The Future of the Connected Living Room

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The Connected Living Room How OTT, Apps, Social and Connected Devices Will Change Everything

description

Today’s TV consumer is a highly demanding one. Not only do they want to watch video on any number of screens - from a 50” flat panel to an iPad to the smartphone in their pockets - they want to find, recommend and view TV content using new software frameworks being made available on new connected devices. This coming explosion in software-centric viewing, sharing and consumption will change the digital living room forever. Long standing norms around content discovery, interaction and monetization will change dramatically in coming years. This is the (slightly modified) presentation that I gave to the US Telecom Association on April 25th, 2013. For more info, visit www.nextmarket.co

Transcript of The Future of the Connected Living Room

Page 1: The Future of the Connected Living Room

Introduc)on  

The  Connected  Living  Room  

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

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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  

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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  

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Things  used  to  be  so  simple…  

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Case  Study:  NOW  TV  (BSkyB)  

So  what  happened?  

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Case  Study:  NOW  TV  (BSkyB)  

The  four  waves  of  change  

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First:  Analog  to  Digital…  

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Then  the  Internet…  

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Then  Mobile  

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Wave  1:  Analog  to  Digital  

Transi)on  

Wave  2:  Internet    

Wave  3:  Mobile  

Wave  4:  Connected  Consumer  

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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  

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Case  Study:  NOW  TV  (BSkyB)  

 The  age  of  the  Connected  Consumer  

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Case  Study:  NOW  TV  (BSkyB)  

We’re  connected  

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

Source:  GigaOM  Research  

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Case  Study:  NOW  TV  (BSkyB)  

We’re  mobile  

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Over  a  billion  smartphones  &  nearly  250  million  tablets  by  2015  

Source:  NextMarket  Insights  

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Our  mobile  devices  are  by  our  sides  Source:  NextMarket  Insights  

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Case  Study:  NOW  TV  (BSkyB)  

 We’re  social  

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

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Case  Study:  NOW  TV  (BSkyB)  

We’re  watching  lots  of  online  video  

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Online  video  households:  Young  users  are  cudng  the  cord  

Source:  NextMarket  Insights  

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Case  Study:  NOW  TV  (BSkyB)  

So  what  does  all  this  mean?  

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Case  Study:  NOW  TV  (BSkyB)  

 The  Big  ShiKs  

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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  

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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  

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The  Big  Shi=s:  Devices  

•  TV  -­‐>  smart  TV  

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

•  Carrier  owned  -­‐>  consumer  owned  

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

billion  market  

Source:  NextMarket  Insights  

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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  

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

smartphone  to  find  video  

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Social  TV  Deals  last  6  months  

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

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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  

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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  

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The  Big  Shi=s:  Interac4on  

• One  screen-­‐  >  second  screen  interac)on  

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

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Miracast  &  content  “tossing”  technologies  will  be  embedded  into  

most  displays  

Source:  NextMarket  Insights  

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Case  Study:  NOW  TV  (BSkyB)  

 So,  what  should  you  do  about  it?  

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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  

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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  

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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  

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Introduc)on  NextMarket  Insights  

More  info:  www.nextmarket.co  

Reports:  The  Connected  Living  Room            The  Online  Video  Consumer  2013  

Advisory  &  Report  bundles  available  

Email:            [email protected]