Online Entertainment Infrastructure

As Broadcast TV, movies, and other professionally produced Content gets moved onto the Internet huge opportunities are emerging for vendors who provide hardware, bandwidth, and services. The recently announced joint venture between NBC Universal and Fox will set a benchmark for Online Entertainment that other Content companies will follow. Brightcove, thePlatform, Joost, Internap, and Synacor present important opportunities that will develop during the next few years. The value of the annual infrastructure build-out for Online Entertainment services is expected to quintuple between 2007 and 2011, reaching more than US$ 4.1 Billion at that time.

Our findings include:
- The 'big name' media companies will establish ascendant positions for Online Entertainment
- Bandwidth is the largest value category, with hardware holding onto a solid share
- Key growth opportunities will arise for vendors who provide value-added services, such as online publishing, asset management, distribution, and interfaces for billing and advertising services
- Online Entertainment services will be used as a 'learning lab' that will help guide big name media companies to new opportunities with Pay-TV Video-on-Demand services
- Everything that is happening online will be mapped onto emerging mobile video services

Executive Summary
Online Entertainment Crosses the Chasm
The “Killer App” Of Television Is Television
Online Entertainment That Features TV Programming Will Not Take Place in a Vacuum, Six Vectors of Growth Need to be Managed
Technology Vector
Delivery System Vector
Retransmission Consent Agreements Further Complicate the Situation
Audience Vector
Content Vector
Advertising Vector
Business Vector
Workflows and End Points
Workflows Create the TV Content
End Points Consume the Content
Workflows Multiply as the Number of End Points Increases
The Evolution of Search and Social Networks Further Complicate Workflows
Search and Social Networks Plus TV Content Equals the Future
Six Steps Will Tie Social Networks and Search to TV Programs
Step One: Search with Advertising, both Online and Mobile
Step Two: Social Networks of Varying Types
Step Three: Social Networks and Fans Connect with Their Favorite TV Shows
Step Four: TV Networks Will Create Programming Influenced by Social Networks
Step Five: Online Entertainment Will Be Filtered Toward End Users
Step Six: Addressable Advertising Influenced by Search and Social Networks
TV Networks Gear Up to Produce TV Programs in a New Environment–Create Once, Output to Many
The Video Delivery Value Chain is Far Reaching and Complex
Pre-Production
Production
Post-Production
Packaging for Staging, Including Branding, Metadata, and DRM
Staging for Distribution
Interfacing With eCommerce Services, Such As Subscriptions, Pay-Per-View, Etc.
Setting up Links to Addressable Advertising
Online Promotion and Building the “Buzz”
Distribution of the Video to End Users with Addressable Advertising Linked In
Delivery Assurance and Quality Control Services
Monitoring, Tracking, and Reporting Usage
Life Cycle Management of the Video Content
Life Cycle Management of the Addressable Advertising Content
Reconciliation and Rationalization of Payments to all Parties
Ongoing Interactions of Feedback and Inputs from End-Users and Service Providers
Partners Must Be Chosen and Developed for Each Step of the Process
Workflow for Digital TV Production Needs to Account for all Eventual Users
The BBC’s Digital Media Initiative
Major League Baseball Advanced Media Delivers “Live” Content
NBC Universal and News Corp. Create a Web-Wide TV Service
Comcast to Participate
CBS Interactive Audience Network
Disney: ABC, ESPN, Disney.com
Content Delivery Networks and Online Publishers
Akamai
Limelight Networks
Internap Network Services and Vitalstream CDN
Level 3 Communications and Savvis CDN
Maven Networks
thePlatform
Brightcove, Inc.
Joost
Vibe Solutions Group PyroTV Personalizes Video Viewing
Portals on ISPs Will Compete with Google, MSN, AOL, Yahoo!
Synacor Makes a Web Portal a True “Home” Page
Regional Forecasts for the Online Entertainment Infrastructure
North America by Category
Europe by Category
Asia by Category
ROW by Category
Worldwide Summary by Category
Regional Value of All Categories Combined
Methodology
Related Reports

