Yu-li Liu Professor, National Chengchi University

Former NCC Commissioner Taiwan

2012.9.24

Content Creators

Program Packagers (channel operators)

platform Aggregators (Next VOD)

Network Operators (CHT, KBRO)

Access Providers (other ISPs)

Devices Manufact-urers (Samsung TV, Apple STB, smart phone, tablet PC)

Content Aggregator Distributor devices

Applications/services

Apps

}  Network operators (telcos and cable operators)

}  ISPs (5 TV) }  Content aggregator (Next Media) }  Joint venture between telco & others(CHT

+HTC; KT+ Skylife) }  STB providers }  TV manufacturers (Samsung’s smart TV)

}  Through its own STB }  Through other’s STB }  Through Connected TV (cooperate with TV

manufacturer) }  Cooperate with network operators (share

revenue or increase the partner’s value) }  Use App

}  Chess (games) }  children programs }  E-learning }  Golf }  Stock market & financial news }  Banking }  Karaoke }  Photo }  Music }  Shopping }  Tickets

}  Free }  Hybrid model (free+paid) }  Monthly fees }  Pay per view (VOD) }  Package }  Bundle with other services }  Embedded with Ads }  A la carte

}  Multi-screen }  TV Everywhere }  All devices }  New commerce (shopping, sell tickets) }  New content: User generated content }  New devices (including APP) }  New pricing models: Shows and movies can

be sold per movie, per episode or per season.

}  OTT TV providers: AcTVila (alliance of Hitachi, Panasonic, Sharp, Sony, and Toshiba), Hulu (from the US), Gyao)

}  OTT TV take-up is slow }  Lack of programming }  Not many on-demand videos available online }  The DVD rental release window is often long before it

becomes available on any streaming site }  Rental shops are still easy to find }  Content providers hesitate to put their programs online. }  User interface is not user-friendly } 

Source: Hiroki, 2011

}  User behavior: The elderly are resistant to change }  Broadcast TV programming can be accessed on many

devices }  The location shifting of Japanese content using a device

such as the Slingbox was found to be illegal }  Watching TV is more of a passive and social experience

}  Source: Hiroki, 2011

}  OTT provider: KT SKylife }  KT Skylife was considered as illegal service by

the KCC (2012, 8) }  Dish convergence solution (DCS) transmits

digital broadcast through the Internet, eliminating the need of a disc-shaped antenna.

}  KT Skylife argued its service was practically the same as Internet protocol TV, which also used the Web to transmit programs.

}  Cable companies sent complaints to the KCC.

}  Samsung’s Smart TV case: Network neutrality issue

}  KT does not allow connected TV’s free piggy-backing

}  KT is outraged that the connected TV manufacturers (such as Samsung) use KT’s broadband infrastructure as a delivery mechanism for their content and refuse to pay KT.

}  KT insists that it must be compensated for the connected TV traffic placed on its network.

}  7 OTT license holders }  IPTV licenses go to TV groups. Telcos only

provide broadband }  Most of the big TV groups are aware of the

emergence of OTT. They also provide OTT services—coopetition

}  Kehua Cable and China Mobile Beijing collaboration

}  DVB+OTT (Beijing) }  IPTV+OTT (Shanghai)

}  In the past, some content provided by the Internet TV caused copyright problems. It has been improved gradually.

}  The regulation is still in favor of the TV groups or broadcasters.

}  Broadcasters are still dominant in the TV market. OTT TV has potential to grow as long as the regulation does not limit its growth.

Next VOD

Huada 5 TV Li TV Kbro catchplay

background

Apple Daily

CHT, HTC

ISP EPG (Tivo)

Cable MSO

Content aggegator

Strength content Network , distribution

Via connected TV

Via connected TV

Network , content

content

weakness

Negative image

Not enough content

Regional

small OTT is not its own service

MGT issue

Business model

hybrid hybrid subscription

Subscription

Increase value

multiple

}  Position: TV everywhere, accessibility, one account, via more devices, and values (content + price + user experience)

}  Content: channels, VOD, Internet content, other services, provide some exclusive content.

}  Provided free Set-up-box, first 30 days can watch a certain amount of movies free.

}  Connected TV (Samsung, Panasonic--smart TV) }  App (KBRO, cable MSO)

films •  2 US$ monthly

animation •  2 US$ monthly

E-learning •  2 US$ monthly

•  4.5 US$ monthly

Disney (per year) •  3.2 US$ monthly

package

}  Joint venture between Chunghwa + HTC }  Biggest telco + biggest mobile phone

manufacturer (self-branded) }  Try to reach non-CHT customers

IPTV (in)

Wall Garden CDN OTT CDN

PC Smart Phone PC Smart Phone IPTV

SSO

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DB

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MOD+OTT

Hauda Digital (provided by Huada)

VOD channel VOD channel Social Internet(good content)

Mobile phone (in) Internet (in)

IPTV OTT

Cloud Video

OTT CDN abroad

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OTT

Chinese abroad

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OTT Services (provided by Huada)

Chess E-learning (2-6 year)

Golf Stock market, financial news

}  Broadband speed (cannot be too slow) }  Lack of innovative content or services }  Lack of branded content and interactive service }  Copyright issues, DRM }  Release window is slow }  User behavior, not enough subscribers }  User interface }  Network operator or ISP’s attitude (cooperate,

compete, network neutrality) }  Lack of new business models }  Small revenue

}  Bandwidth, broadband speed }  User interface (user experience) }  Compelling content, some innovative,

exclusive content }  Cheap price, bundling package, flexible

pricing model }  One account, more devices }  DRM, copyright }  call center (next VOD), good service }  Multiple revenue model