Developments in Broadcasting &
Interactive Multimedia Services
An overview of trends
ITU/NBTC Workshop
4 December 2014
Peter Walop
International
Telecommunication
Union
Presentation Overview
1.
Defining Multimedia Services
2.
Service changes
o
o
o
3.
Service anywhere & anytime
Video on Demand & time shifting
Video quality enhancements
Business model & strategy changes
o
o
Advertising & Subscription models
Business strategy changes
2
1. Defining Multimedia Services
3
1. Defining Multimedia Services
Video service with managed QoS
(Semi
interactive)
traditional
broadcast
networks
1
Video service with unmanaged QoS
•
Interactive audio-
visual services which
Linear TV
are intended for
DTTB/Sat
public distribution
2
Linear
and consumption
VoD
•
DTTB Internet
(Fully
interactive)
combined
networks
3
Linear
VoD
MTV
3/4G
3 Dimensions:
o
Linear/non-linear
o
Managed/un-
managed QoS
(Fully
interactive)
integrated
networks
4
7
Linear
VoD
IPTV/HFC
5
Linear
VoD
Internet
o
6
Linear
VoD
Internet
Linear
VoD
3/4G
Broadcast/IP
networks
Source: ITU
4
2. Service changes
5
2. Service changes
•
Technological innovations
Three factors driving
changes in the
interactive
Media
Telecom
Interactive
Multimedia
Device
Producers
Changes of user preferences
Regulations
Convergence area
multimedia market:
o
Technological
innovations
•
o
User preferences
o
Regulations
Fundamental or
evolutionary change?
Source: Convergence Consulting Company
6
2. Service anywhere & anytime:
more devices
•
With powerful
AVERAGE NUMBER of SCREENS per USER and TOTAL
INSTALLED (in millions)
1600
1.7
2.6
3.3
connected devices
3.6
users can consume
1400
their interactive
1200
Multimedia services
1000
Other mobile devices
Mobile phones
800
•
Consumers use more
TVs
screens to watch
PCs
400
more television and
200
video services
600
0
2000
2005
2010
2011
Source: Arthur D. Little, BNP Paribas
7
2. Service anywhere & anytime:
CDN TRAFFIC FORECAST by GEOGRAPHY
(in TB/month)
•
more broadband
Consumer IP traffic
goes up (21% CAGR) >
60,000
Business related traffic
Middle East and Africa
(18% CAGR)
50,000
Latin America
40,000
•
Networks (CDNs)
Central and Eastern
Europe
30,000
Western Europe
20,000
Asia Pacific
10,000
North America
0
2013 2014 2015 2016 2017 2018
Content Delivery
designed to carry video
•
Globally 55% of all
Internet traffic will be
carried by CDNs by
2018
Source: Cisco Visual Networking Index
8
2. Service anywhere & anytime: more leisure time
LEISURE TIME SPENT per CATEGORY on
AVERAGE DAY (in minutes)
•
free hour, 30 minutes
goes into watching
Watching TV
18
television
17
Socializing and
communicating
25
19
168
20
For every additional
•
All UK TV viewing = all
Reading
time spent on all social
Particpating in sports,
excercise and recreation
networks worldwide
Playing games; using
computer for leisure
(6.5 billion hours)
Relaxing and thinking
39
Other leisure activities
•
Leisure and technology
intertwined in several
ways
Source: American Time Use Survey, 2013
9
2. Service anywhere & anytime:
MINUTES of MEDIA CONSUMPTION per DAY
(8-18 YR-OLDS)
600
500
•
Multi-tasking is not
new
•
458
700
more multi-tasking
Multi-tasking is
extended to more
381
379
Movies
Print
400
Video games
300
Computer
200
Music
TV
devices
•
Most multi-tasking is
media stacking (and
not meshing)
100
0
1999
2004
2009
Source: The Economist, 2010
10
2. Service anywhere & anytime:
MINUTES of MEDIA CONSUMPTION per DAY
(8-18 YR-OLDS)
•
little media-meshing
A small percentage of
media meshing involves
activities directly related
to TV programs (i.e.
26%
38%
None
other then chatting
Media mesher only
about program)
Media mesher & stacker
Media stacker only
•
Meshing activities can
potentially result in new
30%
6%
revenues stream or
extra customer loyalty
Source: Ofcom, 2013
11
2. Video on Demand:
little impact (yet?)
Share of Time Played on Mobiles and Tablets
Combined
•
global demand for
VOD is on the rise,
25.00%
especially on mobile
20.00%
devices like
15.00%
smartphones and
tablets
10.00%
•
5.00%
This trend is also
observed in the Asia
Feb-14
Dec-13
Oct-13
Aug-13
Jun-13
Apr-13
Feb-13
Dec-12
Oct-12
Aug-12
Jun-12
Apr-12
Feb-12
Dec-11
Oct-11
Aug-11
0.00%
Pacific region
Source: OOYALA Global Video Index Q1 2014
12
2. Video on Demand:
little impact (yet?)
