Today’s TV consumer is a highly demanding one. Not only do they want to watch video on any number of screens - from a 50” flat panel to an iPad to the smartphone in their pockets - they want to find, recommend and view TV content using new software frameworks being made available on new connected devices. This coming explosion in software-centric viewing, sharing and consumption will change the digital living room forever. Long standing norms around content discovery, interaction and monetization will change dramatically in coming years. This is the (slightly modified) presentation that I gave to the US Telecom Association on April 25th, 2013. For more info, visit www.nextmarket.co

1. Introduc)on
The
Connected
Living
Room
How
OTT,
Apps,
Social
and
Connected
Devices
Will
Change
Everything

2. Agenda
• Who
is
NextMarket
Insights?
• From
simple
to
now:
Four
waves
of
change
for
the
living
room
• Today’s
connected
consumer
• The
big
shiKs
• Recommenda)ons
• Q&A

3. Who
is
NextMarket
Insights?
• A
bou)que
research
&
advisory
firm
focused
on
emerging
consumer
technologies
• Michael
Wolf
launched
GigaOM’s
research
division,
created
GigaOM
Books,
created
In-­‐Stat’s
consumer
media
prac)ce
&
ABI’s
digital
home
prac)ce
• 15
years
in-­‐house
experience
advising
product
&
media
strategies
for
companies
like
Cisco,
MicrosoK,
HP,
Philips,
AT&T,
Verizon
&
more
• Learn
more
at
www.nextmarket.co

4. Things
used
to
be
so
simple…

6. So
What
happened?
So
what
happened

7. Four
Waves
of
Change
The
four
waves
of
change

8. First:
Analog
to
Digital…

9. Then
the
Internet…

10. Then
Mobile

11. Wave
1:
Analog
to
Digital
Transi)on
Wave
2:
Internet
Wave
3:
Mobile
Wave
4:
Connected
Consumer

12. The
Fourth
Wave:
The
Connected
Consumer
• When
everything
comes
together
• SoKware-­‐centric
• Cloud
• Mobile
devices
as
playback,
source,
companion
(second
screen)
 The
era
when
conven4onal
business
models
begin
to
break
down
&
new
ones
take
hold

13. The
Age
of
the
Connected
Consumer
The
age
of
the
Connected
Consumer

14. We’re
Connected
We’re
connected

15. Moving
from
physical
to
digital
media
as
connected
devices
become
the
norm
Source:
GigaOM
Research

16. We’re
Mobile
We’re
mobile

17. Over
a
billion
smartphones
&
nearly
250
million
tablets
by
2015
Source:
NextMarket
Insights

18. Our
mobile
devices
are
by
our
sides
Source:
NextMarket
Insights

19. We’re
Social
We’re
social

20. And
the
US
is
the
most
social
of
all
Source:
Comscore

21. We’re
watching
lots
of
online
video
We’re
watching
lots
of
online
video

22. Online
video
households:
Young
users
are
cudng
the
cord
Source:
NextMarket
Insights

23. So
What
Does
all
this
mean?
So
what
does
all
this
mean?

24. The
Big
ShiKs
The
Big
ShiKs

25. V
• Broadcast,
OTT/cloud,
facili)es
• Last
mile:
Fixed
line
&
LTE
• In-­‐home:
Gigabit
Wi-­‐Fi
Delivery/
Network
• Mobile,
smart,
connected,
any-­‐screen
Devices/
Network
• Apps,
HTML5,
Cloud
• Social
&
Algorithmic
Presenta)on
&
Discovery
• Out
with
the
old
bundle,
in
with
the
new
• A
mix
of
viral,
personal,
professional
Content/
Services
• The
remote
• Second
screen
• Commerce
Interac)on
The
Connected
Living
room

26. The
Big
Shi=s:
Delivery/Network
• Headend
-­‐>
Data
center/Cloud
• Tradi)onal
DVR
-­‐>
nDVR
• Condi)onal
access
-­‐>
DRM
• From
MPEG2
&
H.264
-­‐>
H.265
(HEVC)
• Mobile:
3G/802.11n
-­‐>
LTE
&
802.11ac

27. The
Big
Shi=s:
Devices
• TV
-­‐>
smart
TV
• Discrete
boxes
-­‐>
Integra)on
• Carrier
set-­‐tops
-­‐>
s)cks,
apps,
net-­‐
tops
• Carrier
owned
-­‐>
consumer
owned

28. Connected
CE
devices
(smart
TV,
Blu-­‐ray,
streaming
boxes
and
s)cks)
will
be
a
$16
billion
market
Source:
NextMarket
Insights

29. The
Big
Shi=s:
Presenta4on
&
Discovery
• Grid
guide
-­‐>
Dynamic
UI
• Programmed
recommenda)on
-­‐>
algorithmic
&
social
• Automated
Content
Recogni)on
(ACR)
• Local
UI
-­‐>
HTML5
• Tradi)onal
spectrum
allocated
channels
-­‐>
OTT/apps

30. Approximately
1
in
7
of
streaming
consumers
today
use
social
on
tablet/
smartphone
to
find
video

31. Social
TV
Deals
last
6
months
• Facebook/Rovi
• Nielsen/Twiler
• Twiler/Bluefin
Labs
• Twiler/Network
TV
–
adding
video
clips
in-­‐stream

32. The
Big
Shi=s:
Content/Services
• The
bundle
-­‐
>
a
la
carte,
mini-­‐bundles,
bundle
augmenta)on
• Carrier-­‐delivered
-­‐>
OTT,
OTT/carrier,
service-­‐as-­‐app
• Payment:
cable
bill
-­‐>
mul)ple
models
• Programmed
-­‐>
more
)me
shiKed,
live
streaming
for
event-­‐driven
watching

33. OTT
Packaged
App
Open
web
Cable
Broadcast
to
Internet
Cable
Broadcast
Bundle
Free
to
air
A
la
carte
Ad-­‐
supported
Mini-­‐
bundles
Free
Authen)c
ated
Cable
bundle

34. The
Big
Shi=s:
Interac4on
• One
screen-­‐
>
second
screen
interac)on
• Classic
remote
-­‐>
new
physical
interfaces
(voice,
mo)on,
eye)

35. Miracast
&
content
“tossing”
technologies
will
be
embedded
into
most
displays
Source:
NextMarket
Insights

36. So,
what
should
you
do
about
it?
So,
what
should
you
do
about
it?

37. Carriers/Mul4channel
Operators
• New
compe)tors:
Device
OEMs,
OTT
aggregators,
mobile
operators,
WebCo’s
• No
choice
but
to
give
more
choice
to
customers
• Mul)-­‐screen
experiences
&
interac)on
required

38. Carriers/Mul4channel
Operators
• Carrier
billing
for
mini-­‐content
bundles,
a
la
carte
• Robust
in-­‐home
connec)vity
services
are
hard
to
match
for
non-­‐facility
providers
• Embrace
couch
commerce
• Become
a
content
programmer

39. Content
Owners
• A
la
carte
is
coming,
like
it
or
not
• The
new
compe)tor
may
be
the
ar)sts
themselves
– Ar)st
“content
networks”
are
becoming
commonplace
– Enabled
by
Google,
Amazon,
others

40. Introduc)on
NextMarket
Insights
More
info:
www.nextmarket.co
Reports:
The
Connected
Living
Room
The
Online
Video
Consumer
2013
Advisory
&
Report
bundles
available
Email:
info@nexmarket.co