Abstract
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
Table of Contents
- 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 Video Delivery Value Chain is Far Reaching and Complex
- 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 In-Stat 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)
