International Telecommunication Union International Multimedia Telecommunications Consortium ITU-T. IPTV market trends. Noel Matthews TANDBERGTV
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1 Internatinal Telecmmunicatin Unin Internatinal Multimedia Telecmmunicatins Cnsrtium IPTV market trends Nel Matthews TANDBERGTV Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May 2006
2 TV ver last 10 years Increase in digital TV platfrms 1995 = = = 230 STB prices decreased 1995 = $ = $50- Wrldwide adptin f digital standards DVB and ATSC Subs Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
3 Cntinuus changes Cnsumed Digital TV grwing and replacing analg Time shifted viewing ges mainstream (VOD & PVR) Interactivity spreading based n a prven business mdel Acquired and delivered Prduce nce, deliver many IP everywhere! Driving new delivery mdels fr cntributin and DTH delivery HDTV spreading wrldwide Mnetized New revenue mdels explit new technlgy & changing viewer habits Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
4 High Definitin TV HD is already a mass market in the USA 15M HDTV Bradcast Viewers by the end f 2005 MPEG2 HD cable bxes up 170% in 2005 Direct TV = 1,650 channels by 2007 H.264 Millins Viewers Glbal HDTV Viewers APAC is already there Australia and Japan PCCW launching HD ver DSL H.264 HD services happening in Eurpe 14m HD hmes receiving HDTV by 2009 Surce: In-Stat Mar 05 Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
5 On demand cntent 10% f tday s televisin is time shifted % f televisin will be viewed n the PVR Vide n demand will drive cable and IPTV grwth Cmcast n Demand: 2003: 1,400 titles with 21M views/mnth 2005: 3,400 titles with 107M views/mnth 2007: 50,000+ titles! Subscribers (m's) Digital VD Grwth Digital: VD Digital: nn-vd Nn-digital Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
6 Interactive Televisin Service prviders need t differentiate Interactive allws delivery f specific cntent FOR the cnsumer N lnger just the push mdel f bradcast TV Lgical extensin f n demand cntent Interactive is the future f Televisin Red buttn applicatins in UK Over 20,000 hurs f itv in USA last year US Operatr Revenues frm Interactive Services $m $1,000m $800m $600m $400m $200m $0m Year $34m $102m $233m $452m $780m Surce : Kagan 2005 Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
7 Bradband TV Bradband netwrks allw delivery f TV directly t the hme Direct cnnectin between the cntent wner and the cnsumer N platfrm peratr! Frrester estimating 2006 bradband TV advertising revenues f $200 M MTV Overdrive bradband site delivered 13 millin vide streams frm the Vide Music Awards, during r after the shw ran n cable netwrks. Already there SKY mvies MTV Overdrive VH1 VSpt, Nickelden, CNN Pipeline Cmedy Central, Cuntry Music Televisin), ESPN, Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
8 Mbile vide Mbile will have a significant impact n the TV industry Fr bth the creatin and delivery f cntent 2005 market fr mbile cntent was 600m By 2008 there will be 10.8 millin mbile vide users 2004 revenue $29M 2008 revenue $1.4B O2 UK trial 3 hurs per week average and 23 minutes per viewing sessin 36% used it at hme! Mbile Vide Users Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
9 IPTV Telcs, ISPs and utility cmpanies are engaging in IPTV Defensive strategies Real success stries Imagini (Telefnica Spain) Jazztelia TV (Jazztel) Belgacm (Belgacm) Fastweb TV (Fastweb) MaLigneTV (France Telecm) Lyse Bredbånd TV (Lyse) NOW Bradband TV (PCCW) Dubai Internet City (Dubai) Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
10 Eurpean IPTV market 700k subscribers by end f 2005 France = 281,000 (Free + Maligne) Italy = 190,000 (Fastweb) Spain = 58,000 IPTV penetratin Nrway = 1.5% France = 1.1% Italy = 0.86% Frecast = 9m by end f 2009 France = 2.4m Italy = 1.5m UK = 1m Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
11 Eurpean IPTV launches Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
12 Eurpean IPTV Subscriber Grwth Surce: External research Nv Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
13 Market Trends by Regin Millins Ttal IPTV Husehlds Eurpe US Asia Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
