Spectrum Breakfast Seminar

‘The Future of TV’

Tuesday 19th June, 2007

Spectrum Breakfast SeminarThe Future of TVOpen 8.00am

Welcome Daniel Osmer, Managing Partner, Spectrum

Introduction Graham Lovelace, Event Moderator

Presentations Guest Speakers, Q&A and Panel DiscussionClose 10.00am

http://youtube.com/watch?v=Sq5mQLArjmo

Graham LovelaceMD, Lovelace Consulting

Guest speakers

David HulbertCEO

‘enabling television’s next revolution’

‘the case for mobile video’’

‘new distribution, same business’

Linda SummersHead of Strategic Development

Jeremy FlynnCEO and Founder,

D2See

The Future of Television

David Hulbert

CEO

Overview

• The Television business system:

• Television is the encrypted or free-to-air (electronic) delivery

of video for personal and small group use (in the home)

• Television is a long-cycle (several years) business,

and is slow to change.

Storage

Content PipePresentation & Selection

Viewing

Platform

Content

• Limited volume

• Risky

• The long tail?

USA example - $130+ billion revenue - 40% spent on production - $2+ million per hour - 40-50 average lifetime repeats

100-200 18 hour

“channels”

- most creative endeavours fail- ars longa, vita brevis

- your holiday videos are just holiday videos- skew towards blockbusters- from internet success to a recording contract

3½ pipes - natural monopolies all• DTH satellite

– wide coverage– low marginal access cost– business focus

• Cable– (still) the best technology– back channel– multiple play

• Telephone wire– universal coverage and relationships– multiple play

• Terrestrial– expensive– limited capacity– technology dead end

An alliance of conveniencebetween dirigistes, freeriders

and opportunists

Selection

• Push towards more choice and fragmentation– Linear channels multiplexes, timeshifts, SVOD– Set top box PVR, remote services, multiple access points– Monthly subscription à la carte, VOD, micropayments– TV listings epg, personalised channels, directed search

• But– Economics of bundling

– Need for content creators to reduce risk– Transaction and selection costs

– Low cost (and importance?) of TV

Predictable, simple,

consistent packages

with buy through

Platforms - not just ‘pipes & content’

• Simple concept, but difficult to execute– one-stop-shop for full range of TV (and other services)– reliable, upgradeable technology– simple pricing and billing– “two ring” customer service

• Simple economics, with rigorous consequences– subscriber base and growth rate

– churn

– cost per acquisition

– ARPU and gross margin

My predictions

• Does TV have a future?

• Do we know what it will be like?

• Are we there yet?

…….probably…..

…….yes and no…..

…….it will take longer than you think…..

The Future of Television

David Hulbert

CEO

Panel Discussion

Questions raised by the Audience• Bit torrent – how will we deal with this?? • Why should I have to pay for TV on any other device –

it’s usually free??• Discussion re: SlingMedia technology• Discussion re: BT Vision• Question re: rate of adoption and impact of new vision

imaging technology

IPTV Guide

IPTV GuideDelivering audio and video over broadband

William CooperGraham Lovelace

Published by informitv in association with Lovelace ConsultingDecember 2006

Download your copy today http:www.iptv-report.com/