List of Tables
Table 1. Sub-Segments of Technology, Delivery System, and Audience Growth Vectors
Table 2. Sub-Segments of Content, Advertising, and Business Model Growth Vectors
Table 3. Annual Value of Online Entertainment Infrastructure by Category, North America (US$ in Millions, by Category, Annual Growth Rate, Percent of Total)
Table 4. Annual Value of Online Entertainment Infrastructure by Category, Europe (US$ in Millions, by Category, Annual Growth Rate, Percent of Total)
Table 5. Annual Value of Online Entertainment Infrastructure by Category, Asia (US$ in Millions, by Category, Annual Growth Rate, Percent of Total)
Table 6. Annual Value of Online Entertainment Infrastructure by Category, ROW (US$ in Millions, by Category, Annual Growth Rate, Percent of Total)
Table 7. Annual Value of Online Entertainment Infrastructure by Category, Worldwide (US$ in Millions, by Category, Annual Growth Rate, Percent of Total)
Table 8. Annual Value of All Categories Combined by Region (US$ in Millions, by Category, Annual Growth Rate, Percent of Total)

List of Figures
Figure 1. Worldwide Annual Value of Hardware, Bandwidth, and Services for Online Entertainment (Worldwide Annual Value, US$ Millions, by Category)
Figure 2. Search Leads the Way for Internet Interactivity with Key Words Linked to Banner Ads and Click-Through Advertising
Figure 3. Social Networks Create an Additional “Value Added” Layer of Services
Figure 4. TV & Movie Producers Connect to Social Networks and Mine Search Databases
Figure 5. TV and Movies Produced with Inputs From Social Networks and Search Services
Figure 6. Diagram Showing the Interaction Among Social Networks, Search, TV and Movie Program Planning And Production, and Addressable Advertising
Figure 7. Diagram with Notations Indicating Relative Timing Of How Each Step In The Evolution Of TV On The Internet Is Likely To Occur
Figure 8. Staging Programming Content and Addressable Advertising Content for Distribution
Figure 9. Diagram Showing the New Workflow That is Emerging for Broadcast TV Services
Figure 10. Illustration Showing All the Likely Delivery Systems that Must be Supported for TV, Movie, and Addressable Advertising Content
Figure 11. Overview Diagram of Synacor’s Innovative Portal Solution
Figure 12. Annual Value of Online Entertainment Infrastructure by Category, North America (US$ in Millions)
Figure 13. Share of Total Value for Each Category Showing Trend Line, North America (Percent of Total Annual Value by Category)
Figure 14. Annual Value of Online Entertainment Infrastructure by Category, Europe (US$ in Millions)
Figure 15. Share of Total Value for Each Category Showing Trend Line, Europe (Percent of Total Annual Value by Category)
Figure 16. Annual Value of Online Entertainment Infrastructure by Category, Asia (US$ in Millions)
Figure 17. Share of Total Value for Each Category Showing Trend Line, Asia (Percent of Total Annual Value by Category)
Figure 18. Annual Value of Online Entertainment Infrastructure by Category, ROW (US$ in Millions)
Figure 19. Share of Total Value for Each Category Showing Trend Line, ROW (Percent of Total Annual Value by Category)
Figure 20. Annual Value of Online Entertainment Infrastructure by Category, Worldwide (US$ in Millions)
Figure 21. Share of Total Value for Each Category Showing Trend Line, Worldwide (Percent of Total Annual Value by Category)
Figure 22. Pie Chart Showing Relative Value of Each Category in 2006, Worldwide (US$ in Millions)
Figure 23. Pie Chart Showing Relative Value of Each Category in 2011, Worldwide (US$ in Millions)
Figure 24. Annual Value of All Categories Combined by Region (US$ in Millions)
Figure 25. Trend Line for Share of Total Value for All Categories Combined, by Region (Percent of Total Annual Value by Region)

- Maven Networks
- thePlatform
- Brightcove, Inc.
- Joost