property rights in broadcasting over internet protocol: infrastructure and ipr

Upload: chris-marsden

Post on 30-May-2018

222 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    1/13

    Property Rights inBroadcasting over IP:

    Infrastructure and IPRsChris Marsden

    Warwick Business School

    Phoenix-Center.org

    [email protected]

    For IvIR 21 September 2001

    mailto:[email protected]:[email protected]
  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    2/13

    What is broadband?

    Broadband is faster, always-on,richer

    Narrowband is up to 128Kb/s (ITUdefn)

    Broadband pipes:

    Mobile and satellite Fixed copper, cable and fibre Huge sunk costs

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    3/13

    Broadband Services/Speed

    Chris Marsden 02 -04-01

    1 0 , 0 0 0

    1 , 0 0 0

    1 0 0

    1 0

    1

    0 . 1

    0 . 0 1

    m b p s

    p r o f e s s i o n a l c o n s u m e r e n t e r t a i n m e n t

    3 3 . 5 k b p s m o d e m

    I S D N

    T 1

    vid

    eo

    c

    onfe

    ren

    cin

    g

    rem

    ote

    LA

    N a

    cc

    es

    s

    ho

    me

    sh

    op

    ping

    rem

    ote

    me

    dic

    al

    rem

    ote

    ed

    uc

    atio

    n

    ne

    t surfin

    g

    vid

    eo

    -on

    -de

    ma

    nd

    dig

    italp

    ho

    tog

    rap

    hy

    bro

    ad

    cas

    t vid

    eo

    P

    A

    L

    H

    D

    T

    V

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    4/13

    Network

    properties

    Broadcast Video over IP Infrastructure

    Improvements Needed

    Bandwidth High

    3-6Mb/s

    ADSL:

    512Kb/s+POTS: 56/33k

    Last Mile DSL, Cable, 3G

    500-10,000kb/s

    Two-way

    Interactivity?

    Very limited

    in MPEG2

    ADSL: High

    Satellite: Low

    High Bandwidth Return Path

    Packet Size Huge Low And

    Reducing

    MPEG4 Standardized 2001

    Monitoring NA closed

    network

    Low But

    Increasing

    Digital Rights Management

    Reassembly NA Good And

    Improving

    Improved IPv6 Internet

    Delivery Consistent Poor But

    Improving

    Middle Mile Hops Between

    CDNs

    Cost Low High But

    Decreasing

    Virtuous Scale Economies

    Circle

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    5/13

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    6/13

    Re:Thinking Wireless LANs:I Want my WiFi!

    www.re-think.com/knowledge1.htm

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    7/13

    Fixed Broadband

    Residential/SOHO/SME duopoly Cable/telecom networks

    Digital cable: shared bandwidth? Digital Subscriber Lines (DSL):

    VDSL: 10Mb/s+

    SDSL: 1.7Mb/s+ ADSL: 512Kbit/s+

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    8/13

    Whys it taking so long?

    Stranded costs Copper/ISDN investments written off?

    Uncertain revenue streams Is anyone making money off convergence?

    Threat to voice 8Kb/s application; UMTS licence costs

    Monopoly control? LLU process; leased line costs

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    9/13

    US Market Maturing FastOnline Subscriber Forecast

    Over a third of all online homes will subscribe to high speed access by 2004

    Million

    sofUS

    Hou

    seholds

    Source: The Yankee Group, 2001

    5.1

    50

    9.6

    57

    14.7

    65

    20.2

    72

    26

    75

    0

    10

    20

    30

    40

    50

    60

    70

    80

    2000 2001 2002 2003 2004

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    10/13

    US Access to Broadband

    Satellite-delivered services will also be available to 90% of US homes

    36%

    46%

    62%

    73%

    77%78%

    79%

    11%

    34%

    45%

    54%

    62%

    70%

    74%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    1999 2000 2001 2002 2003 2004 2005

    DSL Cable Modem

    % US Households with Access to High Speed Internet Service

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    11/13

    Global DTV Homes (m)

    0

    50

    100

    150

    200

    250

    300

    350

    400

    2000 2001 2002 2003 2004 2005

    Digital

    Interactive

    Source: Ovum 2001

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    12/13

    Broadband Take-Up to 2010

    IPR Holder Dilemma Example Narrowband Answer

  • 8/14/2019 Property Rights in Broadcasting over Internet Protocol: Infrastructure and IPR

    13/13

    IPR Holder Dilemma Example Narrowband Answer Loss of Market

    Value

    International Internet

    rights quagmire

    Who owns the Olympics in

    Germany or Switzerland?

    Clear all international

    IP rights, or none at all

    loss of control over

    rights territories

    Failure to release

    full value from

    rights; cannot be

    windowed and

    leveraged; one

    sale equals allPlethora of rights third

    parties

    UK: Writers Guild; BPI;

    Mechanical Rights

    Society; BECTU; Equity;

    PACT; Musicians Union

    Use only pre-cleared

    or promotional clips

    produced for

    marketing purposes

    Free content sites

    pirating IPRs;

    proves value of

    experience but not

    value from archive

    No IP rights pre-1995 Assignment of rights

    completely omits on-

    demand network delivery

    Use post-1995 rights:

    no classic content;

    rights inflation for

    modern properties

    All classic archive

    lost to IP; over-

    valuation of non-

    compelling newlycreated content

    QoS concerns

    prevents release of

    VHS and enhanced

    formats

    Film majors refuse to

    release sub-VHS buffered

    content; talent refuses to

    allow degraded delivery of

    product

    Close to the edge

    delivery using Akamai

    and others; MPEG4

    permits greater

    compression

    Only low video

    grade content

    released:

    animation;

    pornography; audio

    Piracy concerns with

    public Internet

    DVD code cracked; MP3

    solution for video now

    possible with DVD

    Watermarking (SDMI),

    DRM, standardization

    initiatives using

    BCDForum etc.

    IPRs holders refuse

    to release content,

    editorial integrity

    offline e.g. via

    DVD

    Lack of customer

    information prevents

    true eCRM value in

    exposure of rights

    holder property

    Advertiser dollars diverted

    from authenticated brand-

    building experience in

    broadcast to anarchic,

    identity-theft pronedelivery over public IP

    Value in rights hidden;

    existing rich media

    advertising offers

    fractional value of true

    rich media

    Stakeholders refuse

    to cannibalize

    existing revenue

    sources for low-

    gradealternativedespite user

    demand