Part of the course "Interdisciplinary Perspectives of ICT and Media"of the "Advanced Master in Intellectual Property Rights and ICT Law". http://www.law.kuleuven.be/icri/en/education/masterict/

1. Trends in
ICT and Media
Academic year 2013-2014
Dr. Ir. Reinhard Laroy

2. Digital substitute for analogue

3. Digital technologies
• Broadband internet access created new delivery chains
o
o
supportive (newspapers, television)
disruptive (music, magazines)
 Connected Digital Consumer

4. Adoption rate of new technologies
Source: SuperMonitoring.com (2013)

5. Outline
•
•
•
•
•
•
•
Music
TV & Video
Telecom Operators
Print Media
Social Media
Payments
Internet of Things

6. Music

7. Digital music caused disruption
• CD: first audio medium that
could be reproduced cheap
without quality loss
• Record labels didn’t anticipate
illegal music via internet
(e.g. Napster, torrents)

8. Music's lost decade: Sales cut in half
Source: CNN Moneytalk

9. iTunes
• “The sky was falling, and iTunes provided a place where
we were going to monetize music and in theory stem the
tide of piracy.” - Michael McDonald, ATO Records
• iTunes focused on singles instead of albums :
making all songs seperately
available for 99 cents
 impact on business model
of the record industry

10. Single downloads take over…
Source: RIAA, CNN Moneytalk

11. … has disastrous impact on overall music
revenues
Source: RIAA, CNN Moneytalk

12. Music streaming: tough business case
• free memberships based on
advertisements
• monthly subscriptions for
unlimited account
• content rights per record played

13. total revenue comprises advertising and subscriptions

14. But… vinyl gains popularity
Source: Amazon vinyl sales

15. TV & Video

16. Digital video disruptive for video store

17. Video on Demand takes over…
Source: Belgian Entertainment Association

18. Streaming
Streaming video from the web directly to TV
(you tube, video rentals, live tv, …)
Watch video wherever whenever

19. YouTube killed the video star

20. News websites contain video
Disruptive for TV?

21. TV versus Internet
TV
• TV aggregates media
content into shows,
channels, bouquets
Internet
• Internet disaggregates
media products in clips
and tracks
• ‘shared emotions in
• ‘individual browsing in
familiar surroundings’
• Long content viewing
sessions (30-90 min)
private or semi-public
surroundings’
• Short content viewing
sessions(10-30 min)

22. Competition is following the changing
customer behavior
Vertically
Vertical players are developing new devices
and technologies or exploiting loopholes in
the TV ecosystem to reach the viewer or offer a
VERTICAL
platform for other competitors
Horizontally
Flow of content creation to consumption is
disturbed as all parties (including the customer
itself) are trying to reach the customer directly
CONTENT
CREATOR
CONTENT
AGGREGATOR
BROADCASTER
DISTRIBUTOR
CUSTOMER
HORIZONTAL
24

23. Content rights remain unresolved issue
• New services have difficulties in obtaining content at
favourable prices due to their small scale
• Possible anticompetitive behaviour on the part of content
providers that are integrated with traditional distribution
channels.
• EU could intervene through policy changes:
o
o
simplify pan-European licensing for online works
lower barriers to (cross-border) distribution of audiovisual content

24. Traditional media clash with new services
• Belgian start-up Bhaalu launched cloud PVR service
Bhaalu is based on the consumer right to make a copy
of any content for personal use.
o Each user must have a valid TV subscription in order to
take advantage of the service providing digital copies of
the content for on-demand viewing later.
o The recordings are centrally managed over
• Broadcasters claim that Bhaalu is illegally distributing their
content.
o
 Court will probably decide…

25. Global versus Local

27. Media consumption
Source: SuperMonitoring.com (2013)

28. Popularity live TV decreases
Source: Morphan

29. 18-34 years old
35-54 years old
Images: Flickr, Doug Belshaw; The New York Times
55+ years old

30. U.S. Consumes More Digital Media Than TV
• Source: Mashable, eMarketer

31. Mobile is the only media consumption that is
growing

32. Second screen
• Smartphone / Tablet as entertainment device

33. Smartphone ownership
Source: SuperMonitoring.com (2013)

34. Belgium in top league of tablet ownership
22% plan to buy next year, so penetration could
rise to 50% in 2014
Source: Deloitte 2013

35. Tablets are stealing prime time

36. Future of screen technology
http://www.youtube.com/watch?v=gplbpAIjMq8

37. Telecom

38. Over the top attacks traditional telco services
• SMS is in decline due to
services likes WhatsApp,
iMessage, …
• Voice  Skype
• TV  Streaming
(Netflix)
• Some telcos block those
services through Deep
packet inspection (DPI)

39. Broadband operators in US are introducing
data caps to protect TV business

40. Policy to prevent anti competitive behaviour
• Monitor/Guarantee that no barriers exist to the effective
and competitive deployment of over-the-top services
• Avoid anti-competitive behaviour like blocking of throttling
of these services by telecommunications operators or any
other potential gatekeepers in the value chain.
 Net neutrality rules

41. Entertainment as driver for broadband
• Entertainment services are the largest driver for bandwidth
consumption over broadband
• Highly valued services lead to increased willingness to pay
 TV, broadband internet & voice bought in one package
(in %)
(in %)
Cu st om e r m ix Q3 2 0 1 2
Cu st om e r m ix Q3 2 0 1 3
31%
26%
39%
44%
30%
30%
Single-play
Dual-play
Triple-play
Source: Telenet Q3 2013
Single-play
Dual-play
Triple-play

