*unlimited power andtotal control from the next generation of content networks

Interoute The Media Network*

Oisin LunnyCDN, Streaming & Media Product Manager

Interoute Communications Limited

Zaragosa 02.10.08

Clip from Woody Allen “Radio Days”

The radio has long been a window to the wider world for its listeners, voices connecting them with news, culture, excitement, mystery, relevance to their everyday life. Nothing will replace this relationship, but the means in which people can be connected with the world, through radio, have increased massively .

My past in generating content

I still do it but with new technology....

The new possibilities offered by online distribution inspired me to work in technology in the first place.

Confessions of a Musically Obsessed Geek...

So...I technologyI “content”I “IP delivery”

CV so far:Music business for 19 yearsDigital content 13 yearsNetworks 10 yearsWeb development 9 yearsContent aggregation 7 yearsInteroute 4 years http://oisinlunny.blogspot.com

“If the music business is a corpse, lets put it in the ground and grow interesting things from it” Peter Gabriel, 2008

As one music and technology expert put it:

interesting things...

The New Content Marketplace

"Our focus should not be on emerging technologies, but on emerging cultural practices"

- Henry Collins, Professor of Comparative Media, MIT

Consumers

Devices

Operators

Advertisers

Programmers

Consumers

Devices

Operators

Advertisers

Programmers

Schedules, Linear, Limited Choice

TV, VCR

Free broadcast, Pay Cable and Satellite

TV, Print, Radio, Public Space

Broadcast Networks, Cable Networks

Time/Place Shifting On Demand, Infinite Choice, Long Tail

PS3, iPhone, HDTV, DVD, STB, DVR, Slingbox, PC, XBox, iPod, Mobile, PSP

Broadband, Cable, Satellite, Telco, IPTV, DSL, Mobile etc

TV, Print, Radio, Public Space, Online, 360 Campaigns, Branded Content etc

Broadcast and Cable Networks, Google, YouTube, MySpace, Last.fm, Microsoft, Apple, Users, Operators, Carriers, Aggregators, Websites

OLD NEW

The Changing Media ClimateFrom Radio Networks to Social Networked Listeners using IP networks...

*Source: TVs Paradigm Shift - Tejpaul Bhatia 2007

and this is...

...the tip of the iceberg!

“There will be no media consumption left in ten years that is not delivered over an IP network”

Microsoft Chief Executive Steve Ballmer

The Anywhere Network

The "Anywhere revolution" will be the largest technology change in our lifetimes.

Caused by:• A common network • Broadband demand • Wireless ubiquity

The three stages of AnywhereAnywhere will Surpass the Internet’s Impact

*Source: The Anywhere Tipping Point - Emily Green & Carl HoweYankee Group 2008

From 2002 to 2007 volume of information managed by telco networks in Europe has multiplied by six (2.5 to 16 exabites). This figure is expected to multiply by ten within the next five years.

*Source: Cisco

users take control

* Wikipedia* Digg* Delicious* Stumble* Reddit* Technorati* Consumerist* Lifehacker* SlashDot* YahooBuzz

We live in a sharing and forwarding culture...

* Blue Dot * BookmarkSync * CiteULike * Connotea * Diigo * Furl * GiveALink.org * Linkwad

* Ma.gnolia * My Web * Mixx * Netvouz * Newsvine * Propeller.com * Simpy * SiteBar

People will subscribe to mass media, and ... subscribe to other people. The concept of “Music like water” becomes “a river of updates”.

"It’s no longer about certified and central authority and the ‘select few authorised professionals’ but also about the combined power of masses of people.”

Google have realised that "Markets, networks and communities can organise economic activities radically more efficiently than firms."

"Thanks to technology induced changes, the new cultural economy means that searching is getting and listening / viewing now IS copying."

“Even if a difference between ‘Copy’ vs ‘Performance’ could be maintained: the ‘Selling of Copies’ is no longer a growing business or sustainable model. The exclusive right to ‘make copies’ is becoming impossible to enforce.”

Gerd Leonard / www.mediafuturist.com

*Source: Gerd Leonardwww.mediafuturist.com

Radio = listening = gettingAnywhere network = no need for a copy

Its always waiting for you to access anywhere

Internet is in spirit an open exchange of ideasGoogle grasped this as a business modelCan "free" work as a business model?

Advertising? Micropayments?

The economics of free - examples

*Source: "Welcome To The Free World" 2008 Universal McCann

According to the EU, advertising revenues will be mostly digital in less than two years: “From an estimated €849m revenues in 2005, we expect newspaper and magazine publishers revenues to amount to €2bn in 2010, almost exclusively from online and mobile advertising.”

Online advertising revenues (EU)

Commercial radio industry’s customers and products are advertising. They are increasingly moving online.

Media and content is in the network - so must advertising!

