Fjord@ The Future of Broadcasting

The changing media consumption landscape Olof Schybergson, CEO, Founder Future of Broadcasting, June 28th 2011

Slide 2 © Fjord 2011 | Confidential

At Fjord we design digital services

We design digital services that transform businesses and help shape tomorrow’s world.

The landscape

The rapidly evolving TV entertainment domain


The TV/video ecosystem

DISTRIBUTORS Cable, satellite, telecom

CONTENT OWNERS TV networks and studios

DEVICE MANUFACTURERS TVs, STBs, handsets

SERVICE INNOVATORS Digital natives


TV viewing is not disappearing

Consuming TV/Video is very popular and people are today spending up to 35% of their leisure time on watching content. Weekly hours of TV viewing, all in the UK aged 4+

SOURCE: BARB 2011


But there are some challenging trends

There is a clear shift in behaviour in the youngest audience. With this group, social media has become a very direct competitor for time share. Weekly hours of TV viewing.

SOURCE: BARB 2011


Changes to consumer expectations

Consumption patterns •  People are actively exploring new TV/Video technologies •  …and are looking to enrich their viewing experience •  There are not many established consumption patterns (except the ‘old’ ones) •  More than 70 % are “time-shifting” on a weekly basis 1, and 50% are using

internet based on demand TV/video every week

SOURCE: Ericsson ConsumerLab MSMC-study 2010 1 Streaming, downloading or watching recorded broadcast TV


Communication

Entertainment

Information

WAS

NOW

The borders are blurring

Entertainment

Communication

Information


= Business disruption

•  TV/Video consumption is fragmented and complex •  New types of entrants in the market •  A trial and error market with lots of curiosity around •  No obvious global leadership

The role of devices

What roles the dominant screens in our living rooms play


The battle of the glowing rectangles

Convenient & relaxing

High quality

Social

Lean back

Fighting loneliness

Time shifting

Free & unlimited

Lean forward

Multitasking

Personal

’Only screen around’

To kill time & in transit

Communication

While waiting

Very personal

•  Each of the dominant screens has some strengths for TV consumption •  It’s not a choice between the screens, a strategy has to include all key screens

Media consumption

Internet + email

Socially acceptable

Domesticated mobile

Entertaining kids

No single screen has it all !

TV Computer Mobile Tablet

Device approach #1

Do something great on one device, or connect two devices in a novel way


The future of TV ! …really?

Both Samsung and LG are offering ‘smart TVs’, all-in-one media experiences in the living room. Is this experience what people want?

LG Smart TV Home view Samsung remote control top Remote control underside

Samsung Smart TV Home view


An alternative TV approach from Ericsson

•  Exponential complexity of media consumption doesn’t marry well with an old-school remote control solution.

•  This solution separates the discovery and control of media (on the tablet) from the enjoyment (on TV).

•  Media control in the home is a natural start point for the wider connected home domain.


Does Ericsson’s solution meet a real need?

According to a large user study, 3 growing user needs are met very well: 1.  A remote control that is using a touch screen paradigm 2.  An ability to use the Internet on the tablet 3.  An ability to preview and parallel view using the smaller screen


Companion experiences

The NFL iPad app is designed to be the perfect companion for the TV experience. •  Stats •  Info graphics •  Social features •  Background info

Device approach #2

A seamless experience across all key devices


A typical arch of the day


Connecting the (glowing) dots

Cross-platform access, ubiquity, and fluidity is the next frontier of the digital service battle. Companies like Amazon (whisper synch), Google (Maps, Android), and Apple (iCloud) are leading the way.


…and beyond the dots

The car and the home are the primary ‘smart environments’. In the near future, billions of ‘dumb’ objects will also be connected. Services will be extended to encompass these.

Smart environments Smart objects


BBC iPlayer availability and access

•  BBC iPlayer is available on 4 key platforms •  Usage is stabilizing

around 150m views/month, and 1.5m unique viewers per day •  In an on-demand world,

discovery becomes a strategic user experience issue

Web Mobile Gaming consoles TV (through STP)


Netflix as the service innovator du jour

•  Available on all major digital platforms: gaming consoles, computers, tablets, mobiles •  User experience is designed for

the platform and the context •  The constant is the design

principles – they stay the same but the application varies across input, posture, navigation and display 1

With over 20million members globally, Netflix is the leading Internet subscription service streaming movies & TV episodes. Netflix members can instantly watch unlimited streamed movies & TV episodes.

1 SOURCES: www.uie.com/brainsparks/2011/06/07/multi-device-design-netflix/ & en.wikipedia.org/wiki/Netflix

Towards a service approach

Devices make experiences tangible, but the service approach is what truly matters


Service challenges

•  As home entertainment is becoming inherently interactive, the experience should be service-led, rather than one of distribution

•  TV service design is about stitching things together to a coherent experience •  There is the need to support two potentially conflicting needs

1.  Simplicity and inclusiveness: over 50% think simplicity is very important 1

2.  Individual passions

Simple service activation

One account (SSO)

Simple and transparent billing

Lean-back optimized

Social and inclusive

Effortless enjoyment Scales to many screens and devices

Includes web interactivity

Supports playlists, sharing, queuing

Scales to UGC sharing, text input, etc.

Smart search and recommendations

Flexible and individual

1 SOURCE: Ericsson ConsumerLab MSMC-study 2010

To sum up

The opportunity in the TV / media landscape


The opportunity

•  No clear international leadership in the domain •  With increased viewer flexibility comes complexity and confusion •  Key focus will be on service coherence, elegant media discovery and

control, and multiple device usage •  There’s a massive opportunity to do for the media industry what Amazon

did in retail and Apple in music and telecom •  User-focused design – rather than technology – is at the forefront of

innovation and change

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Fjord@ The Future of Broadcasting