Strategic Overview of OTT Development

AGENDA

What is OTT to End User

· OTT user expectation, user experience on multi-screen

· OTT variation and innovation

What is OTT value to Operator

· Telco Vs MSO / STB Vs Platform / OTT opportunities matrix

Leading Company OTT proposition

& strategies· Market proposition / Device strategies / Platform strategies

OTT content collaboration

· Content provider Vs content service provider

· Leading Company’s challenge & proposition towards content

cooperation

OTT IPTV CABLE TV

?

Satellite TV

Wall Garden

TTInternet Content

Service Core & CDN

Manage, monitor, and operate

service End to End from content

to network. Provide solution of

delivery, subscriber mgt, content

mgt, product and market mgt

Cable TV

IPTV

O

Over The Top TV

What is OTT uniqueness ?Smart TV

“Internet on Big Screen”Application TV

Social TVInteractive TV

Connected TV

OPERATOR DEVICE

Home Network

OPERATOR PIPE

Network Access

OPERATOR CLOUD

Contents & Apps

Service Platform

An OTT Mission

CP/SP/DeveloperInternet contentsTV content source

• Cloud base & ubiquitous

• Multi-play (access & devices)

• License content, social content & personal content

• Integrated user experience of big screen, tablet, mobile

ANYTIME ANYWHERE ANY CONTENT

Mirroring

Smart Remote

Airplay

Interactive DLNA

Ubiquitous Play

New Generation OTT Experience

Smart Remote Application control Play-shift & Mirroring

video & audio

Local

Media

Online

Media

OTT Generic Experience

OpenAndroid

HD /SD

IP Video

DLNAConnectivity

Communication

ApplicationSupport

IP Video STB functionality

Live / Time shift/ VOD

EPG (Terrestrial TV )

PVR supported

1080P/720P

Gigantic Android ecosystem

Instant volume apps of

Games. Music, Utility

Tailor made

apps store

USB Cam Mic I/O

Google talk &

SKYPE 3rd party

Video call enable

Smartphone

remote control

Video airplay

Screen mirroring

1. Operator w/o IPTV Low cost to increase BB value

OTT values & propositions to operator

IPTVContent Head-end Broadcast operation

Managed network

CND & DistributionDSLAM Multicast

Platform & Middleware

VS

OTT

STB

Platform & MiddlewareSTB

Young segment Reduce acq. cost Multiple commitmentRetain ARPU CRM Management

Broadband

Business

OTT x FTTH Bundling

Low cost service operation

FMC VAS cross selling

Acquisition Retention

OTT offers all-encompassing value to telco from effective

customer acquisition to economical broadband business

operation INFORMA

1. Operator w/o IPTV

2. IPTV operator

Low cost to increase BB value

Business outreach ADSL majority

OTT values & propositions to operator

OTT to create new push to re-use ADSL

Leverage IPTV

investment:

Platform, Content,

Branding

Retain ADSL

value

Comparable IPTVvalue to ADSL

majority

Upsell OTT to IPTV by

Upsell ADSL to FTTH

Penetrate to

Competitor’s network

Pay TV

OTT

OTT

Internetcloud

Internetcontent

VAS to

Cable TV

Carrier

D

Carrier

C

OTT

Carrier

B

Pay TV

Pay TV beyond

own network

Revenue Model of OTT to Operator

Telco IPTV

Bundle with

IPTVADSL / FTTH

subscription

OTT video

service

subscription

Telco wo IPTV

Telecom service

on STB

MSO / Cable TV

Bundle with

ADSL / FTTH

subscription

OTT video

service

subscription

Bundle with

Cable TV

subscription

Direct Revenue Indirect Revenue

Operator’s control points in OTT

Infrastructure

Network

AccessConnection

OTTDevices

• Gateway of

QoS

• Network traffic

management

• CDNownership

• Broadband user

base

• Access withcontent bundling

• Networkfunctionality <->device integration

• Device distribution /access bundling

• OTT service gateway

LEVEL 2

LEVEL 1

Guarantee bandwidth to Operators

network

LEVEL 3

Data Center Hosting (MS)Content Delivery Network Hosting

OTT Business Model for Operators

Business QoS

SERVICE

PaymentSer Promotion

DEVICEEmbedding

Update

ACCESS

Losebundling

Hard

bundling

Technical QoS

Priority streaming traffic mgt endto end & PCRF Management

CP

OTT Transformation

Business

Broadband(ADSL FTTH LTE)