Advertising-supported online radio, similar to existing radio modelMore precise targeting / auditing, could be realtime in futureOnline radio / community sites “own” good (meta)data about listenersGoogle Adwords example - based on metadata - ads can be targetedAdvertisers can find a relevant audience for their productsAd serving companies can report with pinpoint accuracy = higher CPM

*Source MTC Circuits of Cool survey 2007

"I don't mind ads because they help to pay for TV shows and websites"

What is Radio in 2008Audio / audiovisual, what comes out of the speakerTechnology is about the user experience, engaging the listenerUsers aren’t interested in the underlying technology, just the buttons on their “remote”Radio in the IP space needs to have this ease of useTechnology is setting the boundaries eg: infrastructure/mobile/CE companies: Nokia / Google / AppleTechnology changes the landscape and offers:

Exponential choiceGlobal jukeboxInfinite Dial...but also millions of anonymous DJs and little USP

The scale is in the underlying network.

Interoute, Europe’s biggest Next Generation Network...

...which we leverage for Global content distribution....

Professional Services

Advanced Hosting

Security/Storage

Server Hosting

MEDIASERVICES- Streaming- Security- Management

VOICESERVICES- VVN- Arena- IRT One

VPNSERVICES - Access - Security - QoS

IP SERVICES- Internet access- Internet transit

ETHERNET SERVICES- MPLS Ethernet

- Ethernet over SDH

COLOCATION SRVCS- Carrier grade

- Service Provider grade- Data Centre grade

BANDWIDTH SERVICES- Wavelengths

- SDH

INFRASTRUCTURE SERVICES- Duct

- Fibre

... and provide Next Generation Services such as Media.

La Sexta streaming - powered by Interoute

Our network connects to media companies, mobile operators and ISPs. Media clients get the advantages of our connections.

Converged Network Solution

Interoute’s Next Generation Network is a uniquely converged solution.

Major global clients trust us to deliver 24/7/365 and only settle for the best quality.

Our clients include:

• Bulldog

• Akamai

• Tiscali

• Vodafone

• EMI (18TB per month)

• Universal Music Group

• Warners

• EMAP

We are trusted by over 14,000 customers including:

Interoute ExtraContent Delivery Network (CDN)No need to wwwait - live in seconds

Interoute’s CDN product family

Media ManagerOn Demand Streaming - Audio / VideoPodcasting / listen again / Pay Per View

Media Live Stream 24/7 or Single Live Event streamingGeo locking + advertising

Share Market leading security solution for musicWatermarking + marketing + tracking

Interoute Express Fast method to deliver filesReduces strain on email systems

IP - a global standardInternet access from a range of existing and new devices, many with multiple uses: PC, mobile, tabletop, portable, personal, and in-car. You can easily listen wherever you are and wherever they are in the world. Devices keyed off Internet access, broadband, and Wi-Fi, operate globally, greatly easing marketing, sales, listening (and support). Internet is the easy complement to give global access, without significant increased cost or effort.FM remains under all the scenarios.

Popularity of Internet Radio (UK)In the US, 33 million of the population aged 12+ (equivalent to 13%) listen to radio via the internet each week.In the UK 9.4 million adults (19% of the population aged 15+) listen to radio via the internet each week, of which 2.5 million adults (5%) listen every day or most days. Of those using online radio 89% listen at home, 24% listen at work. The majority of online radio users (8.0 million per week) are listening to live radio rather than time- shifted content. The latter is delivered via two routes: ‘listen again’ streams (6.2 million users per week) or downloaded ‘podcasts’ (4.4 million). Users of online live streaming listen for an average 78 minutes per week, users of ‘listen again’ 52 minutes per week, and users of podcasts 63 minutes per week.Early days but growing steadily and significantly.

Land Grab for Internet RadioClear Channel - revenues of US $3.6 billion from Radio in 2007

CBS - revenues of US$ 1.8 billion from Radio in 2007

Costs of extending online radio service to Europe will be "marginal"

ClearChannel to launch portal containing its 1,200 terrestrial radio stations, largest US online radio network

Partnering with StudioNow to offer local advertisers pro quality advert production

Revenues 3 times the entire UK commercial radio sector

Business model is "on page" and "in stream" advertising

CBS Radio acquired London-based internet company "Last.fm" and also has a stake in TargetSpot, US- based online radio advertising saleshouse

Will launch ‘play.it’, a web portal that aggregates its own 140 terrestrial and 20 internet-only stations alongside AOL’s 200 online stations and Last.fm, with a combined reach in the US approx 3.4 million / month.

