20 years Int'l Sales & Marketing. Check out my blog "Digital Video for the Digital Generation": www.dusil.com The entertainment landscape has changed more in the last decade, than in the 60+ years of broadcast. Much of this disruption can be attributed to the growth of the internet. From this infrastructure, several battles are raging under the feet of consumers; Broadcast has a new adversary called OTT (Over the Top Video); ISPs are struggling to keep up with bandwidth demands of video; mobile infrastructures have also witnessed significant changes in consumer behavior as applications overshadow handset features. This presentation explores the various battles taking place between the communication, computing and entertainment industries. The global landscape in subscriber behavior continues to change rapidly, and OTT has the potential to be at the center of it all.

1. Entertainment
vs. The Internet
Turning
Threats into
Opportunities
Gabriel Dusil
Chief Marketing &
Corporate Strategy Officer
Visual Unity Global
cz.linkedin.com/in/gabrieldusil
gdusil.wordpress.com
gabriel.dusil@visualunity.com

2. Download the Original Presentation
- Entertainment vs. The Internet,
Turning Threats into Opportunities
View this video presentation from our Digital Video Forum
’13, or download the native PowerPoint slides, here:
• http://gdusil.wordpress.com/2014/01/27/entertainment-vs-the-internetturning-threats-into-opportunities
• http://gdusil.wordpress.com/
Additional presentations, white papers, and winning
solutions can be found on our corporate web-site, here:
• http://www.visualunity.com/en/resources/
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Page
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3. Internet
Generation
Digital
Society Capacity
100+ Exabytes*
70% is video
People
Data
90’s
&
00’s
Connectivity
Entertainment
10’s
1.8b+ TV’s
Connected**
Devices
Digital Industry
Evolution
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Sources: *Cisco, **Informa, ***ARM, by 2016
30b+ Devices***
“Internet of Things”
Page
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4. Industry
Wars
Front Lines
• Subscriber Ownership
• Industry Relevance
• Revenue Protection
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Entertainment
Communication
Computing
Page
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5. Broadcast
Over the Top
“Over the Top”
Cloud
Services
Internet
router
Broadcast
Services
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
PC
mobile
S
T
B
Tablet
TV
Page
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6. 61% 79% 9%
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
1%
GB per Month
45
80
160+
100
50
Internet Usage
13
150
Top
1%

