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Future of Video – Cisco's Perspective

Everth Flores

GM/Dir. Operations, SP Video EMEA

Dubrovnik, CroatiaMonth XX, May 21st, 2013

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Sources: Cisco VNI study, Convergence Consulting Group, TDG, In-Stat ,ABI Research, 2010

Consumers want Personalization /

on-demand services

Apple App Store: 3B apps downloaded

Most popular Web Apps

are on-demand content

Massive Growth of Online Video

Video > 90% of consumer

IP traffic by 2013

12GB/sec.

100GB/sec.

Explosion of connected devices

from OTT providers

>1.6M US households ready to “cut the cord”

(mainly Gen Y)

1 billion web-enabled CE devices by 2015

(50% connected TVs - $3.4B market by 2014)

Pay-TV SPs Ambitions

Consumers want to watch their

content when and where they want.

New services to maintain ARPU and

reduce churn:

Full HD, 3-D, Home TP, Games, etc.

‘Cool’ User eXperience, with simplified access to

content (3D, gestures, search, recommendations)

“TV Everywhere”

Market

Trends

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• The omnipresent nature of content

• Story-telling from device to device, place to place

• Make it easy for me AND fun

• Minimize the pain of paying, and protect my personal data

• Give me the best experience possible

• More devices, with much better screens

• Ubiquitous and smarter networks

• Better video quality

• General Purpose Computing becomes the norm

• Powerful linkages and compute power in the network

• The Home gets a new focus

• Content rights evolve slowly

• Devices (and UX) lead loyalty to the services

• Advertising is much smarter

• Time to market and service agility is very important

• New partnerships between competitors are inevitable

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Source: Google, Sterling Brands & Ipsos: The New Multi-Screen World, 2012

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Source: Google, Sterling Brands & Ipsos: The New Multi-Screen World, 2012

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2006 view 2012 view?

Central programming Self programming

“One price fits all” content / channels

Time-based release windowing

Central scheduling / TV adjacencies Content freed from time and place

Linear-only advertising with CPMs Tailored interactive advertising

Content networks’ oligopoly Internet and mobile aggregators

Monopoly/oligopoly for access Access form telcos, Internet, others

Primarily ad-supported broadcasts

“Anywhere” screens

Platform-based release windowing

Subscriptions and PPV revenues

TV set as the only screen

Tailored content / channel bundles

“The End of Television”, Saul Berman, IBM Global Business Services

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Time-Intensive Deployments

Service-Defined Silos

Internet VoD Linear

Mission-Critical Applications

Scale-Constrained Infrastructure

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Unified Experience

beyond TV

Content Relevancy Customized Experience

Unified Experience

beyond Android &

Apple devices

Quality

of Experience

QoE Multi-screen, cloud

services

Infinite Content Sources

Managed & Unmanaged

Networks

Managed & Unmanaged

Devices

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Compelling,

Unique

Experiences

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Conductor

STBs

Gateways Acquisition

Suite

Distribution

Suite

Videoscape

Clients

Media

Suite

Origination

Suite

Gateway

Software

Cloud Network Client

New &

Unimagined

Personalized Social

Synchronized

Control Suite (Conductor and UHE)

Advertising

Suite

Security

Suite

(CA &

DRM)

Snowflake

User

Interface Gateway

Software

Middleware

Suite

Enhanced Intelligent Branded

New From

NDS

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Client Cloud Network

SaaS Offers Multi-screen Pay-TV Offers Whole Home Offers

Videoscape Distribution Suite (VDS)

Acquisition Suite

Origination

Suite

Videoscape Client Software

Videoscape User Experience

Managed and Unmanaged

Devices

Media Suite

Security

Suite

Advertising

Suite

Cisco Prime for Videoscape

Videoscape Conductor

Unified Gateway

Cloud DVR/TSTV

VideoEverywhere

Video Gateway

IP Video Over Cable

New Experiences through pre-packaged solutionsb

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3P OPERATOR PORTUGAL

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VOD +160% ARPU +10€ LOVE 85%

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• Video of UPC Launch here

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Thank you.