Evolving the Service Provider Business Model for OTT Service DeliveryRajan RaghavanVice President and General Manager, Content & Media

What is behind recent APAC data CENTER growth spurts for service provider?

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CONSUMER VIEWING DEMANDS ARE CHANGING

Multiple DeviceMultiple Device

On DemandOn Demand

Traditional TVTraditional TV

LinerLiner

Device

ProgrammingProgramming

Elements Traditional New Trend

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TV Shows / Movies

TV Shows / Movies

High Definition/ 3D

High Definition/ 3D

InfiniteInfinite

User GeneratedContent

User GeneratedContent

Standard DefinitionStandard Definition

LimitedLimited

ContentContent

QualityQuality

Choice ofContent

NSP STRESS REGARDING ONLINE VIDEO IS ABOUT TRAFFIC GROWTH PLUS CONSUMER VIEWING AND SPENDING PATTERNS

Source: Cisco VNI

Online Video Growth Impacting Network Capacity

Source: Comscore Great Expectations; August 2010

Online video has to be part of NSP services

Source: Infonetics, Netflix, Juniper

Incumbents have to justify their premium ARPU

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TV Service Value Chain

NSP Content Owners

$

$ $

Online Video/Content Value Chain

NSP CDN Aggregators Content Owners

$

$ $

$

$ $

$ Content related advertisingInternet/Data/Peering$ Content related$

JUNIPER IS AT THE CENTER OF KEY INDUSTRY TRANSFORMATIONS

BUSINESS TRANSFORMATION ENDPOINT TRANSFORMATION

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� NSP/Content/Aggregator Relationships

� Media Flow platform for unified content delivery

� Network DNA extended to content aware networks

� Open Platform Strategy (JUNOS, Space, Pulse)

NETWORK ARCHITECTURE TRANSFORMATION

PLATFORM ARCHITECTURE TRANSFORMATION

NSPS ARE WORKING TO SOLVE ISSUES ON MULTIPLE FRONTS

DEALING WITH TV SERVICES

MO

NE

TIZ

AT

ION

DEALING WITH ONLINE VIDEO

Impact the value chain– Become a CDN provider

– Co-opt the online world

– Usage based billing

– QoS/QoE Offerings

Add new revenue elements– TV Everywhere (Multiscreen)

– Content relationships (eg. sports)

– Contextual interactivity

– Advanced advertising

Add new revenue elementsAdd new revenue elements Impact the value chainImpact the value chain

TV SERVICES

MO

NE

TIZ

AT

ION

ONLINE VIDEOO

bjec

tives

Dealing with ..

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OP

TIM

IZA

TIO

N

Reduce TV Delivery C– Reduce network cost/bit

– Distributed media platforms

– Better Service Automation

– Lower CPE costs (STB, RG)

Cope with the problem– Reduce network cost/bit

– Transparent caching

– Mobile RAN optimization

– Tiered plans to reduce traffic

Reduce TV Delivery CostsReduce TV Delivery Costs Cope with the problemCope with the problem

OP

TIM

IZA

TIO

N

Obj

ectiv

es

Key Takeaway� Optimization + Monetization

� Converged Architectures

� Tactical Battles

� Mobile endpoint growth

BUSINESS AND NETWORK TRANSFORMATIONService providers increasingly recognize that deploying their own content delivery technology can provide many benefits

� Reduced transit costs

� New business models

Ownership of the network, subscribers and content delivery can be a powerful combination

Network Service Providers$Potential Monetization

opportunityPotential Monetization

opportunity

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Network Service Providers

Content $

$

$

Content caching and delivery systems

Reduced traffic on service provider networks

Reduced traffic on service provider networks

opportunityopportunity

ENDPOINT TRANSFORMATION MOVES DELIVERY FROM SERVICE SILOS TO ANY CONTENT, ANY DEVICE, ANYWHERE

TV Service DeliveryTV Service Delivery

Online Video Delivery

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Cross-platform services based on software clients and device identity

Controlling on-ramp and off-ramp for services; “new media middleware”

� Per flow SLA’s, QoE enhancements, IP multicast, upconversion, caching,…

� Ability to create a multiservice application client on the video endpoint (eg. DVD players)

� Remove cost of client as a barrier to entry

Online models can move optimization and monetization to the client side

� Bandwidth optimization, targeted context-based advertising

In the mobile world, clients will choose the optimal network (eg. Wifi vs. 3G)

MULTI-SCREEN DELIVERY – ADAPTIVE HTTP DELIVERY- KEY REVENUE OPPORTUNITY

Online Media Companies

Internet OTT Content Deliver

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IPTV and CableOperators

Operator NetworkPay TV Service Delivery

SUMMARY

Consumers are more demanding than ever in terms of:� Variety choices of high quality contents

� Downloading anywhere anytime by multiple devices

Network Service Providers are working to solve by multiple front:� Dealing multiple service such as TV and On demand video at a time

� For Monetization and Optimization

� Endpoint transformation moves delivery from service silos to any content,

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� Endpoint transformation moves delivery from service silos to any content, any device, anytime by adaptive http delivery.