Ip cable london_oct_2011_ben_schwarz_v1.0

IP Transi*on strategies for smaller operators

IP Cable World Summit -‐ London October 19th 2011

Benjamin Schwarz [email protected] -‐ 1

Small to medium operator vendor strategies for transi*oning to IP

Benjamin Schwarz [email protected]




Bringing IP Into The Picture

0. Intro

1.  Using reassuring exis*ng supplier ecosystem that

understands TV

2.  Looking to the less TV-‐savvy providers from the IP world

3.  Offering connected TV without cannibalizing exis*ng ARPU

4.  The importance of connected-‐TV standards like HbbTV

5.  Compromising between *me-‐to-‐market, budget & features

6.  Closing remarks




What this presenta*on is and isn’t about

•  Is moving to IP “just another project” or should it make you rethink your vendor strategy?

•  This is not –  about WHETHER or WHY* you must move to IP –  for large Tier 1 operators

•  This presenta*on is –  about HOW to choose WHO move to IP with –  For smaller operators * Except when the WHY tell us HOW




Vendor strategies are even more important now

•  The rate of change in the TV service landscape is accelera*ng –  It is likely that vendors will have seen your issues and how some operators are addressing them.

•  IP is more than yet another technology, its return path enables new interac*on, must cater for: –  Security –  OSS & BSS –  Troubleshoo*ng –  Customer support – Monitoring devices –  Upgrading Firmware





0. Intro


understands TV









2011 T2 operator case study

•  ~1M subs, 30% digital and rising •  Current supplier is end-‐to-‐end Pay-‐TV solu*on •  In looking to reduce *me for new features and open to OTT – Chose to stay with exis*ng supplier for mainstream boxes, but changed UI part of middleware to that of new supplier from IP world

è IP integra*on issues – Chose completely new ecosystem for OTT boxes (full system from IP supplier above)





0. Intro


understands TV









2008 T3 Operator case study

•  Served ~15k subs with analog cable •  Full IPTV solu*on was too Capex intensive •  Moved to brand new Box supplier from IP world. •  New supplier had to include DVB-‐C which was more painful than an*cipated.

•  New system opera*onal with some OTT widgets. •  Overall success story, but è NRE was hejy.





0. Intro


understands TV









2011 Small Island DTH operator case study

•  Several Territories with a few 10s of thousands of subs

•  Use of exis*ng tradi*onal TV suppliers (Open TV) to extend linear TV experience as far as possible (PVR)

•  Talking with exis*ng and new suppliers for pull VoD •  Talking only to new supplier for push VoD •  Try to “get the best” from exis*ng supplier while recognizing that a change will be needed eventually.

è leaving decision for tomorrow doesn’t solve much





0. Intro


understands TV









IP strategies and cannibaliza*on

•  Why do cable operators exist: –  To resell Pay-‐TV? –  To transport TV streams? –  To maximize cable infrastructure ROI? or –  To give access to the best content? –  To deliver through the best channel? –  To deliver to the appropriate devices? –  To provide home entertainment service?

è It’s always beker to cannibalize yourself than let someone else do it for you





0. Intro


understands TV









What is HbbTV?

•  The minimum requirements for a business neutral technology plamorm.

•  An ETSI standard for hybrid entertainment services, based on OIPF, CEA, DVB and W3C.

•  Objec*ve: – Simplify implementa*on in devices –  leave room for differen*a*on –  limit investment for CE manufacturers

Founders: ANT, APS, Canal+, EBU, FTV, IRT, OpenTV, Philips, Sony, Samsung




Do I need HbbTV?

•  The jury is STILL out on the lean-‐back lean-‐forward debate

•  TV standards efforts coming from –  Broadcasters

•  They want TeleText 2.0, 40 years ajer V1.0 –  CE industry

•  So far connected TV’s are a jungle •  Standards that work are device-‐centric (e.g. DLNA) not service-‐centric.

–  Standards bodies •  Trying to find compromise, not no geographical convergence




HbbTV examples

Advanced teletext service launched by Pro7

Internet services available on a HbbTV device Videotext app with embedded graphic & video

Prototype info service of France Télévisions





0. Intro


understands TV









Moving to IP is no different from any project management

Time

Features Budget

Q




IP & Openness •  The Internet and its underlying technologies are inherently open as are vendors from the IP space.

•  Smaller operators either own a small market or a small part of a large market –  For the former, openness will enable the integra*on third party services and increase ARPU.

–  For the laker, openness is more likely to provide future access to other parts of the market.

•  In the end, the openness of IP will reduce technology risk by offering more op*ons and less vendor lock-‐in.





0. Intro


understands TV









Convergence: Verimatrix & EchoStar cases in point

•  Verimatrix: pure-‐player in security, Started life IP only, targe*ng IPTV

•  Became a market leader •  Clients grew •  Projects grew in

complexity •  Acquired Comvenient, a

pure DVB player in 2011

•  EchoStar: Tradi*onal Pay-‐TV satellite beginnings (Dish)

•  Purchased SlingMedia in 2007

•  Now heavily pushing IP home connec*vity

•  Just launched an Android box

è  Broadcast & broadband vendors are converging è  “those who thought they were in the railroad business lost

out to those who recognized the market was transporta*on”




The Consul*ng Broad Space

No pay-‐TV compe**on

Strong pay-‐TV compe**on

Strong ISP compe**on

No ISP compe**on

Get real!

Stay with TV

specialist

Mix n’ match

Go with IP specialist




Some closing ques*ons

•  Industry bodies suffer from “fashion” and “poli*cs” •  Standards can help but cannot be counted on •  E2E IP integra*on is hard, does pre-‐integra*on work?

•  Can a “Safe” supplier exist? •  Vendors selling into where you want to be or vendors to where you are?

•  Content is s*ll king, what impact on vendor strategy?




Some closing answers

•  OK so there’s no generic golden rule, but there is a clear best vendor strategy for each operator.

•  All op*ons have been considered within short decision cycles and on a *ght budget: –  Focus on the service to be delivered –  Talk to peers on a one-‐to-‐one basis –  Come to conferences like this one –  Talk to independent experts




About CTO innova&on Consul*ng

•  Strategy consul*ng

•  Disrup*ve business modelling

•  Quality of Experience

•  Management of programs, RFI, RFP, Innova*on

•  Risk analysis •  Scenario

planning •  Int’l TV

benchmarks •  Training, wri(ng

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