MoMo Toronto - Summer Wrap-up 2008: Introducing BC$

The Semantics of The Semantics of MobileTVMobileTVBryan Copeland Bryan Copeland

Email: [email protected]: [email protected]

June 9June 9thth, 2008, 2008

CategorizationCategorization RecommendationRecommendation MonetizationMonetization

BBehaviorehavior CContentontent MMoneyoney

About MeAbout Me

MobileTV | Problems | Solution | BC$ | Demo

IUJIUJ

• 4 Masters Degrees

5050++ nationalities

• Top MBA program (Japan)

• 1st E-Business Degree (Asia)

1 world record90 min.Tokyo

• 2nd Biggest Economy


Shocked at the time…Shocked at the time…


Credits: Dr. Philip Sugai, Associate Dean of IM @ IUJ

MoCoBeMoCoBe

Make sense of Japan’s Mobile marketMake sense of Japan’s Mobile market


Video displayed on a MobileVideo displayed on a Mobile

Regular TV Broadcasts?Regular TV Broadcasts?

P2P, downloaded TV ShowsP2P, downloaded TV Shows

Streamed Video-on-DemandStreamed Video-on-Demand

Pre-recorded Programs on DVR Pre-recorded Programs on DVR

Slingbox? iPods? PSP? Slingbox? iPods? PSP?

RFID-controlled Billboards???RFID-controlled Billboards???

What is MobileTV?What is MobileTV?


Mobile - Mobile - An object having the ability An object having the ability of of motionmotion or or changechange, but not necessarily , but not necessarily being in motion or changing. being in motion or changing. MobilityMobility then, has 2 defining qualities: then, has 2 defining qualities:

portabilityportability variabilityvariability

TV - TV - Any Any telecommunicationtelecommunication system system used for used for broadcastingbroadcasting and receiving and receiving moving picturesmoving pictures and and soundsound over a over a distancedistance

Mobile TV? Any adaptable video or audio signal transmitted to a display

(possibly, but not necessarily while on the go)

Domain OverviewDomain Overview


One-Seg Data Service (BML)

OneSeg-MediaFlo JapanOneSeg-MediaFlo Japan


Ads PPV, VOD

MobileTV EcosystemMobileTV Ecosystem

Data Stream (Query)

Fixed line(Fiber Optic)

Content

(Expense $$$)

Personal TV

Bluetooth or Wi-Fi(content/synch.)

Blu

etoo

th o

r W

i-Fi

(con

tent

& a

ccou

nt s

ynch

roni

zatio

n)

Home Entertainment

Center

Co

nte

nt

($$

$ R

eve

nue

)

Projection

Mobile Base-station

Sponsored Results/AdLinks

($$$ Revenue)

Bluetooth or Wi-Fi

(content & account synchronization)

`

Blue

toot

h or

Wi-F

i

(con

tent

/syn

ch.)

Carrier Portal(i-mode, EZWeb, Yahoo!)

Co

nte

nt

($$

$ R

eve

nu

e)

Content

($$$ Revenue)

Ad AgenciesCompanies

Ads/Commercials

($$$ Revenue)

Content Aggregator / Provider Servers

Data Stream (Match)


User

World’s 2World’s 2ndnd Largest Economy Largest Economy

Most advanced MobileTV & Mobile Data Most advanced MobileTV & Mobile Data networksnetworks

22ndnd Highest Adoption Highest Adoption

WHY?!?WHY?!?

