INTELLIGENT CONTENT DELIVERY: THE KEY TO UNLOCKING THE FUTURE OF VIDEO SERVICES

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1 10/30/2013 TELCOVISION LAS VEGAS 2013 INTELLIGENT CONTENT DELIVERY: THE KEY TO UNLOCKING THE FUTURE OF VIDEO SERVICES Dan Patton October 23,

2 AGENDA 1. Video Market Update 2. Video Services Delivery Network 3. Summary 2 2

3 Video Market Changing Rapidly 3

4 CHALLENGES FOR VIDEO SERVICES CONSUMERS demand more COMPLEXITY Plethora of devices COMPETITION pricing pressure? Service provider SERVICES & FEATURES CONTENT DISTRIBUTION & COSTS are rising CONTENT AQUISITION 4 4

5 CONSUMERS CHOICE CONTINUES TO GROW PLACE SHIFTING TIME SHIFTING SIMULTANEOUS USAGE Some viewing is shifting from traditional television to other devices 85 % of tablet/phone owners use their device while watching TV at least once a month 36 million mobile phone owners in the U.S. watch video on their phones 41 % 39 % use their device at least once a day while watching TV Source: Nielsen Three Screen Reports,

6 LONDON 2012 THE FIRST MULTISCREEN GAMES 34 % of daily viewers on mobile devices 24 HD live streams 700 Gbps at peak 1.2 Mbps in average 30 petabytes of video Over 12 million mobile requests for video 6 6

7 STUDY:90 % of consumers still prefer watching TV programs on TVs 7 7

8 UNICAST AND MULTICAST TRAFFIC Source: Alcatel-Lucent Bell Labs, 2012 Time spent watching video, per user, per day in the United States in 2012 and

9 GREAT TIME TO BE A VIDEO SERVICE PROVIDER TV remains central Changes are happening around TV, not to TV! Service provider NETWORKS have untapped potential Intelligence embedded within the core video network is not fully exploited OTT TECHNOLOGY is also for you HAS and cloud technologies can be fully leveraged and work even better! With the right investments, service providers can remain the preferred distributors of video entertainment 9 ALL IP UNICAST opens new routes Consolidation on unicast HTTP/IP delivery to all screens opens new routes to revenue 9

10 EARLY MOVERS live TV to DLNA devices TWC, VERIZON and CABLEVISION all supporting DLNA Premium Video to second screen TWC plots move towards all-ip Comcast s new STB streams Whatever the merits of that from an engineering sense, all things IP are the standard that the world is building devices to so that s the standard we re going to end up migrating to, until something better comes along Glenn Britt, CEO, TIME WARNER CABLE Opening a new chapter for Connected TV TELIASONERA, TELENET and BELGACOM launch IPTV applications on Smart TV A new kind of app is emerging that could change the way Pay TV operators deliver their services via connected TV devices John Moulding, VIDEONET It will take a while, and it will depend what the end user wants, but we will move away from the STB Peter Fregelius, Strategy & Innovation Head, SWISSCOM I don t think there is any question that at the end of the day, the STB will go away Alex Green, Director TV, BT TIME WARNER CABLE is now available on Roku as an app The availability of a service like TWC TV on an open platform represents significant milestones for both TWC and Roku as well as for the industry overall Anthony Wood, ROKU TWC could well be in talks with Apple, Microsoft and Samsung regarding potential streaming video partnerships, similar to the pact it has with Roku 10 10

11 LONG RANGE HYPOTHESIS FOR OPERATOR TV 1 CONSUMER ANY DEVICE Consumer funded connected devices replace STB Traditional STB functions and data delivered from the cloud Media Gateway functionality simplified and processing from the network 2 NETWORK ALL UNICAST Cable migrates QAM video to all IP, enabled by cost benefits from CCAP, DOCSIS 3.1, etc. Multicast bandwidth gains outweighed by device format fragmentation and time-shifting CLOUD MODULAR & VIRTUALIZED Long term migration of dedicated video platforms to cloud services Initially dominated by private cloud, moving to blend of public (sharable services) and private (sensitive data or data volume services) STB removal IP LONG TERM Delivery to any device - including TV - over IP from the cloud with virtualization of traditional CPE/STB functions 11 11

12 Video Services Delivery Network 12

13 HOW DOES IT ALL IMPACT THE NETWORK? VIDEO SERVICES DELIVERY NETWORKS EVOLUTION Redistribute STB functions to CE/clients and network Drive costs and complexity out of the home Session-based personalization Create new value for consumers, content owners and advertisers Enhance Experience Device independence Video Optimized Network Multicast and unicast scaling at the lowest cost per bit Agile back office architecture Launch and evolve services quicker and cost-effectively 13 13

14 CLOUD DVR PRINCIPLE Hard disk Video content is stored in the operator s network instead of subscriber's STB hard drive Cloud DVR provides time-shifted viewing, allowing subscribers to watch previously aired programs at their convenience More content users can record multiple TV programs in parallel More flexibility users can watch recorded TV programs on any device More capacity dynamic upgrade of storage vault capacity, without limit Less maintenance centralized disks avoids shipment of hard disks in case of STB failure 14 14

15 CLOUD DVR CHAIN TRANSFORMATION STORAGE RECORDING INGESTION Any device On-the-fly packaging (HLS, SS, HDS, DASH) Scale-out NAS to Petabytes Rolling buffer for x months - y channels Shared copies Private copies 1000s of channels 15 15

16 CLOUD PVR RIGHTS DIFFERS IN EACH REGION USA Canada Switzerland Netherlands Germany Private copies One copy of the same content per user Shared copy One single copy of the same content for all users MARKET IS MOVING AWAY FROM IN-HOME STB TOWARDS CE PROVIDED CONNECTED DEVICES WITH HTTP BASED DELIVERY SHARED COPY WILL WIN THE ARGUMENT 16 16

17 CONTENT DELIVERY NETWORK UNIFIED CACHING OF ANY CONTENT Unified management, control and reporting Single CDN+TC infrastructure with common Hardware Platforms Subscriber Access network Edge router CDN Delivery cache Core network Aggregation router Internet gateway Head-end (content) On/off net boundary Interconnection with other service providers or 3 rd party CDNs Internet (content) Distributed delivery caches reduce backbone traffic and improve QoE for any type of content Move content insertion points closer to subscribers 17 17

18 ENHANCED VIDEO EXPERIENCE PERSONALIZATION PERSONALIZE CONTENT AT THE EDGE BASED ON USER AND DEVICE CONTEXT Third party service platform API Content insertion Content selection Emergency Alert System Blackout content Targeted advertising Third party service platforms 18 18

19 ENHANCED VIDEO EXPERIENCE MANAGING THE EXPERIENCE GO BEYOND BROADCAST, DELIVER AN EXPERIENCE PERSONALISED TO USER AND DEVICE Third party service platforms API High Med Sport Gold TV Movie Silver Tablet Low News Bronze Mobile Content User Device Congestion Bandwidth 19 19

20 Summary 20

21 IP VIDEO VISION A STAGED APPROACH 1 EXTENSION 2 UNIFICATION 3 SIMPLIFICATION Service evolution On demand content on connected devices Limited catalogue Service evolution Full linear catalogue on connected devices Unified experience Service evolution STB removal All devices Seamless experience Network impact Back office overlay Encoding & transcoding Video IP delivery Network impact Back end interworking Increased content storage and delivery Network impact Back end consolidation Increased network intelligence Unified delivery 21 21

22 22

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