Download - The Future of the Connected Living Room

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?


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


The age of the Connected Consumer


We’re connected

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

Source: GigaOM Research


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


We’re social

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


We’re watching lots of online video

Online video households: Young users are cudng the cord



So what does all this mean?


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


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



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: [email protected]