We design the future - with you and for you! Mobile Broadcast and Mobile Broadband Trends and Impact of Broadcasting Technologies Dr. Klaus Illgner-Fehns Managing Director We design the future - with you and for you! About IRT Research and Development Institute of the Public Broadcasters in Germany, Austria and Switzerland Location: Munich Non-profit limited liability company Founded in 1956/1957 150 employees Annual budget: 18 Mio. Euro 2
We design the future - with you and for you! Our Vision is to be the competence and service center for developing innovative and applying new technologies in the context of broadcast an digital media. to be the mediator and moderator between industry and broadcasters providing support for market oriented development and positioning of new technical 3 Media Landscape Once upon a time.. Audio-visual media usage limited to broadcast and records Dedicated services Dedicated transmission Dedicated receivers Regulated to secure national interests Individual use Limited to audio Commercial 4
Media Landscape Early mobile and individual media usage enabled by broadcasting services Broadcast to mobile and portable devices Individual, time asynchronous by personal recording 5 Media Landscape The Media Landscape as of Today Advertisement User Generated Content Platforms Pay TV Games Internet Triple Play IPTV Networks Services Download Public Value On Demand EPG Social Community Timeshift 6
Media Landscape Key Characteristics of Today s Media Landscape Advertisement User Generated Content Platforms Pay TV Games Networks Download Internet Triple Play IPTV Usage independent of time and location Broad variety of devices & distribution Services Increasingly diversified service offers Growing business opportunities and competition Public Value On Demand EPG Social Community Timeshift 7 Media Landscape What has happened? The world got digital Moore s law in semiconductors: The number of transistors that can be inexpensively placed on an integrated circuit is increasing exponentially, doubling approximately every two years Network infrastructure / transmission links got digital Media got digital 8
Consequences to the infrastructure Consequences on the Media Landscape Advertisement User Generated Content Platforms Pay TV Games Internet Triple Play IPTV Networks Services Download Public Value On Demand EPG Social Community Timeshift 9 Consequences to the infrastructure Digital infrastructure enables unprecedented opportunities Networks Increase of network capacity Networks get suitable for broad range of applications Number of applicable networks / access technologies explodes Devices Devices are suitable for a multitude of services of different kind Broad variety of devices from mobile to home cinema Services Services get independent from network Creation of new types of services by adding functionality (e.g. communications & media) 10
Consequences to the infrastructure Digital Distribution Links in Europe Telecommunications (fixed line networks) ISDN ADSL VDSL broadband cable Radio access (satellite) Radio access (terrestrial) Analog Radio (MW, Analog TV FM) (PAL) Analog TV Analog TV Mobile GSM Hotspot Digital TV (DVB-T) Digital Radio (DAB) 1930 1940 1950 1960 1970 1980 1990 2000 Digital TV (DVB-C) Digital TV (DVB-S) UMTS WLAN WIMAX Bluetooth Broadcast Mode Mobile Broadcast (DMB, DVB-H) Next Generation (DVB-C2) (DVB-S2) (DVB-SH) Next Generation (DVB-T2) Next Generation (DAB+) 2010 11 Consequences to the infrastructure Some Thoughts about Services and Economics Answer needed for Coverage of a service Type of services Usage types Where is my audience Suburban Urban In- Building Decision about access technology is steered by balancing Service requirements Economical constraints Mobile broadband in rural areas will always be an economical challenge 12
Consequences to the infrastructure Mobile Broadcasting Consumer interested in services - not technology Multiple options for distribution exist Which one is best suited? Primary service utilization portable and indoor Commercial key factors maximize profit Serve as many people as possible with cheapest possible infrastructure Creates new competition to free-to-air broadcast (DVB-T in Germany designed for portable indoor in urban areas) 13 Media Landscape Consequences on the Media Landscape Advertisement User Generated Content Platforms Pay TV Games Internet Triple Play IPTV Networks Services Download Public Value On Demand EPG Social Community Timeshift 14
Consequences to the usage The Internet : An Exceptional Environment for Media Services E-Mail WWW blogs chat Telnet FTP VoIP messaging Services independent of physical distribution network Availability of broad range of supplementary services 15 Consequences to the usage Media Distribution in the Internet Radio services in the Internet TV services in the Internet Characteristics: live streaming free usage for everybody 16
Consequences to the usage Media Distribution in the Internet Sales portals for direct distribution of electronic audio-visual-media Download on demand streaming Individual access on demand 17 Consequences to the usage Media Distribution in the Internet What is the Revolution? Platform for user generated content recommendations Social communities 18
Consequences to the usage JOOST P2P-Live-Streaming 19 Consequences to the usage Mediathek Convergence of TV and PC Borders between IPTV, WEBTV and Online are blurring 20
Media Lanscape Consequences on the Media Landscape Advertisement User Generated Content Platforms Pay TV Games Internet Triple Play IPTV Networks Services Download Public Value On Demand EPG Social Community Timeshift 21 Consequences to the Business Convergence of closed IPTV and open Internet-TV TV-Headend IPTV TV-Empfang VoD Broadcaster - "Backbone & access net VoD Internet Internet/WebTV PC-Empfang 22
