OTT & Multiscreen - How Online Video Will Change Our Lives, '13 (v1.8)

Gabriel Dusil
VPMarketing& CorporateStrategy
VisualUnity
www.facebook.com/gdusil .
cz.linkedin.com/in/gabrieldusil .
gdusil.wordpress.com .
gabriel.dusil@visualunity.com .
How Online
Video Will
Change Our
Lives in the
Next 10 Years

©2013  gabriel@dusil.com
 gdusil.wordpress.com
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 2
Download the Original Presentation
Download the native PowerPoint slides, and watch a video of
this presentation from Visual Unity’s Open Day here:
• http://gdusil.wordpress.com/2013/05/01/how-online-video-will-change-
our-lives
Or, check out other articles on my blog:
• http://gdusil.wordpress.com

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 3
Channel Hopping  Search & Discover
|

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 4
Behavior
Challenges
Search
Search & Discovery
CollaborativeBehavior
Content-Based
ViewStatistics
DemographicsRecommendation
Brand
Equity Multiscreen
Presentation
Expectation
Censorship Culture
&
Values
Needs
Impulse
Wants
Motivation
Purpose
Inspiration
Desire
Mood

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 5
0
12
24
36
2010 2012 2014 2016 2018 2020 2022
Timeperweek(hours)
Live Broadcast
Internet Video
Weekly Viewing Times
for Video
Online Surpass Broadcast by 2019
By the end of
this decade, more
people will be
watching
Internet video than
broadcast TV.
SocialTimes.com - http://socialtimes.com/online-video-to-
surpass-us-broadcast-tv-by-end-of-decade_b13470

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0 4 8 12
Other screen
Portable Player
Tablet
Smartphone
Laptop
Desktop PC
TV-screen
hours
In-home
Out-of-home
12 Markets: US, UK, China, Spain, Sweden, Brazil,
Taiwan, South Korea, Germany, Mexico, Chile, Italy
Average Viewing per Device
Ericsson - TV & Video, Changing the Game ('12)

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 7
Viewing Time Spent by Media Type
Internet Video Content
will grow 12x by 2020
• From 90 Exabytes in 2012
to 1,100 Exabytes in 2020
 OTT is "Over the Top" content that
uses an internet connected
device to an existing ISP service
to receive content.
 eg. Roku, Blu-ray player,
Nintendo Wii, Smart TV, Xbox,
PlayStation, Tablet, etc.
OTT
48%
VoD
29%
Cloud
11%
vConf.
2% linear TV
10%
OTT
11%
VoD
22%
linear
TV
66%
Alcatel-Lucent Bell Labs - “How the tablet generation
is pushing networks to the edge”, 13th Dec. 2012
1 Exabyte = 1024 Petabytes
1 Petabyte = 1024 Terabytes

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 8
I only watch four channels.
Why do I need to pay
for over 500?

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 9
Today we needto buy
thewhole store to get
a few books
Tomorrow we willjust
getwhat we want to
consume
Granularity of Choice

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 10
PopularityofContent
Amount of Content
Current Blockbusters
Widely Popular
Top 100 titles
Dated or Foreign Blockbusters
Niche Genres or Cult Classics
A-list actors & directors in other films
Rest of the Library
Long Tail of Internet Video

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 11
Consumer Entertainment
Spending
0
5
10
15
20
2000 2002 2004 2006 2008 2010
Spending(billionsUS$)
Digital & VoD
VHS Sales
DVD rental
DVD sales
Blu-Ray rental
Blu-Ray sales
Source: Rentrak & Digital Entertainment Group

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 12
May
Jul
Sep
Nov
Jan
Mar
May
Jul
2006 20072005
A Turning Point for Digital Video - 2006
Apple
iPhone
Netflix video
streaming
Google
buys
YouTube
Microsoft
PlayReady
1st Blu-Ray
released
Red One
NAB’06
1080p
LCD’s
begin
shipping
Netflix
$1m
Prize

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 13
For subscribers that have
Cut-the-cord ...
... broadcast television
has become
a frustrating experience.

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 14
Decline in Cable Subscribers
40
42
44
Subscribers(millions)
U.S. Cable TV Subscribers
2.3m
Business Insider & ISI Group – “GOODBYE, CABLE TV: 2.3
MillionAmericans Have Pulled The Plug Since 2010”

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 15
Cutting the Cord
Increased
Spending
22%
Spending
Unchanged
63%
Reduced
Spending
8%
Eliminated
Spending
7%
Global
Subscription
Changes
Cut
the
Cord
0% 20% 40%
Not Watching Enough TV
Only Using Internet Services
Saving Money
No Suitable Packages
Reduced
Spending
Reasons

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 16
Televised vs. Personalized
Broadcastersdon’t
easilyknow who’s
sittingintheir audience
OnlineVideoProviders
havea 1to1
conversation
withtheir
audience

