Media and TV is evolving fast. The industry needs new answers.

1. What Technology Strategies To Thrive?
Martin Guillaume, Ericsson Broadcast Services
London 5th December 2013
A fast
changing TV
landscape

2. Ericsson | Page 2
+8%
› YouTube, Apple, NetFlix, YouView, BT
Sport, LoveFilm, Hulu, …
› New (internet) players have deep pockets,
a good understanding for one to one
marketing, deliver well across all channels
and devices.
› Seek to secure access to premium and
original content (sports, series, etc…) with
disastrous inflation on these properties
Dramatic increase in
competition
NetFlix controls
66% of the
rental market
80% of NetFlix
rentals are of TV
shows
NPD Group
CAGR for TV
sports rights
from 2005 – 2012
Ericsson Research

3. Ericsson | Page 3
Radical consumer
shifts
44%
29%
Visit social network sites while watching TV
programmes as well as during commercial
breaks
Check related information online for a
programme they are watching on TV
34% Check sport scores while watching other TV
programmes.
34% Use their tablets to check sports / news when
they are at home
Source: STATE OF THE MEDIA: U.S. DIGITAL CONSUMER REPORT (Q3-Q4 2011) by Nielsen mincite
Source: Media Leaders Discuss the Consumer Shift to Cross-Platform, Nielsen, June 27, 2012

4. Ericsson | Page 4
› Ad market shifts to online
– Nearly three in every four ad dollars flowing into online and OTT
video is coming from TV money (*)
› Increased capital expense requirements
– To acquire (or produce) original content due to increased number of
bidders
– To create a compelling experience across a broad array of devices
and channels
› Increased cost of technology to enable new models
– Experimentation 20% or more of consumers across all three countries [UK,
Canada, US] are willing to pay $5-$7 per month for advertising-free access to
streaming premium video content (TV shows, movies and events). QuickPlay Media
survey
(*) AOL's global branded content platform Be On
Adverse effect on
fundamentals

5. Ericsson | Page 5
› Unfair fight: Formidable adversaries with deep pockets, rooted in
successes outside of media – their fundamentals don’t include making
money with content (i.e. iTunes)
› Fast learners, House of Cards stunned the industry. They’re able to
get there quickly.
› They know how to build personalised experiences & penetrate a
market very fast (NetFlix numbers in Europe)
“live” is the broadcasters’ strategic
differentiator
live is defined as news + sports + events + premiere a.k.a. ‘previously un-experienced content’
new entrants making
big progress

6. Ericsson | Page 6
› Extend into mobile
“Connected Consumer”
– Profiles users to improve the
experience.
– Optimise ad placement across
devices
– Delivers relevant discovery
– Interesting and tailored second
screens
– Weaves in Social media
– Local content, contextually
relevant is key
› Differentiate on
“Live Experiences”
– Based on “appointment viewing”
viewers all experience the same thing
at the same time be it sport, a music
concert, a reality show or a serie
premiere; fostering a sense of
community.
– Emphasise a deep rooted and
intimate relationship centered in
the living room = most intimate and
immersive
– Extend onto other devices as
opposed to other devices controlling
the TV.
Broadcasters need A
unique experience

7. Ericsson | Page 7
Is it Time to redesign their
experiences?
Adopting a consumer-centric approaches creates a plethora of
needs; which change over time.
Consume ServiceTransactAware Join Renew
Pre teenager Teenager Young Adult Mature
DEFINE your
viewers (with an
eye towards
lifetime value)
Middle age
Pierre Jennifer Vincent PhilippeLili
2
1
Aware
Join
Transact
Consume
Service
Renew
Aware
Join
Transact
Consume
Service
Renew
Aware
Join
Transact
Consume
Service
Renew
Aware
Join
Transact
Consume
Service
Renew
Aware
Join
Transact
Consume
Service
Renew
DESIGN a
PERSONAL
experience for
each stage for
each segment

8. Ericsson | Page 8
What are analysts
saying?
Key business and technical
principles of Ercisson’s offerings
Across devices
Seamless
Personalized
Targeted
Social
Innovative
Agile
New models
Consumer insight
Live

9. Ericsson | Page 9
Agile Integration
imperative
ESB
CMS
SCEDULING
Orignation &
optimisationCDNs
TRANSCODE
CMS
TRANSCODE
TRANSCODE
CDNs
CDNs
CRM
MAM
1
2
3
Decide what you must
own, justify.
Adopt a standard and
flexible integration
capability – it is your
backbone
Benchmark often,
invest in intelligent
decision / arbitration
The promise of
service orientation is
here, even for media
content.
Playout / DISTRIBUTION

10. Ericsson | Page 10
OVP
Online Video Platform
OTT in a few words
• Secure delivery
• Ingest
• QC
• Transcode
• Describe / enhance
Acquire
content
• Protect (DRM)
• Encode
• Originate and
Optimise CDN
• Deliver
Deliver
Experience • Enroll
• Receive payment
• Record incident
• Deliver credit
• Couponing
Service
Subscriber
1 2 3
MAM
Media Asset Management
CRM
Customer Relationship Management
Services
Offer a portfolio of services which can be “knitted” into a
business offering.

11. Ericsson | Page 11
› Model your approach after our telecom & play-out services, not an IT
project with ballooning costs and deadline; offer a documented SLA
with predictable opex costs
› Service “building blocks” which can be assembled into new
experiences owning as much or as little as you want. You pay for what
you use, you shut down or scale up as needed.
› Guaranteed to work across a broad and growing array of devices;
Integrates with your existing infrastructure
OFFER A Different
Delivery Model

12. Ericsson | Page 12
› Keep your capital, we just need OPEX
– You pay for what you use, not idle infrastructure.Reduce your technology risk
› Try new models quickly and affordably
– Assembling new experiences is fast, you can respond to market demands quickly and win
› Remain in control of the changing consumer
experience
– Optimal rendering of video across a broad and growing number of devices and channels
– always the most cost effective CDN: Media Delivery Network: CDN capacity planning.
– Optimal recommendation : collect, analyse and power your business decisions with a rich array of
intelligence about your content and consumption
OTT Example: COST
Relief & Innovation
“there is nothing more powerful than an idea whose time has come”
V. Hugo