Networked Media

1
Networked Media
Personal media experiences any time, anywhere
Aurelio Severino MarketingStrategy, Ericsson
Italy
2
Networked mediaOne common market for media and
telecom industries
Networked media
Mobile 3G networks
Digital content
Telecom
Media
Fixed broadband networks
Video
Games
Print
Music
TV
Radio
Personalization
Everythings networked. You want to talk to
somebody or talk to another machine, you want to
see music and video games and content and data
and services - Howard Stringer, CEO Sony
3
An evolved user experience
4
Networked media opportunityA rapidly maturing
area
A million downloads a month of SeeMe TV (3UK,
launched in Oct05)
57 of US teenagers create own content for the
net (Pew research reported by Guardian)
210 million homes have BB connection 2
billion mobile users More than 50M 3G enabled
users
335 legal music download stores, up from 50
two years ago (IFPI06 Digital Music Report)
1 million videos sold in 20 days (I-Tunes,
Apple, Nov05)
1.82 billion paid-for WAP page impressions
(during Mar-05 in UK, MDA)
1 million video streams in 10 days (Dec-05,
BSkyB and Vfe UK)
There is a demand out there. How big? It's too
soon to say. But it's for real, and it's going
to be with us for a long time - Bob Wright,
chairman of NBC Universal
5
Networked media benefits
(QoS)
Personal
Interactivity
Payments
Niche interests
Viral distribution
Networked media
Feedback loop
24/7
Certain costs borne in the physical world such
as manufacturing, returns and pick-pack-ship are
not relevant for digital products. For physical
products, these costs are in the range of 15 to
18 of sales (EMI, annual report 2005)
6
High interest for new media servicesMusic
download is the 1 service for the YEA group
Music download service
Video telephony
Multimedia/picture messaging
Browsing the internet
Positioning service (like gps)
Photo editing
Share a picture while talking
E-mail
Music videos/movie trailers
Walkie talkie anywhere
TV in your mobile phone
Game download service
Share a video clip while talking
Personal homepage
Information updates
YEA (Young Early Adopters)
Instant product info
Total
0
10
20
30
40
50
60
Source Ericsson Consumer Lab Global 10 Survey
2005 (13.000 respondents in ten countries)
7
Recent networked media study

• UK-based analyst group Analysys supported us to
  evaluate the revenue potential of the networked
  media market
• Global summary
• 2005 2011 scope
• Bottom-up and top-down forecasting as well as
  interviews

8
Networked media opportunityOver EUR100 billion
by 2011
Figure 3 Networked Media market revenues by
region, forecast 2005 - 2011 Source Analysys,
2006
In 2005, the networked media market was valued
at just under EUR20 billion, but by 2011, overall
market size will grow to EUR107
billion Included in these figures are
connectivity, substitution, volume increase and
additional revenues related to home and mobile
screens
9
11 of all media revenues by 2011
Figure 4 Traditional v Networked Media market
revenues, forecast 2005 - 2011 Source Analysys,
2006

• By 2011, total networked media revenues will
  account for 11 of total media market revenues
• We would also expect this share to continue
  increasing after 2011 based on current growth
  rates.
• Note that the networked media market grows at
  a much faster rate than traditional media (35
  versus 3.5) during the 5-year period

Average annual growth rate of 35
Average annual growth rate of 3,5
Networked media includes IPTV, mobile TV, mobile
music, online music, mobile ringtones, mobile
gaming, online gaming, online video, mobile
radio, online radio, mobile published
information, online published information
10
Multiple content types
Figure 7 Networked media market growth by type,
forecast 2006 - 2011 Source Analysys, 2006

• Today, established markets of networked music,
  gaming and publishing account for the majority of
  networked media revenues
• By 2011, networked television and gaming will
  be the largest revenue sources
• The rapid IPTV and mobile-TV growth give
  networked television the highest growth rate (62
  CAGR) of the six networked areas

11
Potential for more networked media services

• There are a number of services where the term
  media doesnt directly apply, but which could
  be considered as part of the networked media
  market depending on the definition

Imaging/photo
Etc.
Gambling
Non-entertainment
12
Main growth from increased usage
Figure 8 Networked Media market revenues by
source, forecast 2005 - 2011 Source Analysys,
2006

• Increased consumption of networked media will
  be the main component of growth (around 60 of
  networked revenues by 2011)
• This is due to the fact many networked services
  will be innovative in nature
• Additional services, such as advertising,
  unified messaging, short-format video and PVRs
  will contribute increasingly to overall networked
  media revenues

13
Scepticism amongst both media and telecoms
organisations
Media companies on telcos
Telcos on media companies
(Well known MNO) see themselves as similar to a
shopping mall. However 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

• 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

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
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
Source Networked media project interviews,
Analysys Research, 2006
14
Networked media challenges

• Creating successful business models
• that provide maximum benefits for both media and
  telecom industries
• Understanding and satisfying (especially young)
  users
• with intense and interactive media sessions
• Fulfilling the promise of one experience
• where all devices with TV, PC and mobile
  seamlessly interwork

Value chains
Pricing models
Managing digital rights
Maximising involvement
Segmentation
Maximising uptake
Solution convergence
Multi-service handling
Multi-format handling
15
An industry in its makingEricsson takes an
active role
Mobile 3G networks
Networked media
Digital content
Telecom
Media
Fixed broadband networks
16
(No Transcript)