chris libertelli presentation
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Chris Libertelli PresentationTRANSCRIPT
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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