JapanJapan


CanadaCanada

Wireless Cellular Data Services long kept Wireless Cellular Data Services long kept unaffordable to most Canadians… unaffordable to most Canadians…


Decreasing Voice ARPUDecreasing Voice ARPU

May be only way to save falling Voice ARPUMay be only way to save falling Voice ARPU


Increasing Data ARPUIncreasing Data ARPU

““Almost 50 cents of every dollar flowing into Almost 50 cents of every dollar flowing into the Canadian telecom sector now comes the Canadian telecom sector now comes from cellular or Internet service”from cellular or Internet service”11

1 – Grant Robertson, Globe and Mail: Cellphones, Internet step to the fore


Loads of room for growth in CanadaLoads of room for growth in Canada Need platforms, policies & standardsNeed platforms, policies & standards

Data ARPU OpportunityData ARPU Opportunity


• Useful to look back to a time when Telcos Useful to look back to a time when Telcos

……were most innovative & profitablewere most innovative & profitable

Plenty of DistractionsPlenty of Distractions

Gaming

Messaging

Voice

TV Music

Movies

Internet

Payments

Banking

MobileLifestyle


What Telcos Were NOTWhat Telcos Were NOT

TV StudiosTV Studios TV BroadcasterTV Broadcaster Movie StudiosMovie Studios Record LabelsRecord Labels Game ManufacturersGame Manufacturers Content ProducersContent Producers Ad NetworksAd Networks

BanksBanks E-commerce ProvidersE-commerce Providers Translation ServicesTranslation Services Web PortalsWeb Portals Search EnginesSearch Engines CartographersCartographers Travel AgentsTravel Agents Web Design companyWeb Design company


What Telcos WereWhat Telcos Were

TELEPHONE COMPANIESTELEPHONE COMPANIES


Worry about Spectrum AuctionWorry about Spectrum Auction

Promote EntrepreneurshipPromote Entrepreneurship

Realize benefits of Data Services and Realize benefits of Data Services and Impact of 3G devices Impact of 3G devices ((iPhoneiPhone, , BoldBold, N95), N95)

Recognize lack of ecosystem, help fix itRecognize lack of ecosystem, help fix it

ProposalProposal

MobileTV | Problems || SolutionSolution | BC$ | Demo

Electronista: BlackBerry Bold official, beats iPhone to 3G

Personal Agenda?Personal Agenda?

Mobile Streaming works in Europe, South Mobile Streaming works in Europe, South Korea, Malaysia, Japan, USA, etc… Korea, Malaysia, Japan, USA, etc…

NOT CANADA… WHY?NOT CANADA… WHY? Handsets DO support itHandsets DO support it Network does notNetwork does not

REQUESTREQUESTOpen RTSP streaming on all Mobile NetworksOpen RTSP streaming on all Mobile Networks

MobileTV | Problems || SolutionSolution | BC$ | Demo

BC$ ProposalBC$ Proposal

BC$ is a BC$ is a Recommendation EngineRecommendation Engine and and Video Video Monetization PlatformMonetization Platform

CategorizationCategorization RecommendationRecommendation MonetizationMonetization

BBehaviorehavior CContentontent MMoneyoney

MobileTV | Problems | Solution | BC$$ | Demo

Company – BC$Company – BC$

B = B = BehaviorBehavior (non-intrusive, opt-in behavioral tracking)

C – C – ContentContent(relevant content recommendations, convenience/utility)

$ – $ – MoneyMoney(promising monetization opportunities, ads & subscriptions)


Business ModelBusiness Model1. Content providers will release the rights to their content to be Recommended through BC$

2. Available content is catalogued for Advertisers’ consideration, preferred placements, targets

3. Advertisers will immediately place bids, however in “Matchmaker” style rather than “Auction”

4. Online Retailers must take a risk by offering store credits to account for the virtual currency

5. Virtual currency earned through TRUSTED Recommendations drives E-commerce sales

6. Content Producers are monetarily rewarded when their content produces sales, or, BC$

7. Carriers claim a percentage of Ad Revenues / Subscriptions to cover Data Service fees

Online RetailersAdvertisers

Content Producers

Carriers


Content Publishers & Service-providers Content Publishers & Service-providers need to cooperate, not compete, in order need to cooperate, not compete, in order to provide the highest quality, most to provide the highest quality, most relevant content to usersrelevant content to users

We must learn from the We must learn from the mistakes of the of the Japanese Walled-Gardens, and , and benefitsbenefits of the of the Japanese Ecosystem modelJapanese Ecosystem model

