the future of the connected living room
DESCRIPTION
Today’s TV consumer is a highly demanding one. Not only do they want to watch video on any number of screens - from a 50” flat panel to an iPad to the smartphone in their pockets - they want to find, recommend and view TV content using new software frameworks being made available on new connected devices. This coming explosion in software-centric viewing, sharing and consumption will change the digital living room forever. Long standing norms around content discovery, interaction and monetization will change dramatically in coming years. This is the (slightly modified) presentation that I gave to the US Telecom Association on April 25th, 2013. For more info, visit www.nextmarket.coTRANSCRIPT
Introduc)on
The Connected Living Room
How OTT, Apps, Social and Connected Devices Will Change Everything
Agenda
• Who is NextMarket Insights?
• From simple to now: Four waves of change for the living room
• Today’s connected consumer
• The big shiKs • Recommenda)ons
• Q&A
Who is NextMarket Insights?
• A bou)que research & advisory firm focused on emerging consumer technologies
• Michael Wolf launched GigaOM’s research division, created GigaOM Books, created In-‐Stat’s consumer media prac)ce & ABI’s digital home prac)ce
• 15 years in-‐house experience advising product & media strategies for companies like Cisco, MicrosoK, HP, Philips, AT&T, Verizon & more
• Learn more at www.nextmarket.co
Things used to be so simple…
Case Study: NOW TV (BSkyB)
So what happened?
Case Study: NOW TV (BSkyB)
The four waves of change
First: Analog to Digital…
Then the Internet…
Then Mobile
Wave 1: Analog to Digital
Transi)on
Wave 2: Internet
Wave 3: Mobile
Wave 4: Connected Consumer
The Fourth Wave: The Connected Consumer
• When everything comes together • SoKware-‐centric • Cloud • Mobile devices as playback, source, companion (second screen)
The era when conven4onal business models begin to break down & new ones take hold
Case Study: NOW TV (BSkyB)
The age of the Connected Consumer
Case Study: NOW TV (BSkyB)
We’re connected
Moving from physical to digital media as connected devices become the norm
Source: GigaOM Research
Case Study: NOW TV (BSkyB)
We’re mobile
Over a billion smartphones & nearly 250 million tablets by 2015
Source: NextMarket Insights
Our mobile devices are by our sides Source: NextMarket Insights
Case Study: NOW TV (BSkyB)
We’re social
And the US is the most social of all Source: Comscore
Case Study: NOW TV (BSkyB)
We’re watching lots of online video
Online video households: Young users are cudng the cord
Source: NextMarket Insights
Case Study: NOW TV (BSkyB)
So what does all this mean?
Case Study: NOW TV (BSkyB)
The Big ShiKs
V
• Broadcast, OTT/cloud, facili)es • Last mile: Fixed line & LTE • In-‐home: Gigabit Wi-‐Fi
Delivery/Network
• Mobile, smart, connected, any-‐screen Devices/Network
• Apps, HTML5, Cloud • Social & Algorithmic Presenta)on
& Discovery
• Out with the old bundle, in with the new
• A mix of viral, personal, professional
Content/Services
• The remote • Second screen • Commerce
Interac)on
The Connected Living room
The Big Shi=s: Delivery/Network
• Headend -‐> Data center/Cloud • Tradi)onal DVR -‐> nDVR • Condi)onal access -‐> DRM • From MPEG2 & H.264 -‐> H.265 (HEVC) • Mobile: 3G/802.11n -‐> LTE & 802.11ac
The Big Shi=s: Devices
• TV -‐> smart TV
• Discrete boxes -‐> Integra)on • Carrier set-‐tops -‐> s)cks, apps, net-‐tops
• Carrier owned -‐> consumer owned
Connected CE devices (smart TV, Blu-‐ray, streaming boxes and s)cks) will be a $16
billion market
Source: NextMarket Insights
The Big Shi=s: Presenta4on & Discovery
• Grid guide -‐> Dynamic UI • Programmed recommenda)on -‐> algorithmic & social • Automated Content Recogni)on (ACR) • Local UI -‐> HTML5
• Tradi)onal spectrum allocated channels -‐> OTT/apps
Approximately 1 in 7 of streaming consumers today use social on tablet/
smartphone to find video
Social TV Deals last 6 months
• Facebook/Rovi • Nielsen/Twiler • Twiler/Bluefin Labs • Twiler/Network TV – adding video clips in-‐stream
The Big Shi=s: Content/Services
• The bundle -‐ > a la carte, mini-‐bundles, bundle augmenta)on
• Carrier-‐delivered -‐> OTT, OTT/carrier, service-‐as-‐app • Payment: cable bill -‐> mul)ple models
• Programmed -‐> more )me shiKed, live streaming for event-‐driven watching
OTT Packaged App Open
web Cable Broadcast
to Internet
Cable Broadcast
Bundle Free to air
A la carte Ad-‐supported
Mini-‐bundles Free Authen)c
ated Cable bundle
The Big Shi=s: Interac4on
• One screen-‐ > second screen interac)on
• Classic remote -‐> new physical interfaces (voice, mo)on, eye)
Miracast & content “tossing” technologies will be embedded into
most displays
Source: NextMarket Insights
Case Study: NOW TV (BSkyB)
So, what should you do about it?
Carriers/Mul4channel Operators
• New compe)tors: Device OEMs, OTT aggregators, mobile operators, WebCo’s • No choice but to give more choice to customers • Mul)-‐screen experiences & interac)on required
Carriers/Mul4channel Operators
• Carrier billing for mini-‐content bundles, a la carte • Robust in-‐home connec)vity services are hard to match for non-‐facility providers • Embrace couch commerce • Become a content programmer
Content Owners
• A la carte is coming, like it or not
• The new compe)tor may be the ar)sts themselves – Ar)st “content networks” are becoming commonplace
– Enabled by Google, Amazon, others
Introduc)on NextMarket Insights
More info: www.nextmarket.co
Reports: The Connected Living Room The Online Video Consumer 2013
Advisory & Report bundles available
Email: [email protected]