Achieving New Heights for China’s Broadcasting Industry

Caspar Herzberg

Vice President, Cisco Consulting Services

Asia Pacific, Japan and China

March 19th 2014

How to Gain Leverage with Cisco’s Internet of Everything

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The Internet of Everything, The Networked Connection of People, Process, Data and Things

Process

Things

People

Data

$19 Trillion

By 2020, 50 Billion objects will be connected

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The Connected Lifestyle

Access favourite show

“House of Cards”

Enjoy a connected lifestyle with

multi mobile devices

Catchup content anytime,

anywhere on-the-go

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The IoE-Ready Organization: Three Key Attributes

Agile

� Achieve competitive differentiation by responding faster

� Foster disruptive innovation, build “platforms” for sustainable advantage

� Respond to rapidly evolving threats

Predictive

� Anticipate market transitions

� Optimize performance of assets, operations

� Foresee and proactively address emerging security threats

Hyper-Aware

� Sense the location, status, and context of company assets, customers

� Monitor customer sentiment and behaviors in real time

� Identify market and competitive changes

Accelerating Innovation

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The Rise of Multiscreen Behavior

Free to Air TV ChannelsFree to Air TV ChannelsFree to Air TV ChannelsFree to Air TV Channels

From linear content...From linear content...From linear content...From linear content... ... to full control across all devices... to full control across all devices... to full control across all devices... to full control across all devices

MultiMultiMultiMulti----channel PayTV, channel PayTV, channel PayTV, channel PayTV, VoD, and Online TVVoD, and Online TVVoD, and Online TVVoD, and Online TV

Multiscreen content Multiscreen content Multiscreen content Multiscreen content on demandon demandon demandon demand

• Limited choice of content

• Providers in full control of

time and content

• Wide range of content

• Users increasingly in control,

but disjointed user experience

• Wide range of content

• Users in full control (time,

content, location, device)

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Television No Longer Center of Attention

40%

Browse internet 56%

Read email 63%

Live betting on sports event 13%

Interact with show through voting 13%

Compete with others on show 14%

Watching >2 shows 25%

Social forums 29%

Access social networking

Consumers using second screen to

access parallel content

Tablet

Smartphone

Laptop

Desktop

TV screen14.0

6.2

4.5

2.5

2.5

2013

2012

Average viewing hours by devices at home

Consumers

spending more

time

consuming

content on

mobile devices

Activities on 2nd screen while watching TV

Source: Ericsson consumer lab survey, Cisco consulting analysis

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Obstacles Lie Ahead for Free to Air and Pay TV operators as Landscape Matures

OTT will continue to grab share from FTA and pay TV operatorsOTT will continue to grab share from FTA and pay TV operatorsOTT will continue to grab share from FTA and pay TV operatorsOTT will continue to grab share from FTA and pay TV operators

Market share

Broadcasters

Present case

Future case

Pay TV operators OTT players

Source: Cisco VNI, Ovum forecast, Cisco consulting analysis

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Global Operators are Leveraging 4 Strategic Levers

Source: Cisco consulting case experience

Strategic leversStrategic leversStrategic leversStrategic levers

1111

Consumer media model Consumer media model Consumer media model Consumer media model 2.0 2.0 2.0 2.0 – Innovative customer experience through N screen session shifting, web and interactive services, personalized content

3333 Mobile digital services Mobile digital services Mobile digital services Mobile digital services – Drive new mobile revenue from online models i.e. social networking, video

2222Service Differentiation Service Differentiation Service Differentiation Service Differentiation – Enable analytics for delivery of predictive content and enhanced user experience

HighHighHighHigh

Level of personalization or user stickiness

Financial impact

HighHighHighHigh

LowLowLowLow

LowLowLowLow

Consumer media model 2.0

1111

3333

Mobile digital services

2222

Service Differentiation

4444

Triple or quad play

4444Triple or quad play Triple or quad play Triple or quad play Triple or quad play – Consumer bundle with Pay TV, fixed voice, mobile and broadband services

