Media Vision 2020 - Presentación de Chema Casaos, Director de TV&Media para Ericsson en Iberia, durante el evento Bit Broadcast 2014. IFEMA, Madrid, España.

1. Media
vision
2020
The new era of entertainment and connectivity
May 20st 2014

2. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 2
Networked
society
Connected Devices
Tv anywhere
Video enabled
ip
Global enabler

3. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 3
Consumerlab
annual research
The Voice of the Consumer
2012-06-27 | Page 3
100,000/yr
RESPONDENTS
1.1 billion
REPRESENTING
PEOPLE
15
STUDIED
MEGACITIES
40
MORE THAN
COUNTRIES

4. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 4
50bn
Connected Devices
15bn
Video enabled
ip
Global enabler

5. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 5
Game Changers – the 6 serialized elements for strategy to 2020
› The IP imperative
› The Cloud Imperative
› Changing consumption and bundles
› Forever evolving experience
› Brand-casting
› New money, new players – the Media landscape
Time to play 2.0 –
Media vision and Game Changers

6. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 6
TOPICS
• Consumers
• Content
• Technology
• Devices
• Money Flows
• Impact on players
2020

7. consumers

8. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 8
FUTURE is about consumer
choice – while Reducing complexity
› Choice adds complexity
› Consumers want one super simple
aggregated experience
– Aggregate navigation and services
– Aggregate discovery
– Aggregate payment and billing
– Smart recommendation
› Consequences are:
– Mixing OTT and managed services
– Linear TV is just one ingredient
– Quality content is very important
– Lock-in and binding time avoidance
– Reduced large inflexible bundles
Personalization
Fixed
Personalized
2013 2020
› Deep individual
consumer insight
essential
– Recommendation
– Personalization
– Monetize the
consumer – not
just the household

9. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 9
› By realizing that the experience is larger than
the content itself, new revenue streams are
enabled
– Multi-device advertising campaigns
– E.g. Cinema = movie + popcorn + parking + …
– E.g. Football = TV + betting + take away + Twitter +
…
› The media experience extends across time,
platforms, services and media
› Improves consumer loyalty and provides new
entry points
Consumption extends in 2020
Continuous experience throughout the devices and channels (E.g. Football)
(Playing the game)(Reading & discussing)(Watching the match) (Following updates) (Betting) (Additional material)

10. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 10
› Consumer ecosystems such as
Facebook, Twitter, Amazon, Apple have
a head-start
› Leverage or build own deep data and
analytical tools
› Deep individual consumer insight
essential
– Recommendation
– Personalization
– Monetize the consumer – not just the household
He who knows the consumer
best wins
Advice, info, recommendations,
personalization, support,...
User data, habits, personal
information, Big data…
Source: Ericsson ConsumerLab, Personal Information Economy study 2013

11. content

12. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 12
Paying for content 2020
Willingness to pay for contentHigh Low
Live & events Movies & TV-series ”Information” Clips & UGCBackground noiseLive & events Movies & TV-series ”Information” Clips & UGCBackground noise
Subsidized by:
› Ads, product placement,
click to buy, personal info
Payment models
› Free
Subsidized by:
› Advertising, click to buy, donations
Payment models
› Direct consumer
› Subscription and transaction
Targeted Advertising Content Discovery
$
$$
Consumer Analytics
Ad
Company
Operator
$

13. Roles & PLAYERS

14. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 14
SUCCESSFUL TV Operators WILL HAVE
changeD
Consumers WILL HAVE driven CONVERGED
multi-screen and personalized TV experiences
Linear TV
OTT
+ Improved User Experience
+ Increased consumption
+ Higher advert value
Converged
Experience
$

15. technology

16. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 18
›9.8 Bn Mobile Subscriptions
›8 Bn Mobile Broadband
–4x Growth in Mobile Broadband
›1 Bn Fixed Broadband
– 75% of Digital TV homes
› Mobile BB a key media enabler
– For all regions and especially in regions
with low fixed infrastructure
Broadband IP
Source: Ericsson Mobility Report 2013

17. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 19
› Broadband IP enabled growth in on-
demand viewing
– Time-shift of TV mostly in cloud
› 50% consumed time shift
› 50% consumed live/linear
› IP critical for video delivery
– All video away from the home
– Majority of video in the home
Delivery of video
50%
50%

18. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 20
cloud
› Cloud is essential enabler
–B2B scenarios for hosting
–B2C services and propositions
› Agility
– Service provision
– Updates and new features
› Experience
– Harmonization of devices
– Any content, any device
– Consumer links/recommendations
› Reduced costs
– OPEX model for operators
– Centralized processing
Elasticity
Speed of
Innovation
Volume Billed
OPEX vs.
CAPEX
Virtualized
Environment
Multi-Tenant

19. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 21
HEVC -50% : KEY Applications
Video over LTE
Expensive bandwidth
Increasing demand
TV Anywhere
More HD
More screens
Telco / IPTV
Longer reach
More subscribers
UHDTV (4K)
Critical for delivery

20. devices

21. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 23
› 4x HD resolution
› Standard flat screen resolution
› Content available
– Premium TV services
› Consumer devices native ultra HD
– Smartphone cameras
– Video cameras
Ultra HD SCREENS
the norm in 2020
HD HD
HDHD

22. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 24
› Bring your own device culture firmly in-place
– TV service providers leverage all connected devices
› Complexity challenge to overcome with unified experience
Era of Bring your own device
(BYOD)

23. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 25
The Shrinking set top box
Today
2020
Conditional Access
Local DVR Storage
HD
RF Tuner or IP
Thick Client
Local EPG
HDMI 1.4
$$$$
Digital Rights Management
Cloud DVR Storage
UHD
IP + RF Tuner (Hybrid)
Thin Client with Android/RDK
Cloud EPG
HDMI 2.0
$$

24. CLOSING

25. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 27
› The Networked Society is realized
– 15bn video enabled devices connected to
broadband IP
› 50/50
– On-demand consumption at parity with live/linear
– Long tail and +1 channels move to on-demand
› Market revenues have grown to $750bn
– up from $530bn in 2013
– Existing service providers embrace OTT
› New money, new players
– IP connectivity brings new entrants into market
2020 VISION – KEY BELIEFS
› Content remains King
› Consumer values
– personalisation, choice and intelligent
recommendation
› Advertising more targeted/ profiled
› Emerging markets rely on mobility
– Limited fixed IP infrastructure,
– Leverage investment in local content
› 4k main screen the norm

26. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 28

28. Media Vision 2020 | © Ericsson AB 2014 | 2014-05-20 | Page 30
TV customers
> 2000
No. 1
In Satellite, Contribution and
Distribution markets
in more than 100 countries
Global on-demand content
consumed has been processed by
Ericsson solutions
> 40%
> 750k
Video assets processed by
Ericsson solutions annually
15+ year track record of first-to-market
innovations
Multi-award-winning
TV Portfolio including 3 Emmys for HDTV, On-Demand and
AFD
Global video-on-demand viewed
delivered by Ericsson solution
> 30%
3D TV
World’s first live 3D
broadcast
Our pedigree
Solutions that maximize
EFFICIENCY of video
delivery
Solutions that maximize
CONSUMER value for
OPERATORS
Solutions that
maximize value of
CONTENT