Closing Thoughts…Closing Thoughts…


Looking for Developers to contribute to Looking for Developers to contribute to ongoing ongoing OpenRecommenderOpenRecommender project project

Angel Funded, seeking Round 1 Capital Angel Funded, seeking Round 1 Capital to sustain Beta growth by to sustain Beta growth by January 2009January 2009

In Canada, plan to… In Canada, plan to… Fight for ubiquitous RTSPFight for ubiquitous RTSP (if necessary)(if necessary)

Begin talks with major players Begin talks with major players (among others)(among others)

Call to ActionCall to Action


DEMOSDEMOS On MobileOn Mobile YouTube IntegrationYouTube Integration

(Browser Plug-In… accesses site)(Browser Plug-In… accesses site)

NetworkNetwork BBC$C$

BBC$ C$

WikiWiki BlBlogog

ForumsForums SSNSNS

FFacebook *acebook *

MMySpace *ySpace *

ValueValue YoshonetYoshonet


APPENDIXAPPENDIX

eMobileeMobile

Small number of loyal, happy subscribersSmall number of loyal, happy subscribers

““New kid in town”New kid in town”

Wireless Data ServicesWireless Data Services Over Wi-FiOver Wi-Fi Wi-MaxWi-Max 3G network3G network MobileTV (OneSeg)MobileTV (OneSeg) 11stst to Introduce to Introduce 7.37.3MbpsMbps Download Download

SoftbankSoftbank

Lowest subscriber Churn, Highest GrowthLowest subscriber Churn, Highest Growth Largest % of University-aged & early-Largest % of University-aged & early-

career career (20-28yrs.)(20-28yrs.) subscribers subscribers Considered safest for kids, Considered safest for kids, kodomo keitaikodomo keitai Easy, Low-cost, Convenient, No-nonsenseEasy, Low-cost, Convenient, No-nonsense

KDDI (au)KDDI (au)

22ndnd Biggest Market Share Biggest Market Share Largest % of Largest % of FemaleFemale subscribers subscribers Largest % of Largest % of teenteen (13-19yrs.)(13-19yrs.) subscribers subscribers Stylish, Hip, Fashionable, CoolStylish, Hip, Fashionable, Cool

NTT NTT (DoCoMo)(DoCoMo)

Largest Market shareLargest Market share Largest % of Largest % of BusinessBusiness subscribers subscribers Largest % of Largest % of MaleMale & & SeniorSenior subscribers subscribers Trust, Status, Premium, Power-user, TakaiTrust, Status, Premium, Power-user, Takai

As of March 31, 2005, the NTT Group As of March 31, 2005, the NTT Group had grown to 542 companies and had grown to 542 companies and 201,000 employees worldwide 201,000 employees worldwide

NTT GroupNTT Group

NTT R&D VisionNTT R&D Vision

NTT – NTT – New Business New Business Creation InitiativesCreation Initiatives

iMode iMode *NEW & IMPROVED**NEW & IMPROVED* Business ModelBusiness Model

World Data ARPUWorld Data ARPU

One-Seg MobileTV ExplainedOne-Seg MobileTV Explained

ContentAggregator

Broadcaster

End UserAdvertising

AgencyAdvertiser

Content Provider

Mobile Carriers

Retailer

1

2 3

4

5

6

7

8

9

Japan’s Business ModelJapan’s Business Model

Relevant Content & AdvertisementsRelevant Content & Advertisements

Content FlowContent Flow$$Money Flow$$Money Flow Interacts with Ad link

HandsetsManufacturers

Content providers provide content to content aggregators and this content moves to Content providers provide content to content aggregators and this content moves to broadcasters when requested, through the exchange of money for content. broadcasters when requested, through the exchange of money for content.

