the coming of age: internet vod
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The Coming of Age: Internet VOD. Todd Johnson VP of Broadband Services VeriSign, Inc. Former CEO of Kontiki. The VeriSign Mission. Enable and Protect the World’s Networked Interactions. VeriSign Portfolio of Services . Communications. Information. Security. Website Authentication - PowerPoint PPT PresentationTRANSCRIPT
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The Coming of Age: Internet VOD
Todd Johnson
VP of Broadband Services
VeriSign, Inc.
Former CEO of Kontiki
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The VeriSign Mission
Enable and Protect the World’s Networked Interactions
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Information Security
VeriSign Portfolio of Services
Communications
Intelligent Infrastructure ServicesDirectory Connectivity Security Mediation
+ Content Distribution+ Intelligent Messaging+ Network Connectivity
+ Internet Naming + Real-Time Publishing+ Intelligent Supply Chain
+Website Authentication+ User/Content
Authentication+ Network Security
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Mobile
Global Media Enablement Leader!
+ Video content delivery system for consumer and enterprise applications
+ Peer delivery capability across DSL, Cable, WiFi, Fiber and 3G networks
+ 30+ million PC peer client downloads across U.S. and UK
+ 40,000+ pieces long-form video content
+ 6 years of commercial experience
+ Mobile services: music, commerce, messaging and personalization
+ 600+ million accessible mobile subscribers globally
+ 75+ direct carrier connections for SMS, PSMS, content delivery
+ 400,000+ mobile content catalog items+ 7+ years of commercial experience
Broadband
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The Evolving Set of Challenges+ Cost Effective vs. Profitable
▪ Moving from cost centers or marketing expenses to PL’s▪ Managing the remix of content licensing▪ Settling on a business model: ad supported, pay per view, subscription
+ Content Quality – Not about short crappy content… in most places▪ Delivering TV/DVD/HD Quality Content▪ Optimize delivery for wide range of uses
+ Scalability - Meeting the 5x-10x-10x scalability challenge in less than 2 years▪ 5x higher encode rate; 1.5-3Mbps instead of 300-600kbps▪ 10x more views; millions per day▪ 10x in average video length; 22-44 minutes instead of 1-3 minutes
+ Managing the End User Experience▪ Path to the Plasma TV▪ Disc space usage▪ Local content management (consumer desktop)
+ These are Global Businesses
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Online Video Consumers by Region - Asia?
0
50
100
150
200
250
300
350
400
2005 2006 2007 2008 2009 2010 2011
APAC N. America L. America W. Europe E. Europe MEA
Source: ABIresearch, 3Q 2006
Subs
crib
ers
(mill
ions
)CAGR
(2006-11)
APAC 8%N. America 8%L. America 14%W. Europe 9%E. Europe 32%MEA 18%
Note: Aggressive forecast. Some of these will be dial-up users, as many dial users view video today in Flash format, etc.
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Online Videos Viewed by Region
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2005 2006 2007 2008 2009 2010 2011
APAC N. America L. America W. Europe E. Europe MEA
Source: ABIresearch, 3Q 2006
Vide
os V
iew
ed (
mill
ions
)
Note: Aggressive forecast.
CAGR (2006-11)
APAC 24%N. America 23%L. America 30%W. Europe 25%E. Europe 50%MEA 35%
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Online Videos by Revenue Model - Ads, Ads, Ads!
0
50,000
100,000
150,000
200,000
250,000
2005 2006 2007 2008 2009 2010 2011
Ad Pay Free
Source: ABIresearch, 3Q 2006
Rev
enue
(m
illio
ns)
Note: Aggressive forecast.
CAGR (2006-11)
Ad 33%Pay 80%Free -16%
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Online Video Users by Device
0
1000
2000
3000
4000
5000
6000
7000
2005 2006 2007 2008 2009 2010 2011
PC TV Portable
Source: ABIresearch, 3Q 2006
Use
rs (
mill
ions
)
Note: Aggressive forecast.
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The 3-Screen Experience – Not One Piece, 3 Screens
PCTV
MobileMobile Storefront
Contestant Voice Tones Performance Ringtones
Contestant Graphics
iTV CampaignsVoting, PollingSweepstakes
Broadcast Integration
Internet VODHD Broadcast Replays
Contestant ProfilesHD Performance Archive
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US Broadband Video Landscape Matrix
Source: ABIresearch, 3Q 2006
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BBC> > HIGHLIGHTS+ All the BBC’s popular TV shows are made
available online at the time of original broadcast
+ Electronic Program Guide (EPG) is very sophisticated and allows for user rating, meta tag search, etc.
+ Service will initially be a free service for UK residents (uses IP blocking for geography filtering)
+ Ultimately similar services will be rolled out under ad supported and premium subscription business models
+ Kontiki powers the complete delivery and end–user experience infrastructure
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AOL Hi-Q and In2TV
> > HIGHLIGHTS+ 100s of TV Quality downloads from Warner Bros,
Nickelodeon, Comedy Central, A&E, MTV, …
+ Kontiki is the delivery infrastructure that powers the AOL Hi-Q system and the more recently launched In2TV content portal
+ Kontiki is fully integrated with the ad serving solution at the point of origin
+ Kontiki is also integrated with the DRM facility used to protect the rights held content distributed through Hi-Q/In2TV
+ AOL Hi-Q supports a mix of business models including: free, ads supported free, pay per download and subscription based models
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British Sky Broadcasting
> > HIGHLIGHTS+ Sky service built as a cross-medium
experience offered free to their premium satellite TV customers
+ Offers over 300+ movie titles and 100+ unique pieces of sports content on a regular basis
+ User experience/EPG is very smooth and was built in flash on top of the extensible Kontiki framework
+ Users are authenticated via the Sky billing system in place for satellite subscribers
+ Kontiki fully integrates with the Microsoft DRM system at the point content origin
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Why It Is Still Hard….
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Thanks
+ Questions?