TRANSITION TO DIGITAL

DIGITAL HANDBOOK

Social media
With the convergence of broadcast, broadband and IT,
the face of the broadcast landscape is changing.
RY ROB VAN DEN DAM

W
ith the convergence of
broadcasting, broad-
band and informa-
tion technology, dif-
ferent networks now support all
forms of communication and media,
such as voice, video, computing and
games. Connectivity and communi-
cation tools and devices are increas-
ingly available and affordable for a
large audience; as a result, control of
Collaborative Gated commtinities such as;
tion behavior toward participating in two long-term underlying trends
and sharing — the great switch from in communication:
push to pull. • A shift in the control of commu-
nication media, from the proprietary
Introduction domain of the traditional providers
Most of the media over the last de- to the open Internet; and
cade was produced by professionals • A shift in communication pat-
and transmitted from a fower, distrib- terns, from one-to-one and one-to-
uted over a cable system, or beamed many to many-to-many, collaborative
directly from satellite. It was a world communication. This entails sharing
in which conversations took place videos, photos and other multime-
dia contents that sub-
stantially enrich the user
experience.
Shared social space such as:

• Cyworld •Facebook Shift in

•SK Telecom
•Verizon FiOS
•Raketu
• Mixi
Traditional broadcasting
such as:
•Terrestrial broadcasters
• Telecom operators
• IPTV providers
• Satellite broadcasters
One-to-one, •Cable companies
one-to-many
Provider-
Coniimiiiication environment
controlled
Figure I.The future media landscape is shaped by shifts in communication control and patterns.
communication media is shifting
away from the domain of the media
and communication companies and
toward the more open Internet com-
munication platform. Al! this has
placed production of media such as
images, words, video and audio in
the hands of a significant fraction of
the world's population. It's a funda-
mental shift in human communica-
• YouTube
• Twitter
•MySpacB
•Oigg
Open and free sucb as:
•Hulii
• BBCiPlayer
• Joost
• Apple TV
•Babelgum
Open
Internet
with just one other person, or with a
group, by broadcasting the same mes-
sage to everyone in the group. Those
days are over, never to return.
The media landscape as we knew
it, where large organizations were
controlling the channels, is increas-
ingly slipping away. This trend is re-
lated to the widespread social media
phenomenon, which is a reflection
communication
media control
The shift in the control
of communication me-
dia is the result of com-
munication becoming
increasingly digital. AU
media gets digitized, and
the Internet increasingly
becomes the mode of car-
riage for all media. Phone
calls, magazines, movies
and the like are all migrat-
ing to the Internet. Media
is increasingly becoming
ubiquitous and a means
of coordinating informa-
tion, whether it's news,
opinions, thoughts, audio,
images or video, because
everyone can share infor-
mation via the Internet.
More and more people are be-
coming connected. The majority of
households in developed countries
have Internet access, and the num-
ber of Internet users in emerging
economies is growing rapidly. At the
same time, data connectivity speeds
have increased significantly, while the
costs of connectivity and storage have

18 broadcastengineenngworld.com \ May 2010

TRANSITION TO DIGITAL
DIGITAL HANDBOOK
Revenue contribution: • Above 10% ^ Below 10%
33% 30% 27%
Traditional Tiered broadband
per minute based on
speed/quality
voice
Mixed price
bundles including
"all-you-can-eat"
Figure 2. Relative contributions of models/services to revenues over the next five to 10 years. Revenue
expectations from IPTV are relatively low.
declined drastically. With better,
cheaper technologies and multimedia
tools, availability of Web 2.0 software,
and greater use of broadband and
wireless networks, social media are
becoming ever-more viable platforms
for communication and media ser-
vices, and consumers are responding
eagerly.
Shift in communication
patterns
Traditional broadcasting and inter-
personal communication, usually via
the telephone, do not provide collab-
orative group capabilities. The avail-
ability and convergence of mobile
communication and the Internet are
now creating a platform that enables
group communication encompassing
many participants through shared
spaces in virtually any geographic lo-
cation. The Internet is the first medi-
um in history that has native support
for groups and conversation at the
same time and gives us the many-to-
many pattern.
Media has become a mass of con-
versation.s, based on two-way commu-
nication, not on traditional one-way
information push models. And the
20 broadcastengineeringwortd.com \ May 2010
Traditional
broadcasting
26% 14% 10% 4% The traditional broad-
casting space, character-
ized by one-way infor-
mation push models,
has been the domain of
broadcasters and cable
operators. It is the largest
segment in terms of rev-
enue and subscribers, but
is showing signs of slow
growth, or even decline,
as other models take hold.
Analytics to reduce IPTV
While these providers
chLiiri, improve (subscriptions claim the largest number
cross/upsell and advertising)
of subscribers, the users
Triple/quad play Internet of open Internet plat-
communications forms are growing at sig-
(e,g, VoIP, IM,
social networks) nificantly faster rates.
Many telecom opera-
tors are also focusing on
offering TV and video
services. Most of them
viral distribution of information is fast are investing in IPTV, where video
and on a large scale. In addition, the content is transmitted using the In-
members of the former audience can ternet Protocol (IP) over the closed
now also be producers, not only con- network of an IPTV provider who
sumers, because the same equipment has configured it so that viewers can
-— computers, phones and the like — receive only the provider's TV chan-
enables everyone to both consume and nels. Until now, many operators have
produce. This is a huge change in the focused on offering the same TV
media landscape we are used to, and a channels and the same type of con-
The combination of shifts in
communication control and pattems is
redefining the competitive landscape,
giving rise to new business models.
fundamental shifi: in the way we com- tent as their competitors offer. But
municate and organize media. some telecom companies have taken
it further, for example by competing
Emerging media landscape on exclusive content, or offering ease
The combination of shifts in com- of use by providing features such as
munication control and patterns is an electronic program guide (EPG),
redefining the competitive landscape, which allows individual users in the
giving rise to new business models. household to set up a personalized
(See Figure 1 on page 18.) In contrast TV guide with favorite programs
with traditional models, emerging and settings.
models are based on open platforms Currently, most IPTV services are
that support man y-to-many and col- based on subscriptions and video-
laborative patterns. on-demand (VOD) charge, though
 TRANSITION TO DIGITAL
DIGITAL HANDBOOK

