Yu-li Liu Professor, National Chengchi University Former NCC Commissioner Taiwan 2012.9.24
Content Content Creators Applications/ services
Aggregator Program Packagers (channel operators)
platform Aggregators (Next VOD)
Distributor Network Operators (CHT, KBRO)
Access Providers (other ISPs) Apps
devices Devices Manufacturers (Samsung TV, Apple STB, smart phone, tablet PC)
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 }
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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. }
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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
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Source: Hiroki, 2011
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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
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Source: Hiroki, 2011
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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. }
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Samsung’s Smart TV case: Network neutrality issue KT does not allow connected TV’s free piggybacking 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
catchpl ay
backgrou Apple nd Daily
CHT, HTC
ISP
EPG (Tivo)
Cable MSO
Conten t aggega tor
Strength
content
Network Via , connec distributi ted TV on
Via connec ted TV
Networ content k, content
weaknes s
Negative Not image enough content
Region al
small
OTT is not its own service
MGT issue
Business model
hybrid
subscri ption
Subscri ption
Increas e value
multipl e
hybrid
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 animation
• 2 US$ monthly • 2 US$ monthly
E-learning
•
2 US$ monthly
package
• 4.5 US$ monthly
Disney (per year)
• 3.2 US$ monthly
Joint venture between Chunghwa + HTC } Biggest telco + biggest mobile phone manufacturer (self-branded) } Try to reach non-CHT customers }
Hauda Digital (provided by Huada) IPTV
OTT VOD channel Social Internet(good content)
channel
VOD
DB
IPTV (in)
Mobile phone (in)
Cloud Video
Internet (in) OTT
Wall Garden CDN
SSO
OTT CDN
Chinese abroad
MOD+OTT
IPTV
PC
OTT CDN abroad
Smart Phone
PC
Smart Phone
3
OTT Services (provided by Huada)
Chess
E-learning (2-6 year)
Golf
Stock market, financial news
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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 }