Download - OTT & Multiscreen • Web Seminar • #2 • Origins of Over the Top Video Services

© 2014 [email protected] www.dusil.com

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Gabriel Dusil Chief Marketing &

Corporate Strategy Officer Visual Unity Global a.s.

www.linkedin.com/in/gabrieldusil

www.dusil.com [email protected]

Origins of

Over the Top Video Services


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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/

http://dusil.com/


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License Own View

Evolution of Entertainment Consumption


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Industry Wars

Front Lines • Subscriber Ownership • Industry Relevance • Revenue Protection

Computing

Entertainment Communication


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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

http://www.billboard.com/biz/articles/news/digital-and-mobile/1521562/building-the-100-billion-music-business-guest-post-by

0

10

20

1998 2000 2002 2004 2006 2008 2010b

illio

n U

S$

CD & Digital Music - Global Revenue

Digital Revenue

Physical Revenue


6 Internet Traffic, http://en.wikipedia.org/wiki/Internet_traffic Cisco's Visual Networking Index Forecast

0

20

40

60

80

100

2000 2002 2004 2006 2008 2010 2012 2014 2016

exabytes per month Global Internet Traffic

HTML5 is mainstream

Netflix streaming

Blu-Ray

YouTube Launches

100 hours of video uploaded to YouTube every minute

Ultraviolet DRM

Mobile Data per month

exceeds Voice Data

Apple iPad Ships

H.265 Finalized

4K TV ships


7

May

Jul

Sep

Nov

Jan

Mar

May

Jul

2006 2007 2005

A Turning Point for Digital Video - 2006

Apple iPhone

Netflix video streaming

Google buys YouTube

Microsoft PlayReady

1st Blu-Ray released

Red One NAB’06

1080p LCD’s begin

shipping

Netflix $1m Prize


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OTT Market Opportunity

Cisco - Visual Networking Index Forecast ‘11–’17 http://ciscovni.com/forecast-widget/wizard.html

0

10

20

30

40

50

60

70

2011 2013 2015 2017

Online GamingWeb, email, DataP2P File SharingInternet Video

Consumer Internet Traffic

Forecast

• 70% of Global Traffic by 2017 will be Video

• = 252 billion DVDs in one year

1 Exabyte = 1,000 Petabytes = 1,000,000 Terabytes

Multiscreen VideoTV & Live InternetShort-form VideoLong-form Video

Exab

yte

s p

er

mo

nth


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Broadband Speeds (Mbps)

Cisco - VNI Service Adoption Forecast '11-'16 C&EE – Central & Eastern Europe, ME&A = Middle East & Africa

18.5 24.2 31.9 41.6

18.0 23.1 29.3 36.6

15.3 19.1 23.7 29.2

5.0 5.9 7.0 8.4

2013 2014 2015 2016

W. Europe

N. America

C&EE

ME&A

Western Europe Leading in bandwidth

Sufficient for 4K @ H.265

Developing

Developed


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Cost of Connectivity

The Cost of Connectivity, New America http://newamerica.net/publications/policy/the_cost_of_connectivity#4]

$0

$20

$40

0

100

200

300

400

500

Pri

ce p

er M

on

th (

US$

)

Do

wn

load

Sp

eed

(M

bp

s)


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USA

Europe, Canada, Asia 2 years behind the USA

Emerging Markets 4+ years behind the USA

OTT Evolution


12

-200

0

200

400

600

800

1000

1200

0% 20% 40% 60% 80% 100%

APRU US$/year

Household Penetration

Pay-TV by Country Average Revenue per User

China

Canada Poland Sweden Netherlands

USA

India

UK France Japan Germany

Australia

Brazil

Italy Spain

Russia

Sub-Saharan Africa

Ireland

Developed

Developing


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Pay TV - Trending Down

Business Insider - Mobile Video Boom (12.Oct)

-800

-200

400

1,000

Telco

Satellite

Cable

Pay TV Subscribers - Net Additions vs. Cancellations

Gaining Subscribers

Losing Subscribers


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Tier 2 • Horizontal: National Companies • Vertical: Regional Broadcasters, Affiliates,

Aggregators, MSO (i.e. Cable operators)

OTT Evolution - Vertical Tiers

Tier 1 • Horizontal: Global Companies • Vertical: Broadcasters, Telcos, Enterprises

Tier 3 • Horizontal: Regional Companies • Vertical: Online Retailers, Faith,

Higher Education,


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Online Video – Market Opportunities

OTA = Over the Air OTT = Over-the-Top Content

Network Operators

Ente

rpri

se

Co

nte

nt

Cre

atio

n

Delivery

Online Retailers Government Corporations

Satellite

Houses of Worship Education

Med

ia

Com

pani

es

Cable OTT

Distribution

Theatre Broadcasters

Radio

CDN

Cinema Online Media

Consumer Brands Production

Music Freelance Studios Advertising Events


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Platform as a Service PaaS Software as a Service SaaS

Market Sizing Cloud Infrastructure

0.2

0.6

1.0

2011 2013 2015 2017

Video Platforms

Sources: accustream & Gartner

2010 2012 2014 2016

Cloud Infrastructure

bill

ion

US$

bill

ion

s U

S$


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OTT, 9%

TV & Video, 91%

2017

OTT - 37b US$ by 2017

Market - Broadcast & OTT

CAGR = Compounded Annual Growth Rate

TV & Video market estimated at $395b globally, by 2017

0

10

20

30

bill

ion

US$

TransactionSubscriptionAdvertising

Global OTT Forecast '11-'17


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cz.linkedin.com/in/gabrieldusil www.dusil.com [email protected]

Download - OTT & Multiscreen • Web Seminar • #2 • Origins of Over the Top Video Services

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