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Ericsson's IPTVsolutionanditsimpact on traditional advertising channels

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Title: Ericsson's IPTVsolutionanditsimpact on traditional advertising channels


1
Ericsson's IPTV solution and its impact on
traditional advertising channels
International Broadband Communications
Conference Mixing the Channels Bucharest, 28th of
October 2008
Magda Moraru, Multimedia Solution Manager
2
  • Agenda
  • 1. Ericssons TV vision
  • 2. Ericsson IPTV Offering
  • Overview
  • Network Infrastructure Solution
  • Multimedia Solution
  • 3. Ericsson IPTV Advertising
  • -Networked Media Overview
  • -Digital Advertising
  • -Ericssons IPTV solution for online
    advertisement

3
Ericssons TV vision
IPTV Business Solution
4
Ericsson TV visionThe individual TV experience
Personalization
Communication
Interactivity
5
What is IPTV? - The fundamentals
  • IPTV Internet Protocol Television
  • Digital TV service delivered over a broadband
    network using the Internet Protocol
  • Delivery over a quality controlled network
  • Premium TV service over managed IP network
  • Internet TV / web TV is best-effort, ie not IPTV

6
Drivers for IPTV
Analog TV turned off
7
Ericsson TV Roadmap
8
Ericsson IPTVOffering

9
Ericsson IPTVA complete offering
Ericsson IPTV Network Infrastructure offering
Ericsson IPTV Multimedia Solution offering
Prime Integration Business Consulting
10
Ericsson IPTV e2e offering including acquisitions
11
Ericsson IPTV Offering
Network Infrastructure
12
Two different standard worlds
Marry fragmented Fixed Broadband standards with a
holistic 3GPP architecture
13
The standardization issue
  • Multiple Standards required by IPTV most
    already exist
  • IPTV solutions also include Proprietary
    technology
  • Integration requirements lead to limited
    interoperability and economics of scale
  • Open IPTV Forum works towards an interoperable
    IPTV solution

Standardization - a success factor for IPTV mass
market
14
What the consumer wants
IPTV Services
  • Time Shift TV
  • High Definition TV
  • On-demand Tv
  • Catch up TV
  • More than one TV

Will impact the network
IPTV Technology
  • Unicast
  • Multicast
  • QoS
  • Capacity

15
IPTV hardens network requirements
IPTV is changing the fixed networks market
16
Full Service Broadband Architecture
UNI
NNI
Interface between Operator 1 and Operator 2
Interface between terminal and Network
17
Offering strengthened by acquisitions
Multimedia offering
Network offering
18
Own and acquired portfolioIntegrated together
for multi access media solutions
VoD Ad Insert
Asset Management
IMS
19
Ericsson IPTV Network InfrastructureBusiness
Solution involving Network and Services offering
Operations transformation (Business, Knowledge,
Processes)
System Integration (Access, Edge, IMS to Head End
/ BSS / OM)
Solution Management (Solution support,
maintenance Life cycle mgmt)
Tuning and optimization of identified bottlenecks
e2e KPI analysis, audit and design
IPTV Service Layer (Ericsson, Operator own
developed, or other vendors)
Management
STBs Home/Access Gateways
  • Multi Service Edge Routing
  • Policy Control
  • Carrier Ethernet
  • xWDM
  • ADSL2
  • VDSL2
  • GPON
  • p-t-p Ethernet
  • Passive fiber infrastructure
  • IMS Core
  • Customized Service Control

Network segments including Product near services
20
Network architecture model IPTV Network
Infrastructure
Metro Transport
IPTV servicehead end
IPTVusers
Access
BackboneNetwork
IP Edge
IMS
  • Key feature areas
  • Robustness
  • Capacity
  • Scale
  • QoS traffic separation

21
IPTV requirements on network
Metro Transport
IPTV servicehead end
IPTVusers
Access
BackboneNetwork
IP Edge
IMS
22
Ericsson IPTV - deployment Proof
15 of Top 20 IPTV Operators use Ericsson for TV
23
Ericsson IPTV Offering
Multimedia Solution
24
Ericsson IPTV e2e offering including acquisitions
25
Broadcast TV, PPV
Remote Recording
Time-Shift TV, Start-Over TV, Catch-Up TV
IMS Services
NPVR/LPVR
Electronic Program Guide (EPG) Mini-EPG Multi-Lang
uages
Broadcast Reminder
26
  • Broadcast TV
  • Broadcast channels
  • Premium channels
  • Audio Service
  • Music Broadcast Service
  • Music on Demand Service
  • Pay-per-View (PPV)
  • Video-on-Demand (VoD)
  • Subscription based Video-on-Demand (SVoD)
  • Personal Video Recording (PVR)
  • Network based Personal Video Recording (nPVR)
  • Time-Shift TV (TSTV)
  • Start-Over TV (SOTV)

27
  • Game Services
  • Advertising Services
  • Walled garden
  • Open Internet Navigation
  • TV Mail
  • Chat and messaging on TV

28
  • Subscriber Management
  • Content Management
  • Content Distribution
  • Offering Management
  • Charging/Billing
  • Provisioning
  • Network Management
  • Allows regional TV service offering
  • User Authentication and Authorization
  • E2E QoS Monitoring

