Strategies for Smaller cable operators to move to IP based services.

1. Small
to
medium
operator
vendor
strategies
for
transi*oning
to
IP
Benjamin
Schwarz
bs@ctoic.net
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
1

2. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
2

3. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
3

4. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
4

5. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
5

6. 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)
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
6

7. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
7

8. 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.
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
8

9. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
9

10. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
10

11. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
11

12. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
12

13. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
13

14. 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,
IP
Transi*on
strategies
for
smaller
operators
IRT,
OpenTV,
World
S1ummit
ony,
Samsung
IP
Cable
Philips,
S-­‐
London
October
9
2011
th
Benjamin
Schwarz
bs@ctoic.net
-­‐
14

15. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
15

16. HbbTV
examples
Videotext
app
with
embedded
graphic
&
video
Internet
services
available
on
a
HbbTV
device
Prototype
info
service
of
France
Télévisions
Advanced
teletext
service
launched
by
Pro7
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
16

17. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
17

18. Moving
to
IP
is
no
different
from
any
project
management
Time
Q
Features
Budget
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
18

19. 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.
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
19

20. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
20

21. Convergence:
Verimatrix
&
EchoStar
cases
in
point
• Verimatrix:
pure-­‐player
in
• EchoStar:
Tradi*onal
Pay-­‐
security,
Started
life
IP
TV
satellite
beginnings
only,
targe*ng
IPTV
(Dish)
• Became
a
market
leader
• Purchased
SlingMedia
in
• Clients
grew
2007
• Projects
grew
in
• Now
heavily
pushing
IP
complexity
home
connec*vity
• Acquired
Comvenient,
a
• Just
launched
an
Android
pure
DVB
player
in
2011
box
are
converging
è Broadcast
&
broadband
vendors
è “those
who
thought
they
were
in
the
railroad
business
lost
out
to
those
who
recognized
the
market
was
transporta*on”
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
21

22. The
Consul*ng
Broad
Space
Strong
ISP
compe**on
Stay
with
Mix
n’
TV
match
specialist
No
pay-­‐TV
Strong
pay-­‐TV
compe**on
compe**on
Go
with
IP
Get
real!
specialist
No
ISP
compe**on
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
22

23. 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?
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
23

24. 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
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
24

25. www.ctoic.net
About
CTO
innova&on
Consul*ng
• Strategy
Content
operators
Technology
providers
Network
Operators
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
CTO Innovation Consulting Customer List
IP
Transi*on
strategies
IP
Cable
World
Summit
-­‐
London
Benjamin
Schwarz
for
smaller
operators
October
19th
2011
bs@ctoic.net
-­‐
25