voip video business models

VoIP & Video

Business Models

www.dsp-ip.comFast Forward Your Development

Overview

• Challenges• Solutions & TrendsVoIP

• Portal Video ChallengesPortal


• Portal Video Challenges• Solutions and Trends

Portal Video

• VoIP• Video

Biz Models

VoIP Solutions and

Trends


VoIP status

VoIP Trends

VoIP StatusPC VoIP History

PC VoIP by two parallel paths for personal and business use:

PC VoIP

•Enterprise Phone switches offered PC VoIP extensions

•Large IM Portals offered VoIP


Personal

VoIP

Upgrade IM Client

Pure VoIP Clients

Enterprise VoIP

Enterprise Phone

Extension

•Large IM Portals offered VoIP

VoIP StatusEnterprise

PC VoIP started as PC phone extension for enterprise

•Avaya•Cisco•Nortel

Personal VoIM

Large portals with IM clients started offering VoIM•Single Client IM

•IRC, ICQ •AOL AIM•MSN Messenger•Yahoo! Messenger


•Yahoo! Messenger•Jabber

•Converged IM •Meebo •Trillian•Gaim

Yack!

VoIP StatusVoIP Challenges

• VoIP subscription fees are:•None

•Very low per minute rates

•Low Monthly/Yearly Flat rate

•Client acquisition costs are very high•Vonage–$150-200 according to CEO interview


•Vonage–$150-200 according to CEO interview

•Offerings of “VoIP subscriber for sale” $ 200 per head

•Churn is very high•No Differential factors: if I’m on a 19.99 flat package I could turn to a different vendor for 18.99

•(Ask Vonage)

VoIP TrendsVoIP Trends

Personalization All Platform New Models


Personalization

• Avatars

• Social Networks

All Platform

• Mobile VoIP

• Converged VoIP

New Models

• Pay Per Call

• Call-to-Expert• Call statistics

VoIP TrendsPersonalization

Skype Offers Klonies with Comverse

More Avatars by


More Avatars by

• Combots

•WeeMe

•IDT

VoIP TrendsMobile VoIP

Usually free calls between subscribers PC over current Portal VoIP networks

Lower than standard rates for mobile calls

EQO - Widget for MySpace for Mobile


Fring – Leading Israeli Mobile VoIP Company

iSkoot – Deal with Skype Mobile

VoIP TrendsMessaging Convergence

Cerulean Studios’ Trillian Connects to

leading IM services:•MSN

•ICQ

•Yahoo

VoIM convergence


VoIM convergence•Farsight

VoIP TrendsConnect to Expert/Service

Palore• Call and rate services like restaurants or plumbers

BitWine • Connection to experts


• Connection to experts

Kasamba • connect to expert, bought by LivePerson for $ 40M June 2007

Video Trends•Video overly advertisement

•Video understanding and tagging


•Media discovery

UGC Video TodayUGC Video Today

Is this the best video delivery system we can create?

A $1.4B system?


A $1.4B system?

Where are the Videos I like??

Video ChallengesPortal Video Challenges

• Revenues are mostly based on Advertisement:•No Focus or Ad personalization per

�Content

�User

•Low CTR

�Clients wants to see video and not buy Cola or a new phone

•High expenses


•High expenses•“CDN costs are killing us”

•Personalization – Nada !•Aggregated search mechanism - No

•Personal recommendations – No

•“Save” option

•Low stickiness

Video SolutionsSolutions

•Specialized niche videos• Example: 5Min, Café-Confidential in Metacafe

•Video overly advertisement• Example: YouTube - August 2007

•Video understanding and tagging• Examples: VeoTag, Blinkx


• Examples: VeoTag, Blinkx

• Better Search results

• Better Advertisement targeting

•Social discovery web sites• Discover people with the same taste

Trends

Recommendation Systems close the loop between content creator/distributors and the

Creates Content

Content Creator

BroadcastDistributer User

Content Creator


creator/distributors and the users

Recomm.

