Gabriel Dusil Chief Marketing & Corporate Strategy Officer Visual Unity Global cz.linkedin.com/in/gabrieldusil gdusil.wordpress.com [email protected] Entertainment vs. The Internet Turning Threats into Opportunities
May 08, 2015
Gabriel Dusil Chief Marketing &
Corporate Strategy Officer Visual Unity Global
cz.linkedin.com/in/gabrieldusil
gdusil.wordpress.com [email protected]
Entertainment vs. The Internet
Turning Threats into
Opportunities
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Page 2
Download the Original Presentation - Entertainment vs. The Internet, Turning Threats into Opportunities
View this video presentation from our Digital Video Forum ’13, or download the native PowerPoint slides, here: • http://gdusil.wordpress.com/2014/01/27/entertainment-vs-the-internet-
turning-threats-into-opportunities • http://gdusil.wordpress.com/
Additional presentations, white papers, and winning solutions can be found on our corporate web-site, here: • http://www.visualunity.com/en/resources/
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Digital Industry Evolution
Capacity 100+ Exabytes* 70% is video
Entertainment 1.8b+ TV’s Connected**
Devices 30b+ Devices*** “Internet of Things”
Connectivity
Data
People
Internet Generation
90’s &
00’s 10’s
Digital Society
Sources: *Cisco, **Informa, ***ARM, by 2016
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Industry Wars
Front Lines • Subscriber Ownership • Industry Relevance • Revenue Protection
Computing
Entertainment Communication
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Broadcast Over the Top
Internet
Broadcast Services TV
Cloud Services
STB
router
“Over the Top”
PC
Tab
let
mo
bile
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61% 79% 9%
1% 0
200
400
mil
lio
ns
Inte
rnet S
ubscribers
('1
2) ISP OTT
Sources: Sandvine, Cisco, GCI, Internet World Stats Netflix penetration numbers are for the USA only.
As sales in OTT increase, ISPs
have the burden to invest in
bandwidth to keep up with demand
13
45 80 160+ 0
50
100
150
Eu
rop
e
No
rth
A
me
rica
Ne
tflix
H
D
To
p
1%
GB
pe
r M
on
th
Inte
rnet U
sage
Penetration
Op
po
rtu
nit
y
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Net Neutrality Internet Governance
Video will be 70% of Global Traffic by 2016 • 11.0 billion HD movies*
0
20
40
60
80Exabytes
Other Data Web, email, Data P2P File Sharing
Internet Traffic Forecast
Other Video TV & Live Internet Short-form Video Long-form Video
Cisco - Visual Networking Index, Forecast & Methodology ‘11–’16 * Using an average of 6GB for a 1080p movie
Internet Governance:
Data Discrimination, Traffic Shaping, Bandwidth Caps,
Blocking & Filtering, Premium Rates, etc.
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Mobility Apps
Mobile Telephony
Interaction
3 apps: voice, text, contacts
Distribution Operator
Mobile Operator Differentiation
High (speed & performance)
Handset Differentiation
Reliability & Quality of Service
Purchasing Phone-centric
Mobile Lifestyle
1+ million apps: all needs
Internet
Low (price & consumption)
User Experience, Efficiency & Flexibility
App-centric
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BitTorrent 12%
Cyber lockers 5%
Legitimate 76%
eDonkey, gnutella, other P2P, UseNet,
7%
Pornography 36%
Films, 35%
TV, 13%
Games, 7%
Software, 4%
Music, 3%
Anime, 1%
Other, 1%
Top 10K torrents
Internet Piracy Entertainment Industry
Envisional - An Estimate of Infringing Use of the Internet (11.Jan)
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Napster Shuts down @26m users
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1999
BitTorrent Inc. announces 150m active users (Jan ‘12),
growing at 50% per year
Internet Piracy Epidemic?
Napster KaZaA Megaupload BitTorrent
KaZaA peaks @34m users
Megaupload shuts down @180m users
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Relative Release Windows for Premium Content
USA USA
USA
USA
USA USA
24 1 2 3 4 5 6 7 0
Own Rent Pay TV TV
months
Cinema
International
VoD
Int’l Int’l
Int’l Int’l
Int’l
Head-end
Long-tail
Reven
ue
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Broadcast Centric Social Centric
Social
Apps
Broadcast
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Computing
OTT Binds All 3 Digital Industries
Entertainment Communication
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OTT Evolution - Content Discovery
Viewing Stats
Social Media
Buying Behavior
Preference “Likes/
Dislikes”
Media, News, &
Ads
Collaborate “viewers also liked”
“Friend’s Viewed & Liked”
A Recommendation Engine is not just about Content Suggestions
It’s about Meaningful & Personal Engagement
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Coms
Video
Music
Gaming
Storage
Productivity
Social Media
OTT Evolution – More Than Video
OTT will bring the future of
Entertainment to tomorrow’s Digital Society
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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 $395b globally, by 2017
0
10
20
30
bil
lio
n U
S$ Transaction
SubscriptionAdvertising
Global OTT Forecast '11-'17
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OTT Evolution - Vertical Tiers
Tier 1 • National Broadcasters
Tier 2 • Regional Broadcasters & Affiliates • Content Aggregators • Telco & MSO (i.e. Cable)
Tier 3 • Corporations & Government • Education & House of Worship • etc.
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USA
Europe, Canada, Asia 18-24 months behind USA
Emerging Markets 36-48 mths behind USA
OTT Evolution – Geographic Tiers
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Synopsis – Entertainment vs. the Internet, Turning Threats into Opportunities
• The entertainment landscape has changed more in the last decade,
than in the 60+ years of broadcast. Much of this disruption can be attributed to the growth of the internet. From this infrastructure, several battles are raging under the feet of consumers; Broadcast has a new adversary called OTT (Over the Top Video); ISPs are struggling to keep up with bandwidth demands of video; mobile infrastructures have also witnessed significant changes in consumer behavior as applications overshadow handset features. This presentation explores the various battles taking place between the communication, computing and entertainment industries. The global landscape in subscriber behavior continues to change rapidly, and OTT has the potential to be at the center of it all.
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Tags - Entertainment vs. the Internet, Turning Threats into Opportunities
• BitTorrent, Blu-Ray, Broadcast, Connected TV, Copyright Infringement,
Digital Millennium Copyright Act, Digital Rights, Digital Video, DMCA, DRM, File Sharing, Gabriel Dusil, Internet Piracy, Internet Video, KaZaA, Linear Broadcast, Linear TV, Megaupload, Megauploader, Motion Picture Association of America, MPAA, Multi-screen, Multiscreen, Napster, New Media, Online Video, Online Video Platform, OTT, Over the Top Content, OVP, P2P, Peer to Peer, piracy, Piratez, PlayReady DRM, Recording Industry Association of America, RIAA, Search & Discovery, Search and Discovery, second screen, Smart TV, Social TV, TV Everywhere, Visual Unity