1. The Future of Pay TV<br />IntroductionThis report examines the impact of video content convergence across multiple screens on the Pay TV business market. It looks at the impact of connected consumer devices and social media on the future Pay TV value chain, and what some of the main incumbents are already doing to catch the early waves of consumer engagement with multi-screen interactive services and 'TV everywhere' developments.Features and benefits<br />• Gain a thorough understanding of the future direction of the consumer-driven, converged ‘TV Everywhere’ / 2-screen landscape.• Understand the emerging commercial models / opportunities for content publishers, broadcaster and TV operators.• Understand how TV operators, broadcasters, platform owners, video aggregators and CE manufacturers are positioning and developing their OTT offerings.• Gain an understanding of the issues around building a successful user experience in the hybrid TV model.• Understand the issues of a personalized (addressable) advertising model, and its impact on the current ad industry media model.HighlightsUsers are not interested in device convergence; it is content convergence that counts. They are not aware of or interested in how their content is delivered and are increasingly looking for a unified experience that is location independent.We are now entering the Internet era of TV whereby users can expect an increasingly on-demand and personal viewing experience, and multi-channel video consumption across multiple devices will have a profound effect on future content publishing and monetization.Over-the-top TV effectively allows content owners to by-pass existing TV platforms and take their programming directly to the TV screen from the Internet, in effect becoming a media owner themselves, supported by an integrated companion screen strategy for personalization / engagement.Browse All : IT & Telecommunication Market Research ReportsYour key questions answered• What are the significant trends influencing the development of the converged ‘TV Everywhere’ consumer market?• How is this shaping the commercial future for Pay TV operators, TV broadcasters and new entrants pursuing a pure-play OTT TV engagement strategy?• What are the current Pay TV operators planning to do about the OTT threat / opportunity?• What content strategy is most likely to engage the consumer in the hybrid TV model? How do you build a differentiated and commercially viable service?• What will be the likely impact of social media on interactive TV services in the future?<br />Table Of Contents<br />Executive SummaryThe Internet era of TV arrivesExisting Pay TV servicesTowards a “better TV” experienceKeith JohnsonDisclaimerIntroductionBackgroundScope of the reportThe Internet era of TV arrivesSummaryIntroductionThe rise of Internet videoViewing Internet video hits the mainstream but traditional viewing holds firm tooWeb-to-TV growthConnected TVs - towards mass market penetrationOTT TV – quality of serviceOTT can lead Pay TV into the cloud to extend reachConnected devices and the OTT landscapeConnected TV set to have a big impact on viewing behaviorIssue of interoperability between various standardsRed button ‘enhanced’ TV still thrivingContent convergence takes center stageMulti-screen viewing experience and companion devicesSony and the push for a cloud-based multi-screen experienceHBO and the developing battle to own the consumerGoogle TV and the user experienceNeed for compelling content will drive distribution co-operationSamsung and the ‘Smarter Life’Cord-cutting, cord-shaving and the consumerPay TV incumbents have the ball and it’s theirs to loseCord attachment not cord cutting in ‘Freeview’ marketsNetflix and Hulu making cord-cutting waves but content will cost them moreCord ‘swapping’ more likelySome younger age groups only watch TV onlineMulti-screen content convergenceDrivers of multi-screen content convergenceConfusing the consumer is a big risk – user experience the top priorityMulti-room services start to utilize other CE screens in the homeDevice control versus broadcaster control: Cablevision go with cloud-based “nDVR”RVU Alliance and Remote User Interface solutionsContent discovery is a multi-screen experience for BSkyBTelenet in Belgium also has early success with its Yelo platformImpact on the Pay TV value chainRoadblocks for Connected TV services may delay full impact in the near termCE manufacturers lack of consumer marketing capability – a big barrier to market-makingRetailers moving into video streaming: Tesco buys Blinkbox, Amazon buys LOVEFiLMTesco deploy Trove hybrid technology across range of Freeview devicesFrench broadcasters lay out key engagement principles for CE manufacturersGoogle and Apple and their “unique ability to scare broadcasters”Channel brands and program brands... and second wave OTTITV to wean itself away from reliance on “hideously cyclical” 30 second adsSky, YouView and BBC iPlayer frame the issues for aggregated catch-up TV on the TVChannel 4 distributed on YouTubeBroadcaster ad-funded models are not sustainable in this new fragmented worldNew micropayment systems may help broadcastersNetflix moves into the premium TV business with original contentFacebook and Warner Bros. stir things tooNiche content publishers and brands can take full control of their OTT distributionCable operators go on the front-footIncreasingly faster broadband speeds drive both cable and OTT modelsPotential for Pay TV content value chain disruptionContent management issues facing Pay TV in multi-screen video deliveryAspera offers a new standard for moving large video filesThe CDN is a vital component of future hybrid networksPotential for