14 IPTV reality Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
15 IPTV market fferings H.264 is the key enabling technlgy fr DSL SD = 1.5 Mbit/s HD = 6 8 Mbit/s Hybrid TV services But me2tv is nt enugh Very cmpetitive market Telcs need t capitalise n inherent 2-way IP netwrk Cntent n demand including vide Everything is an asset On demand and push mdels Enhanced TV experience Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
16 IPTV service ffering Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
17 Netwrk Challenges fr IPTV Imprved access technlgies fr higher rate DSL True end t end QS in t the hme netwrk Intelligent netwrk resurce allcatin (BRAS) IPTV Service prvisin Picture quality n DSL (Advanced vide cding) Advanced Cntent n demand services (Netwrk PVR) Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
18 AVC bit rates fr HD and SD 18.0 SD HD fr Eurpe? 720p50 High end HD bradcast 1080i30 (1920 pixels) MPEG-2 Bit Rate (MBits) Reslutin Windws Media AVC 9 2,000+ channels AVC delivered! Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
19 Challenges - VD and advertising IPTV peratrs must run Ondemand services On demand changes the revenue mdel Linear advertising n lnger wrks Dynamic n demand ad insertin enables revenue generatin Fr free and premium cntent. As VD vlumes build s des the attractiveness t the advertising wrld Targeting n demgraphic/gegraphic basis nw pssible Particularly in an IP netwrk Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
20 Intelligent Ad Placement Decisins Media Types itv DVR RFI Tech Inf Tech Infrmatin Sftware itv availability DVR, ther hardware inf Lng Frm Ads Neighbrhd Tagging Targeting Engines Gegraphic Demgraphic Psychgraphic Tag Infrmatin Lcal Dealers Prximity Mapping Site Inf Site Custmer Inf Zip Cdes Served RFI privacy masking Placement Decisins Dynamic Streams Placement Rules Genre/Type Avail Rules Brand Assciatins Title Inf Title Infrmatin Metadata Avails DVR Ad placement itv Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
21 VOD/DVR Ad Placement architecture Avail Marking Ad Packaging Natinal Campaign Managers Reprting Prgram Asset Packaging Internet Push Delivery Inventry & Delivery Schedule Campaign Delivery Prgram Asset Delivery Satellite Push Delivery Ad Repsitry(s) Internet Pull Catcher Catcher Lcal Campaign Manager Ad Assets Ad Assets As Run Lg Avail-Enabled Prgram Assets Asset Management System Asset Avail List Placement Rules Avail-Enabled Prgram Assets Ad Assets Placement Manager VOD Server/ Bradcast Inserter/ DVR Device Real-Time Placement Messages Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
22 On demand cntent in the netwrk Open architecture fr greater flexibility Distributed architecture acrss the netwrk Cntent encrypted thrughut the entire netwrk Cntent ingest prcess must be streamlined Prduce nce, knw where it is and deliver many time! Timeshift TV brings technical and legal challenges! Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
23 Multi platfrm delivery Cnsumers will expect cntent delivery t a range f devices Platfrm peratrs want cmmn infrastructure Many challenges Technical: Frmat fr many devices Cntent wrk flw and strage fr multiple frmats Prductin: Cntent des nt lk the same n different devices Wide screen shts Cntrast ratis Rle f standards? Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
24 Digital TV s success is directly related t pen standards Open standards Cre t the success f IPTV is nn-prprietary, standard based delivery architecture Published, pen APIs n vendr lck-in In particular: Open interfaces/api fr cntent management Internatinal Metadata standards fr IPTV and cable Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
25 Summary The future is nt just delivery f cntent t the viewer but fr the cnsumer When, what and where the cnsumer wants it Revenue mdels will change VD vs linear There will be winners and lsers IPTV is happening and will becme an imprtant player in the cntent delivery market But nt just me2tv Build flexible netwrks and play t their strengths Jint Wrkshp and IMTC Frum 2006 H.323, SIP: is H.325 next? San Dieg, 9-11 May
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