*Source: Grant Goddard “Clear Channel – designs on global radio?”www.endersanalysis.com

Radio content is ideal for Wi-Fi portable devicesWi-Fi can delivers audio/radio content more efficiently than video/TV Lower bandwidthWi-Fi-enabled device manufacturers are promoting radio features Nokia’s latest ‘N’ range of mobile phones (13 models in the UK) comes pre-installed with ‘Nokia Internet Radio’ softwareVarious radio applications for the iPhone, which in the UK incorporates Wi-Fi, including ‘Wi-Fi hotspots’ via The Cloud and BT OpenzoneAudio only content ideal for people on the move e.g. iPod11% of adults (aged 16+) in the UK now access the internet away from home or work:

32% connect via a free Wi-Fi network23% connect via a paid for Wi-Fi network31% use a mobile phone to connect

Wimax?Sprint Nextel & Clearwire announce $12bn Wimax joint venture (May ‘08)

Including investment from: Intel: $1 billionGoogle: $500 million (gives them influence over a wireless network)Time Warner cable: $550 millionComcast: $1.05 billionBrighthouse: $100 million

Total investment fund $12 billion

Can offer TV, Internet, phone, internet access and IP radio on the go, and potentially a wireless phone service e.g. Google Android. Could this support content roaming e.g. access anytime anywhere?

WiMax to cover UK "within two years" (Ashish Patel MD Intel Capital EMEA)

Internet Radio DriversPush from: A new generation of devices, delivering Internet radio easily across platforms—PC, tabletop, portable, personal, mobile—being readied for market now. Larger and colour displays which supplement radio with active multimedia—audio, video, and graphics—to move radio beyond the traditional small, passive display.

Pull from:

Presenter programming, particularly with time-shift listening to build and maintain a following—local and global—from wherever and whenever.

Extensions of current programming using the larger, colour displays—particularly sports, and also talk.

*Source: Darryl Pomicter, www.radeo.net

Overall:The radio industry understanding that Internet radio is a powerful complement to strengthen and extend traditional broadcast radio—particularly personality presenter programming with local and/or global appeal.

The growing acknowledgement that a future with FM and Internet, and increasingly available wireless Internet access, that some predict will leave no need or broad desire for digital (DAB and HD) radio.

Advertisers seeing, trying, and gaining confidence in the expanded possibilities of Internet Radio with broadcast radio—with increased experience and results better measured.

*Source: Darryl Pomicter, www.radeo.net

Internet Radio Drivers

Wi-Fi with / vs DAB6% of adults claim to own a Wi-Fi radio receiver, while a further 11% said they would be interested in Wi-Fi radio services.Adult penetration of DAB radio receivers did not reach 6% until as recently as 2005, so Wi-Fi radio hardware close behind the DAB adoption curve.Wi-Fi is a global standard, wherever an online audience can be found in the world, it can be monetised (Google)Costs incremental, but much less upfrontWorldDMB Digital Radio Receiver Profiles launched at IBC Sept 08What happens to regional digital formats? For consumers their Digital Radio Box should just be a gateway to the format.

“IP delivery is likely to play a vital role in the future digital radio landscape, both in its own right and as a complementary technology to broadcast digital technologies such as DAB”.

UK Government Digital Radio Working Group

Internet Radio DevicesStrategy Analytics predicted that 28 million Wi-Fi-enabled ‘handsets’ will be in use in the UK by 2012.Almost half of the adult population with domestic broadband use a wireless router to connect, and sales of mobile broadband connections ‘took off’ in 2008 (1.5 million UK connections in June 2008).

Web enabled radio devices need to be:

•simple

•shortcut driven

•flexible

•non-proprietary

Walter Mossberg on the Future of the Internet and Rise of the Cell Phone:

"The PC has peaked, and the future of the internet belongs to Pocket Computers: The Internet is a grid and we're all going to be living on it, and carrying it in our pocket all day long."

As many mobile devices as PCs globally.

There are as many mobile devices as PCs globally.

Other handset makers keen to offer music as differentiator:

Nokia - Comes With MusicSony Ericsson PlayNow Plus (powered by Omniphone)iTunes 9 ...?

Google Android - open standard- open invitation to developers to innovate!

Handheld IP devices will compliment fixed / home internet access devices

The iPhone is driving innovation in mobile content:"Music has been the first 'killer app' for the operators to drive the consumption of premium content on the handset." (MMI, March 08)“Freemium” access to iTunes music library, like Nokia’s Comes With Music but with lower cuts for record labels (FT, March 08)Superior UI drives consumer uptake of advanced content appsM:Metrics on the iPhone:

50% accessed social networking site (average 4%)30% iPhone users watch mobile TV / Video (average 4.6%)30.4% YouTube (average 1%)74% listen to mobile music (flat rate data charges a driver)

Apple have always made the end to end user experience compelling, and successful uptake proves this is a crucial factor.

