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Internet Television: 2010 to 2014 Product Image

Internet Television: 2010 to 2014

  • Published: September 2010
  • 210 Pages
  • Generator Research Limited

Internet Television: 2010 to 2014 - Analysing How the Internet will Change Television

The television industry is at the beginning of a generational change which will eventually see a new type of television service - Internet Television - being delivered directly to TV sets in broadband-enabled households around the globe. In the end, practically all new TV sets will incorporate internet television functionality as a standard feature that viewers will be able to use alongside their existing television services.

By 2014 there will be 785 million fixed broadband connections around the world which means that over 50% of TV households will have a broadband connection, most of which will be capable of supporting the delivery of high quality video and, therefore, Internet Television services.

Companies such as Akamai, Cisco and Infinera, along with hundreds of others, are rushing to develop the network infrastructure that will be needed to deliver the enormous volume video traffic implied if television programming is to be delivered over the internet on a mass scale.

Sensing the time is right, Google has entered the fray and TV set makers like Sony, Panasonic and READ MORE >

REPORT HIGHLIGHTS
EXECUTIVE SUMMARY

INTRODUCTION
Terrestrial Television
Broadcast Architecture
Transition from Analogue to Digital
Importance of Broadband Connectivity

Business Models
Public Service Broadcasters: Terrestrial Television
Commercial Broadcasters: Terrestrial Television
Cable TV
Infrastructure
Business Model
Satellite TV

IPTV
Defining IPTV
Distribution Infrastructure
Marginal Cost of Video Delivery
Peer to Peer Networks
IPTV Service Categories
Online Video
Telco TV
Internet Television

INTERNET TELEVISION

BENEFITS: SERVICE PROPOSITION
Improved On-Demand Viewing
Dramatically More Content
Advanced Content Discovery Tools
Social and Community Features
Unified User Interface
Second Screen Controllers
Third-party Developers: Applications

BENEFITS: COMMERCIAL
Targeted Ads
Targeting based on Content
Geographic Targeting
Internet Television: Example Ad-targeting Scenarios
Contextual Targeting for On-demand Viewing
Viewing Profiles
Targeting Based on Optional ad-profile
Global Publishing

PEER TO PEER (P2P) CONTENT DISTRIBUTION
Why P2P?
Very Low Cost
Global Reach
Optimising Use of Network Resources

REVIEW OF INTERNET TELEVISION SERVICES

SONY INTERNET TV
Service Outline
Major System Components
Compatible TV Sets
Upscaling Technology
Content Authoring Toolsets
Rights Management Software
Premium Content and Revenue Sharing
Viewing Modes
Bravia Internet Video (TV mode)
Bravia Internet Widgets (Web mode)
User Experience
Our Take
GOOGLE TV
Service Outline
Google's Open Media Project: VB8 Codec and WebM
System Components
Hardware and Software Elements
Consumer Electronics
Software
Content: TV and Movies
Internet Websites
Google TV Content
Developer Community
Content Indexing and Meta Data
Content Discoverability: Prevention of Unwanted Syndication within the Google TV Platform
Sharing Advertising and Other Revenue
Implementation of Geographic Licensing Restrictions
Ad Targeting: Geographic, Demographic and Contextual Criteria
Revenue Models for Third Party Developers
Applications: Example API Features
Sharing Data between Applications
Event-triggered Applications
Location Manger API
XMPP Service API
Notification Manager API
User Experience
Usage Modes
Linear Mode
App Mode
Web Mode
Connectivity Options: Companion Box or Integrated TV
Smartphone Controller
Search
Applications
Our Take
APPLE TV
Service Outline
Our Take
BBC IPLAYER
Overview
Service Outline
Our Take
PROJECT CANVAS
Overview
Our Take
HULU
Service Description
Our Take
BOXEE
Service Outline
Our Take
SEESAW TV
AMAZON VIDEO ON DEMAND
ROKU
ZOWEETV (FORMERLY ZILLION TV)
Service Outline
Our Take
CLICKER.COM
LIVESTATION
VUDU
VEOH.COM
CRACKLE
FEARNET
MUZU TV
TVCATCHUP
PPLIVE
SOPCAST
COOLSTREAMING
ZATTOO
JOOST
Content and Marketing
Execution
AKIMBO
Price of STB
Content Catch 22
Marketing
No Bundling
Pricing Model

MARKET ANALYSIS

COMPARISON WITH THE INTRODUCTION OF DIGITAL MUSIC
Minimal Access to Content
Not a Replacement Format
IMPACT ON VIEWING HOURS
SUSTAINABILITY OF VALUE PROPOSITION
Key Benefits
Intrinsic Quality
Underlying Demand
ECONOMICS: BUSINESS CASE FOR INTERNET TELEVISION
Consumer Electronics
Marginal Revenues
Advertising Revenues
Ad Fill per Hour
Percentage Ad Inventory Filled
Revenue Share
Subscription and Pay-per View Revenue
Marginal Costs
Hosting
Delivery
Summary
CONTENT
Mainstream Shows and Exclusive Deals
Long Tail Content
APPLICATIONS
Emergence of Web 2.0
Emergence of Client Applications
GOOGLE
Why Google is Interested in Television
Impact on Market Structure
Historic Situation
Phase 1: Arrival of Over-the-top (OTT) IPTV Services
Phase 2: Introduction of Google TV