VAS

New Media

Convergence Service

ServiceInternet on

big screen

(Apps & Content)

Multi-screen entertainment

Media hub & home cloud

Home communication solution

User

Experience

Single service

Single access

Single screen

Ubiquitous service

Multi access & screen

Interactive & connected

Device Internet boxes All in Home gateway

Hybrid box

Home NAS

PVR & Streamer

Modem & router

STB Vs. Platform in OTT business

Network Centric

Voice

Messaging

Connectivity

Service Centric

Music & Games Handset

TabletIPTV

STB

RBT MNS Pocket wifi

Game consoleM Commerce

Connection devices

Device Centric

Connection x CPE x Service Convergence = New Telco Service Sales Strategy

Telco Service Towards Device Appeal

(When Network becomes homogenies)

Rational+

commodity

Impulse+

personal trendyEnd user decision on Telecom Service

Bundling Bundling

Device driven opportunities

When CDN / platform demand has yet to come:

• STB plays as a premium gadget for customer acquisition (broadband or LTE)

• STB Android openness is the key driver to operators to embed Telco service at low cost

• STB selection variety targets: 1) Different functionalities and form factors to customer

choice. 2) Different price levels to operator to provide flexibilities of box – service bundling

• STB aims at short life cycle as CPE that Operators are expecting to roll out new models for

every 9 to 16 month in the market

When platform demand is due (CDN, NPVR, Home Cloud, Apps Store):

• STB plays as a Telco’s product to provide ongoing Telecom service to end users via STB

• Telco branded STB creates customization environment for differentiation in the market

• STB with platform should integrated convergence capability (FMC, VOIP, Personal Cloud)

• STB to become all in one home gateway which integrate modem + OTT box + wifi router

+VOIP as one

IPTV

Telecom service demand

FMCConvergence

RCS on Terminals

VOIP and Video Call

Fixed <-> Mobile <-> Internet

Call & Message MGT:

Transparent forward, Unified

fixed & mobile SMS voice

message center

Solutions

Customers

Demand

Cloud Telecom Service

Home Cloud Storage formultiple users

Video storage w formatconversion to multi devices

Smart device sync & back

up

NPVR & Network Drive

download

Teleco Apps store to house

VAS applications download

Telecom unified portal with

subscription & billing

Home surveillance

Parental control

Cloud Storage & Service

Content Trans-coding by

Smart CND

NPVR & STB automatic

upgrade

Apps Store Online

user portal Smart

home on

Terminals

OTT service defined by Telco

OTT Platform & STB Opportunities Matrix

OTT Sales Strategies Matrix

MSO

Broadcaster

Cable TV

TELCO (Fixed & Mobile)

IPTV No IPTV LTE

Video Platform

Sales

Hosting & MS

Devices

Sales

Devices Sales

Devices SalesFocus

Video

Platform

Devices Sales

CDN

CDN

Cloud

FMC

Cross sell MS MSCDN CDNMS

Long shot Long shot Quick shot Quick shot

Change of End User Expectation 1. End user see STB = CPE gadget

2. Android compatibility is expected

3. STB is more than just watching video

Operator Demand Change

Product offer not up to date

Change of Stake Holders

1. STB demand > Platform demand

2. CAPEX to OPEX, Premium to Product

3. Lead from CTO to CMO

4. STB come first, platform follows

5. Platform demand beyond CDN

1. Platform are blooming in MSO CSP market

2. CDN & CSP are essential to Telcos go OTT

3. Strong OTT demand from Telco wo IPTV

Our Challenges in OTT….