MobileScrobbler

•Last.fm client for Apple iPhone and iPod Touch

Emunity Edge (Sweden)

0% 100%Interactivity

ProgrammedStream

Community Stream PersonalStream

1- to -all 1- to -all 1- to - 1

Loyalty

Examplesstations

Type of radio

Broadcast type

FM-stations

1- to -all

PlaylistGenerator

1- to - 1

Beta launchApril-07Product

Launch2000 19992000 2005

Goom RadioGood selection, particularly new French music - beta site

Deezer.comGood selection - links to iTunes Music Store for downloads

PandoraInnovative but subjective. Not available outside US.

Blip.fmGood selection - links to Amazon MP3 store for downloads

Last.fmThe main online radio station for non-techies, bought by CBS

MOGCommunity + music, subscribe to a “trusted mogger” today!

iTunes 8 Genius, literally!

Totally Radio

Super innovativeNiche showsDefining cool

Grass roots supportOrganic growth

Revenue from:*Adwords*Subscriptions

www.totallyradio.com

P2P Radio - super niche

All this is great, but sometimes overwhelming!

The Radeo Internet Player

Over 10,000 Stations, 20,000 Shows, and 1,000,000 Episodes.Worldwide Internet Radio Broadcasts, Webcasts, and Podcasts.

Example of UK cross industry collaboration through Radio Centre Player.www.radeo.net

A great way to organise your online radio listening.Innovative technology that’s simple to use, online & on mobile.

Semantic Web creates a web of data that allows computers to find, extract, share, re-use information, and potentially even reason with it.

Twine, another interesting idea to tie it all together?

broadcast moves online

media convergence

Converged service delivery.

*Source: Tandberg

Example from TV eg: combined TV 1.0 & TV 2.0

*Source: Tandberg

Radio & Web

Digital means .... “more is more”

More People Doing More

Connecting More Searching More Sharing More

Researching More Buying More

Empower, Demonstrate, Involve**Source: Jaffe LLC Life After the 30-S

What is Next Generation Radio?

Building a global entertainment system that adopts the philosophies of the Internet as well as its technology.

Those principles are:•openness•freedom•neutrality•accessibility•global availability

The revolutionary change with IP Radio is that every viewer has a personal relationship with a broadcaster through a transactional request/response mechanism, rather than just picking up a broadcast sent to anyone and everyone.

*Source: (paraphrase) Alexander CameronIPTV VoD - The Open 4th Platform (2008)

IPTV example - todays three screen reality•TV broadcast is “broken”, interruptive marketing a thing of the past•Consumers are now creating - they are content companies new critics and evangelists•Effect on advertising revenues, they’re moving online•Can IPTV replicate the Web 2.0 experience, and stimulate advertising revenues?•The promise of IPTV is that every piece of audio and/or visual content ever created in human history will be available in digital form anywhere in the world, on any device, whenever anyone wants it (BBC archive?)•Digital media and our preferences for it will follow us wherever we go in the world, so rights will need to be allocated to an individual rather than a country and a platform. •All systems will feature centralised viewer database information and decentralised/local delivery equipment.

*Source: From Gorillas to Guerillas - IPTV changes everything Yankee Group 2008

The Metadata Value Chain

Federated Rich Media Model

Metadata Objects - Metadata includes Objective,Subjective,Rights,ID/Location

Object Repository-C

Distributed Objects

Metadata Layer

(A) (P)

Cus

tom

izab

le

Met

adat

a Fr

amew

ork

Object Repository-B Object Repository-A

Web-based registration, QA, access and launch of media on personal computers, mobile computing device, media players

Encrypted and non-encrypted Assets (A) and Content Packages (P),assembled and delivered on-demand

Content Users

Content Originators

Content Infomediary

TV-Anytime, MPEG-7, MPEG-21Proprietary Metadata XML TranslationSeparates Description from Location

•GOOD RADIO CONTENT will always be king. Radio has a special place in our hearts and minds, a relationship that will not be replaced by auto generated playlists.•Huge opportunities for Radio over IP, music is enjoyed when its portable (eg: iPod) while TV is a mostly stationary experience. Radio will continue to be the soundtrack to our lives and we will enjoy it through more devices.•Effective content delivery networks are key to ensuring the services work!•SOA (service oriented architectures) important for networks, service providers, device manufacturers etc.• A centrally held identity will manage the relationship between individuals and content eg: OpenID. Content will often originate and be distributed “from the centre” but can live “on the edge” of networks.•Routing the user to the content, and advertising, will be a big opportunity.•Relationships between domain identities could be managed by Web 2.0 companies, while laptops / iPods / slingboxes / WiFi radios could hold local identity caches.

Final thoughts:

Thank you!www.interoute.es

oisin.lunny@interoute.comwww.linkedin.com/in/oisinlunny

Recommended reading:

The Future of Media, Gerd Leonhard 2008www.mediafuturist.com

Grant Goddard “Clear Channel – designs on global radio?”www.endersanalysis.com

"The Anywhere Tipping Point" Emily Green / Carl Howe Yankee Group 2008www.yankeegroup.com

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