new technology lecture l15 the broadcast century

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Lecture L15 THE BROADCAST CENTURY

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The 20th Century was the century of broadcasting. It started with radio, then cinemas and finally TV. All one-way broadcast mediums. They all have one restriction. They are based on a model of scarcity, i.e. program directors have to choose the program for you, since there are only finite number of channels and screens. Television has not really changed very dramatically for many years. The only major upgrade was adding color. However we are now seeing another change: Digital TV. Changing TV to digital has already had impact. Digital means better picture and sound, but also some changes in distribution. Also, with digital TV, software starts to play a major role and the Internet will become a possibility as distribution mechanism. This will cause disruption In this lecture we look at home entertainment from the days of talking machines to our times of Internet TV, Interactive TV and IPTV. In this lecture we look at how content viewing is changing and why the TV industry getting disrupted.

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Page 1: New Technology Lecture L15 The Broadcast Century

Lecture L15 THE BROADCAST CENTURY

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Why?

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100 million hours / year

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200 million minutes / day

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Where do people find the time?

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EARLY ENTERTAINMENT

"The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?"

-- David Sarnoff's associates in response to his urgings for investment in the radio in the 1920s.

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Early music was performed live

Story telling

People got together to sing the songs of the day

Culture

Participation: everyone was anentertainer

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Read-Write Culture

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Edison’s Phonograph 1877

“The Talking Machine”

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Emile Berliner’s Gramophone, 1889

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First radio broadcasts are in 1906

Commercial radio broadcasting starts in 1920s

Public’s need for informationEquipment manufactures Amateur operators

http://www.tuberadioland.com/westinghouseWR-30_main.html

Westinghouse Model WR-30 Gothic Style Tombstone Radio (1933)

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ENTER THE TV

For God’s sake go down to the reception and get rid of a lunatic who’s down there.

He says he’s got a machine for seeing by wireless! — Editor of the Daily Express in response to a prospective visit by John Logie Baird

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John Logie Baird !

Scottish inventor!

Experimented with wirelesstransmission of images!

First public television broadcast was 27. January 1926 in London

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TV broadcast start in the 1930s!

BBC starts broadcasts in 1936!

Slow increase in consoles!

Lack of standard!

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Color in the 50s!

RCA begins production of its first color-TV set for consumers!

Low performance and high price

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In 1950 a market has emerged!

US data:!

1946 there are 20.000 TVs, 18 stations!

1953 there are over 20million TVs – 44% of households, 300 stations!

TV in Iceland in 1966

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Source:  DataMnitor

The global broadcasting & cable tv market grew by 4.6% in 2011 to reach a value of $400.6 billion !

The market is expected to reach almost $475,000 million by 2015

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Why is TV so powerful?

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TV Watching

On average, individuals in the industrialised world devote three hours a day to watching TV

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On average, individuals in the industrialised world devote three hours a day to watching TV

TV Watching

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Gallup poll on TV Watching!

Two out of five adult respondents and seven out of 10 teenagers said they spent too much time watching TV!

Usually people are embarrassed to admit to watching much TV

TV Watching

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A Formula for Addiction

TV is passive and relaxing!

Reduces alertness!

Effect is fast!

Problem: TV addiction

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A Formula for Addiction

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23% of UK teenagers claim to watch less TV and 15% admit they read fewer books now that they have smartphones

TREND

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DIGITALFORMAT

1900 2000

Edison’s Phonograph

1877

Emile Berliner’sGramophone

1889 Radio

Broadcasts1920s

TVBroadcasts

1940s

The RecordIndustry - LPs

1950sCDs

1980sDVDs1990s

THE BROADCASTING CENTURYONE 2 MANY

BUSINESS MODELS GET ESTABLISHEDREAD ONLY CULTURE

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TV GOES DIGITAL

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Analog Standards

NTSC, PAL, SECAM Broadcast: VHF (54-88 MHz, 174-216 MHz) UHF (470 to 890 MHz) Cable

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Source:  HowStuffWorks.com

Digital TV

DVB, ATSC, ISDB, DTMB, DBM H.262/MPEG !

Transmitted Radio (VHF, UHF, SHF), satellites, cables, fiber or ADSL Benefits Better picture and better sound – more resolution Better use of bandwidth using compression Most countries switched off analogue transmission 2007-2009

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Source:  HowStuffWorks.com

Digital TV

Normal TV has the ratio 4:3 (1,34:1) !

HDTV has the aspect ratio 16:9 (1,78:1)!

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Source:  Economist    -­‐  Coming  soon

End of an Era

Digital Content is causing disruptions in the conventional value chain!

DVD sales are slowing!

Distribution of content is going to digital mediums

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NEW SOLUTIONS

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Electronic Programming Guide

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Additional Information

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Time shiftDigital video recorders (DVRs) Recording television transmissions for later viewing!

Examples TiVo, ReplayTV, DirectTV

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Place Shift

Watch your TV everywhere in the world!

Technology that allows you to watch your TV over the Internet!

Slingbox

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Video On Demand

Pictures from www.oscar.com

VoD - Video-on-demandGoodbye to of the Video StoreChange in distribution of contentDelivered over the Internet, ADSLor cable, including fibre

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DIGITALFORMAT

1900 2000

Edison’s Phonograph

1877

Emile Berliner’sGramophone

1889 Radio

Broadcasts1920s

TVBroadcasts

1940s

The RecordIndustry - LPs

1950sCDs

1980sDVDs1990s

THE BROADCASTING CENTURYONE 2 MANY

BUSINESS MODELS GET ESTABLISHEDREAD ONLY CULTURE

THE DIGITAL DECADE

!THE CONTENT

ESCAPESTHE FORM

!INTERNET

DISRUPTIONBEGINS

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END OF BROADCASTING

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Where do people find the time?

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TV

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200 billion hours / year

Watching TV

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Watching TV

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100 million hours / year

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2000 wikipedias / year

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Clay Shirky On Cognitive Surplus

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Read-only Culture

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f(x) = axk + o(xk)

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MOVIESTARS

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Chris Anderson On the Long Tail

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Bottlenecks in the Distribution channels

Hit culture

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The Power Law

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Pareto principle

For many events, roughly 80% of the effects come

from 20% of the causes

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Economy ofSCARCITY

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Economy ofABUNDANCE

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LONG TAIL

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What percentage of the top 10,000 titles in any online media store (Netflix, iTunes, Amazon, or any other) will rent or sell at least once a month?

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USERGENERTATEDCONTENT

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EVERYBODYIS A

PRODUCER

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MANY 2 MANY: PEER INTERACTION

ESTABLISHED BUSINESS MODELS GET DISRUPTED

READ WRITE CULTURE

ONE 2 MANY: BROADCASTING

BUSINESS MODELS GET ESTABLISHED

READ ONLY CULTURE

BEFORE NOW

Page 89: New Technology Lecture L15 The Broadcast Century

1900 2000

Edison’s Phonograph

1877

Emile Berliner’sGramophone

1889 Radio

Broadcasts1920s

TVBroadcasts

1940s

The RecordIndustry - LPs

1950sCDs

1980sDVDs1990s

END OF BROADCASTINGMANY 2 MANY

ESTABLISHED BUSINESS MODELS GET DISRUPTEDREAD WRITE CULTURE

THE INTERNET DISRUPTION