Mobile carriers have to pay extra $ to handsets manufacturers for the added Mobile carriers have to pay extra $ to handsets manufacturers for the added features (ability to watch live TV & longer battery) features (ability to watch live TV & longer battery)

Broadcasters offer end-users the ability to watch live TV by using OneSeg services Broadcasters offer end-users the ability to watch live TV by using OneSeg services over the 3G Networks via Mobile carriers, free of charge. over the 3G Networks via Mobile carriers, free of charge.

This model will work if end users will interact with the ads displayed while watching This model will work if end users will interact with the ads displayed while watching TV on their mobile. Every time end users click on the ads or buy things through M-TV on their mobile. Every time end users click on the ads or buy things through M-Commerce then it will create critical money flow through the system. Commerce then it will create critical money flow through the system.

When end users click on an ad and make a purchase, then a portion of this money When end users click on an ad and make a purchase, then a portion of this money will flow to mobile carriers; the remaining money will be shared with broadcasters, will flow to mobile carriers; the remaining money will be shared with broadcasters, producers and publishers. producers and publishers.

Since it’s free for the end user, advertisers will clearly support the entire ecosystem. Since it’s free for the end user, advertisers will clearly support the entire ecosystem. Advertisers will pay an advertising agency money to create an ad and the agency Advertisers will pay an advertising agency money to create an ad and the agency will pay money to broadcasters to air their ads.** will pay money to broadcasters to air their ads.**

**The One-Seg FREE TRIAL period comes to an end at the end of the fiscal year, future unclear!!!**The One-Seg FREE TRIAL period comes to an end at the end of the fiscal year, future unclear!!!(Early reports indicate that users are opting for ad-supported, or premium, subscription service)(Early reports indicate that users are opting for ad-supported, or premium, subscription service)

1

5

3

4

6

7

8 9

Explanation of Japan’s Mobile TV Biz-Model 1Explanation of Japan’s Mobile TV Biz-Model 1OneSeg (Broadcast via terrestrial)OneSeg (Broadcast via terrestrial)

BellBell

Bell (cont…)Bell (cont…)

ShawShaw

RogersRogers

Virgin Mobile (MVNO)Virgin Mobile (MVNO)

TelusTelus

Telus (cont…)Telus (cont…)

Focus on what it is you do best… Focus on what it is you do best… (hold on to key profit sites)(hold on to key profit sites)

Innovate around your core products and Innovate around your core products and services; partner, align, outsource on othersservices; partner, align, outsource on others

Myriad of ways to integrate voice into Myriad of ways to integrate voice into interesting and useful new applications… interesting and useful new applications…

Encourage Encourage New BusinessNew Business developments developments which would promote high data bandwidth which would promote high data bandwidth consumption, driving Data ARPUconsumption, driving Data ARPU

On EntrepreneurshipOn Entrepreneurship

Spectrum AuctionSpectrum Auction

Companies currently vying for Spectrum are:Companies currently vying for Spectrum are: YoungerYounger Likely to be considered HipperLikely to be considered Hipper HungrierHungrier Less to lose and more to gain than youLess to lose and more to gain than you More motivation to innovate (must innovate or die)More motivation to innovate (must innovate or die) Driven to displace old modelsDriven to displace old models Driven to displace YOUDriven to displace YOU

Money from content providers? Individuals?Money from content providers? Individuals?

Meager amount of subscribers currently willing Meager amount of subscribers currently willing to pay for small chunks of content?to pay for small chunks of content?

~OR~~OR~

A healthy portion of the advertising revenue, on A healthy portion of the advertising revenue, on large-scale service and to keep track of how large-scale service and to keep track of how your handsets/services are being used your handsets/services are being used

To “better serve” consumers, right!?To “better serve” consumers, right!?

Ecosystem: What would you Ecosystem: What would you Prefer if you ran a Telco?Prefer if you ran a Telco?

