To deliver on this potential, smarter media and entertainment companies are transforming business models, operations and customer experiences. (1) Innovate business models and seize digital market opportunities, (2) Differentiate the consumer experience, (3) Improve operational efficiencies.

1. George Mattathil,
4/25/2011
Let‘s Build a Smarter Planet:
Media and Entertainment
© 2009 IBM Corporation

2. Let‘s Build a Smarter Planet: Media and Entertainment
The reality of living in a globally integrated world is upon us.
 Frozen credit markets and limited access to capital.
 Economic downturn and future uncertainty.
 Energy shortfalls and erratic commodity prices.
 Information explosion and risk/opportunity growth.
 Slowing superpowers and emerging economies.
 Increasingly complex supply chains and empowered consumers.
The world is connected:
economically, socially and technically.
© 2009 IBM Corporation

3. Let‘s Build a Smarter Planet: Media and Entertainment
The pace of change is accelerating.
1.6 billion 100 million $100 billion
users video streams spent
On the internet by 2010—60% Hosted by Yahoo daily in 2007. On personal digital
will have broadband access. devices annually.
60 million 74 500 billion
blogs terabytes images
Online today and growing. Of storage is required for just Created in 2010—between
one hour of feature film in digital still cameras and
high resolution. cell phones.
© 2009 IBM Corporation

4. Let‘s Build a Smarter Planet: Media and Entertainment
The opportunity for progress is clear.
From 0 to 1M 69% Reduce
subscribers in process cycle energy costs
first year time reduction 20–30%
Tata Sky launched a new direct-to- IBM clients are embarking on exciting Several IBM clients are
home digital satellite television new approaches to reduce operational improving the performance of
service on a flexible business model costs and improve the efficiencies of their their mission-critical websites,
and scalable IT infrastructure. The workflow processes. Leveraging IBM‘s while reducing operational costs.
solution enabled Tata Sky to launch expertise in Business Process IBM virtualization technology has
the business with unprecedented Management and Service Oriented enabled one real-time sports
speed, in just 6 months, and reach Architecture, these clients are deploying website to consolidate their 60
their ambitious target of one million unified digital media management servers into just six, which has
connections in the first year of platforms and integrated content and reduced energy consumption by
operations. The robust and scalable business systems processes. For one 23% and cooling load by 25%.
infrastructure is supporting the media network client, IBM mapped a At the same time, website visits
company's growth targets of ‗future vision‘ digital workflow that have increased by 26% and the
adding one to two million new demonstrates labor savings of 20% to cost of each visit has been
subscribers annually. 50% and reduction in process cycle times reduced by 38%.
of 69%, improving profitability and
reducing costs.
© 2009 IBM Corporation

5. Let‘s Build a Smarter Planet: Media and Entertainment
For media and entertainment companies, this means reshaping
their business in response to uncertainty drivers.
INCREASED CONSUMER POWER EXPANDING IMPACT OF TECHNOLOGY
Consumers are increasing savvy Technology players are evolving into media
and harder to reach–shifting away from companies, while media companies are
traditional consumption patterns. placing greater emphasis on technology to
Fragmentation continues, as loyalty remains deliver advantage. Both must navigate a vast
a challenge. Providers transitioning from array of intelligent media devices, multiple
―audience‖ to ―consumer‖ focus. forms of digitized content and an increasing
volume of user-generated content
BUSINESS MODEL UNCERTAINTY
ADVERTISING TRANSFORMATION
The adoption of the Internet is remaking the
landscapes of content delivery and There is a continued advertising revenue
consumption. Technology players are shift from traditional to new media outlets
disrupting business and shifting revenue (e.g. Internet, online video sites, social
flow (e.g. Yahoo News). Traditional players networks), a greater volatility in light of the
are focused on protecting core revenues, current economic situation and a broader set
while growing digital opportunities. of capabilities required to reach consumers.
Source: ―The end of advertising as we know it‖ IBM white paper. ―Navigating the media divide: Innovating and enabling new business models‖ IBM white paper.
© 2009 IBM Corporation

6. Let‘s Build a Smarter Planet: Media and Entertainment
To deliver on this potential, smarter media and entertainment
companies are transforming business models, operations and
customer experiences.
INNOVATE DIFFERENTIATE THE
BUSINESS MODELS AND CONSUMER EXPERIENCE
SEIZE DIGITAL MARKET
Launching new innovative
OPPORTUNITIES
services quickly, leveraging
Developing new business relationships across channels
models and partner collaboration and using real-time analytics
by leveraging the continued MEDIA AND
to gain deep customer insights
convergence of telecom, media ENTERTAINMENT and personalized offerings.
and Internet to strengthen core Revealing advertising values
businesses, improve competitive and performance to optimize
position and generate new channel strategies and
revenues faster. improve return.
IMPROVE OPERATIONAL EFFICIENCIES
Achieving operational excellence by reducing infrastructure
and process complexity to enable improved profitability and
reduced costs, fund innovation, enable expansion into new
markets and support business transformation initiatives.
© 2009 IBM Corporation