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Other Businesses

Other Businesses

CommunicationsCommunications

Increase in 2 years

Increase in 2 years

DataData

• Data is growing exponentially:

terabytes to petabytes

• Time is shrinking: lower latency

between event and data availability

• Based on Oracle survey, 93939393%%%% of C

level executives believe firm losing

revenue due to poor data

management

• Opportunity costs = 14141414%%%% of

revenue

• Data is growing exponentially:

terabytes to petabytes

• Time is shrinking: lower latency

between event and data availability

• Based on Oracle survey, 93939393%%%% of C

level executives believe firm losing

revenue due to poor data

management

• Opportunity costs = 14141414%%%% of

revenue

ChallengesChallenges

Business Leaders Take Advantage of Their Data

86%86%86%86%

119%119%119%119%

ObjectivesObjectives

• Agility

• Cost Reduction

• Competitive Advantage

• Agility

• Cost Reduction

• Competitive Advantage

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Data abstraction layer

A Layered Approach Through Data Virtualization

Data VirtualizationData VirtualizationData VirtualizationData Virtualization Access & DeliveryAccess & DeliveryAccess & DeliveryAccess & Delivery

GovernanceGovernanceGovernanceGovernance

DiscoveryDiscoveryDiscoveryDiscovery

PerformancePerformancePerformancePerformance FederationFederationFederationFederation

AgilityAgilityAgilityAgility

AbstractionAbstractionAbstractionAbstraction

PresentPast Future

Data WarehousesMarts & Cubes Operational

Data Stores TransactionalSources

File Systems

Big Data

Data aggregation layer

Data analytics layer for predictive behaviour

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Becoming an IoE-Ready Organization

SP of YesterdaySP of YesterdaySP of YesterdaySP of Yesterday Future IoE enabled modelFuture IoE enabled modelFuture IoE enabled modelFuture IoE enabled model

Enterprise Enterprise Enterprise Enterprise optimizationoptimizationoptimizationoptimization

Legacy systems

and lack of visibility

Increased awareness of

customer status

Enhanced operations with

lowered costs

Personalized services enabled

by analytics

Immersive experience with

hyper targeted advertising

Capture new IOE enabled

business opportunities

Offering IoE platforms to drive

business value for customers

Services Services Services Services differentiationdifferentiationdifferentiationdifferentiation

Reduced ability to

differentiate offerings

Business Business Business Business accelerationaccelerationaccelerationacceleration

Flattened or low growth

in mature markets

BenefitsBenefitsBenefitsBenefits Examples of use cases Examples of use cases Examples of use cases Examples of use cases

Hyper targeted ads

Automated cloud DVR to record & playback

Predictive Video on Demand on mobile

Predictive home content delivery

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• A flexible virtual data layer across all source systems

• Able to translate back and forth with different granularity on different platforms

• Run predictive analysis to make better business decisions and improve the customer experience

• increased revenue in first year

• Decreased time to solution

• 4 projects in 6 months

• Reduced manpower

• Now 5-6x faster adoption of products

Service SolutionsService SolutionsService SolutionsService Solutions Impact on CustomerImpact on CustomerImpact on CustomerImpact on CustomerCustomer ChallengeCustomer ChallengeCustomer ChallengeCustomer Challenge

Cisco Data Virtualization Use Case

• Analyze data pre and post deployment to identify changes

• Understanding customers’ needs and influencing subscriber base

• Analyze impact of email campaigns

• Integrate 3 different data sets; Customer Survey Data, Operational Data, Demographic Data

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Bringing The Internet of Everything to Life Case Study: The Sochi Olympics Experience

Stream live and on-demand sports content to set-top and other multi-screen devices

Simple, agile, and elastic cloud architecture that supports content streaming and advanced user experiences

Stream live and on-demand sports content to set-top and other multi-screen devices

Simple, agile, and elastic cloud architecture that supports content streaming and advanced user experiences

ObjectiveObjective

Combination of public and private cloud

Cisco video solutions

Cisco services

Combination of public and private cloud

Cisco video solutions

Cisco services

SolutionSolution

Agility, portability, hyper awareness and scalability, with much less engineering and prep time

Agility, portability, hyper awareness and scalability, with much less engineering and prep time

ResultsResults

M2P connections:

Content from live

streaming delivered

across any devices

M2M connections:

Live coverage

captured from

camera distributed to

cloud

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We help you make the most of tomorrow’s opportunities, today. And prove that amazing things happen when you connect the unconnected.

Thank you.