Published on October 15, 2008
Interoute The Media Network* Oisin Lunny CDN, Streaming & Media Product Manager Interoute Communications Limited Zaragosa 02.10.08 *unlimited power and total control from the next generation of content networks
Clip from Woody Allen “Radio Days” The radio has long been a window to the wider world for its listeners, voices connecting them with news, culture, excitement, mystery, relevance to their everyday life. Nothing will replace this relationship, but the means in which people can be connected with the world, through radio, have increased massively .
My past in generating content
I still do it but with new technology.... The new possibilities offered by online distribution inspired me to work in technology in the first place.
Confessions of a Musically Obsessed Geek... So... I technology I “content” I “IP delivery” CV so far: Music business for 19 years Digital content 13 years Networks 10 years Web development 9 years Content aggregation 7 years Interoute 4 years http://oisinlunny.blogspot.com
As one music and technology expert put it: “If the music business is a corpse, lets put it in the ground and grow interesting things from it” Peter Gabriel, 2008
The New Content Marketplace quot;Our focus should not be on emerging technologies, but on emerging cultural practicesquot; - Henry Collins, Professor of Comparative Media, MIT
The Changing Media Climate From Radio Networks to Social Networked Listeners using IP networks... Consumers Consumers Schedules, Linear, Limited Choice Time/Place Shifting On Demand, Infinite Choice, Long Tail Devices Devices TV, VCR PS3, iPhone, HDTV, DVD, STB, DVR, Slingbox, PC, XBox, iPod, Mobile, PSP Operators Operators Free broadcast, Pay Cable and Satellite Broadband, Cable, Satellite, Telco, IPTV, DSL, Mobile etc Advertisers Advertisers TV, Print, Radio, Public Space TV, Print, Radio, Public Space, Online, 360 Campaigns, Branded Content etc Programmers Programmers Broadcast Networks, Cable Networks Broadcast and Cable Networks, Google, YouTube, MySpace, Last.fm, Microsoft, Apple, Users, Operators, Carriers, Aggregators, Websites OLD NEW *Source: TVs Paradigm Shift - Tejpaul Bhatia 2007
and this is... ...the tip of the iceberg! “There will be no media consumption left in ten years that is not delivered over an IP network” Microsoft Chief Executive Steve Ballmer
The Anywhere Network The quot;Anywhere revolutionquot; will be the largest technology change in our lifetimes. Caused by: • A common network • Broadband demand • Wireless ubiquity Anywhere will Surpass the Internet’s Impact The three stages of Anywhere *Source: The Anywhere Tipping Point - Emily Green & Carl Howe Yankee Group 2008
From 2002 to 2007 volume of information managed by telco networks in Europe has multiplied by six (2.5 to 16 exabites). This figure is expected to multiply by ten within the next five years. *Source: Cisco
users take control
We live in a sharing and forwarding culture... * Wikipedia * Digg * Delicious * Blue Dot * Ma.gnolia * Stumble * BookmarkSync * My Web * Reddit * CiteULike * Mixx * Technorati * Connotea * Netvouz * Consumerist * Diigo * Newsvine * Lifehacker * Furl * Propeller.com * SlashDot * GiveALink.org * Simpy * YahooBuzz * Linkwad * SiteBar People will subscribe to mass media, and ... subscribe to other people. The concept of “Music like water” becomes “a river of updates”.
Gerd Leonard / www.mediafuturist.com quot;It’s no longer about certified and central authority and the ‘select few authorised professionals’ but also about the combined power of masses of people.” Google have realised that quot;Markets, networks and communities can organise economic activities radically more efficiently than firms.quot; quot;Thanks to technology induced changes, the new cultural economy means that searching is getting and listening / viewing now IS copying.quot; “Even if a difference between ‘Copy’ vs ‘Performance’ could be maintained: the ‘Selling of Copies’ is no longer a growing business or sustainable model. The exclusive right to ‘make copies’ is becoming impossible to enforce.” *Source: Gerd Leonard www.mediafuturist.com
Radio = listening = getting Anywhere network = no need for a copy Its always waiting for you to access anywhere Internet is in spirit an open exchange of ideas Google grasped this as a business model Can quot;freequot; work as a business model? Advertising? Micropayments?
The economics of free - examples *Source: quot;Welcome To The Free Worldquot; 2008 Universal McCann
Online advertising revenues (EU) According to the EU, advertising revenues will be mostly digital in less than two years: “From an estimated €849m revenues in 2005, we expect newspaper and magazine publishers revenues to amount to €2bn in 2010, almost exclusively from online and mobile advertising.” Commercial radio industry’s customers and products are advertising. They are increasingly moving online.