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 17
The chances
of a print advertisement
targeting me specifically
are slim and far-between

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 18
Advertising Spend by Media
ZenithOptimedia - “Global WebAd Spend to Rise 33% by ’13”
Spending(billionsUS$)
Newspapers
Outdoor
Cinema
Radio
Magazines
Internet
Television
0
200
400

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 19
Incorrect
Location
Correct
Geography
In
ViewOut
of
View
Correct
Brand Wrong
Brand
Productive
Ad Spend
Optimize
Productive Advertisement Spending

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Ericsson - TV & Video '11 (Consumer trends, Global, Nov '11)
Internet Video Recommendations
0% 20% 40%
Advice from Friends & Family
Recommendations based on Past
Latest Releases
User Ratings
Friends currently watching...
Other users also watched…
Most Popular Statistics
Expert Recommendations
Most Useful
Recommendations

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 21
Buffering.......................................

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Broadband Speeds (Mbps)
Cisco-VNIServiceAdoptionForecast'11-'16
C&EE–Central& EasternEurope,ME&A= MiddleEast&Africa
Western
Europe
Leading
the Pack
Sufficient
for 4K @
H.265
9.1 12.0 15.7 20.6 26.7 34.5
11.1 14.3 18.5 24.2 31.9 41.6
10.6 13.8 18.0 23.1 29.3 36.6
8.1 11.1 15.4 20.7 27.5 35.8
9.5 12.1 15.3 19.1 23.7 29.2
4.2 5.3 6.6 8.0 9.8 12.0
1.0 4.2 5.0 5.9 7.0 8.4
2010 2011 2012 2013 2014 2015 2016
Global
Western
Europe
North
America
Asia
Pacific
C&EE
Latin
America
ME&A

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 23
Consumer Traffic Forecast
P2P File Sharing will be
19% of Global Traffic by 2016
•  2 billion HD movies
Video will be
47% Global Traffic by 2016
•  4.7 billion HD movies
0
10
20
30
40
50
60
70
80
90
Exabytes
Voice over IP
Online Gaming
Other Data
Web, email, Data
P2P File Sharing
Internet Video
Other Video
Internet PVR
Ambient Video
Live Internet
Short form
Internet to TV
Mobile Video
Long form
Cisco - Visual Networking Index, Forecast & Methodology ‘11–‘16

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 24
Cost of Connectivity
The Cost of Connectivity, NewAmerica
http://newamerica.net/publications/policy/the_cost_of_connectivity#4]
$0
$20
$40
0
100
200
300
400
500
PriceperMonth(US$)
DownloadSpeed(Mbps)

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SD
3840x2160
1920x1080
1024x576
 HD  4K

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 26
MPEG2
H.264
H.265
4K, 22Mbps
HD, 5.6Mbps
½HD 2.4 Mbps
SD
1.6Mbps
H.265 – Lower Operating & Capital Costs
• On 25th January, 2013
the ITU announced first
stage approval

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 27
Most certainly, when our walls
become gigantic TV monitors ...
then HD will be passé, and
enthusiasts will be demanding
even higher resolutions.

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 28
Recession
Recession
Recession
Recession
Audio-Video Adoption
NielsenMediaResearch's-“PenetrationofMediaDevicesinU.S.Homes”
TelevisionBureauofAdvertising-“TVBasics”,June2012
0%
20%
40%
60%
80%
1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020
HouseholdPenetration
VCR - TVB
CD - Nielsen
DVD - Nielsen
HD TV - TVB
UHD* - Visual Unity
Penetration of AV in
U.S. Households
*prediction
14 years 9 years 7 years

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The last thing Hollywood needs
is pirated 4K H.265 content ...
downloadable even before a
film reaches the theaters.

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 30
Illegal Challenges Illegal Drivers
• Poor quality & Corrupt files
 Audio & video sync issues
 Improper audio track
 No forced or foreign subtitles
• Incomplete Bundles
 No Deleted scenes, Behind the
scenes, & Featurettes
• Content Management
 Time consuming
 Requires a lot of storage
• Security
 Risk of viruses, trojans, & malware
• It’s illegal!
• Lack of Content Availability
• Untethered from DRM
 Free to transcode to multiple
devices & formats
• Access to all(most) content
• It’s Free!