Netflix
HD
400
North
America
200
Opportunity
Penetration
Europe
As sales in OTT
increase, ISPs
have the burden
to invest in
bandwidth to keep
up with demand
0
millions
OTT
Internet Subscribers ('12)
ISP
Sources: Sandvine, Cisco, GCI, Internet World Stats
Netflix penetration numbers are for the USA only.
0
Page
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7. Net Neutrality
Internet Governance
Internet Governance:
Data Discrimination, Traffic
Shaping, Bandwidth Caps,
Blocking & Filtering,
Premium Rates, etc.
Exabytes
Video will be 70%
of Global Traffic by 2016
• 11.0 billion HD movies*
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Cisco - Visual Networking Index, Forecast & Methodology ‘11–’16
* Using an average of 6GB for a 1080p movie
80
Internet
Traffic
Forecast
60
40
20
0
Other Data
Web, email, Data
P2P File Sharing
Other Video
TV & Live Internet
Short-form Video
Long-form Video
Page
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8. Mobility
Apps
Mobile
Telephony
Mobile
Lifestyle
Interaction
Distribution
Mobile Operator
Differentiation
Handset
Differentiation
Purchasing
©2013
3 apps: voice, text, contacts
Operator
High
(speed & performance)
Reliability &
Quality of Service
Phone-centric
 gabriel@dusil.com
 gdusil.wordpress.com
1+ million apps: all needs
Internet
Low
(price & consumption)
User Experience,
Efficiency & Flexibility
App-centric
Page
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9. Internet Piracy
Entertainment Industry
eDonkey, gnutella,
other P2P, UseNet,
7%
Legitimate
76%
BitTorrent
12%
Films,
35%
Top 10K
torrents
TV, 13%
Games, 7%
Software, 4%
Music, 3%
Anime, 1%
Cyber lockers
5%
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Pornography
36%
Envisional - An Estimate of Infringing
Use of the Internet (11.Jan)
Other, 1%
Page
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10. Internet Piracy Epidemic?
Napster
KaZaA
Megaupload
BitTorrent
BitTorrent Inc. announces
150m active users (Jan ‘12),
growing at 50% per year
Megaupload shuts
down @180m users
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
KaZaA peaks
@34m users
2002
2001
2000
1999
Napster
Shuts down
@26m users
Page
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11. Relative Release Windows
for Premium Content
Revenue
Head-end
Cinema
0
1
USA
Own
2
3
4
Rent
5
International
Pay TV VoD
6
Int’l
USA
USA
7
Int’l
USA
TV
24
Int’l
USA
USA
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Long-tail
months
Int’l
Int’l
Page
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12. Social
Broadcast
Broadcast
Centric
Social
Centric
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Apps
Page
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13. Entertainment
OTT Binds
All 3 Digital
Industries
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Communication
Computing
Page
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14. “Friend’s
Viewed
& Liked”
Viewing
Stats
Collaborate
“viewers
alsoliked”
Media,
News, &
Ads
©2013
OTT Evolution Content Discovery
Social
Media
Buying
Behavior
A Recommendation
Engine is not just about
Content Suggestions
It’s about Meaningful &
Personal Engagement
Preference
“Likes/
Dislikes”
 gabriel@dusil.com
 gdusil.wordpress.com
Page
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15. OTT Evolution –
More Than Video
Social
Media
Coms
Productivity
OTT will bring
the future of
Entertainment
to tomorrow’s
Digital Society
Video
Storage
Music
Gaming
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Page
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16. Market - Broadcast & OTT
TV & Video market estimated
at $395b globally, by 2017
OTT - 37b US$ by 2017
Transaction
Subscription
Advertising
2017
OTT,
9%
billion US$
Global OTT Forecast '11-'17
30
20
10
0
TV &
Video, 91%
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
CAGR = Compounded Annual Growth Rate
Page
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17. OTT Evolution - Vertical Tiers
Tier 1
• National Broadcasters
Tier 2
• Regional Broadcasters & Affiliates
• Content Aggregators
• Telco & MSO (i.e. Cable)
Tier 3
• Corporations & Government
• Education & House of Worship
• etc.
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Page
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18. OTT Evolution – Geographic Tiers
Emerging
Markets
36-48 mths
behind USA
Europe, Canada, Asia
18-24 months
behind USA
USA
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Page
 18

19. cz.linkedin.com/in/gabrieldusil
gdusil.wordpress.com
gabriel.dusil@visualunity.com

20. Synopsis – Entertainment vs. the Internet,
Turning Threats into Opportunities
• The entertainment landscape has changed more in the last decade,
than in the 60+ years of broadcast. Much of this disruption can be
attributed to the growth of the internet. From this infrastructure, several
battles are raging under the feet of consumers; Broadcast has a new
adversary called OTT (Over the Top Video); ISPs are struggling to
keep up with bandwidth demands of video; mobile infrastructures have
also witnessed significant changes in consumer behavior as
applications overshadow handset features. This presentation explores
the various battles taking place between the communication, computing
and entertainment industries. The global landscape in subscriber
behavior continues to change rapidly, and OTT has the potential to be
at the center of it all.
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
Page
 20

21. Tags - Entertainment vs. the Internet,
Turning Threats into Opportunities
• BitTorrent, Blu-Ray, Broadcast, Connected TV, Copyright Infringement,
Digital Millennium Copyright Act, Digital Rights, Digital Video, DMCA,
DRM, File Sharing, Gabriel Dusil, Internet Piracy, Internet Video,
KaZaA, Linear Broadcast, Linear TV, Megaupload, Megauploader,
Motion Picture Association of America, MPAA, Multi-screen,
Multiscreen, Napster, New Media, Online Video, Online Video Platform,
OTT, Over the Top Content, OVP, P2P, Peer to Peer, piracy, Piratez,
PlayReady DRM, Recording Industry Association of America, RIAA,
Search & Discovery, Search and Discovery, second screen, Smart TV,
Social TV, TV Everywhere, Visual Unity
©2013
 gabriel@dusil.com
 gdusil.wordpress.com
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