System

UserDistributer

Video SolutionsInternet Video Trends

FuturePresentPastProcess

My Customized

channel

UGC / Pre defined

channels

Broadcast

Pre defined

channels

Distribution


Lean backLean Forward

Text search of clips

Lean Back – open

loop

Consumption

UGC + Legal

Premium content +

Meshups

UGC content +

Stolen Premium

content

Premium ContentContent type

Financial issues

in scaling


● Revenues models ● Expenses● IPR Issues● Development issues

Financial issues in scalingRevenue Models

• Advertisement• Google, MetaCafe, YouTube and most of Web 2.0 services

• Subscription fees• Business service – LinkedIn• Content download - Rhapsody music service by real


• Per interaction model• iTunes – per song payment ~ $1• Guba – per video payment ¢45-99• Requires attention to client retention• Requires very low cost of billing handling (~¢1 )

• No revenue model – Exit

Financial issues in scalingVoIP and Video startup scaling

Full scale Full scale

Garage

+Alpha

10K users

Idea

Web Web 22..0 0 developmentdevelopment


commercial commercial

deploymentdeployment

Scaling

1M users

Commercial

Dev. + Beta

100K users

Financial issues in scalingCommunity oriented Startup

Create a Community

• Socialization

• Information sharing

Community Bonding/Gluing

• Socialization and search tools

• Stronger relations and

Create

Communities


• Stronger relations and interactions between community members

Bridging Communities

• Creating mutual interest spaces

• Bridging technological Gap

Social

Service

Financial issues in scalingCommunity Creation

Bridging

Free Services•Goals

•Group creation•Group Scaling

•Identity

Premium Services•Goal

•Revenues•border crossing Presence – Mood

Technology oriented

premium bridging services


Bonding

Community

•Identity•Connection •Basic communication•Presence

•Presence – Mood•Personalization•Cross technology services

•VoIP<->PSTN•VoIP over Mobile•Free WLAN

Community free services

Financial issues in scalingExpenses

What Should be the cost of the model? What is the delta-expense between 1M and 10M users?

• Linear • Semi-linear• Flat


• Flat

Linear Cost• IP and Patents for media coding and processing

Semi linear• Support, Infrastructure

Flat• Development costs

Financial issues in scalingIPR Costs

•As engineers we tend to see only development

•For large scale deployment, IPR (Royalties) are the largest expense (ask Adobe and Skype)

•Payment for IPR:• Codec Patent rights (G729, G723.1, MPEG4)


• Developer royalties for companies developing our:• Signaling

• Multimedia codecs

Financial issues in scalingOwnership problems – 3rd Party IP

•Standard media codec and many algorithms used for media coding are protected IP and requires payment to patent owners.•Although after the community is large enough there are revenues from premium services, they do not cover IPR costs

How to finance


Revenues

IPR Costs

How to finance

this gap? Subscribers

Revenues

IPR

Costs

Subscribers

Financial issues in scalingDevelopment Models review

ConsProsDevelopment

Time-to-marketDevelopment risksLarge initial cost

Create IP for the companyNo Royalties / 3rd costs

Internal Development

Deciding which option to choose affects the development cost, scaling costs and TTM


Large initial costDevelopment

IPR if existsRelay on other companies

Time-to-marketLow initial cost (royalties)No development risks

Buy

Hmmm…Low development risksTime-to-MarketNo Royalties / 3rd costs

Outsource

Financial issues in scalingProject Mapping into development option space

Outsourcing

Make/Internal

development

Development

risk Time-to-MarketDevelop +

Consulting


Buy

Long-term/IP

cost

Financial issues in scalingSummary

•Pay attention to scalability and IP ownership issues

•Rapid Development• Use open source for rapid prototyping and demos

• Buy or outsource whatever you can’t develop fast.

• Don’t get stuck because on technology issues

•Mix technological breakthrough, product features, client behavior understanding and innovative GUI


client behavior understanding and innovative GUI to get ahead of the pack

Biz ModelBiz Model

TechnologyTechnology

ScalingScaling

IdeaIdea

DSP-IP Contact information

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Adi YakovAdi YakovTraining ManagerTraining Manager

adi@[email protected]

++972972--99--86519338651933


Projects development services:Projects development services:

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Alona AshkenaziAlona Ashkenazi

Development Development ServicesServices

alona@[email protected]

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