Consequences to the Business Convergence of Telco-Networks and Broadband Cable ADSL / VDSL ~7 Mio (Germany) Buildup for Broadcast and QoS Telephony Chat Messaging EMail Internet Games Shopping Download VoD TV Broadcast Bi-directional buildup Brodband cable ~20 Mio Germany Extensive service offering (TriplePlay): Networks get exchangeable from consumer perspective 23 Consequences to the Business Consequences for Business are Manifold The overthrow is driven by utilizing technologies for securing and creating business Role of market participants changes Changes of relationship between market participants Change of revenue streams (from bit pipe to services) New participants / branch enters the market 24
Consequences to the Business Who is in the Game? International regulators National regulators Global Investors Gaming Industry Gaming Console CE Industry IT Industry SW / Computers Distribution chains Major Studios Print Media Consumer Alliances Shopping TV/Radio Telecom Industry Infrastructure Initial Rights Holder Advertisement Hotspot Operators Mobile Operators ISPs / ASPs WEB Services Cinema 25 Consequences to the Business Davids and Goliaths 26
Consequences to the Business How does the business work? Awareness of brands BRAND BRAND BRAND BRAND BRAND Content creator Rights Service advertisement Platform Services Network Access CE Industry Infrastructure Consumer Customer relationship Essentially, it is all about money and awareness of brands 27 Consequences to the customer Consequences to the Customer Advertisement Download On Demand User Generated Content Consumer Expectations Individual usage Games Social networks Internet Independent of time and location On any device Networks Reliable Easy to use (plug an play) Guidance, orientation Consumer Experiences Platforms network not available Pay TV provider does not offer particular service Triple Play service available only with contract incompatible (provider-specific) Services interfaces configuration remains a mystery Public device misses software Value wrong software version IPTV EPG Social Community Timeshift 28
Consequences to the customer Broadcast Services self-evident and simple Radio and TV is more than just audio-visual-streams Connecting by a single wire Access widely free of charge Broad variety of devices available Reliable, broadly available With high technical quality At home and at the move Very simple usability 29 Media Landscape Consequences for the Public Value Advertisement User Generated Content Platforms Pay TV Games Internet Triple Play IPTV Networks Services Download Public Value On Demand EPG Social Community Timeshift 30
Consequences to Public Value Unique Proposition of Free-to-air Broadcast Framed by constitutional context and obligations Media broadcast regulated at national / regional level Public broadcast: Serving all citizens At every spot at least a few stations are available Broadcast enabled devices work everywhere across Europe Pushes for horizontal, openly standardized markets 31 Consequences to Public Value Distribution of Digital Broadcast Services Content creator Service Platform Network CE Industry Consumer Satellit Broadband cable Twisted pair Internet Terrestrial Mobile Stationary Usage context Portable & mobile usage context 32
Consequences to Public Value Utilization of Broadcast Networks across Europe Situation differs significantly at a national level 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% A B DK FIN F D GR IR I L NL N P E S CH GB terrestrial cable satellite IPTV 33 Consequences to Public Value Competition over roles and customer relationsship Platforms (TriplePlay) Specific Content creator Service Platform Network CE Industry Consumer Direct Distribution Internet-Bypass Diversification of markets Intensified competion for attention / competition of brands 34
Consequences to Public Value Dilution of Brands Where is my brand? 35 Consequences to Public Value Key Challenges for Broadcasters Terrestrial Networks Content creator Service Platform Network CE Industry Consumer maintain control of the brand secure a prominent and unaltered presentation of the service ensure that the services are found 36
Summary 1: Broadcast remains Important Service for Consumers Habits and expectations of consumers will change lean-back TV / radio services are expected to remain a major consumption mode Consumer avoid unmanageable multitude of options Consumers are seeking complexity reduction - user interface increases single button to press - managed services one stop shopping 37 Summary 2: Market Driven Challenges for Broadcasting Number of market participants increases Global companies enter into the business Public broadcast limited to national markets Fragmentation of markets presence on all vectors Getting attention unaltered visibility of brand Creating horizontal, interoperable markets open standards Services must stay competitive on equal level with other market participants (Keep it very very simple) 38
Conclusions Technology is used to protect and gain market shares Public broadcast is one key element for free flow of information Serving the consumer and society Enlarges European markets by demanding open standards 39 We design the future - with you and for you! Thank you for your attention! Dr.Klaus Illgner-Fehns Managing Director Institut für Rundfunktechnik Floriansmühlstraße 60 80939 München Tel. +49-(0)89-32399-0 Fax +49-(0)89-32399-351 E-Mail: presse@irt.de All rights reserved. All text, images, graphics and charts are protected by copyright. Reproduction or use of the content is not permitted without the express consent of the author. Please not that some of the photo material used in the presentation is subjected to third-party-copyright.