Multiscreen Strategies for Pay TV, OTT and Mobile Operators

Abstract

With the advancement of OTT/Internet Video migrating to many mobile platforms and with Content Owners & Programmers fighting for new markets without cannibalizing normal channels of distribution, this report gives concrete and quantitative evidence of the ROI guidelines and best practices of MSV services already deployed by IPTV, Cable and Satellite Operators worldwide. By articulating the key elements of the CDN, their costs, potential architectures and OpEx for each configuration and deployment size, the report shows in detail that there are several ways to profitability for both large and small Operators, based on in-depth surveys and interviews with over 40 Operators and supporting Vendors.

1.1        Multiscreen Video – A Continuum of Features        9

1.2        Electronic Program Guide        10

1.3        Search and Discover        12

1.4        Control        13

1.5        Access within the Home        14

1.6        Access Everywhere        15

1.7        Follow Me        17

1.8        Quick View: Findings Overview        17

2            Dominant Protocols            23

2.1        Dominant Streaming Protocols & Platforms        23

3            MSV Users and Operators            27

3.1        How People Watch Video on Different Devices        27

3.2        MSV Examples        30

4            Economics of Multiscreen Video            37

4.1        Investment        37

4.1.1    An Exercise in Trade-offs    41

4.2        Revenue        47

4.2.1    Explicit Revenue    48

4.2.2    Implicit Revenue    54

4.3        Example: Customer Retention and Loyalty – Bright House’s iPad Application        56

5            ROI Analysis of Multiscreen Video            58

5.1        Model        58

5.1.1    The Model Assumptions    59

5.1.2    Devices and Concurrency    62

5.1.3    Number of Channels and Who Offers Them    63

5.1.4    On-Network Versus Off-Network    66

5.1.5    Bit Rate    67

5.1.6    Incremental Revenue and Expense Assumptions    68

5.1.7    Capital Costs    69

5.1.8    Pre-Packaging Versus Post-Packaging Storage Cost Trade-off    73

5.1.9    The Business Case Based on Churn Reduction Only    73

5.1.10    The Business Case Based on Churn Reduction Plus Minimal Revenue    75

5.1.11    Transcoding in the Home Versus the Network    78

6            Future of tving — the Ultimate MSV Service?            84

7            Glossary            91

8            Index of Companies            96