migration of existing Pay TV services to OTT (CDN) deliveryChanging world for set-top box manufacturersCommon Interface Plus (CI+) allows TVs to bypass set-top boxes – a temporary solution?Social media infusion into online and TVSocial media is viewed as entertainment, content needs to reflect thisSocial gamingVirtual goods are the most important revenue generator for social gamingNetflix working with Facebook on deeper online integrationIntegration of Facebook in the TV environmentSocial network driven search and recommendation – will it work on TV?Advertising spendUS advertising spend not (yet) following online video consumptionGrowth in online video and mobile advertisingBranded content ‘engagement’ adds pressure to traditional advertising thinkingNew pay models evolve for newspaper publishersApple enables iPad subscriptionsExisting Pay TV servicesSummaryIntroductionPay TV revenues flat-lining in Western EuropeContent owners and original (premium) contentEntertainment companies still vulnerable to disruptive force of OTTImportance of watermarking for ‘early-window’ VODNetflix creates OTT dilemma for Showtime, Starz and othersTime Warner Cable and Cablevision go OTT with TV channels direct to iPad“Oscar Backstage Pass” Companion App debutsMeta-data creation / management can unlock new value: CBSSports and MLB.comLive sports content and ‘cable lite’ bundlesRegulator intervenes in UK Pay TV market, takes on Sky re. premium contentThe Kokott Ruling: challenging the lucrative rights model in the EUPremium formatsCE giants push 3D products3D TV channels set to increase in Europe, but original content lacking3D TVs forecast to reach 91 million global shipments in 2014Format war in 3D glasses will only further stall the consumer market360 degree videoBSkyBBSkyB “build your own” Pay TV bundles, pay-per-view and other pricingSky launches Sky Mobile TV app for iPadBSkyB product bundling will be further stimulated by hybrid VOD serviceSky Atlantic / HBO premium content dealSky will strategically cover multiple platforms“Multiplatform future is paid content”Virgin MediaBackwards-facing EPG for ‘missed TV’ will drive TV consumptionIntegration with TiVoVirgin embraces OTT by going ‘through the middle’ with managed OTTComCast Xfinity TVRe-launched with 2-screen companion appComcast (and Time Warner) partners with SamsungVerizon FiOS TViPad app does not support streaming, even in the homeFiOS add options to personalize service bundlesLiberty Global UPC Horizon: “wonder box”User can move content around the homePrisa TV Digital+ a la cartaTF1TF1 have developed 5 apps for Samsung Smart TV, but not VOD (yet)TF1 launches social media VOD trial with FacebookOrangeChallenge of service rationalization across multiple access networks and screensONOApple TVApple AirPlay: wireless streaming in the homeApple partners with NetflixApple TV adds live streaming appsApple launches iCloudHulu PlusNetflixNetflix is a destinationLOVEFiLM / AmazonAmazon observes that customers will pay extra to stream a movie immediatelyTowards a “better TV” experienceSummaryIntroductionContent discovery in OTT TV: moving beyond the Internet search experience brought to the TVNDS create a content marketplace for OTT channel EPG integrationMulti-room and in-home multi-screenContent discovery and the user experienceContent discovery and metadata take center stageTalkTalk trial Technicolor MediaNaviRovi Media CloudThe EPG and content discoverySearch, recommendation and ‘enabled’ serendipityThe ‘shoppable’ EPG and contextual commerceTV apps and the evolving hybrid TV experienceSuggested discovery and recommendationCompanion devices open the 2-screen engagement doorPersonalized, real-time, synchronized TV viewing on the companion screenChannel 4 drives participation levels and formatsPlayToTV for Germany’s Next Top ModelJunaio mobile ‘augmented reality’ browser driving participative TV in GermanyAurasma ‘augmented reality’ app links up with Super 8 movieScreach real-time engagement ‘experiences’ target interactive TVScreentoo powered with real-time metadata from Snell broadcast automation systemDigital fingerprintingiPad pushes 2-screen with audio triggeringSocially augmented TVCouch Crew in Germany develop advanced social TV appzeebox augmented TVNDS HoovuYahoo! moves into TV sharing with IntoNowContent convergenceMulti-source strategies are essential to TV curationReal-time, 2-screen content engagement will transform ‘transmedia storytelling’Brands as media – Red Bull in pole position on OTTContent commoditization and the growing opportunity for OTT niche and local contentThe future of TV advertisingYahoo! “joining the dots” with multi-platform ‘smart’ ads, in context and interactiveMicrosoft unveil NUads ad platform for KinectBlackArrow creates a unified multi-platform approach to ad managementAAMP, CEE MEE, BARB and the urgent need for ad measurement systemsAddressable advertising will create niche advertising opportunitiesSky AdSmart to extend to Sky+YuMe Relevance Engine’s ‘content awareness capability’Apple iAds drive improved engagement and ‘tap through’, but take up is slowSkyLife and Kudelski JV to deploy advanced advertising solutions in KoreaAddressable advertising will challenge brands and their agenciesAd agencies need to re-engage with TV reality or get OTT’d themselvesIf data is the new oil, applied data skills and affinity for the technology will differentiateFreedom to innovate will challenge the old ad modelOTT technology funnel for intelligent content and ad creation – the personal media momentNew type of ‘agency’, new type of client…<br />AppendixGlossary / Abbreviations[Missing title]<br /> 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