Harnessing Over-the-Top Video
Presented by:
Challenges Telcos Face
• IPTV is costly and complicated to deploy
– But Is Necessary To Meet Competition From Cable and Satellite.
• Cable and satellite providers are starting to promote broad
VOD Packages and App Stores
– This Move Is More About Facing Competition from Retail OTT and Less
About TelcoTV
• OTT and VOD are forever changing viewing habits
– Consumer Expectations and Attention Spans Are Changing
…However, people are still watching TV
Pay TV Has Enjoyed 40+ Years of Growth
Source: Entone Extrapolation of Nielsen Data
But a Parallel Universe Has Evolved
The concept of “over the top” video threatens to
marginalize the role of managed network service providers
Beginning of the End for Operators?
“One in eight consumers will eliminate or scale back
their cable, satellite or other pay-TV service”
Yankee Group
“Netflix, the cable killer”
Fast Company
“The future of TV is not on Cable”
NewTeeVee
“Netflix, Cable’s biggest nightmare”
BusinessWeek
“Resistance is futile”
Boxee
Some Perspective: Still A Lot of Linear TV Viewing
Monthly Time (hh:mm) Spent on Various Activities
Monthly Usage (hh:mm)
168:00 156:24 158:25 158:47
144:00
120:00
1Q09
1Q10
1Q11
96:00
72:00
48:00
29:15 25:26
24:00
8:22 9:36
25:33
9:46
3:00 3:10
4:33
3:37 3:37 4:20
0:00
Watching TV
at Home
Watching
Timeshifted
TV
Using the
Internet on a
PC
Watching
Internet
Video
Watching
Video on
Mobile Phone
Source: Nielsen, The Cross-Platform Report, 2011
Consumers Seek Alternatives to PayTV
Source: TDG
Large “Middle Class” In TV Market
Cordless
Don’t watch TV,
Watch Over the
Air (OTA) or
OTT only, or
watch a mix of
OTA and online
video
Opportunity in the Middle:
80% of the Market
Concerned with growing costs of
premium Pay TV services,
intrigued by the concept of “cord
cutting” but thus far unwilling to
give up timeliness and quality of
Pay TV. OTT pricing is appealing
if they can still get some live TV.
Premium
Value and willing to
pay for premium
PayTV services and
consider $1,500 /
year a fair price for
what they are getting
Elements of a Winning TV Offering
Live Television
Anytime, Anywhere
Access to Premium Content
Favorable Economics
Get It Together!
Broadband TV
TV Experience (EPG / DVR) & VOD
•
•
•
•
•
•
•
•
•
Linear HDTV sources
• Over-the-Air (ATSC)
• Cable Overlay
• Cable TV (Analog/Digital)
• Supports CableCARD
Dual tuners – watch live & record
Support for full HD - 720p & 1080p
Enhanced Program Guide
Full featured DVR
Over 70,000 movies & TV shows
SD, HD, HDX (1080p) & 3D
App store with podcasts, social
networking
Stream online music to the TV
Linear Programming
Movies and TV On Demand
Apps: News, Weather, Etc.
Personal Media & Sharing
•
Personal Media
• Listen to music & playlists
• View photos & slideshows
• Watch videos
• Stream content from PC/Server
• Store content locally
• Copy content from USB or memory card
•
Sharing
• Photo slideshows
• From local sources
• From online sources
•
Multi-Screen Support
•
Whole-Home DVR
OTT at the Center of the Connected Home
Linear HDTV / EPG / DVR
Place Shifting
Web Media Services
Personal Media & Sharing
Entone View: Monetize OTT
•
Quickly increase broadband market share &
reduce churn
•
Deliver a seamless user experience by
offering a richer HDTV service that combines
traditional TV & OTT services without a
separate device
•
Offer an expanded VOD library without
capital & operating costs
•
Leverage broadband as the anchor service
for emerging Connected Home cloud
services
Hosted OTT
Delivery
Carrier Broadband Network
Upgrade “Captured” Customers to IPTV In the Future
• Leverage your infrastructure
investment
Hosted OTT
Delivery
• Keep a Hybrid of OTT content
and Connected Home services
with IPTV linear channels
• Keep competition out
Carrier Broadband Network
IPTV
OTT: Subscriber Retention and Complement to IPTV
IPTV Customer Base
•
•
•
Telco TV first wave to stop
line loss
Shorter loops and fiber
High cost with high revenue
Managed OTT
•
•
•
•
•
Subscriber retention
Works in most parts of your
market ~1.5mbps and up
Inexpensive to deploy
Profitable business
Can be upgraded to IPTV
Telco
Common Platform For All Markets
IPTV WebVOD
OTA
CATV
Turn-key VOD content
with IPTV linear
channels
True turn-key OTT
VOD + Over-the-air
linear channels
Turn-key VOD content
with cable linear
channels
Thank You!
For more information:
don.paige@entone.com
sales@entone.com
Download FusionTV White Papers:
www.entone.com