Ericsson Media Vision 2020 - Chema Casaos at #BitBroadcast14

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CAPITALS

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Media vision 2020

The new era of entertainment and connectivity

May 20st 2014

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Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 2

Networked society

Connected Devices

Tv anywhere Video enabled

ip Global enabler

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Consumerlab annual research The Voice of the Consumer

2012-06-27 | Page 3

100,000/yr RESPONDENTS 1.1 billion

REPRESENTING

PEOPLE

15 STUDIED

MEGACITIES 40 MORE THAN

COUNTRIES

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50bn Connected Devices

15bn Video enabled

ip Global enabler

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Game Changers – the 6 serialized elements for strategy to 2020

› The IP imperative

› The Cloud Imperative

› Changing consumption and bundles

› Forever evolving experience

› Brand-casting

› New money, new players – the Media landscape

Time to play 2.0 – Media vision and Game Changers

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TOPICS

• Consumers

• Content

• Technology

• Devices

• Money Flows

• Impact on players

2020

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consumers

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FUTURE is about consumer choice – while Reducing complexity

› Choice adds complexity

› Consumers want one super simple

aggregated experience

– Aggregate navigation and services

– Aggregate discovery

– Aggregate payment and billing

– Smart recommendation

› Consequences are:

– Mixing OTT and managed services

– Linear TV is just one ingredient

– Quality content is very important

– Lock-in and binding time avoidance

– Reduced large inflexible bundles

Personalization

Fixed Personalized

2013 2020

› Deep individual

consumer insight

essential

– Recommendation

– Personalization

– Monetize the

consumer – not

just the household

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› By realizing that the experience is larger than

the content itself, new revenue streams are

enabled

– Multi-device advertising campaigns

– E.g. Cinema = movie + popcorn + parking + …

– E.g. Football = TV + betting + take away + Twitter +

…

› The media experience extends across time,

platforms, services and media

› Improves consumer loyalty and provides new

entry points

Consumption extends in 2020

Continuous experience throughout the devices and channels (E.g. Football)

(Playing the game) (Reading & discussing) (Watching the match) (Following updates) (Betting) (Additional material)

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› Consumer ecosystems such as

Facebook, Twitter, Amazon, Apple have

a head-start

› Leverage or build own deep data and

analytical tools

› Deep individual consumer insight

essential

– Recommendation

– Personalization

– Monetize the consumer – not just the household

He who knows the consumer best wins

Advice, info, recommendations,

personalization, support,...

User data, habits, personal

information, Big data…

Source: Ericsson ConsumerLab, Personal Information Economy study 2013

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content

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Paying for content 2020

Willingness to pay for content High Low

Live & events Movies & TV-series ”Information” Clips & UGC Background noise Live & events Movies & TV-series ”Information” Clips & UGC Background noise

Subsidized by:

› Ads, product placement,

click to buy, personal info

Payment models

› Free

Subsidized by:

› Advertising, click to buy, donations

Payment models

› Direct consumer

› Subscription and transaction

Targeted Advertising Content Discovery

$ $ $

Consumer Analytics

Ad

Com

pan

y

Op

era

tor

$

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Roles & PLAYERS

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SUCCESSFUL TV Operators WILL HAVE changeD Consumers WILL HAVE driven CONVERGED multi-screen and personalized TV experiences

Linear TV OTT

+ Improved User Experience

+ Increased consumption

+ Higher advert value

Converged

Experience

$

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technology

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›9.8 Bn Mobile Subscriptions

›8 Bn Mobile Broadband

–4x Growth in Mobile Broadband

›1 Bn Fixed Broadband – 75% of Digital TV homes

› Mobile BB a key media enabler – For all regions and especially in regions

with low fixed infrastructure

Broadband IP

Source: Ericsson Mobility Report 2013

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› Broadband IP enabled growth in on-

demand viewing

– Time-shift of TV mostly in cloud

› 50% consumed time shift

› 50% consumed live/linear

› IP critical for video delivery

– All video away from the home

– Majority of video in the home

Delivery of video

50%

50%

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cloud

› Cloud is essential enabler

–B2B scenarios for hosting

–B2C services and propositions

› Agility – Service provision

– Updates and new features

› Experience – Harmonization of devices

– Any content, any device

– Consumer links/recommendations

› Reduced costs – OPEX model for operators

– Centralized processing

Elasticity

Speed of

Innovation

Volume Billed

OPEX vs.

CAPEX

Virtualized

Environment

Multi-Tenant

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HEVC -50% : KEY Applications

Video over LTE

Expensive bandwidth

Increasing demand

TV Anywhere

More HD

More screens

Telco / IPTV

Longer reach

More subscribers

UHDTV (4K)

Critical for delivery

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devices

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› 4x HD resolution

› Standard flat screen resolution

› Content available

– Premium TV services

› Consumer devices native ultra HD

– Smartphone cameras

– Video cameras

Ultra HD SCREENS the norm in 2020

HD HD

HD HD

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› Bring your own device culture firmly in-place – TV service providers leverage all connected devices

› Complexity challenge to overcome with unified experience

Era of Bring your own device (BYOD)

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The Shrinking set top box

Today 2020

Conditional Access

Local DVR Storage

HD

RF Tuner or IP

Thick Client

Local EPG

HDMI 1.4

$$$$

Digital Rights Management

Cloud DVR Storage

UHD

IP + RF Tuner (Hybrid)

Thin Client with Android/RDK

Cloud EPG

HDMI 2.0

$$

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CLOSING

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› The Networked Society is realized

– 15bn video enabled devices connected to

broadband IP

› 50/50

– On-demand consumption at parity with live/linear

– Long tail and +1 channels move to on-demand

› Market revenues have grown to $750bn

– up from $530bn in 2013

– Existing service providers embrace OTT

› New money, new players

– IP connectivity brings new entrants into market

2020 VISION – KEY BELIEFS › Content remains King

› Consumer values

– personalisation, choice and intelligent

recommendation

› Advertising more targeted/ profiled

› Emerging markets rely on mobility

– Limited fixed IP infrastructure,

– Leverage investment in local content

› 4k main screen the norm

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TV customers

> 2000

No. 1 In Satellite, Contribution and

Distribution markets

in more than 100 countries

Global on-demand content

consumed has been processed by

Ericsson solutions

> 40%

> 750k Video assets processed by

Ericsson solutions annually

15+ year track record of first-to-market

innovations

Multi-award-winning TV Portfolio including 3 Emmys for HDTV, On-Demand and

AFD

Global video-on-demand viewed

delivered by Ericsson solution

> 30%

3D TV World’s first live 3D

broadcast

Our pedigree

Solutions that maximize

EFFICIENCY of video

delivery Solutions that maximize

CONSUMER value for

OPERATORS

Solutions that

maximize value of

CONTENT