29
Ericsson IPTVAdvertising

30
Content evolution Networked mediaOne common
market for media and telecom industries
Networked media
Mobile 3G networks
Digital content
Video
Fixed broadband networks
Music
TV
Print
Games
Radio
Personalization
31
The changing world of multimedia
Technology trends
Business trends
Consumer trends
Consumer trends
32
Business trends Cooperation, important but
difficultDifferent cultures
Media companies on telcos
It is not easy to see how operators can really
carve themselves a niche in this market as they
are not retailers and have little or no
experience or understanding of retailing
Telcos on media companies
They have no CRM or other structures set up and
tested that would be relevant to our
customers The content owners/producers would do
better to leave this space to the operators
Content providers view operators as pipe owners"
Operators control the relationship with the
end-user but we are always very involved,
especially the brand police the marketing
department
The operator has a personal relationship with
the end-user. A broadcaster, etc., generally does
not. They may feel they have one, as the content
owner, but they have little or usually no direct
experience with consumers
Source for quotes Networked media project
interviews, Analysys Research (2006 )
33
Optimizing the pricing modelsThe TV example
Subscription Cable (pay) TV Model
Advertising Free TV Model
Transaction Ringtone Model
Interaction Vote Greet Model
34
Digital advertisingLeading the shift in business
models
  • Besides subscription and transaction based
    media revenues, advertising is growing to
    become a major consumer business model, with
    digital advertising driving the growth
  • The ad-supported and sponsorship model has
    been successful for online content so far.
    For premium services, the hybrid model based
    on a combination of subscription fees and
    advertising revenues will be more common

Source Google Investor Relations (2007)
Digital advertising for Visit Sweden (Webby Award
Winner 2007), National Geographic (online
campaign), and KLM (online campaign)
35
Digital advertising More advertising money
moving online and mobile
Advertising money is increasingly moving from
traditional media like TV, newspaper and radio
towards Internet. By 2011, Internet will account
for 14 of global advertising spending, as
compared to 7,8 in 2006 and 2,8 in 2002
Source PwC (June 2007)
Interactive online ad for Levis
Interactive online ad for Axe
36
Digital advertisingDriving the monetization of
content online and mobile
  • Digital advertising bridges the gap between
    consumers (who want content for free),
    content creators and service providers (who
    want to get paid)
  • Social networking and user-generated content
    are attracting more and more consumers and
    advertisers
  • Mobile as a highly personalized and targeted
    advertising platform is gaining traction,
    and advertisers are looking into
    cross-platform advertising opportunities

Borders sends free sample chapters to mobile
handsets (2007)
Coca Cola launches mobile social networking
community Sprite Yard (2007)
Nike runs cross-platform ad campaigns online,
mobile, print, outdoor (2007)
Chevrolet asks web users to create their own
commercials for Chevrolet Tahoe (2006)
Ray Ban achieves high ad awareness scores for
its online campaigns (2007)
37
Todays VOD Advertising Limitations
  • Ads are hard encoded into programming
  • Cant sell timely advertisements
  • Very difficult to manage different ads in
    different markets
  • No standard format for on-demand ads across all
    platforms
  • Ads are treated like all other on-demand assets
  • No inventory management system
  • What inventory is available to sell?
  • Lack of meaningful reporting information
  • Correlation of ad campaigns to usage data is very
    manual and inaccurate

38
Advertising Models evolve
On-Demand Ad Placement
  • Linear
  • Ad Insertion
  • Broadcast TV
  • Ads shown during real-time
  • Time Shifted TV
  • Specific Ads placed over program lifecycle
  • Inefficient Reach
  • Large audience required to reach small target
  • Drives CPM down
  • Highly Targeted
  • Ads placed based on
  • Program
  • Time viewed
  • Viewer profile
  • Audience Estimates
  • Audiences estimated by Nielsen ratings
  • Exact Viewing Details
  • Detailed viewing statistics

39
Ericssons IPTV solution for online advertisement
- AdPoint
  • Complete solution for on-demand ad placement
  • Lets the operator manage and scale the business
    of on-demand advertising
  • Open design, using and promoting industry
    standard interfaces
  • Supports all VOD servers today
  • Future features will require some level of
    integration
  • Seamless evolution to support Targeting, DVR
    iTV advertising capabilities

40
AdPoint Components
AdPoint Campaign Manager
Holds Campaign information create and manage
rules for Ads, Content, and Targeting
Xport Producer
AdPoint Media Manager
Post-production platform for Ads and Ad-supported
Content
Manages placement of Ads into Content at headend
41
Experiences so far
  • NRK Mobile TV advertising trial
  • Turner/CNN mobile Ad revenue supported portal
  • 3 UK User generated Content Ad sponsorship
  • Vodafone Spain/UK Video advertising
    incorporated into Ericsson Mobile TV solution.
    Integration with Yahoo UK ad systems for
    subsidised video shows
  • Daymler Chrysler Ericsson providing
    messagingconnectivity

42
Mobile TV AdvertisingWorlds first trial by
Ericsson and NRK
User B Interest Travel Northern Norway
User A Interest Cars Oslo area
  • Interact in several ways
  • Link to mobile internet site
  • Link to on-demand video
  • Send SMS
  • Link to other elements
  • Positive feedback
  • 70 are positive toNRK Mobile TV
  • over 50 are very positiveto Mobile TV
    commercials
  • Increased average session time 50
  • Average click through rate of 13

Same content
Differentadvertisements
43
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