Media and content is in the network - so must advertising! quot;I don't mind ads because they help to pay for TV shows and websitesquot; *Source MTC Circuits of Cool survey 2007 Advertising-supported online radio, similar to existing radio model More precise targeting / auditing, could be realtime in future Online radio / community sites “own” good (meta)data about listeners Google Adwords example - based on metadata - ads can be targeted Advertisers can find a relevant audience for their products Ad serving companies can report with pinpoint accuracy = higher CPM
What is Radio in 2008 Audio / audiovisual, what comes out of the speaker Technology is about the user experience, engaging the listener Users aren’t interested in the underlying technology, just the buttons on their “remote” Radio in the IP space needs to have this ease of use Technology is setting the boundaries eg: infrastructure/mobile/ CE companies: Nokia / Google / Apple Technology changes the landscape and offers: Exponential choice Global jukebox Infinite Dial ...but also millions of anonymous DJs and little USP The scale is in the underlying network.
Interoute, Europe’s biggest Next Generation Network...
...which we leverage for Global content distribution....
... and provide Next Generation Services such as Media. Professional Services Advanced Hosting MEDIA VOICE VPN SERVICES SERVICES SERVICES Security/Storage - Streaming - VVN - Access - Security - Arena - Security Server Hosting - Management - IRT One - QoS IP SERVICES ETHERNET SERVICES - Internet access - MPLS Ethernet - Internet transit - Ethernet over SDH BANDWIDTH SERVICES - Wavelengths COLOCATION SRVCS - SDH - Carrier grade - Service Provider grade - Data Centre grade INFRASTRUCTURE SERVICES - Duct - Fibre
La Sexta streaming - powered by Interoute
Our network connects to media companies, mobile operators and ISPs. Media clients get the advantages of our connections. Interoute’s Next Generation Network is a uniquely converged solution. Major global clients trust us to deliver 24/7/365 and only settle for the best quality. We are trusted by over 14,000 customers including: Our clients include: • Bulldog • Akamai • Tiscali • Vodafone • EMI (18TB per month) • Universal Music Group • Warners • EMAP
Interoute’s CDN product family Interoute Extra Content Delivery Network (CDN) No need to wwwait - live in seconds Media Manager On Demand Streaming - Audio / Video Podcasting / listen again / Pay Per View Media Live Stream 24/7 or Single Live Event streaming Geo locking + advertising Share Market leading security solution for music Watermarking + marketing + tracking Interoute Express Fast method to deliver files Reduces strain on email systems
IP - a global standard Internet access from a range of existing and new devices, many with multiple uses: PC, mobile, tabletop, portable, personal, and in-car. You can easily listen wherever you are and wherever they are in the world. Devices keyed off Internet access, broadband, and Wi-Fi, operate globally, greatly easing marketing, sales, listening (and support). Internet is the easy complement to give global access, without significant increased cost or effort. FM remains under all the scenarios.
Popularity of Internet Radio (UK) In the US, 33 million of the population aged 12+ (equivalent to 13%) listen to radio via the internet each week. In the UK 9.4 million adults (19% of the population aged 15+) listen to radio via the internet each week, of which 2.5 million adults (5%) listen every day or most days. Of those using online radio 89% listen at home, 24% listen at work. The majority of online radio users (8.0 million per week) are listening to live radio rather than time- shifted content. The latter is delivered via two routes: ‘listen again’ streams (6.2 million users per week) or downloaded ‘podcasts’ (4.4 million). Users of online live streaming listen for an average 78 minutes per week, users of ‘listen again’ 52 minutes per week, and users of podcasts 63 minutes per week. Early days but growing steadily and significantly.