MARKET FORECASTS
INTERNET TELEVISION AND FILM
Worldwide User Base
Regional User Base
Viewing Hours
Monetisation Models
Traffic Consumption
Service Revenues
TV HOUSEHOLDS
FIXED BROADBAND
CABLE TV
SATELLITE TV
TELCO TV
INTERNET VIDEO
GLOBAL IP TRAFFIC
Global IP Traffic by Type
Global IP Traffic by Segment
Global IP Traffic by Region

EXECUTIVE INTERVIEW TRANSCRIPTS

FIVE TELEVISION: KIERAN CLIFTON, HEAD OF STRATEGY
SONY: TIM PAGE, TECHNICAL MANAGER, TELEVISION
AKAMAI: STUART CLEARY, PRODUCT MARKETING DIRECTOR

APPENDIX

METHODOLOGY
Framework Model
Potential Users (Pool 0)
Prospective Users (Pool 1)
First-time Users (Pool 2)
Experienced Users (Pool 3)
Committed Users (Pool 4)
Key Considerations
Value Proposition
Starting Conditions
Current Market Development Trajectory
Adoption Dynamics
Saturation Levels and Addressable Market
Growth Drivers and Inhibitors
Benchmarking using Relevant Markets
Industry Data and Insight
Constituent Markets: Worldwide and Regional Forecasts
Tracker Markets
Other Markets
ABOUT THE AUTHORS
ABOUT GENERATOR RESEARCH

LIST OF TABLES

Table 1: Comparison of Worldwide User Bases for Main Television Delivery Methods (Terrestrial TV, Cable TV, Satellite TV, Telco TV, Internet Video and Internet Television and Film (2009 to 2014)
Table 2: Comparison of Worldwide Revenues for Main Television Delivery Methods (Terrestrial TV, Cable TV, Satellite TV, Telco TV, Internet Video and Internet Television and Film (2009 to 2014)
Table 4: Comparison of the Three Different Categories of IPTV - Online Video, Telco TV and Internet Television (Comparison Metrics: Content, Consumption Devices, Business Model, Primary Competition, Visual Quality and Paradigm)
Table 6: Google TV - Summary of Main Launch Partners and an Explanation of their Contributions to the Initiative.
Table 7: Comparison between Google's Worldwide Revenues from Advertising and Total Worldwide Expenditure on Online Advertising and Television Advertising
Table 8: Apple TV Media Hub
Table 9: Major Differences between Web 1.0 Model and Web 2.0 Model
Table 10: Role of Browser: Web 1.0, Web 2.0 and Application Model
Table 11: Worldwide Internet Television Users (2009 to 2014)
Table 12: Internet Television and Film Users for North America, Western Europe, Central and Eastern Europe, Asia Pacific, Latin America and Middle East and Africa (2009 to 2014)
Table 13: Average Weekly Viewing Hours for Internet Television Services (2009 to 2014)
Table 14: Worldwide Total Viewing Hours for 'Internet Television and Film' Services (2009 to 2014)
Table 15: Viewing Hours for Internet Television and Film Services for North America, Western Europe, Central and Eastern Europe, Asia Pacific, Latin America and Middle East and Africa (2009 to 2014)
Table 16: Worldwide Viewing Hours for ‘Internet Television and Film Services' and ‘All Other Television Services' (2009 to 2014)
Table 17: Relative Contributions of Different Monetisation Models for ‘Internet Television and Film' Services [(i) Public Service-funded; (ii) Advertising-funded and; (iii) Paid-for Services], (2009 to 2014)
Table 18: Segmentation of Worldwide Viewing Hours for ‘Internet Television and Film' Services by Monetisation Model [(i) Public Service-funded; (ii) Advertising-funded and; (iii) Paid-for Services], (2009 to 2014)
Table 19: Worldwide Traffic Consumption for ‘Internet Television Services in Peta Bytes (2009 to 2014)
Table 20: Traffic Consumption for Internet Television Services in Peta Bytes (PB) for North America, Western Europe, Central and Eastern Europe, Asia Pacific, Latin America and Middle East and Africa (2009 to 2014)
Table 21: Worldwide Revenues for ‘Internet Television and Film' Services (2009 to 2014)
Table 22: Segmentation of Worldwide Revenues for ‘Internet Television and Film' Services into (i) Revenues from Ad-supported Services and; (ii) Revenues from Paid-for Services (2009 to 2014)
Table 23: Proportions of Worldwide Revenue for ‘Internet Television and Film' Services Arising from (i) Ad-supported Services and (ii) Paid-for Services (2009 to 2014)
Table 24: Worldwide TV Households (2009 to 2014)
Table 25: Number of TV Households in North America, Western Europe, Central and Eastern Europe, Asia Pacific, Latin America and Middle East and Africa (2009 to 2014)
Table 26: Worldwide Fixed Broadband Users (2009 to 2014)
Table 27: Number of Fixed Broadband Users in North America, Western Europe, Central and Eastern Europe, Asia Pacific, Latin America and Middle East and Africa (2009 to 2014)
Table 28: Worldwide Cable TV Users (2009 to 2014)
Table 29: Worldwide Cable TV Service Revenue (2009 to 2014)
Table 30: Worldwide Satellite TV Users (2009 to 2014)
Table 31: Worldwide Satellite TV Service Revenues (2009 to 2014)
Table 32: Worldwide Telco TV Users (2009 to 2014)
Table 33: Worldwide Revenues from Telco TV Services (2009 to 2014)
Table 34: Worldwide Internet Video Users (2009 to 2014)
Table 35: Internet Video Users for North America, Western Europe, Central and Eastern Europe, Asia Pacific, Latin America and Middle East and Africa
Table 36: Worldwide Associated Revenues for Internet Video
Table 37: Global IP Traffic from 2009 to 2014 in Peta Bytes per Mont Separated into Internet, Managed IP and Mobile Data
Table 38: Global IP Traffic in Peta Bytes per Month Shown Separately for Consumer and Business from 2009 to 2014
Table 39: Global IP Traffic in Peta Bytes per Month Shown for Geographic Regions from 2009 to 2014 (North America, Western Europe, Asia Pacific, Central and Eastern Europe, Middle East and Africa and Latin America)
Table 40: Global IP Traffic - Relative Contributions of Geographic Regions from 2009 to 2014 (North America, Western Europe, Asia Pacific, Central and Eastern Europe, Middle East and Africa and Latin America)

