1. OBS* International Conference «Broadband Media: Changing times, changing media» Dr. Roberto Suárez Candel Pompeu Fabra University Lisboa, November 23 th 2009

2. Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Content 1.DTT and Broadband – Current scenarios 2.What is Hybrid Broadcast Broadband? 3.State of the art 4.SWOT analysis 5.Final remarks

3. 1.DTT and Broadband – Current scenarios Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

4. 1.DTT and Broadband – Current scenarios Switch-over across Europe: asymmetric and asynchronous. Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

5. 1.DTT and Broadband – Current scenarios Switch-over across Europe: asymmetric and asynchronous. Completed 2009- 2010 2011 – 2012 2013 - 2015 Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

6. 1.DTT and Broadband – Current scenarios Switch-over across Europe: asymmetric and asynchronous. Market restructuring – PayTv – Mobile Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

7. 1.DTT and Broadband – Current scenarios Switch-over across Europe: asymmetric and asynchronous. Market restructuring – PayTv – Mobile Migration towards High Definition (HD) Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

8. 1.DTT and Broadband – Current scenarios Switch-over across Europe: asymmetric and asynchronous. Market restructuring – PayTv – Mobile Migration towards High Definition (HD) Internet strategies Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

9. 1.DTT and Broadband – Current scenarios Switch-over across Europe: asymmetric and asynchronous. Market restructuring – PayTv – Mobile Migration towards High Definition (HD) Internet strategies Competition among platforms Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

10. 1.DTT and Broadband – Current scenarios Television does not dodge the Global Crisis. Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

11. 1.DTT and Broadband – Current scenarios Globalization – Infrastructures & services Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

12. 1.DTT and Broadband – Current scenarios Globalization – Infrastructures & services Source: F. Kozamernik, EBU Technical, 2009. Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

13. 1.DTT and Broadband – Current scenarios Globalization – Infrastructures & services Source: F. Kozamernik, EBU Technical, 2009. Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

14. 1.DTT and Broadband – Current scenarios Globalization – Infrastructures & services Source: European Competitive Telecommunications Association (ECTA), 2009. Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

15. 1.DTT and Broadband – Current scenarios Globalization – Infrastructures & services On demand content – Video viewing Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. USA, March 2009: 14.5 billion videos (+11% previous month). BBC iPlayer: from XII/08 to XII/09 served 180 million videos / France2: 50.000 per day USA: 14.5 million viewers are considering buying an Tv set with connectivity.

16. 1.DTT and Broadband – Current scenarios Globalization – Infrastructures & services On demand content – Video viewing Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Forecast: 2011 20 million TV sets with wifi connectivity / 2013 277 mil. Youtube 40.8% of user generated content Other online video viewing experiences: HULU, ZATOO, JOOST, AppleTV + broadcasters. Source: Digitag Newsletter, August 2009. Source: Screen Digest

17. 1.DTT and Broadband – Current scenarios On demand content – Video viewing Source: Screen Digest Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

18. 1.DTT and Broadband – Current scenarios Globalization – Infrastructures & services On demand content – Video viewing Mobile – Multidevice access Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

19. 1.DTT and Broadband – Current scenarios Mobile – Multidevice access Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Broadband subscriptions Source: J. Doeven, CSTB 2009.

20. 1.DTT and Broadband – Current scenarios Globalization – Infrastructures & services On demand content – Video viewing Mobile – Multidevice access Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Web 2.0 & Social Networking

21. 1.DTT and Broadband – Current scenarios Whats next? Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

22. 2.What is Hybrid Broadcast Broadband? Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

23. 2.What is Hybrid Broadcast Broadband? Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. It is the convergence between broadcast and Internet content for a coherent experience. Source: DIGITAG, August 2009 for a enriched viewing experience. Source: L. Vermaele, EBU Technical director, 2009

24. 2.What is Hybrid Broadcast Broadband? Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Source: Dr. K. Illgner-Fehns, Institut für Rundfunktechnik (IRT), (2009): Rundfunk und Medientechnik im 21.Jahrhundert

25. 2.What is Hybrid Broadcast Broadband? Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Source: HbbTV.org

26. 2.What is Hybrid Broadcast Broadband? Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Hybrid receiver DVB tuner + broadband connectivity Hybrid Content Broadcast + broadband = programme unit Hybrid services Mainstream broadcast + broadcast related/independent services over IP

27. 2.What is Hybrid Broadcast Broadband? Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

28. 2.What is Hybrid Broadcast Broadband? Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. It is NOT: Internet Television IPTV Internet on the TV screen* … but these experiences can be helpful.

29. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Broadcasters have developed internet strategies in order to … … generate new windows for their content and new revenues. … recover / have access to certain groups of audience. … manage their brand and face up competition from other content providers.

30. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

31. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

32. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

33. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

34. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

35. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

36. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

37. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

38. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

39. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Broadcasters have developed internet strategies. CE Manufacturers have taken the initiative regarding IP connectivity. Philips Net TV [video] [video] Samsung Internet@TV Panasonic Vieracast Apple Apple TV

40. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Broadcasters have developed internet strategies. CE Manufacturers have taken the initiative regarding IP connectivity. They become new gatekeepers by means of achieving alliances with content providers and offering walled gardens.

41. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Broadcasters have developed internet strategies. CE Manufacturers have taken the initiative regarding IP connectivity. The market needs horizontal standards that guarantee interoperability.

42. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. The market needs horizontal standards that guarantee interoperability. Audio / Video codecs Interactivity middleware / browser / OS Digital Rights Management (DRM) Connectivity with other devices (Home Network) Content delivery protocols / coordination between broadcast and broadband

43. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. The market needs horizontal standards that guarantee interoperability. BBC Canvas Project (UK) Cross Industry Consortium HbbTV (FR + GE) EBU – DVB HBB - MHP Yahoo Widgets

44. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

45. 3.State of the art Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.

46. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. HBB specifications are built on current standards no new developments + backwards compatibility No investment in transmission infrastructure Broadband penetration / speed is growing Popularisation of WIFI Home networking creates a positive environment

47. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Devices are already available at the market DTT viewing is increasing (users / time) DTT offers a higher / wider audience than internet Previous experiences like BBC i Player have been very successful On demand services are growing

48. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Main Tv set is still the primary access point for video content Some users already connect their Pcs with their Tv sets Users prefer professional content instead of UGC Low political profile

49. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. There many players involved agreement on standards becomes more difficult Individual initiatives based on legacy solutions have been launched fragmentation due to lack of interoperability + confusion User incorporation depends on having a terminal device + broadband connectivity cost + more gatekeepers between broadcasters and users

50. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. IPTV and Cable operators are strong alternatives. Investments in new content / services are needed but the business model is not clear. DTT is strongly linked to FTA offers. DTT switch-over in Europe is fragmented, so a common market will not be an immediate reality. Interactivity has never been a safe value.

51. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Online content needs to go HD, otherwise lack of quality. Youtube is the leader provider for video online (UGC + professional). Lean-back attitude is still strong in front of television.

52. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Using IP transmission might allow to free more spectrum + combination of both more channels, HD, other services. New interactivity options for DTT / SAT new revenues + creativity/producing opportunities Linear television is enhanced more added value more viewers /consumption + business models

53. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Recovering the lost audience / creating new targets New audience behaviour tracking options An option for reducing digital divide and consolidating the Information Society Personalisation / Customization + Localization new services, opportunities for advertising + better fulfillment of PSB remit

54. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Social networking interest communities, recommendations, most viewed (push VoD) Better service for handicaped people New windows for 3rd parties contents / services

55. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Legacy hardware / software solutions can fragment the market and create vicious circles that lead to failure. Content providers circumvent broadcasters (agreements with CE manufacturers) Linear programming loses audience impact on advertising.

56. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. CE manufacturers control the access to the audience. Broadcasters lose control over the screen due to non related content / services Network saturation due to flash-crowds (live events) or too fast growth collapse / quality Costs rising due to an excess on data transferring

57. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. New DRM issues New window for illegal content Viruses 3rd parties competition degradation of the brand of the broadcaster + loss of market weight (value) High costs for viewers

58. 4.SWOT Analysis Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Inferior added value in front of cable / IPTV Advertising migrates to IP (personalization + localization) linear programming loses value Extra costs for IP data analytics Low political profile Is public interest under threat?

59. 5.Final remarks Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. It is a very attractive opportunity to enhance the television viewing experience BUT … Do people really need it? Who? How many? Is it economically viable?

60. 5.Final remarks Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. It is a chance for DTT to improve its value offer as well as its position within the television market BUT … Arent the threats too many / too strong? Is it possible to ignore HBB? Then, what?

61. 5.Final remarks Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Which is the right way? Open internet access / Walled garden? FTA / Pay / Killer content, service, application … Business model?

62. 5.Final remarks Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Like in previous cases … Technical standardization is mandatory … ASAP!! Legacy options are attractive in the beginning, but their growth is limited.

63. 5.Final remarks Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. It is not just about migrating the web to the television screen. It is about a coherent/enhanced tv viewing experience. Is it the definitive chance for interactivity? What about Public Service?

64. 5.Final remarks Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis. Terrestrial Broadcasters need to act early and fast. Otherwise, they will be quickly overcome by other/new market players. No action will certainly imply losing their privileged position within the television ecosystem.

65. Thank You! Dr. Roberto Suárez – Hybrid Broadcast Broadband. A SWOT analysis.