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• Download the native PowerPoint slides, or view a recorded video of this presentation on www.dusil.com. <br>• This presentation investigates when OTT video services began to emerge, and the market landscape that made it happen. We also look at how different regions around the world will be implementing OTT, based on their infrastructure capabilities, and where they reside in the OTT adoption curve.
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Origins of Over the Top Video Services Gabriel Dusil Chief Marketing & Corporate Strategy Officer Visual Unity Global a.s. www.linkedin.com/in/gabrieldusil www.dusil.com gabriel@dusil.com 1 © 2014 gabriel@dusil.com www.dusil.com
Download the Original Video & Presentation - Origins of Over the Top Video Services View the recorded video presentation, or download the native PowerPoint slides here: • http://dusil.com/ 2 © 2014 gabriel@dusil.com www.dusil.com
Evolution of Entertainment Consumption View Own License 3 © 2014 gabriel@dusil.com www.dusil.com
Industry Wars Entertainment Communication Computing Front Lines • Subscriber Ownership • Industry Relevance • Revenue Protection 4 © 2014 gabriel@dusil.com www.dusil.com
Challenge – Music disc Revenue Decline Online have not offset the decline in disc sales • “Digital single sales growth is slowing: we almost reached 1.4b in ‘12 but it is unlikely that they will reach 1.5b in ’16 before they begin to decline” - Billboard CD & Digital Music - Global Revenue Physical Revenue Digital Revenue 20 billion US$ 10 0 1998 2000 2002 2004 2006 2008 2010 5 © 2014 gabriel@dusil.com www.dusil.com http://www.billboard.com/biz/articles/news/digital-and- mobile/1521562/building-the-100-billion-music-business-guest-post-by
exabytes per month Global Internet Traffic 100 Apple iPad Ships HTML5 is mainstream H.265 Finalized 80 Mobile Data per month exceeds Voice Data 60 100 hours of video uploaded to YouTube every minute 40 YouTube Launches 20 0 2000 2002 2004 Blu-Ray 2006 2008 2010 2012 2014 2016 4K TV ships Ultraviolet DRM Netflix streaming 6 © 2014 gabriel@dusil.com www.dusil.com Internet Traffic, http://en.wikipedia.org/wiki/Internet_traffic Cisco's Visual Networking Index Forecast
A Turning Point for Digital Video - 2006 1080p LCD’s Red One NAB’06 Netflix video streaming begin shipping Netflix $1m Prize Apple iPhone 2005 2006 2007 Jul Jul May Jan May Nov Sep Mar 1st Blu-Ray released Google buys YouTube Microsoft PlayReady 7 © 2014 gabriel@dusil.com www.dusil.com
OTT Market Opportunity Consumer Internet Traffic Forecast Online Gaming Web, email, Data P2P File Sharing Internet Video 70 60 50 • 70% of Global Traffic by 2017 will be Video • = 252 billion DVDs in one year Exabytes per month 40 30 20 Multiscreen Video TV & Live Internet Short-form Video Long-form Video 10 0 2011 2013 2015 2017 8 © 2014 gabriel@dusil.com www.dusil.com 1 Exabyte = 1,000 Petabytes = 1,000,000 Terabytes Cisco - Visual Networking Index Forecast ‘11–’17 http://ciscovni.com/forecast-widget/wizard.html
Broadband Speeds (Mbps) 2013 2014 2015 2016 W. Europe 18.5 24.2 31.9 41.6 Developed Western Europe Leading in bandwidth N. America 18.0 23.1 29.3 36.6 C&EE Sufficient for 4K @ H.265 15.3 19.1 23.7 29.2 ME&A Developing 5.0 5.9 7.0 8.4 9 © 2014 gabriel@dusil.com www.dusil.com Cisco - VNI Service Adoption Forecast '11-'16 C&EE – Central & Eastern Europe, ME&A = Middle East & Africa
Cost of Connectivity 500 Download Speed (Mbps) Price per Month (US$) 400 $40 300 200 $20 100 0 $0 10 © 2014 gabriel@dusil.com www.dusil.com The Cost of Connectivity, New America http://newamerica.net/publications/policy/the_cost_of_connectivity#4]
Emerging Markets 4+ years behind the USA Europe, Canada, Asia 2 years behind the USA USA OTT Evolution 11 © 2014 gabriel@dusil.com www.dusil.com
Developed Australia 1200 Pay-TV by Country Average Revenue per User 1000 USA 800 Ireland UK France Japan Germany Canada Poland Sweden Netherlands Brazil 600 Italy Spain 400 200 Sub-Saharan Africa APRU US$/year India 0 China Russia -200 0% 20% 40% Household Penetration 60% 80% 100% Developing 12 © 2014 gabriel@dusil.com www.dusil.com
Pay TV - Trending Down Pay TV Subscribers - Net Additions vs. Cancellations 1,000 400 Gaining Subscribers Losing Subscribers Telco Satellite Cable -200 -800 13 © 2014 gabriel@dusil.com www.dusil.com Business Insider - Mobile Video Boom (12.Oct)
OTT Evolution - Vertical Tiers Tier 1 • Horizontal: Global Companies • Vertical: Broadcasters, Telcos, Enterprises Tier 2 • Horizontal: National Companies • Vertical: Regional Broadcasters, Affiliates, Aggregators, MSO (i.e. Cable operators) Tier 3 • Horizontal: Regional Companies • Vertical: Online Retailers, Faith, Higher Education, 14 © 2014 gabriel@dusil.com www.dusil.com
Online Video – Market Opportunities Music Freelance Studios Advertising Events Broadcasters Online Retailers Government Corporations Houses of Worship Education Consumer Brands Theatre Radio Cinema Online Media Companies Enterprise Creation Content Media Production Distribution Network Operators Delivery Cable Satellite OTT CDN 15 © 2014 gabriel@dusil.com www.dusil.com OTA = Over the Air OTT = Over-the-Top Content
Market Sizing Cloud Infrastructure Platform as a Service PaaS Software as a Service SaaS Cloud Infrastructure Video Platforms 1.0 billions US$ billion US$ 0.6 0.2 2011 2013 2015 2017 2010 2012 2014 2016 16 © 2014 gabriel@dusil.com www.dusil.com Sources: accustream & Gartner
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% 17 © 2014 gabriel@dusil.com www.dusil.com CAGR = Compounded Annual Growth Rate
cz.linkedin.com/in/gabrieldusil www.dusil.com gabriel@dusil.com 18 © 2014 gabriel@dusil.com www.dusil.com