Emerging Interactive Emerging Interactive Digital Media Digital Media Channels for Audience Channels for Audience Marketing and Marketing and Content DistributionContent DistributionJohn EldridgeJohn EldridgeJohnel@Microsoft.com

http://blogs.msdn.com/http://blogs.msdn.com/JohnOnTheWeb/JohnOnTheWeb/

AgendaAgenda

Mass Media TrendsMass Media TrendsTelevision / Digital MediaTelevision / Digital Media

WebWeb

AdvertizingAdvertizing

Future Outlook forFuture Outlook forContent DistributionContent Distribution

Audience MarketingAudience Marketing

The Consumer is in The Consumer is in ControlControl

The Consumer is in The Consumer is in ControlControl

The new TV RealityThe new TV RealityBefore DVRs, (TV Before DVRs, (TV

Viewing)Viewing)

70% of television 70% of television viewing happens viewing happens during primetime during primetime hours hours

Virtually all television Virtually all television watched "live" watched "live"

Life fits into the Life fits into the network's schedule network's schedule

After DVRsAfter DVRs

Up to 60% of viewing Up to 60% of viewing is time shifted is time shifted

Reality, news and Reality, news and sports are the only sports are the only genres that retain genres that retain much live audience much live audience

70% of commercials 70% of commercials are skipped are skipped

Two-thirds of Two-thirds of television occurs television occurs outside of primetime outside of primetime hours hours

Multi-taskingMulti-tasking

Source: MindShare, November 2005

The Internet beats the TV The Internet beats the TV in the Battle for Attentionin the Battle for Attention

Composite Apps

Web 2.0

SOA

ESB

SaaS

RSS

AJAX

REST

Services

Dynamic Languages

ROR

WS-*

Mashups

XMLConsumerisation

RIA

SCA

Social Networks

Monetization

OSSSearch

Contextual

Advertising

Json

BPEL

Tags

User-generated

Idm Wikis

Blogs

Web 2.0Web 2.0“Networked applications that explicitly leverage network effects.”

Principles•Continuous update• Rich and interactive UI• Architecture of participation • Network and devices as a platform• Data consumption and remixing from all sources including user generated data

DriversDriversBusinessBusiness

MonetisationMonetisationAd BasedAd BasedLongtailLongtail

GlobalizationGlobalizationMobile WorkforceMobile WorkforceOutsourcingOutsourcing

Social• Rise of On-Line Spending• Proliferation of Technology• Communication and

collaboration• Social Relationships (trust /

rating)• Power of numbers

Internet is driving consumer power forcing

businesses to think of their online business

presence and competitive impact

Application usage models – both online/offline;

hosted/non hosted are evolving to support a distributed workforce

and business ecosystem

Average Hours of Average Hours of Media Exposure per Day - SingaporeMedia Exposure per Day - Singapore

Source: Synovate Young Asians Nov 2006, 20-24 years

Share of Advertising Expenditure - Share of Advertising Expenditure - SingaporeSingapore

Source: Nielsen Media Research, October 2006 (based on published ratecard); published in AdAsia Dec 06

Where Is the money Where Is the money spent?spent?

Software and the Ad Software and the Ad MarketMarketFY05 Online Ad Market =

$17B3

3% of total ad market

FY08 Online Ad Market = $35B4

7% of total ad market

Online

Ads

2008:

$35B

Online Ads$17B

1 At July 2005. Includes internet services. Source: MSFT Corp Dev2 Universal McCann, Dec 20043 Source: IAB, Analyst Consensus4 Consensus analyst projections (avg of CIBC, Morgan Stanley, Piper Jaffray, T. Weisel, Lehman Bros.)

Future Channels for Future Channels for Content Delivery and Content Delivery and Audience MarketingAudience Marketing

Digital Home enabled by Media Digital Home enabled by Media CenterCenter

P2P Broadcasting Networks enabled P2P Broadcasting Networks enabled by Vista, Windows Communication by Vista, Windows Communication Foundation, and Silverlight.Foundation, and Silverlight.

Simple Entertainment User Simple Entertainment User ExperienceExperience

MEDIA CENTER VISIONMEDIA CENTER VISION

Media Center Extender

Media Center Extender

Windows Media Center PC

Windows PC

Media Center Extender

Media Center Extender

Media Center Extender EvolutionMedia Center Extender EvolutionIncrease our reach to living rooms and televisionsIncrease our reach to living rooms and televisions

HD, 3D animated HD, 3D animated experiences on Xbox experiences on Xbox 360 via the home 360 via the home networknetwork

Launched Holiday 2005Launched Holiday 2005

Update for Windows Update for Windows Vista, January 2007Vista, January 2007

Present:Present:Xbox 360Xbox 360

Vista:Vista:HDTVs and other CE HDTVs and other CE

devices devices

HD experiences on networked DTV, DVD, and DMR devices

Arriving 1H 2007

Standard definition experiences throughout the house, via wired and wireless home networks

Available today from Linksys

Past:Past:V1 Media Center V1 Media Center

ExtendersExtenders

P2P Platforms for content P2P Platforms for content DistributionDistribution

Napster -1999 - CentralizedNapster -1999 - Centralized

Gnutella – QOS issuesGnutella – QOS issues

Kazza/Morpheus – Huge impact to the Kazza/Morpheus – Huge impact to the industryindustry

BitTorrent - SwarmingBitTorrent - Swarming

Opportunities for P2P Opportunities for P2P NetworksNetworks

Enormous Organic GrowthEnormous Organic Growth

Removes Barriers to DistributionRemoves Barriers to Distribution

Data Mining potential through Data Mining potential through tracking sitestracking sites

PeerPeer 2 2 Peer Peer Television Television

Alluvium, Babelgum , CoolStreaming, Alluvium, Babelgum , CoolStreaming, Cybersky-TV, Democracy Player, Cybersky-TV, Democracy Player, Feidian, Joost , LiveStation, Feidian, Joost , LiveStation, Octoshape, PeerCast, PPLive, Octoshape, PeerCast, PPLive, PPStream, ReelTime.com, TVants, PPStream, ReelTime.com, TVants, Tvuplayer, Vuze, Zattoo Tvuplayer, Vuze, Zattoo

P2P MobileP2P Mobile

P2P CommerceP2P Commerce

What does this mean to What does this mean to Singapore BusinessSingapore Business

Content is KING!Content is KING!

Marketing to extended communitiesMarketing to extended communities

Lowers barriers to entry for Lowers barriers to entry for competitioncompetition

Empower frontline employees to Empower frontline employees to affect business decisionsaffect business decisions

RESOURCESRESOURCES• Singapore Developers

http://www.microsoft.com/singapore/msdn/default.mspx

• My Blog My Blog http://blogs.msdn.com/JohnOnTheWeb/http://blogs.msdn.com/JohnOnTheWeb/

© 2005 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

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