7. Let‘s Build a Smarter Planet: Media and Entertainment
+ + =
An opportunity for media and entertainment companies
to think and act in new ways.
Achieve growth by Gain a competitive Reduce costs and enable
innovating business advantage by expansion into new
models and seizing differentiating the markets by improving
digital market consumer experience. operational efficiencies.
opportunities.
© 2009 IBM Corporation

8. Let‘s Build a Smarter Planet: Media and Entertainment
Smart media and entertainment:
Innovating business models and seizing digital
marketing opportunities.
SMART IS SMART IS
Having the flexibility to introduce new Having a holistic and trusted view of
products and services, revamp business media assets across the enterprise,
processes and enter or create new and meaningful metadata search and
markets, as quickly as opportunities asset retrieval capabilities in order to
appear, or as soon as you happen repurpose and monetize assets.
to envision them.
SMART IS SMART IS
Creating cost-efficiencies in traditional Consolidating and streamlining
supply chains in order to continue complex financial processes to ensure
investment in high-growth, cross- successful compliance and regulatory
channel distribution. management practices.
© 2009 IBM Corporation

9. Let‘s Build a Smarter Planet: Media and Entertainment
Smart media and entertainment:
Innovating business models and seizing digital
marketing opportunities.
Tata Sky: TATA Group, one of India‘s oldest and Consumer Electronics Company: To complement its
most respected business conglomerates, wanted to new and future product lines, the client engaged IBM
become a pioneer in the country‘s newly opened, to develop a cloud-based service infrastructure and
direct-to-home satellite TV market. To become a portal through which their new generation of TVs can
major player in the new market, TATA had to launch seamlessly access favorite Web services as well as
an entirely new business—beginning with no broadcast TV.
infrastructure or existing processes at all—and do it
very quickly, in order to beat out the competition. The company is working with IBM to develop a first-of-
a-kind service known as Internet-TV, an embedded
TATA chose IBM to help launch a new business feature of its newest televisions which—in addition to
starting from scratch, Tata Sky. The service-oriented traditional television broadcasts—enables viewers to
architecture-based business, resulting from this first- access and navigate Internet content with a standard
of-a-kind ―green field‖ project, was launched in only remote. What the client needed from IBM was an
six months. Within a year of its operations, the advanced, intelligent infrastructure on which to
company had signed up its one-millionth establish and support a dynamic community of
connection—a world-record growth rate for direct-to- users and service providers.
home broadcasting.
© 2009 IBM Corporation

10. Let‘s Build a Smarter Planet: Media and Entertainment
Smart media and entertainment:
Differentiating the consumer experience.
SMART IS SMART IS
Moving away from traditional, one-to- Building a complete picture of
many, broadcast-style delivery consumer preferences and
processes and channels to Web- interactions, and identifying rapid
centric business models. changes in demand.
SMART IS SMART IS
Using context information and Applying real-time knowledge of
social networking to optimize the consumer preferences to provide
consumer experience. better personalization of content and a
more compelling experience.
© 2009 IBM Corporation

11. Let‘s Build a Smarter Planet: Media and Entertainment
Smart media and entertainment:
Differentiating the consumer experience.
IMPIRE AG: An IBM solution helps IMPIRE rapidly generate The Palace Museum: IBM and the Palace Museum
new statistical information and develop cutting-edge services. in Beijing, China, have launched The Forbidden City:
With IBM Software, IMPIRE manages, integrates and Beyond Space and Time, the first complete virtual
analyzes sporting-event data and leverages that content in its world created for a major historical and cultural
products, such as its unique Web-based sports ticker, which attraction. The online environment is a fully
communicates real-time event data and statistics to immersive, interactive world that corresponds
consumers more quickly than even a live broadcast. architecturally and historically to the vast grounds of
the current Palace Museum, allowing visitors to
To achieve its objectives, IMPIRE needed to replace its experience three-dimensional representations of
complex and expensive-to-manage database infrastructure cultural artifacts and places.
with a highly available, high-performance solution that could
rapidly load data and provide data mining. A flexible data
model and development environment allows IMPIRE to The Forbidden City: Beyond Space and Time is an
capture live sporting events statistics, distribute them in real open, extendable platform that represents the next
time, store large amounts of new and historical data from evolution of Web 2.0 applications, where rich
various sources, analyze and publish that data in near real content, educational storytelling, community and
time, and quickly develop new applications. social networking features converge into a unique,
online, multi-user, 3D interactive experience.
© 2009 IBM Corporation

12. Let‘s Build a Smarter Planet: Media and Entertainment
Smart media and entertainment:
Improving operational efficiencies.
SMART IS SMART IS
Increasing speed to market by being able to Having a technology infrastructure that lets
quickly configure production and distribution you to pick the best solutions from the most
processes to meet your ever-changing innovative industry solution providers and
business requirements. easily ―snap‖ them into your workflow.
SMART IS SMART IS
Combining the power, flexibility and cost Use of standard IT-based components to
advantages of open Information Technology dramatically reduced cost compared to
with media industry-specific workflows, to proprietary technologies. Significant savings
reduce the cost of production and streamline accrue from workflow efficiency, lower fixed
business and content processes. cost for storage and storage media, reduced
floor space, heating and cooling, and
potential labor savings.
© 2009 IBM Corporation

