internet World Stats Netflix penetration numbers are for the USA only. ©2013 gabriel@dusil.com gdusil.wordpress.com Page 6
Net Neutrality Internet Governance Video will be 70% of Global Traffic by 2016 • 11.0 billion HD movies* Internet Traffic Forecast Internet Governance: Data Discrimination, Traffic Shaping, Bandwidth Caps, Blocking & Filtering, Premium Rates, etc. Exabytes 80 60 Other Data Web, email, Data P2P File Sharing Other Video TV & Live Internet Short-form Video Long-form Video 40 20 0 Cisco - Visual Networking Index, Forecast & Methodology ‘11–’16 * Using an average of 6GB for a 1080p movie ©2013 gabriel@dusil.com gdusil.wordpress.com Page 7
Mobility Apps Mobile Telephony Mobile Lifestyle Interaction 3 apps: voice, text, contacts Operator High (speed & performance) Reliability & Quality of Service Phone-centric 1+ million apps: all needs Internet Low (price & consumption) User Experience, Efficiency & Flexibility App-centric Distribution Mobile Operator Differentiation Handset Differentiation Purchasing ©2013 gabriel@dusil.com gdusil.wordpress.com Page 8
Internet Piracy Entertainment Industry eDonkey, gnutella, other P2P, UseNet, 7% Films, 35% TV, 13% Games, 7% Software, 4% Legitimate 76% BitTorrent 12% Top 10K torrents Music, 3% Anime, 1% Other, 1% Pornography 36% Cyber lockers 5% ©2013 gabriel@dusil.com gdusil.wordpress.com Page 9 Envisional - An Estimate of Infringing Use of the Internet (11.Jan)
Internet Piracy Epidemic? Napster KaZaA Megaupload BitTorrent BitTorrent Inc. announces 150m active users (Jan ‘12), growing at 50% per year Megaupload shuts down @180m users Napster Shuts down @26m users KaZaA peaks @34m users 2011 1999 2003 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2012 ©2013 gabriel@dusil.com gdusil.wordpress.com Page 10
Relative Release Windows for Premium Content Head-end Revenue Cinema Own Rent Pay TV VoD TV 0 1 2 3 4 5 6 7 24 Long-tail months USA International USA Int’l USA Int’l USA Int’l USA Int’l USA Int’l ©2013 gabriel@dusil.com gdusil.wordpress.com Page 11
Broadcast Centric Social Centric Social Broadcast Apps ©2013 gabriel@dusil.com gdusil.wordpress.com Page 12
OTT Binds All 3 Digital Industries Entertainment Communication Computing ©2013 gabriel@dusil.com gdusil.wordpress.com Page 13
OTT Evolution - Content Discovery “Friend’s Viewed & Liked” Viewing Stats Collaborate “viewers also liked” A Recommendation Engine is not just about Content Suggestions It’s about Meaningful & Personal Engagement Social Media Media, News, & Ads Buying Behavior Preference “Likes/ Dislikes” ©2013 gabriel@dusil.com gdusil.wordpress.com Page 14
OTT Evolution – More Than Video Coms Social Media Productivity Video OTT will bring the future of Entertainment to tomorrow’s Digital Society Storage Music Gaming ©2013 gabriel@dusil.com gdusil.wordpress.com Page 15
Market - Broadcast & OTT TV & Video market estimated at $395b globally, by 2017 OTT - 37b US$ by 2017 Global OTT Forecast '11-'17 Transaction Subscription Advertising 30 billion US$ 20 OTT, 9% 2017 10 0 TV & Video, 91% ©2013 gabriel@dusil.com gdusil.wordpress.com Page 16 CAGR = Compounded Annual Growth Rate
OTT Evolution - Vertical Tiers Tier 1 • National Broadcasters Tier 2 • Regional Broadcasters & Affiliates • Content Aggregators • Telco & MSO (i.e. Cable) Tier 3 • Corporations & Government • Education & House of Worship • etc. ©2013 gabriel@dusil.com gdusil.wordpress.com Page 17
OTT Evolution – Geographic Tiers Emerging Markets 36-48 mths behind USA Europe, Canada, Asia 18-24 months behind USA USA ©2013 gabriel@dusil.com gdusil.wordpress.com Page 18
cz.linkedin.com/in/gabrieldusil gdusil.wordpress.com gabriel.dusil@visualunity.com
Synopsis – Entertainment vs. the Internet, Turning Threats into Opportunities • The entertainment landscape has changed more in the last decade, than in the 60+ years of broadcast. Much of this disruption can be attributed to the growth of the internet. From this infrastructure, several battles are raging under the feet of consumers; Broadcast has a new adversary called OTT (Over the Top Video); ISPs are struggling to keep up with bandwidth demands of video; mobile infrastructures have also witnessed significant changes in consumer behavior as applications overshadow handset features. This presentation explores the various battles taking place between the communication, computing and entertainment industries. The global landscape in subscriber behavior continues to change rapidly, and OTT has the potential to be at the center of it all. ©2013 gabriel@dusil.com gdusil.wordpress.com Page 20
Tags - Entertainment vs. the Internet, Turning Threats into Opportunities • BitTorrent, Blu-Ray, Broadcast, Connected TV, Copyright Infringement, Digital Millennium Copyright Act, Digital Rights, Digital Video, DMCA, DRM, File Sharing, Gabriel Dusil, Internet Piracy, Internet Video, KaZaA, Linear Broadcast, Linear TV, Megaupload, Megauploader, Motion Picture Association of America, MPAA, Multi-screen, Multiscreen, Napster, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, P2P, Peer to Peer, piracy, Piratez, PlayReady DRM, Recording Industry Association of America, RIAA, Search & Discovery, Search and Discovery, second screen, Smart TV, Social TV, TV Everywhere, Visual Unity ©2013 gabriel@dusil.com gdusil.wordpress.com Page 21