Introduc)on  

The  Connected  Living  Room  

How  OTT,  Apps,  Social  and  Connected  Devices  Will  Change  Everything    

Agenda  

• Who  is  NextMarket  Insights?  

•  From  simple  to  now:  Four  waves  of  change  for  the  living  room  

•  Today’s  connected  consumer  

•  The  big  shiKs  •  Recommenda)ons  

•  Q&A  

Who  is  NextMarket  Insights?  

•  A  bou)que  research  &  advisory  firm  focused  on  emerging  consumer  technologies  

•  Michael  Wolf  launched  GigaOM’s  research  division,  created  GigaOM  Books,  created  In-­‐Stat’s  consumer  media  prac)ce  &  ABI’s  digital  home  prac)ce  

•  15  years  in-­‐house  experience  advising  product  &  media  strategies  for  companies  like  Cisco,  MicrosoK,  HP,  Philips,  AT&T,  Verizon  &  more  

•  Learn  more  at  www.nextmarket.co  

Things  used  to  be  so  simple…  

Case  Study:  NOW  TV  (BSkyB)  

So  what  happened?  

Case  Study:  NOW  TV  (BSkyB)  

The  four  waves  of  change  

First:  Analog  to  Digital…  

Then  the  Internet…  

Then  Mobile  

Wave  1:  Analog  to  Digital  

Transi)on  

Wave  2:  Internet    

Wave  3:  Mobile  

Wave  4:  Connected  Consumer  

The  Fourth  Wave:  The  Connected  Consumer  

• When  everything  comes  together  •  SoKware-­‐centric  •  Cloud  •  Mobile  devices  as  playback,  source,  companion  (second  screen)  

 The  era  when  conven4onal  business  models  begin  to  break  down  &  new  ones  take  hold  

Case  Study:  NOW  TV  (BSkyB)  

 The  age  of  the  Connected  Consumer  

Case  Study:  NOW  TV  (BSkyB)  

We’re  connected  

Moving  from  physical  to  digital  media  as  connected  devices  become  the  norm  

Source:  GigaOM  Research  

Case  Study:  NOW  TV  (BSkyB)  

We’re  mobile  

Over  a  billion  smartphones  &  nearly  250  million  tablets  by  2015  

Source:  NextMarket  Insights  

Our  mobile  devices  are  by  our  sides  Source:  NextMarket  Insights  

Case  Study:  NOW  TV  (BSkyB)  

 We’re  social  

And  the  US  is  the  most  social  of  all  Source:  Comscore  

Case  Study:  NOW  TV  (BSkyB)  

We’re  watching  lots  of  online  video  

Online  video  households:  Young  users  are  cudng  the  cord  

Source:  NextMarket  Insights  

Case  Study:  NOW  TV  (BSkyB)  

So  what  does  all  this  mean?  

Case  Study:  NOW  TV  (BSkyB)  

 The  Big  ShiKs  

V    

• Broadcast,  OTT/cloud,  facili)es  • Last  mile:  Fixed  line  &  LTE  • In-­‐home:  Gigabit  Wi-­‐Fi  

Delivery/Network  

• Mobile,  smart,  connected,  any-­‐screen  Devices/Network  

• Apps,  HTML5,  Cloud  • Social  &  Algorithmic  Presenta)on  

&  Discovery  

• Out  with  the  old  bundle,  in  with  the  new  

• A  mix  of  viral,  personal,  professional  

Content/Services  

• The  remote  • Second  screen  • Commerce    

Interac)on  

The  Connected    Living  room  

The  Big  Shi=s:  Delivery/Network  

• Headend  -­‐>  Data  center/Cloud  •  Tradi)onal  DVR  -­‐>  nDVR  •  Condi)onal  access  -­‐>  DRM  •  From  MPEG2  &  H.264  -­‐>  H.265  (HEVC)  • Mobile:  3G/802.11n  -­‐>    LTE  &  802.11ac  

The  Big  Shi=s:  Devices  

•  TV  -­‐>  smart  TV  

•  Discrete  boxes  -­‐>  Integra)on  •  Carrier  set-­‐tops  -­‐>  s)cks,  apps,  net-­‐tops  

•  Carrier  owned  -­‐>  consumer  owned  

Connected  CE  devices  (smart  TV,  Blu-­‐ray,  streaming  boxes  and  s)cks)  will  be  a  $16  

billion  market  

Source:  NextMarket  Insights  

The  Big  Shi=s:  Presenta4on  &  Discovery  

•  Grid  guide  -­‐>  Dynamic  UI  •  Programmed  recommenda)on  -­‐>  algorithmic  &  social  •  Automated  Content  Recogni)on  (ACR)  •  Local  UI  -­‐>  HTML5  

•  Tradi)onal  spectrum  allocated  channels  -­‐>  OTT/apps  

Approximately  1  in  7  of  streaming  consumers  today  use  social  on  tablet/

smartphone  to  find  video  

Social  TV  Deals  last  6  months  

•  Facebook/Rovi    •  Nielsen/Twiler  •  Twiler/Bluefin  Labs  •  Twiler/Network  TV  –  adding  video  clips  in-­‐stream  

The  Big  Shi=s:  Content/Services  

•  The  bundle  -­‐  >  a  la  carte,  mini-­‐bundles,  bundle  augmenta)on  

•  Carrier-­‐delivered  -­‐>  OTT,  OTT/carrier,  service-­‐as-­‐app  •  Payment:  cable  bill  -­‐>  mul)ple  models  

•  Programmed  -­‐>  more  )me  shiKed,  live  streaming  for  event-­‐driven  watching  

OTT  Packaged   App   Open  

web   Cable  Broadcast  

to  Internet  

Cable   Broadcast  

Bundle   Free  to  air  

A  la  carte   Ad-­‐supported  

Mini-­‐bundles   Free   Authen)c

ated  Cable  bundle  

The  Big  Shi=s:  Interac4on  

• One  screen-­‐  >  second  screen  interac)on  

•  Classic  remote  -­‐>  new  physical  interfaces  (voice,  mo)on,  eye)  

Miracast  &  content  “tossing”  technologies  will  be  embedded  into  

most  displays  

Source:  NextMarket  Insights  

Case  Study:  NOW  TV  (BSkyB)  

 So,  what  should  you  do  about  it?  

Carriers/Mul4channel  Operators  

• New  compe)tors:  Device  OEMs,  OTT  aggregators,  mobile  operators,  WebCo’s  • No  choice  but  to  give  more  choice  to  customers  • Mul)-­‐screen  experiences  &  interac)on  required  

Carriers/Mul4channel  Operators  

•  Carrier  billing  for  mini-­‐content  bundles,  a  la  carte  •  Robust  in-­‐home  connec)vity  services  are  hard  to  match  for  non-­‐facility  providers  •  Embrace  couch  commerce  •  Become  a  content  programmer  

Content  Owners  

•  A  la  carte  is  coming,  like  it  or  not  

•  The  new  compe)tor  may  be  the  ar)sts  themselves  – Ar)st  “content  networks”  are  becoming  commonplace  

– Enabled  by  Google,  Amazon,  others  

Introduc)on  NextMarket  Insights  

More  info:  www.nextmarket.co  

Reports:  The  Connected  Living  Room            The  Online  Video  Consumer  2013  

Advisory  &  Report  bundles  available  

Email:            info@nexmarket.co