Leading Company Possible OTT

Strategies Forward

Leading Company OTT market & product

positioning

Market

positioning

Product

Positioning

MSO

Broadcaster

Cable TV

TELCO (Fixed & Mobile)

IPTV No IPTV LTE

Target regions Tier

1 & 2 TV & Cable

TV operators

Cross network CDN

capability

IPTV extension

E2E solutions

Enable deployment

on telcosAdd value to

broadband

Enable broadband

product platform

Accelerate 4G base

Differentiate from 3G

Enable fixed MBB at

home

New business from

IPTV to capture

open market

E2E solution:

• Multi-play

Platform

• STB

• MS & Hosting

• Cross network

CDN

STB selections

Expandable telco

products in future

Cloud &

convergence

LTE home gateway

Expandable telco

products in future

Cloud &

convergence

OTT Device Strategies

OEM

• High-end STB

• All in one gateway

• Hybrid STB

• Customized STB

• Carrier grade

Complete Platform

• IPTV / OTT

• FMC, Convergence

• CDN, DSM

• Remote mgt

ODM

• Low-end to mid range

STB at low cost

• Selections varieties in

functionalities & form

factors

• CPE grade

• Fast product life cycle

Basic Platform

• Portal mgt

• Cloud

• DSM

CDN Convergence Cloud

Platform more than streaming

• Monetize network value

• Develop QoS for Internet

paid content over Telco’s

network

• Create CDN platform to

3rd party CSP for B2B

revenue

• Enable 3rd party with multi-

screen & convergence

• Create seamless FMC user

experience

• Cross sell multi-play VAS /

RCS service

• Telco service differentiate

from competitor and CPE

• Develop STB behavior

beyond video usage

• Connect Telco Cloud for &

fast deployment

• New Service without STB

installation

• Cloud Storage and

application to bundle into

broadband service

Telco’s pipe value

Content Partnership Challenges from IPTV to OTT

IPTV content partnership is a straight forward license

wner of the TV service

model that

Telco is the sole business o

boratio mo

to CP/ SP to harvest the content business o

whereas

IPTV content license model

OOTTTTccoonntteenntt cpoalrltanbeorsrhaitpioins amcoodlelal n

•Video platform•Content operation•Content promotion & mkt

CP/SP Partner’s

del that TelcoCuastosmaernOwnership

enabler n their own

Direct license

•Branded TV Service

•IPTV platform & STB

•Content operation

•Marketing & Sales

Aggregator

Customer

Ownership

Telco

Broadband& Telco TV

Service

Operator’s

PIPE + Device

Operator’s Payment option

Marketing

TelcoBroadband

service

CP/SPContent

Service

Differentiator IPTV OTT

Business agenda

Telco Broadband + TV Broadband & innovation

CP / SP B2B licensing revenue B2C Business revenue

Ownership

Telco End to end PIPE + Device

CP / SP Content rightContent / Operation / Platform /

MKT Sales / CS

Customerrelationship

Telco Tight Loose

CP / SP Remote Tight

Content strategies

Telco Wall garden Internet openness

CP / SP Exhaustive licensing Exclusive content

Mainstream revenue

Telco Subscription of IPTV + Broadband Subscription of broadband

CP / SP License fee + RS Content subscription, advertising,

commerce

Key partners

Telco CP, platform & STB provider SP & STB provider,

CP / SP Telco Telco, hosting, STB & platform

provider, Internet company

Business Dynamic from IPTV to OTT

Existing content service

Self sustain business model

Subscription, Advertising, Sponsorship

Non operator subsidies

To Indentify CP/ SP partners on OTT

Content delivery capability

CDN / streaming solution

Editorial, CMS, Marketing & promotion

Harvest the domestic market & beyond

Local content goes overseas for new business

Internet PC, Mobile, Tablet

Content right & able to manage end user

DEVICES PLATFORMCONTENT& APPS

USER

EXPERIENCE

OTT Dimensions to Focus

Thank You!