Origins of Over the Top Video Services

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Gabriel DusilChief Marketing &

Corporate Strategy OfficerVisual Unity Global a.s.

www.linkedin.com/in/gabrieldusilwww.dusil.com

[email protected]

Origins ofOver 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/

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LicenseOwnView

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 DeclineOnline have notoffset the decline in disc sales• “Digital single sales

growth is slowing:we almost reached1.4b in ‘12 but it isunlikely that they willreach 1.5b in ’16before they begin todecline”- Billboard

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

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

10

20

billi

on U

S$

CD & Digital Music - Global Revenue

Digital Revenue

PhysicalRevenue

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

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

0

20

40

60

80

100Global Internet Trafficexabytes

per month

HTML5 is mainstream

Netflix streamingBlu-Ray

YouTube Launches

100 hours of video uploaded to YouTube every minute

Ultraviolet DRM

Mobile Data per month

exceeds Voice Data

Apple iPadShips

H.265Finalized

4K TV ships

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May Ju

l

Sep

Nov

Jan

Mar

May Ju

l

2006 20072005

A Turning Point for Digital Video - 2006

Apple iPhone

Netflix video streaming

Google buysYouTube

Microsoft PlayReady

1st Blu-Ray released

Red One NAB’06

1080p LCD’sbegin

shipping Netflix $1m Prize

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OTT MarketOpportunity

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

2011

2012

2013

2014

2015

2016

2017

0

10

20

30

40

50

60

70Online GamingWeb, email, DataP2P File Sharing

Consumer Internet

Traffic Fore-cast

• 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 Video

Exab

ytes

per

mon

th

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Broadband Speeds (Mbps)Cisco - VNI Service Adoption Forecast '11-'16

C&EE – Central & Eastern Europe, ME&A = Middle East & Africa

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 Americahttp://newamerica.net/publications/policy/the_cost_of_connectivity#4]

Hong K

ong

Tokyo

San Fran

cisco

RigaSeou

lParis

Buchare

st

Berlin

Lond

on

Amsterd

am

Copenh

agen

Pragu

e

Toronto

Zürich

New Y

ork

Was

hington D

C0

100

200

300

400

500

$0

$20

$40

Dow

nloa

d Sp

eed

(Mbp

s)

Pric

e pe

r Mon

th (U

S$)High-speed Connections for $35?

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USA

Europe, Canada, Asia 2 years behind the USA

Emerging Markets 4+ years behind the USA

OTT Evolution

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0% 20% 40% 60% 80% 100%-200

0

200

400

600

800

1000

1200

Pay-TV by CountryAverage Revenue per User

Household Penetration

APRUUS$/year China

CanadaPolandSwedenNetherlands

USA

India

UKFranceJapanGermany

Australia

Brazil

ItalySpain

Russia

Sub-SaharanAfrica

Ireland

Developed

Developing

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Pay TV - Trending Down

Business Insider - Mobile Video Boom (12.Oct)

1Q'092Q'09

3Q'094Q'09

1Q'102Q'10

3Q'104Q'10

1Q'112Q'11

3Q'114Q'11

1Q'122Q'12

-800

-200

400

1,000

TelcoSatellite 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 TiersTier 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 AirOTT = Over-the-Top Content

Network Operators

Ente

rpris

eCo

nten

tCr

eatio

n

Delivery

Online RetailersGovernmentCorporations

Satellite

Houses of WorshipEducation

Med

ia Co

mpa

nies

Cable OTT

Distribution

TheatreBroadcasters

Radio

CDN

CinemaOnline Media

Consumer Brands Production

MusicFreelanceStudiosAdvertisingEvents

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Platform as a Service PaaS Software as a Service SaaS

Market Sizing Cloud Infrastructure

2011

2012

2013

2014

2015

2016

2017

0.2

0.6

1.0Video Platforms

Sources: accustream & Gartner

2010

2011

2012

2013

2014

2015

2016

Cloud Infrastructure

billi

on U

S$

billi

ons 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

30TransactionSubscription

billi

on U

S$

Global OTT Forecast '11-'17

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