day 1-t5-1530 jay-klein-20120523
TRANSCRIPT
1 May 24, 2012 May 24, 2012
Efficient Collaboration and Revenue Sharing Models OTT Content Providers and Operators.
Jay Klein, CTO
2 May 24, 2012
The Mobile OTT Ecosystem will be the place where operators,
content providers and consumers work in harmony to create, deliver,
and experience excellent mobile Internet services & applications
About Allot
1 Billion Subscribers | 150 Countries | 600+ Fixed Providers | 50+ Mobile Operators
Allot’s goal is to facilitate the interactions that make it work
When the ecosystem works in harmony, everyone thrives
3 May 24, 2012
A Late 90’s Perspective:
What’s wrong with this Picture
4 May 24, 2012
Old Way vs. New Way
MMS
5 May 24, 2012
Old Way vs. New Way
New way: Instagram
6 May 24, 2012
Old Way vs. New Way
Even a better way: Cinemagram
7 May 24, 2012
What wrong with this offering?
7
8 May 24, 2012
Israel: Mobile Operators May 2012
Operator Golan Hot Partner Cellcom Pelephone
Monthly fee
(Euro)
20 18 36 40 30
Voice Min. Unlimited Unlimited 1300 Unlimited 2000 conv.
SMS Unlimited Unlimited 1300 Unlimited 15000
Internet 2GB/Speed Unlimited 5cent/MB 500MB+4
Euro/250MB
6 Euro
3.5GB/Speed
9 May 24, 2012
LTE means More OTT
4G
3G vs. 4G Top Protocols by Volume
* Allot Service Gateway Data over 48h, March 2012
3G
10 May 24, 2012
Netflix vs. iPlayer during trial phase
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NetFlix
iPlayer
11 May 24, 2012
Average per subscriber / per application bandwidth Pre-Netflix
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25
Subscribers Avg Bandwidth (Kbps)
12 May 24, 2012
Average per subscriber / per application bandwidth Post-Netflix
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Subscribers Avg Bandwidth (Kbps)
An average active subscriber amount of
0.015% of the user base generated 2+% of
total traffic in launch week
14 May 24, 2012
All my video
is in HD
I’m OK with ads
as long as the
content is free
Do they have a
service plan for
gamers?
No buffering for
me, thank you!
Operator Drivers:
What Subscribers Want?
15 May 24, 2012
OTT Provider Drivers:
User Experience
* Tubemogul, Dec, 2009
“4 Out of 5 Viewers Leave If a Stream Buffers Once*”
16 May 24, 2012
Above All, Users Want Simplicity
Pay WhatsApp
Pay Android
Pay Operator
17 May 24, 2012
Time to Start the Peace Talks
18 May 24, 2012
Revenue Sharing Business Models
Service-centric
Access (reach)
Mobility
Billing relationship
Experience-centric
Content
Information
Interaction
19 May 24, 2012
Allot Enables Revenue Sharing Models
VISIBILITY
Reporting
Network intelligence
POLICY
ENFORCEMENT
Priority
QoS/QoE
APPLICATION-
BASED CHARGING
Quota
Charging
Ad Insertion
Track OTT content
App Downloads
Streaming
Guarantee QoE &
Special Offering
Zero rate traffic
Zero streaming stalls
Settle with OTT
provider
Per volume of traffic
Per Event
We Enable You Can
20 May 24, 2012
Operator Content / App
provider
Subscriber
Lower churn/
Higher traction
User acquisition Simplified billing
Cost reduction Guaranteed QoE Improved
experience
Traffic
Monetization
Free-to-premium
conversion
Personalization, Pay
for value
Market
differentiation
Ad revenue
Off-quota data
usage, freebies
(loyalty)
The Business Case for Revenue Sharing
21 May 24, 2012
26% of operators have rev. sharing deals in place
The H1 2012 Allot MobileTrends Charging Report is coming out in June
22 May 24, 2012
Telia Sweden Spotify
4-year partnership.
App provider benefits:
• 300% YoY increase in Spotify
subscriptions sold through Telia*.
• 5% of Spotify's Premium users in
Sweden acquired through Telia.
Operator benefits:
• 1 in 5 Telia smartphone users - a
Spotify subscriber.
Content provider benefits:
• “We now see a bright future for
music in Sweden.” - Mark Dennis,
CEO of Sony Music Sweden.
Revenue Sharing Models: Content
*2011
23 May 24, 2012
Operator drivers
● Doing nothing leads to nothing
● Deliver value & differentiate
● Monetize traffic
OTT provider drivers
● Improve user experience
● Broaden customer reach & customer
value
Revenue sharing models
● It’s also a question of infrastructure
Partnering with OTT Players
The Way Forward
