Conduit, Not Content: The New King of Entertainment

Conduit, Not Content-
The New King
In the Entertainment World

Jeffrey Soong, CEO
June 2009

© BNS Ltd, all rights reserved

A trip down memory
2006
1. Newspapers
2. Magazines
lane… 3. Email
4. Broadcast TV
5. Radio
6. CD Player
7. Cable TV
8. Personal Computer
9. Satellite Television
10. Internet
11. Cell Phone
12. DVD Players
13. Satellite Radio
14. MP3 Players
15. TiVO/DVR
1986 16. Slingbox
1. Newspapers 17. iPod
2. Magazines 18. Blogs
19. Online Video
3. Broadcast TV 20. Mobile Internet
4. Radio 21. Console Video Games
Source: Piper Jaffrey & Co. 5. Cassette Tapes 22. PC Video Games
1966 6. Walkman 23. MMORP Games
24. Mobile Games
1. Newspapers 7. VCR 25. Text Messaging
2. Broadcast TV 8. Cable TV 26. Mobile Video
3. Magazines 9. Personal Computer 27. Movie Downloads
28. Podcasts
4. Broadcast Radio 10.Console Video Games 29. Instant Messaging
5.BNS Ltd, all rights reserved
©
Eight Track 11.PC Video Games 30. Social Networks

Industry Fear Factor 1:
A hypercompetitive platform
environment
Number of Countries per Region with Four or More Digital Multichannel Platforms

2007 2008 2009 2010 2011 2012 2013

Asia 6 8 10 11 11 12 12

Eastern Europe 9 11 11 11 11 11 11

Latin America 6 8 10 12 12 12 12

Middle East 1 2 1 1 1 1 1

North America 2 2 2 2 2 2 2

Western Europe 15 15 16 16 16 16 16

Total 39 46 50 53 53 54 54

% of total 75
52% 61% 67% 71% 71% 72% 72%
countries

Source: SNL Kagan


Fear Factor 2: New ‘World Order
of Media”

5. Main Navigation Method Portals Search

8. Media Consumption Pattern Focused single channel use Multi-channel, distributed attention

© BNS Ltd, all rights reserved Source: Piper Jaffrey Investment Research

Fear Factor 3: Piracy

• Net cost of pay-TV piracy in Asia US$ 1.5 billion in 2007 ->
US$ 1.7 billion in 2008
• Majority of illicit content comes from industry insiders, so
difficult to curb the piracy flood at the source
• Shifts from peer-to-peer downloads to streaming which
allows immediately viewing without installing a program
• Forcing ISPs to block connections does not work
• Amazon and Apple have removed DRM; Apple changed
pricing to a tiered approach

Fighting piracy with conventional methods is relatively futile


Fear Factor 4: Consumers don’t want
to pay

Proliferation of platforms and entertainment choices have
seemingly reduced individual’s willingness to pay for content.


How do consumers
determine content value?
• The four C’s: Context, Community, Convenience
and Content
– ability to share content amongst friends and family, and
the technologies and functions to do this are key in
defining value for consumers.
– consumers want all-in-one service aggregators to
provide cheaper, more flexible access to digital content
– maximising customer attention which can be monetized
with deeper, more relevant layers of must-have content

The double edged sword: Content distributed over multiple
platforms creates more revenue opportunities … but consumers
are increasingly unwilling to pay


Avoiding commoditization and
preserving the value of content
• Conduit, not Content is the true king
– Attractive value added services, functionality and
applications cannot be matched by piracy or advertising-
based ‘free’ content
– Search Engines, video portals, social networking sites
combined with underlying technology and architecture
should enable viewers to find the content they want to
watch

Apple app. store NBC Multi screen Internet TV


Smart EPGs will lead the way


How Conduit will be King


Industry stakeholders should…
• Embrace Conduit as the key enabler for
content profitability
• Master seamless convergence of platforms
• Create intuitive minimum-click user
interfaces
• Ensure simplicity at the front and backend
• Future-proof technology to cater for
evolving trends
• Forge relationships across industries
• Consider new business models rather than
anti-piracy measures


About BNS
• Long-standing and proven experience with
telco-grade IP- entertainment, automation
and AV systems
– Telco and Hospitality focus
• Extensive content expertise
• Open platform philosophy guarantees
future proofing of technology
• Understanding the needs and expectations
of the “i-Pod generation” (access
anywhere, over any device)


• Blue Chip Client Base
• Regional Focus

Regional office
Customer deployments


The BNS Products and
Solutions Portfolio

(BNS Touch)

(BNS Touch)


Globally Renowned Partners
Encoder

Video
Server

CA/DRM

M/W

Network
Equip.

Codec

STB

Others


Thank You

29/F, Siu On Centre
188 Lockhart Road
Wanchai, Hong Kong
Ph: +852 2180 9918
www.bnsltd.com Fax: +852 2180 9919

Conduit, Not Content: The New King of Entertainment

Recommandé

Recommandé

Contenu connexe

Similaire à Conduit, Not Content: The New King of Entertainment

Similaire à Conduit, Not Content: The New King of Entertainment (20)

Dernier

Dernier (20)

Conduit, Not Content: The New King of Entertainment