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The ROI of Video in an LTE World

Mind Commerce LLC, October 2012, Pages: 74

With the introduction of the 4G LTE networks and the associated high speed data rates, videos become much a much more pleasant experience. Accordingly, the industry is counting on video being the initial big non-voice application. While carriers are settling VoLTE operations, they will simultaneously offer various video over LTE services and associated applications. The introduction of IMS with LTE offers the promise of various value-added offerings such as Rich Communications and other multi-media experiences involving voice and data. However, prior to reaching a multimedia experience for end-users, how will the operators generate revenues?

We see data reaching a major inflection point in 2013 due mainly to introduction of various video offerings over 4G, which will be due largely to various third-party over-the-top (OTT) offerings. The incumbent network operators will enjoy a rather large increase in data subscription, but also a large jump in data usage. The carriers must offer their own video applications to combat the threat of OTT players and the legacy network operators own data-only service plans.

This research answers the important questions about video offerings in an LTE world including return on investment, operational issues, competition from OTT players, and more. It is must reading for anyone with a stake in the success of LTE as video will be the first opportunity for network operators to generate a return on their 4G investment based on new revenue generation from a value-added service application.

Clients of this report are also interested in the Mind Commerce research:

IP Multimedia Subsystem (IMS) Applications: Moving Beyond Voice over LTE (VoLTE)

Target Audience:

- Mobile network operators
- LTE infrastructure providers
- Video application developers
- Wireless device manufacturers
- Self Organizing Network (SON) providers
-Content Delivery Network (CDN) providers
- Managed service, content, and application aggregators
- Mobile Value-added Service (VAS) application developers

1.0 EXECUTIVE SUMMARY

2.0 INTRODUCTION

2.1 BENEFITS OF THE LTE FOR THE VIDEO

2.1.1 THE VIDEO DATA TRAFFIC IN 2016 (WITH LTE INSTALLED)

2.2 DATA TRAFFIC CHANGES FROM MEGABYTE TO GIGABYTE

2.3 PEAK DATA RATE FOR VIDEOS

2.4 MULTIPLE ACCESS METHODS

2.4.1 OFDM MODULATION

2.4.2 RANDOM ACCESS PROCEDURE

2.5 MOBILE VIDEO MANAGEMENT

3.0 MARKET OPPORTUNITY: CLOUD BASED MOBILE VIDEOS MARKET 2012-2016

3.1 CONTENT IN THE CLOUD

3.1.1 VIDEO IN THE CLOUD

3.1.2 OVER THE TOP PROVIDERS AND CLOUD-BASED VIDEOS

3.2 STREAMING VIDEO VS SYNC VIDEOS IN THE CLOUD

3.3 VIDEO APPS MARKETS

3.4 MOBILE VIDEO ADVERTISING

3.5 THE ROI OF VIDEO IN ADVERTISING

4.0 OVER THE TOP PROVIDERS THREATS TO THE TELECOMS IN MOBILE VIDEOS

4.1 OPERATORS NEW REVENUES STREAMS FROM VIDEO

4.2 MARKET THREAT FOR VIDEO IN LTE

4.3 OPERATORS AND VIDEO APP IN THE APP STORE

5.0 THE MARKET IN THE WORLD WHERE LTE MEETS VIDEO

5.1 CASE STUDY: VIDEO AND COMMUNICATION IN LTE WORLD

5.2 LTE AND VIDEO DATA TRAFFIC

Figures

Figure 1: Mobile Data Traffic Growth (USA)

Figure 2: Worldwide Mobile Data Usage

Figure 3: Current Mobile Data Plans

Figure 4: LTE Future Data Plans

Figure 5: Overall Subscriber Revenues from Video On Demand

Figure 6: 2012 to 2017 Revenues from Video On Demand

Figure 7: The Cloud Ecosystem

Figure 8: Global Spending (in U.S. $ billions) on Mobile Advertising and Marketing, 2012, 2015 and 2020

Figure 9: Global Spending (in U.S. $ billions) on Mobile Marketing and Advertising by Type of Ad, 2012, 2016 and 2020

Figure 10: Share of Spending on Mobile Marketing and Advertising by Region, 2008 to 2020

Figure 11; Share of Spending by Mobile Marketing Format, 2006 to 2020

Figure 12: 2012 Share of Spending by Mobile Marketing Format by Region

Figure13: Year-Over-Year Percent Change in Mobile Video Advertising and Marketing Spending by Type of Ad

Figure 14: 2020 Share of Spending by Mobile Marketing Format by Region

Figure 15: HD Devices Multiply Traffic

Figure 16: Video quality and video advertising

Figure 17: The role of 3rd party software vendors in Video quality

Figure 18: Number of Applications for each App Store

Figure 19: Platform Market Share

Figure 20: Apple App Store vs. iTunes Music Sales

Figure 21: App Store Pricing

Figure 22: Properties of LTE 2011 to 2014

Figure 23: The Evolution of the LTE

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