Land Grab for Internet Radio Clear Channel - revenues of US $3.6 billion from Radio in 2007 CBS - revenues of US$ 1.8 billion from Radio in 2007 Costs of extending online radio service to Europe will be quot;marginalquot; ClearChannel to launch portal containing its 1,200 terrestrial radio stations, largest US online radio network Partnering with StudioNow to offer local advertisers pro quality advert production Revenues 3 times the entire UK commercial radio sector Business model is quot;on pagequot; and quot;in streamquot; advertising CBS Radio acquired London-based internet company quot;Last.fmquot; and also has a stake in TargetSpot, US- based online radio advertising saleshouse Will launch ‘play.it’, a web portal that aggregates its own 140 terrestrial and 20 internet-only stations alongside AOL’s 200 online stations and Last.fm, with a combined reach in the US approx 3.4 million / month. *Source: Grant Goddard “Clear Channel – designs on global radio?” www.endersanalysis.com
Radio content is ideal for Wi-Fi portable devices Wi-Fi can delivers audio/radio content more efficiently than video/TV Lower bandwidth Wi-Fi-enabled device manufacturers are promoting radio features Nokia’s latest ‘N’ range of mobile phones (13 models in the UK) comes pre-installed with ‘Nokia Internet Radio’ software Various radio applications for the iPhone, which in the UK incorporates Wi-Fi, including ‘Wi-Fi hotspots’ via The Cloud and BT Openzone Audio only content ideal for people on the move e.g. iPod 11% of adults (aged 16+) in the UK now access the internet away from home or work: 32% connect via a free Wi-Fi network 23% connect via a paid for Wi-Fi network 31% use a mobile phone to connect
Wimax? Sprint Nextel & Clearwire announce $12bn Wimax joint venture (May ‘08) Including investment from: Intel: $1 billion Google: $500 million (gives them influence over a wireless network) Time Warner cable: $550 million Comcast: $1.05 billion Brighthouse: $100 million Total investment fund $12 billion Can offer TV, Internet, phone, internet access and IP radio on the go, and potentially a wireless phone service e.g. Google Android. Could this support content roaming e.g. access anytime anywhere? WiMax to cover UK quot;within two yearsquot; (Ashish Patel MD Intel Capital EMEA)
Internet Radio Drivers Push from: Pull from: A new generation of devices, Presenter programming, delivering Internet radio easily particularly with time-shift across platforms—PC, tabletop, listening to build and maintain a portable, personal, mobile— following—local and global— being readied for market now. from wherever and whenever. Larger and colour displays Extensions of current which supplement radio with programming using the larger, active multimedia—audio, colour displays—particularly video, and graphics—to move sports, and also talk. radio beyond the traditional small, passive display. *Source: Darryl Pomicter, www.radeo.net
Internet Radio Drivers Overall: The radio industry understanding that Internet radio is a powerful complement to strengthen and extend traditional broadcast radio— particularly personality presenter programming with local and/or global appeal. The growing acknowledgement that a future with FM and Internet, and increasingly available wireless Internet access, that some predict will leave no need or broad desire for digital (DAB and HD) radio. Advertisers seeing, trying, and gaining confidence in the expanded possibilities of Internet Radio with broadcast radio—with increased experience and results better measured. *Source: Darryl Pomicter, www.radeo.net
Wi-Fi with / vs DAB 6% of adults claim to own a Wi-Fi radio receiver, while a further 11% said they would be interested in Wi-Fi radio services. Adult penetration of DAB radio receivers did not reach 6% until as recently as 2005, so Wi-Fi radio hardware close behind the DAB adoption curve. Wi-Fi is a global standard, wherever an online audience can be found in the world, it can be monetised (Google) Costs incremental, but much less upfront WorldDMB Digital Radio Receiver Profiles launched at IBC Sept 08 What happens to regional digital formats? For consumers their Digital Radio Box should just be a gateway to the format. “IP delivery is likely to play a vital role in the future digital radio landscape, both in its own right and as a complementary technology to broadcast digital technologies such as DAB”. UK Government Digital Radio Working Group
Internet Radio Devices Strategy Analytics predicted that 28 million Wi-Fi-enabled ‘handsets’ will be in use in the UK by 2012. Almost half of the adult population with domestic broadband use a wireless router to connect, and sales of mobile broadband connections ‘took off’ in 2008 (1.5 million UK connections in June 2008). Web enabled radio devices need to be: •simple •shortcut driven •flexible •non-proprietary
Walter Mossberg on the Future of the Internet and Rise of the Cell Phone: quot;The PC has peaked, and the future of the internet belongs to Pocket Computers: The Internet is a grid and we're all going to be living on it, and carrying it in our pocket all day long.quot; As many mobile devices as PCs globally.
There are as many mobile devices as PCs globally. Other handset makers keen to offer music as differentiator: Nokia - Comes With Music Sony Ericsson PlayNow Plus (powered by Omniphone) iTunes 9 ...? Google Android - open standard - open invitation to developers to innovate! Handheld IP devices will compliment fixed / home internet access devices
The iPhone is driving innovation in mobile content: quot;Music has been the first 'killer app' for the operators to drive the consumption of premium content on the handset.quot; (MMI, March 08) “Freemium” access to iTunes music library, like Nokia’s Comes With Music but with lower cuts for record labels (FT, March 08) Superior UI drives consumer uptake of advanced content apps M:Metrics on the iPhone: 50% accessed social networking site (average 4%) 30% iPhone users watch mobile TV / Video (average 4.6%) 30.4% YouTube (average 1%) 74% listen to mobile music (flat rate data charges a driver) Apple have always made the end to end user experience compelling, and successful uptake proves this is a crucial factor.