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 31
Legal Drivers Legal Challenges
• Personable & Interactive
 Search: Collaborative,
Statistical, Contextual,
Recommendation
 Social Networking
 Suggestions &
Peer Reviews
• Ease of
Use
• High
Quality
• Piece of Mind “I’m a good citizen”
• Attractive Price
• Upgrade Frustrations
 VHS DVD Blu-Ray 4K 8K
• Availability
 Limited Global Content Rights
 Delayed theatrical releases
• DRM restrictions
 Titles not available across
different OS’s or devices
 Watching on one device, & finish
on another is restricted

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 32
lost
to
lost
to
lost
to
lost
to
Blame the Internet …

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 33
hasn’t
replaced
didn't
replace
didn't
replace
… or, thank the Internet …
hasn't replaced

Page
 34
2000
2001
2002
2003
2004
2005
2006
2007
1980’s
1990’s
2008
2009
2010
2011
2012
2013
How Did We Get Into this Mess?
Napster
Shutdown
26m users
SlySoft
AnyDVD
HD
NapsterCD
DVD
CSS
cracked
MPEG-1
MP3
Blu-
Ray
Microsoft
PlayReady DRM
Pirate
Bay
MPAA
sues
TPB
BitTorrent
iTunes
Store
VHS iTunes
music
DRM-free
TPB
guilty
RIAA sues
Individuals
CD= CompactDisc
DVD= DigitalVersatileDisc
TPB=ThePirateBay
HD= HighDefinition
ISP 6-
strike
policy
CSS= ContentScrambleSystem
DMCA=DigitalMillenniumCopyrightAct
Ultra-
Violet
DRM
 P2P
150m
users

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 35
How Did We Get Out of this Mess?

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 36
Longevity
Breadth

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 37
Accessibility Portability Quality
Price
USA
Spain

Page
 38
The Internet is not replacing
broadcast television ...
It's just gives subscribers
another choice.

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 39

Page
 40
Consumption
IsPersonal
Gabriel
by Dusil
I

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 41
Granularity
ofChoice
Gabriel
by Dusil
II

Page
 42
BenchmarkingtheH.265
VideoExperience
Gabriel
by Dusil
III

Page
 43
Search&Discovery
IsaJourney,notaDestination
Gabriel
by Dusil
IV

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 44
MultiscreenSolutions
fortheDigitalGeneration
Gabriel
by Dusil
V

Page
 45
BuildingaCasefor
UltraHighDefinition
Gabriel
by Dusil
VI

Page
 46
Gabriel
by Dusil
AreYouReady
ForSocialTV?
Tomas
by Petru
VII

Page
 47
Gabriel
by Dusil
TurningPiratezinto
SailorsConsumers
VIII

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 48
GeoIP
Scheduler
image
Client
Relationship
Management
AV = Audio Visual
OTT = Over the Top Content
STB = Set Top Box
VoD = Video On Demand
OTT
STB
Web
App
App
Store
vuManagement
vuMultiscreenvuNet
live
db
audio
film
cam
disc
vuIngest
vuMedia
v2.0
DRM
DiscoverySearch
AuditingGateway
AdvertisingPayment
Optimize
Live
Stream
VoD
Storage
ReportsStatsAnalysis
LinkShield
Profiles
Framesize
Bitrate
Content
Management
System
Recorder
Metadata

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 49
Audio Processing & Management
Visual Unity Open Day - Ecosystem
vuManagement
vuNet
vuIngest
Archive Management
Media Asset Management
Encoding, Delivery & Workflow
Audio & Video Processing
Storage Management
Quality Control

www.facebook.com/gdusil
cz.linkedin.com/in/gabrieldusil
gdusil.wordpress.com
gabriel.dusil@visualunity.com

Page
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Synopsis - How Online Video Will Change
Our Lives in the Next 10 Years
• Online video providers today have the ability to experience a one-to-one
conversation with their audience, compared to the somewhat
anonymous nature of this relationship in traditional TV. Viewing habits of
consumers continue to rapidly change in the next ten years, bringing
more choice, portability and accessibility to video. A granular nature to
analyzing subscriber behavior will open new opportunities for content
owners, end users, and everyone in between. This will require
accompanying changes in advertising expenditure as it pertains to a
global vs. local focus. In the global reach of video, due to the ubiquity of
the Internet, online services will need optimize to capitalize on new
market opportunities.

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Tags - How Online Video Will Change Our
Lives in the Next 10 Years
• 4K, Advertising, Broadcast, CDN, Channel Hopping, CMS, Connected
TV, Content Management System, DeCSS, CSS, Digital Millennium
Copyright Act, Digital Video, DMCA, Gabriel Dusil, H.264, H.265, HD,
High Definition, Internet Video, Linear Broadcast, Linear Television,
Linear TV, MPEG, Multi-screen, Multiscreen, New Media, Online Video,
Online Video Platform, OTT, Over the Top, OVP, piracy, Search, Search
& Discovery, Search and Discovery, Smart TV, System Integration,
Television, The Pirate Bay, TPB, UHD, Ultra High Definition, Ultraviolet,
Ultraviolet DRM, Visual Unity

OTT & Multiscreen - How Online Video Will Change Our Lives, '13 (v1.8)

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OTT & Multiscreen - How Online Video Will Change Our Lives, '13 (v1.8)