42. Convergence to triple play
Positive consequences of bundles:
• Increased average revenue per user
(ARPU).
(in €/month)
ARPU pe r cu st om e r
pr ofile ( * )
+44%
4 7 .5
Q3 '1 3
1P
2P
3P
• Less churn of customers
 less competition
(Q3 2013 in %)
2013, i
Ann ua lize d ch ur n pe r cu st om e r
pr ofile
1P
Source: Telenet Q3 2013
2P
3P
4P

43. Devices multiply network traffic
Source: Cisco (2013)

44. Projected growth in global mobile traffic
Source: Cisco (2013)

45. Mobile offloading through WiFi becomes
necessity to cope with mobile traffic growth

46. Projected growth in fixed consumer traffic for
Western Europe
Source: Cisco (2013)

47. Broadband bandwidth is an important enabler…
Source: Speedtest, WIK
UK
Sp
ai
n
It a
ly
an
y
Ge
rm
an
ce
Fr
Au
st
ra
lia
Ne
w
Ze
ala
nd
US
A
So
ut
h
Ko
re
a
45
40
35
30
25
20
15
10
5
0
Ja
pa
n
Mbps download speed
Bandwidth delivered based on speedtest

48. Consumed volume per subscriber per month
over fixed broadband in 2012
but broadband bandwidth alone does not
determine the nature or volume of internet use
Source: Cisco, WIK (2013)

49. Digital literacy:
Households without
Internet
Possession of a PC is crucial
precursor to Internet access.
Only 6% of EU households
with a PC lack Internet
access.
7% do not know what the
Internet is!
 Promote broadband by
ensuring that all Europeans
have a PC, and know how to
use it.
Source: WIK (2013)

50. Google Project Loon
Google launches giant balloon
powered internet in New Zealand
http://www.google.com/loon/
https://www.youtube.com/watch?v=m96tYpEk1
Ao

51. Print media

52. User generated content
beats classic
news gathering

53. Newspapers’ online survival

54. Newspapers’ online survival

55. Newspapers’ online survival

56. News magazines’ ad revenues under
pressure as well…

57. Sanoma Cuts Print Media to Follow
Advertisers Going Digital
• Sanoma will slim down its print offering as the Finnish
publisher seeks to regain profitability by following
advertisers into digital media.
• Sanoma CEO: “New technologies are fundamentally
changing the behavior of media consumers. Advertisers
are following consumers. This implies a rapid increase in
advertising in digital channels that enable targeting,
measuring and performance-based pricing.”
Souce: Bloomberg, 31st of October 2013

58. Online encyclopedia is disruptive :
The end of the version on paper

59. Google Library Project
• Digitalisation of old books of important libraries:
o
o
o
o
Harvard University
Stanford University
Oxford University
University of Ghent
• Free access to old and valuable books that had
(physically) limited availability beforehand

60. Google Library Project: UGent
• Books without copyright
 Before 1873
 Up to 300.000 books
• 125.000 books available:
http://search.ugent.be/meerc
at/x/all?q=source:bkt01
• 140.000 hits per day

61. Social media

62. Always online

63. Social media are
addictive

64. How to turn many visitors into profit
• Targeted advertising based
on user profile
 privacy issues?
• Selling search results
• Sponsored status
updates/tweets

65. Data mining is big money
Data collected  potential gold mine

66. Big data collection create smarter applications
Privacy versus Convenience

67. Privacy?
 EU data protection reform:
•
The right to be forgotten
•
Free and easy access to your
personal data
•
A right to transfer personal data
•
Personal consent is required
•
Inform you about data breaches
•
Conditions written as easy-tounderstand information

68. Popularity facebook is
decreasing
Facebook Q3 2013 earnings
announcement:
"decrease in daily users,
specifically among teens".

69. Where are teens going?
Messenger applications and
images/video sharing
applications are gaining
popularity
>> more personal
>> no parents
>> better controlled
environment
(e.g. Snapchat where images
are deleted automatically
after several seconds)

70. The slow web…

71. Payments

72. New ways of paying
• More competition in
payment terminals
• Opportunity for
small business

73. Contactless payments

74. Pay with your phone

75. Pay with your phone

76. Internet of Things

77. Internet of Things

78. 50 Billion Internet-Connected Things by 2020
Source: Cisco

79. Internet of Things:
examples

80. Scanadu : your smartphone as doctor

81. Machine to machine communications (M2M)
• Almost 1.6 billion devices
connected world wide &
225 million SIM cards used
• Mobistar has expertise
centre M2M for whole
France Telecom group
• Interesting for big volume
industries like cars, energy
& consumer electronics

82. Recent M2M examples in Internet of Things
• Airplanes: maintenance monitoring of plane & equipment,
tracking of lugage, …
• Nespresso: monitoring of business appliances
• Qualcomm Life: ‘secure remote monitoring’ of chronically ill
patients (weight control, blood pressure, heart rate, …)
• Sprint: automotive monitoring.

83. Google Glass
http://www.youtube.com/watch?v=JSnB06um5r4

84. Google Glass raises issues

85. Questions?
© 2013 - Reinhard Laroy – Reinhard.Laroy@law.kuleuven.be