MobileScrobbler • Last.fm client for Apple iPhone and iPod Touch
Emunity Edge (Sweden) 0% Interactivity 100% Type of radio FM-stations Programmed Community Stream Personal Playlist Stream Stream Generator Broadcast type 1- to -all 1- to -all 1- to -all 1- to - 1 1- to - 1 Loyalty Examples stations Product Beta launch 2000 2000 1999 2005 Launch April-07
Goom Radio Good selection, particularly new French music - beta site
Deezer.com Good selection - links to iTunes Music Store for downloads
Pandora Innovative but subjective. Not available outside US.
Blip.fm Good selection - links to Amazon MP3 store for downloads
Last.fm The main online radio station for non-techies, bought by CBS
MOG Community + music, subscribe to a “trusted mogger” today!
iTunes 8 Genius, literally!
Totally Radio Super innovative Niche shows Defining cool Grass roots support Organic growth Revenue from: *Adwords *Subscriptions www.totallyradio.com
P2P Radio - super niche
All this is great, but sometimes overwhelming!
The Radeo Internet Player A great way to organise your online radio listening. Innovative technology that’s simple to use, online & on mobile. Over 10,000 Stations, 20,000 Shows, and 1,000,000 Episodes. Worldwide Internet Radio Broadcasts, Webcasts, and Podcasts. Example of UK cross industry collaboration through Radio Centre Player. www.radeo.net
Twine, another interesting idea to tie it all together? Semantic Web creates a web of data that allows computers to find, extract, share, re-use information, and potentially even reason with it.
broadcast moves online
Converged service delivery. *Source: Tandberg
Example from TV eg: combined TV 1.0 & TV 2.0 *Source: Tandberg
Radio & Web
Digital means .... “more is more” More People Doing More Connecting More Searching More Sharing More Researching More Buying More Empower, Demonstrate, Involve* *Source: Jaffe LLC Life After the 30-S
What is Next Generation Radio? Building a global entertainment system that adopts the philosophies of the Internet as well as its technology. Those principles are: •openness •freedom •neutrality •accessibility •global availability The revolutionary change with IP Radio is that every viewer has a personal relationship with a broadcaster through a transactional request/response mechanism, rather than just picking up a broadcast sent to anyone and everyone. *Source: (paraphrase) Alexander Cameron IPTV VoD - The Open 4th Platform (2008)
IPTV example - todays three screen reality •TV broadcast is “broken”, interruptive marketing a thing of the past •Consumers are now creating - they are content companies new critics and evangelists •Effect on advertising revenues, they’re moving online •Can IPTV replicate the Web 2.0 experience, and stimulate advertising revenues? •The promise of IPTV is that every piece of audio and/or visual content ever created in human history will be available in digital form anywhere in the world, on any device, whenever anyone wants it (BBC archive?) •Digital media and our preferences for it will follow us wherever we go in the world, so rights will need to be allocated to an individual rather than a country and a platform. •All systems will feature centralised viewer database information and decentralised/local delivery equipment. *Source: From Gorillas to Guerillas - IPTV changes everything Yankee Group 2008
The Metadata Value Chain
Federated Rich Media Model Content Web-based registration, QA, access and launch of media Content on personal computers, mobile computing device, media players Originators Users Encrypted and non-encrypted Assets (A) and Content Packages (P), assembled and delivered on-demand (A) (P) Content Infomediary Customizable TV-Anytime, MPEG-7, MPEG-21 Framework Metadata Proprietary Metadata XML Translation Separates Description from Location Metadata Objects - Metadata includes Metadata Objective,Subjective,Rights,ID/Location Layer Object Repository-A Object Repository-B Object Repository-C Distributed Objects
Final thoughts: •GOOD RADIO CONTENT will always be king. Radio has a special place in our hearts and minds, a relationship that will not be replaced by auto generated playlists. •Huge opportunities for Radio over IP, music is enjoyed when its portable (eg: iPod) while TV is a mostly stationary experience. Radio will continue to be the soundtrack to our lives and we will enjoy it through more devices. •Effective content delivery networks are key to ensuring the services work! •SOA (service oriented architectures) important for networks, service providers, device manufacturers etc. • A centrally held identity will manage the relationship between individuals and content eg: OpenID. Content will often originate and be distributed “from the centre” but can live “on the edge” of networks. •Routing the user to the content, and advertising, will be a big opportunity. •Relationships between domain identities could be managed by Web 2.0 companies, while laptops / iPods / slingboxes / WiFi radios could hold local identity caches.
Thank you! www.interoute.es firstname.lastname@example.org www.linkedin.com/in/oisinlunny Recommended reading: The Future of Media, Gerd Leonhard 2008 www.mediafuturist.com Grant Goddard “Clear Channel – designs on global radio?” www.endersanalysis.com quot;The Anywhere Tipping Pointquot; Emily Green / Carl Howe Yankee Group 2008 www.yankeegroup.com All logos, application and website content, and designs featured in the applications and websites in this presentation remain copyright of the original authors
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