many téleos realize that advertising Digital Consumer Survey indicated high-definition TV set. Increasingly,
miyht become an increasingly im- that in all the countries involved, the consumer electronics manufacturers
portant source of revenue. Stiil. many majority of those surveyed were will- are working on developments to en-
operators see offering TV and video ing to view advertising before or after able Internet access in televisions. It is
only a question of time until Internet
access is a standard feature.
Increasingly, consumer electronics
manufacturers are working on Gated communities
developments to enable Internet access This model is the domain of tra-
ditional providers; it is still a "walled
in televisions. It is only a matter of time garden" approach, but one that facili-
until Internet access is a standard feature. tâtes many-to-many communication
and collaboration services that will
appeal to users with a preference for
services mainly as a necessity to com- a good-quality, free video broadcast. the more secure and reliable commu-
bat the trend of losing subscribers to (See Figure 3.) nication environments.
cable companies, which are increas- Internet TV has the same look and Some telecom operators have
ingly offering VoIP as part of triple- feel as IPTV but is delivered over the started initiatives to move to this
play bundles. In 2009, IBM's Institute public Internet; in fact, it's delivered space, taking optimum advantage of
for Business Value (IBV) conducted over the top (OTT) of existing tele- the possibilities that IPTV offers with
a global Telecom Executives Survey. com networks, getting a free ride. As regard to interactivity, participation
One of the questions referred to the such, Internet TV is not a controlled and personalization, usually by de-
company's revenue expectations from environment and cannot guarantee veloping application stores and based
traditional and nontraditional servic- quality of services. Obviously, Inter- on the business models depicted in
es and packages, and the revenue ex- net TV is still in the embryonic phase. Figure 4 on page 22. The three types
pectations from IPTV
are relatively low. {See
Figure 2.) The priori- 100 f- Would watch advertising before or after quality, free content
tized IPTV investments Would pay to avoid advertising 330/jj
suggest they are in par- 80 -
ticular critical in the 69% 70% 73%
defence of traditional
telco services.

Open and free

This model offers
alternatives to tradi-
tional broadcasting
platforms such as cable
Australia Germany India
and satellite, but in
particular challenges
IPTV. Parties in this Figure 3. Global users interested in online video ad-supported vs. paid content online
space include Internet
TV providers like Hulu, Babelgum and many players are attempting to
of business models refer to the al-
and Joost. Variations of Internet TV create a market for themselves. In
ternative approaches for application
include BBC's iPtayer and Apple TV. particular, when Internet TV moves stores:
Parties in ihis domain provide these to the TV screen, it can pose a big • Applications defined, developed and
services for free or at low cost and as threat to IPTV. hosted/managed by the telecom op-
such threaten the profitable services It is all about getting Inter- erator. This includes TV and Web 2.0
of traditional providers. Revenue is net video onto the TV screen. The convergence (including forums and
preliminarily based on advertising. Apple TV initiative, mentioned ear- real-time messaging), social TV (in-
Advertising is becoming increasingly lier, illustrates this. Apple TV makes cluding recommendations/commu-
important Eo fund content, as con- it possible to stream videos, music, nication among consumers), media
sumers do not expect to pay for all podcasts and the like from any com- management and sharing (e.g. shar-
content. The results of the IBV's 2009 puter with iTunes to a widescreen ing family photos and videos).