LIST OF FIGURES

Figure 1: Network Infrastructure Required to Deliver IPTV
Figure 2: (A) Reference Model: A content server is used to distribute the content to all six computers
Figure 3: Comparison between two P2P content distribution approaches: (C) minimises the amount of infrastructure used while (B) does not take network utilisation into account.
Figure 4: Sony Internet TV - Appearance of YouTube and LoveFilm ‘Channels'
Figure 5: Sony Internet TV - To access Sony Internet TV, the user uses their remote control to scroll across the Media XcrossBar to select the ‘video' icon
Figure 6: Sony Internet TV - Having selected ‘Video' the user can see a list of content ‘channels' which can then be selected individually.
Figure 7: Sony Internet TV - In this example, the user has selected the YouTube channel. The menu can be customised by the content partner
Figure 8: Sony Internet TV - Having selected ‘featured', the user can scroll down a list of available content items
Figure 9: Sony Internet TV - User selects a content item and previews that item (picture in picture).
Figure 10: Sony Internet TV - User views the content in full-screen mode.
Figure 11: Google TV - Illustration of Connectivity Options in the Home
Figure 12: Logitech's Companion Box supporting Google TV
Figure 13: Illustrations of how Smartphone Apps (iPhone and Nexus 1) that can be used to control Google TV
Figure 14: Google TV Search
Figure 15: Google TV Home Page
Figure 16: Illustration of how the Google TV Search Feature Appears when the users is watching a TV Show
Figure 17: iPlayer as it appears on a 1080p TV set (simply connecting a Notebook computer to the TV set which is used as a display)
Figure 18: Evolution of the Internet Television Distribution from Single Digital Touchpoints to Developer Programmes and APIs
Figure 19: Average Retail Price in USD per GB of Hard Disk Storage: 1995 to 2004
Figure 20: Development of a Parallel Model for Television Distribution (Comparing Broadcast Model with Internet Television Model)
Figure 21: Proportion of Worldwide Expenditure on Online Advertising - Google Platform and all Other Platforms (2001 to 2009)
Figure 22: Google's Share of the Worldwide Online Advertising Market (2010 to 2009)
Figure 23: Comparison between Google's Advertising Revenues and Expenditure on Worldwide Television Advertising (2001 to 2009)
Figure 24: Changes in the Structure of Television Distribution Market [Phase 1: (Historic Market Structure])
Figure 25: Changes in the Structure of Television Distribution Market [Phase 1: Arrival of Over-the-top (OTT) Television Services]
Figure 26: Changes in the Structure of Television Distribution Market [Phase 2: Introduction of Google TV]
Figure 27: Segmentation of Worldwide Television Viewing Hours into ‘Internet Television Services' and ‘All Other Television' Services (2009 to 2014)
Figure 28: Proportions of Worldwide Revenue for ‘Internet Television and Film' Services Arising from (i) Ad-supported Services and (ii) Paid-for Services (2009 to 2014)
Figure 30: Global IP Traffic separated by Traffic Type
Figure 31: Global IP Traffic - Relative Contributions of Consumer and Business Segments from 2009 to 2014
Figure 32: Global IP Traffic - Relative Contributions of Geographic Regions from 2009 to 2014 (North America, Western Europe, Asia Pacific, Central and Eastern Europe, Middle East and Africa and Latin America)

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