Establish a North American, interoperable Establish a North American, interoperable standard for tracking users’ behavior and standard for tracking users’ behavior and actually provide actually provide incentivesincentives for them to for them to tune into the network to watchtune into the network to watch

Meter their behavior securely & privatelyMeter their behavior securely & privately

Become facilitators of the ecosystemBecome facilitators of the ecosystem

SolutionSolution

HandsetsHandsets

DevicesDevices

P2P: Missed OpportunityP2P: Missed Opportunity

REWARD Peer-2-Peer file sharing!!!REWARD Peer-2-Peer file sharing!!! WHY persecute users?WHY persecute users? Because they happen to like a particular TV show to Because they happen to like a particular TV show to

want to have a copy to watch at any time? want to have a copy to watch at any time? (P.S. They can relieve stress on your resources with the right model)(P.S. They can relieve stress on your resources with the right model)

Just don’t let them circumvent Just don’t let them circumvent youryour Ad modelAd model, , unless they’re willing to pay a unless they’re willing to pay a subscriptionsubscription fee fee

Everybody is happy Everybody is happy (users get content, you maintain control)(users get content, you maintain control)

Our Mobile FutureOur Mobile Future

What Japan, South Korea (and all of us) What Japan, South Korea (and all of us) are ultimately headed to, is:are ultimately headed to, is: Middleman-Optional PublishingMiddleman-Optional Publishing Middleman-Free DistributionMiddleman-Free Distribution Metered P2P Content Co-CreationMetered P2P Content Co-Creation

That’s a lot of speculation, but it comes That’s a lot of speculation, but it comes after hearing from & interviewing some of after hearing from & interviewing some of the brightest in the Mobile Industrythe brightest in the Mobile Industry

Our PurposeOur Purpose

Intelligent Program RecommendationsIntelligent Program Recommendations Reliable, Transparent Content Reliable, Transparent Content RecommendationsRecommendations Collaborative FilteringCollaborative Filtering plus plus Trust HierarchiesTrust Hierarchies Comprehensive Parental ControlsComprehensive Parental Controls

Smart AdvertisingSmart Advertising Ad RelevancyAd Relevancy Inferred Product PlacementsInferred Product Placements

Integrated Contextual & BehavioralIntegrated Contextual & Behavioral Search-resultSearch-result to to E-Commerce buyE-Commerce buy Relevancy Matching Relevancy Matching Agent-based (automated) Retrieval Agent-based (automated) Retrieval Skip time-consuming search process whenever possibleSkip time-consuming search process whenever possible

BC$ ProposalBC$ Proposal Mobile community & industry stakeholders must Mobile community & industry stakeholders must

work together towards work together towards commonly acceptedcommonly accepted software software standardsstandards

As a matter of standards:As a matter of standards: Open SourceOpen Source standard – standard – each company provides its own unique, each company provides its own unique,

value-added services atop free/open software (depends on license)value-added services atop free/open software (depends on license)

De FactoDe Facto standard – standard – one major company champions software, may one major company champions software, may open through APIs or keep closed (not suggested in “Web 3.0”)open through APIs or keep closed (not suggested in “Web 3.0”)

Hybridization Hybridization of standards – of standards – one company develops / releases to one company develops / releases to open-source community… RFC for improvements, CSV to track, sell a open-source community… RFC for improvements, CSV to track, sell a non-public “enterprise version” and support companies in adhering to non-public “enterprise version” and support companies in adhering to the standards the standards *SUGGESTED METHOD**SUGGESTED METHOD*

Where we’re going…Where we’re going…

Defensive Publication for IEEEDefensive Publication for IEEE (May, 2008)(May, 2008)

Releasing Ontology & Description Logics as Releasing Ontology & Description Logics as open source (Hybrid) project open source (Hybrid) project (by July, 2008)(by July, 2008)

Searching 1Searching 1stst-Round of Funding-Round of Funding (by Fall 2008)(by Fall 2008)

Launching Beta – brand new type of social Launching Beta – brand new type of social media service & content portal media service & content portal (by Jan., 2009)(by Jan., 2009)

Technology

MoMo Toronto - Summer Wrap-up 2008: Introducing BC$