chris libertelli presentation

Over  the  Top:  New  Business  Models  with  New  Interna8onal  Telecom  Rules    

Columbia  Business  School    

Christopher  Libertelli    Head  |  Global  Public  Policy  

NeElix  Inc.    

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Roadmap  

First:        NeElix  &  the  video  watching  revolu8on  

Second:      Broadband  expansion  –    the  gatekeepers  &        Internet  openness  

Third:      An  Interna8onal  Policy  Environment  for  Long-­‐      Tail  New  Entrants  

Netflix and the Video Watching Revolution

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2007

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2012

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Unparalleled  depth  and  breadth  of  content  library  

Feature    Films  

Television    

Content  

Game Consoles

HDTVs

Other Players

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Over  900  Devices  Stream  NeElix  

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Blu-ray Players

Phones and Tablets

Home Theater Systems

Device  Ubiquity  

First Era of Television: Broadcast Networks

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Few choices: ABC, CBS, NBC

Second Era of Television: Cable/Satellite Networks

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~300 Choices: ESPN, HBO, Discovery, TNT, AMC, etc.

Third Era of Television: Internet Networks

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Millions of Choices Apps Keep Improving All Screens

The Changing Landscape

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0M

5M

10M

15M

20M

25M

30M

35M

HBO

Comcast

DIRECTTV

StarzDish  Network

Time  Warner

Netflix

Content Windowing A Feature of OTT Video Business

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Movie Windows-

DVD

3 months

License period: Perpetuity

Same as DVD

60 months

15 months

12 months

VOD

PAY TV 1

AD SUPPORTED TV

PAY TV 2

HOSP.

THEATERS

DVD Street Date

Broken Premium

PPV

30 Days

Blurring

TV Has Windows too…

Confidential - Do Not Disclose

Season 1 airs

Season 2 airs

Season 1 DVD

available

Season 3 airs

Season 2 DVD

available

Season 4 airs

Season 3 DVD

available

Airing in syndication

~2+ year after initial airing

Season n airs

Season 4 DVD

available

Sells into syndication after ~4 seasons

(80-100 episodes) are produced or aired

• Hulu: rolling 5 eps • Amazon & Apple:

day after ep for sale

Confidential - Do Not Disclose

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‘Mad Men’ Premiere Draws Record Viewers on Netflix Boost

March 26, 2012

Netflix Originals

Confidential - Do Not Disclose

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Broadband Expansion: The Gatekeepers & Internet Openness

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Three Types of Threats to Internet Openness

1. Wholesale:

ISPs discriminate in interconnection policies

2. Retail:

ISPs discriminate over last-mine consumer connections

3. Subtle:

moving consumers from a psychology of abundant bandwidth to constrained connections?

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An Example of Retail Discrimination

An International Policy Environment for Long-Tail New Entrants

Key principles:

Policymakers should put their thumb on the scales in favor of increased consumer choice

Multi-modal competition is the goal

Avoid the reflexive application of legacy rules to Internet applications

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