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Riding the Crest of the Video Tsunami: Nevada Telecom
1. Riding the Crest of the Video TsunamiNTA 2011 Conference – August 17, 2011
2. Technology Is Changing Behaviors Technology has provided content ubiquity, and consumers are responding enthusiastically Increasingly VIRTUAL Business, entertainment, communication Increasingly MOBILE Blackberry, iPhone, iPad, DROID, FloTV, MobiTV Increasingly ON-DEMAND iTunes, YouTube, Hulu, over-the-top video Increasingly BROADBAND Faster, increased utility, video, multitasking
3. Video Permeates All Communications Telepresence Unified Multimedia Communications Entertainment Business Consumer Video News Linear / On-demand / Interactive Telecommuting Health Remote Management Video Texting Gaming Mobile Caller ID on TV
4. 2010 – For the First Time… In 2010, for the first time, virtual media distribution revenue surpassed physical in all formats Video Music Gaming eBooks This is the decade that the millennial generation enters the work force en masse The first generation to bring technology to the workplace Mobility Social Media Explosion of individual applications Virtualization
5. What Is Television Anyway? What does television really represent? TV viewing is the #1 waking activity in the US (Nielsen) 503B hours annually Second only to sleeping More hours are spent watching television than working How TV is evolving Technology driven innovation has changed the definition of “TV” The holy grail of the “4 anys”: Content Screen Time Device The emergence of the applications driven environment means that broadcast TV, the original use case, is simply one application
6. The Evolution of Television Time and media shifting are in full adoption mode Overall TV viewing time continues to rise Time shifted, unicast content accounts for rising percentages Y-O-Y Streaming unicast traffic in primetime hours is increasing at a rate exceeding 200% annually * Netflix represents nearly 40% of downstream Internet traffic in US primetime Implications for the network are significant Bandwidth increases exponentially, even more so within narrow time slots Capital planning and capacity engineering are disrupted and increasingly unpredictable For the first 50 years, the consumer was told what they could watch, and when Consumers now have the ability to watch anything, where and when they want Technology driven evolution The DEFINED experience The OPTIMIZED experience *Sandvine: 2010 Global Internet Phenomena 20 N. American, AsiaPac, & EMEA DSL & Cable Networks
7. An All-Video World Breaks the Mold What changes for the service provider? Capacity requirements Network models break An exponential growth in traffic with identical reliability expectations Need more fiber and capacity Barriers to entry Operational models break More competition decreases predictability; management requirements increase Need more efficiencies and flexibility Rate of change Business models change Service providers driven by market, not network Need new focus on Service quality Personalization Faster time-to-market
8. What’s at Stake * * Mobile apps will generate $17.5B in revenue in 2012 GetJar IDC, January, 2010
9. Compass Flow Analyzer How are subscribers using the access network? Broadband Connection ? Access Network Internet
10. Compass Flow Analyzer Subscriber Application Visibility Is a “Must Have” ? Access Network Internet
14. Flow Analyzer Sample: BW Usage All Subscribers, Individual Service YouTube Individual Subscriber, All Services All Subscribers, All Services
15. Compass Flow Analyzer Identify new REVENUEopportunities Targeted service up-sell opportunities In-home network services Increase SUBSCRIBERsatisfaction Diagnosis and troubleshooting of services at the IP layer Identification of malware infected machines Optimize NETWORKresources Understand sources of bandwidth demand Well Informed network capacity upgrades Reduce COSTof delivering services More efficient network operation Scale service offering
Mobile platforms feature the most complete applications menu, as demonstrated by the revenue projection here. However, applications are every bit a part of the convergence discussion. As broadband enable devices continue to proliferate, each of those platforms that integrates the widest applications array possible brings the service provider a new, and growing revenue stream. Even a fraction of the mobile applications market is significant.