May 2010 | broadcastengineeringworld.com 2 1

TRANSITION TO DIGITAL
DIGITAL HANDBOOK

ues to expand through

bookmarking, crowd-
Community of developers, sourcing, video sharing,
pro-consumers social widgets and the
Commercial parties like. Increased involve-
applications, e.g. major ment from consumers
brand TV presence improves information of
any kind.
We are increasingly in
a landscape where media
is global, social, ubiq-
uitous and cheap. The
days when most of the
media that was available
Service provider applications such as media for public assumption
management and sharing, social TV, was produced hy profes-
TV chat, family calendaring, etc. sionals are over. Former
consumers are now pro-
ducers. And the network
Figure 4. Alternative approaches for application stores
of relationships within
the shared social space
guarantees that they can talk directly
• Applications defined and developed consumers as key players in content
with each other. They are no longer
hy a business partner, but hosted/ and entertainment service.
disconnected from each other.
managed by the telecom operator. This
includes commercial partner applica- Shared social space As there are more amateurs than
tions, such as major brand TV pres- The shared social space is the do- professionals and the network grows,
ence (direct access to loyalty cards, main of players such as Facebook, the power of media is quickly shifting
promotions, how-to videos). YouTube, Digg and Twitter. Provid- away from the editors, the publishers
• Applications developed by the open ers in this space encourage participa- and even governments, as was clearly
community, using AppStores à la tion and contributions from every- illustrated in the tumultuous days
Apple iPhone and based on a revenue one who is interested. They support after the Iranian presidential elec-
sharing model. Applications are pro- collaboration and feedback over the tion in 2009. The Iranian government
vided by the community of develop- open Internet in the form of blogs, was able to boycott the media elite,
ers. This model enables the concept of forums, wikis, voting, social networks but not the news coming from social
the pro-con su m er. and other social tools. Widespread media such as Facebook, Twitter and
Some service providers have availability and connectivity, as well YouTube. The media was produced
developed TV-based widgets for
Facebook, Twitter and other features
to provide a more fully-integrated TV
"The new generation have a different
and online content experience. set of expectations about the kind of
Now the question remains whether content they will get, where they will
telecom operators are seen as the logi-
cal providers for consumers to turn get it from, and who they will get it
to for online video services and other from.They want to control their media,
entertainment content. The IBV 2009
Global Telecom Consumer Survey
instead of being controlled by it."
found that the majority of consum-
ers are more likely to turn to Internet as communication tools/devices, en- locally, by amateurs and at such an in-
information providers like Google for able people to create and broadcast credible abundance that there was no
online video services and other enter- their own content, including images, way of stopping it. The news rippled
tainment content, with pay TV (cable words, video and audio. like wildfire.
and satellite) providers as second, and These platforms put the power of
téleos as third. (See Figure 5.) So far, media in the hands of the people, Broadband and broadcast
the téleos seem to have been unable to transforming content consumers into convergence
establish themselves in the minds of content producers. And it contin- Convergence of broadhand and

22 broadcastengineeringworid.com \ May 2010

 TRANSITION TO DIGITAL
DIGITAL HANDBOOK

broadcast is taking place,

not in devices, which ap-
All ages
pear to he proliferating,
Under 25
but in the network, where
Internet protocols and
Web technologies are in-
creasingly prevalent. The
Internet is becoming the
dominant broadcasting 26%
platform of our civiliza-
tion. Already 25 percent
of humans are commu-
nicating and accessing
information on the Web. Internet PavTV Telecom Social Device Content
Everyday more people Information provider provider netvyorking manufacturer aggregator
are connected, both via provider (e.g. cable) sites (e.g. Nokia) (e.g. Apple
e.g. Google) iTunes)
the fixed and the mobile
Internet. The use of video
and other data services Figure 5. A list of the providers that consumers plan to turn to for online video and other entertainment
content over the next five to seven years
will grow as Internet data
traffic and mobile broadband con-
becoming part of all media streams. They must take bold steps to remain
sumptions soars. The success of sites
The change is well stated by Rupert an integral part of a changing land-
like YouTube, Facebook and Twitter
Murdoch of News Corp.: "The new scape. The combination of an old
brings to light the social aspect of
generation have a different set of ex- media mind-set with the new media
video, which serves as a centerpiece
pectations about the kind of content consumer will ultimately result in
for social interaction and as a means
they will get, including when and how disintermediation; companies have to
of expression.
they will get it, where they will get it adapt quickly to survive. The journey
Today, with the strong presence of from, and who they will get it from. will not be without risks, but the op-
the Internet, broadband and social They want control over their media, tion of doing nothing is a luxury few
software, the traditional roles of the instead of being controlled by it." can afford. Jf
media elite are being challenged. All Media and communication com-
the aggregation, filtering, distribu- panies will be subject to the disrup-
tion roles and the business models tive force of openness and changing Hob van den Dam is EMEA telecom
sector leader at the IBM Institute for
are changing. And social media are human communication behavior. Business Value.

See you at infocomm. Booth C5978

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May 2010 | broadcastengineeringworld.com 23

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