•
Average Watching Time (in mins) per Type of
Content
Customer retention is
much longer for live
content than for VOD
Connected TV
type of services
Mobile
Live
VOD
Tablet
•
implied advertising
value of live content
is significantly larger
Desktop
than for VOD
0
10
20
30
40
50
60
Source: OOYALA Global Video Index Q1 2014
13
2. Video on Demand:
little impact (yet?)
FREQUENCY of VIEWING LINEAR TELEVISION
SERVICE by DEVICE
•
On connected TV sets
traditional viewing
remains strong
Smart TV set at home
•
88%
Daily
using VOD services is
Weekly
to catch-up TV
Monthly
broadcasts
Less often/never
Main TV set at home
•
88%
Most cited reasons for
Connected sets on the
rise and standardization
0%
20%
Source: Ofcom, 2013 (adapted)
40%
60%
80%
100%
of apps will result in
more VOD consumption
14
2. Time shifting:
little impact (yet?)
TIME SHIFTING VIEWING and NUMBER of DVRS
(% of all homes)
•
uptake of DVRs and
80%
time shifting
70%
63%
60%
•
67%
50%
42%
40%
30%
DVR take-up
Time-shifted viewing
29%
behavior
•
4%
2%
2007
2008
Source: BARB, 2013
Time shifted viewing
increased 22% in one
18%
10%
0%
OTT/IPTV functionality
may change viewing
55%
20%
Disparity between the
6%
2009
7%
9%
year when broadband
10%
available (Australia)
2010
2011
2012
•
Households get smaller
15
2. Video enhancements:
UHDTV and 3D
GLOBAL SALES FORECAST for 4K UHDTV SETS
(in millions)
•
Device producers set the
market, broadcasters and
70
distributors to catch up
60
•
50
UHDTV1 bandwidth
requirements vary from
40
40 to 15 Mbit/s
30
•
20
Broadband availability
limits OTT deployment:
10
0
2013
2014
Source: NPD DisplaySearch (adapted)
2015
2016
2017
•
o
Encoding efficiency
o
Transport efficiency
Setting the market can
be a gamble: 3D?
16
3. Business models & strategy
17
3. Advertising model:
FTA TV still strong
•
GLOBAL MEDIA ADEX
(in million USD)
TV: no other medium
offering equivalent
reach and quality
500,000
450,000
400,000
Video Games
350,000
Consumer magazines
300,000
Out-of-home
250,000
Digital/Internet
200,000
Cinema
150,000
Newspapers
100,000
Audio
Television
50,000
2007 2008 2009 2010 2011 2012
McKinsey, 2013 Global Media report
•
Advertising / Free-to-Air
(FTA) model needed for
content diversity
•
On average 50 TV ads
viewed per day!
•
Forecasts all point
upwards, shift to
Internet
18
3. Subscription model:
impact limited (yet?)
GROWTH of VIEWERSHIP and NUMBER of
FEATURE FILMS of TOP-5 BROADCASTERS
10.5%
10.4%
10.5%
o
10.0%
9.9%
9.4%
9.8%
9.9%
9.4%
‘Netflix’ and ‘non-
% of viewership
Netflix’ households
8.8%
8.0%
7.5%
2008
TiVo research: no
difference between
% of broadcast hours
with films
9.0%
8.5%
However impact seems
limited (yet):
10.1%
9.5%
Broadband availability
will facilitate OTT offers
•
11.0%
10.5%
•
2009
2010
2011
Source: European Audiovisual Observatory, 2013
2012
•
o
Media stacking
o
Multi-play offers
Strategic response:
more feature films?
19
3. Business strategy:
multi-play and eco systems
•
MARKET SHARES of CONNECTED TV
PRODUCERS
4%
and OTT providers
•
4%
2% 1%
Sony
41%
LG
•
Multi-play and building
Panasonic
eco-systems: locking-in
Philips
clients or offering QoE?
Sharp
Technika
16%
Eco systems around
connected TV sets
Samsung
14%
Multi-play also by ISPs
o
offers?
Other
o
18%
Unbundling IPTV
Enforcing standards
for TV apps?
Source: Ofcom, 2013
20
3. Business strategy:
Multi-screen
Online Video Viewer Engagement for
Selected AP Countries
•
have for broadcasters
•
90%
‘2nd Screen’ is a must
80%
Audience engagement
and advertising
70%
analytics to maximize
60%
Singapore
50%
Philippines
40%
India
30%
Vietnam
20%
the revenue opportunity
•
‘Media meshing’ can
help ad exposure on
first screen
10%
0%
1/4 complete
1/2 complete
3/4 complete
complete
Source OOYALA Video Index Q1 2013, adapted
21