13. Let‘s Build a Smarter Planet: Media and Entertainment
Smart media and entertainment:
Improving operational efficiencies.
Vlaamse Radio and Televisie: Belgian radio and Australian Open: Since 1993, IBM has been the
television broadcaster faces the same challenge that Official Technology Partner of the Australian Open, playing a
most entertainment and news companies face—deliver major role every year by providing the event infrastructure
content quickly or lose viewers. Previously, the and manpower to support all facets of the tournament—from
organization had struggled to provide new content to the event management to the scoring system that feeds all of the
public (especially on its Web site) due to a tape-based organization's information channels, including the Web site,
system that required manual management and that on-court scoreboards, results kiosks, graphics interface for
limited content access to one user at a time. television broadcasters and the Match Update Centre.
Working with IBM, VRT deployed a unified digital media To help enable AustralianOpen.com to be 100% available,
management platform built on a service-oriented scalable and secure, IBM uses a flexible,
architecture (SOA) for creating, editing, airing and storing self-managing infrastructure based on service-oriented
video content materials. The new system affords VRT architecture (SOA) and multiple geographically dispersed
the ability to capture, reuse and share its digital files, and servers, virtualized as one, to scale up to support a massive
convert them into multiple formats—producing 50% more increase in traffic more than 100 times its typical volume
programming assets—opening up more opportunities to during the event and scale down when the tournament is
reach new customers. over—all without the need to make a large and permanent
infrastructure investment.
© 2009 IBM Corporation

14. Let‘s Build a Smarter Planet: Media and Entertainment
Consumers are demanding experiences across the spectrum
of media, at any time and in many combinations.
© 2009 IBM Corporation

15. Let‘s Build a Smarter Planet: Media and Entertainment
A smart media and entertainment company will use raw
data about consumer, usage and interests to
generate actionable insights.
COLLECT MANAGE
INTEGRATE ANALYZE
Data
Insight
© 2009 IBM Corporation

16. Let‘s Build a Smarter Planet: Media and Entertainment
These insights will drive the creation of new value for the consumer.
COLLECT MANAGE
New products
and services
Targeted
communications
Personalized
offerings
INTEGRATE ANALYZE
Data
Insight
© 2009 IBM Corporation

17. Let‘s Build a Smarter Planet: Media and Entertainment
They will also lead to core business benefits and new opportunities
for the media and entertainment company.
COLLECT MANAGE
New products
Greater speed to market
and services
Operational efficiencies
Targeted
communications
New business models
Personalized
Collaboration opportunities
offerings
INTEGRATE ANALYZE
Data
Insight
© 2009 IBM Corporation

18. Let‘s Build a Smarter Planet: Media and Entertainment
IBM‘s solution strategy is aligned with the needs
of media and entertainment stakeholders.
MEDIA AND ENTERTAINMENT
IBM IS INVESTING IN…
PRIORITIES ARE…
Innovating business models  Best practices helping develop and implement new business models
and seizing digital market  Global outsourcing capabilities to fund innovative business approaches
opportunities.  SOA-based infrastructure for the media industry that is designed to
manage the increasing complexity of running a content-focused business
from the point of creation to the distribution of digital content
 R&D and Media Solution Labs around the world to bring pioneering
technologies to clients
 Global financing to support innovation and change
Differentiating the consumer  Web and consumer analytics to reveal customer insights for better targeted
experience. services
 Advertising transformation and cross-platform ad analytics to help clients
develop strategies and roadmaps for new digital realities, pricing strategies
and delivery mechanisms
 Web-centric business innovation to deliver content and unique experiences
to consumers (both B2C and B2B) across channels
 End-to-end customer and master data management
Improving operational  Modernization and optimization of legacy systems
efficiencies.  Integrated digital content and meta-data management
 Digital workflow and back-office process efficiencies and transformations
to create an agile and flexible business infrastructure
 Open, standards-based, integrated environments and processes
 Application management and outsourcing
© 2009 IBM Corporation

19. Let‘s Build a Smarter Planet: Media and Entertainment
We‘ve only just begun
to uncover what is possible
on a smarter planet.
The world will continue to become smaller,
flatter and smarter. We are moving into the
age of the globally integrated and intelligent
economy, society and planet.
From helping magazine publishers change
their business model so subscribers have
the flexibility to change what gets delivered,
to enabling comic creators and producers to
interact in real-time and discover new talent,
to making it economical for broadcast
networks to digitally archive major sporting
events in HD. Being smart about media
allows the world‘s media companies to lower
the barriers to entry and the costs of creating,
managing and distributing digital content.
Let‘s work together to drive
real progress in our world.
© 2009 IBM Corporation

20. Let‘s Build a Smarter Planet: Media and Entertainment
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IBM Corporation 2011
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© 2009 IBM Corporation