New Trends in Internet Market

Garcia Sanchez, Jose Manuel

New Trends in Internet Market

An Exemplary of Strategic Chances and Risks for the Mobile Network Industry

von Jose Manuel Garcia Sanchez (Autor:in)

Informatik - Internet, neue Technologien

Zusammenfassung

Inhaltsangabe:Abstract:
Internet. Broadband access. Mobile telephony. Fixed telephony. TV. Google. Yahoo!. Social networks. Mobile network operators. Telecommunication operators. Media conglomerates. Citizen media.
All these terms have always been traditionally considered independent, but nowadays the interrelations among all of them happen more often and are becoming deeper: a new global scenario is being defined, in which communications, entertainment and information are converging, being provided by global conglomerates in our PCs, TVs and mobile devices. Nowadays technology advances will soon enable to provide users with the best internet experience on the go. Services hosts, access providers, vendors, media owners and online players now realize that the barriers that traditionally have separated their markets dilute, bringing them all in a common-global market. Internet business models have now to converge with traditional structures and merges and acquisitions happen to reach competitive positions in foreign markets.
The paradigm of internet will influence and change the most popular services as they are currently known. Fixed communication providers already suffer a loose of voice revenues in favor of the cheapest online communication. Mobile operators are facing now the same situations and find themselves on a delicate strategic situation: with VoIP nearing a competitive QoS, voice along doesnt seem to be for a long time enough as unique revenue source... Even watching TV will be soon an enriched personalized experience through the new IP end2end platforms. Will the online players be the ones successfully accomplishing a vertical expansion of their business? How will the mobile operators react? Which will be the paper of the network access providers? What about the media and content? How will all that affect the customers? In this document will be described the nowadays situation on the different markets involved in the converging scenario, and how the respective players situate themselves strategically.
An initial global point of view will be followed by the definition of strategies and trends of each of them independently, and the determination of the merging points and relations among them. The effort will be focus firstly on offering recommendations and comparisons concerning specific environments. Step by step the basis of the competition environment in the converging market will be defined, offering a strategic map of the […]

Leseprobe

Inhaltsverzeichnis

Jose Manuel Garcia Sanchez

New Trends in Internet Market

An Exemplary of Strategic Chances and Risks for the Mobile Network Industry

ISBN: 978-3-8366-0360-7

Druck Diplomica® Verlag GmbH, Hamburg, 2007

Zugl. Technische Fachhochschule Berlin, Berlin, Deutschland, MA-Thesis / Master, 2007

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LEBENSLAUF

Persönliche Angaben

José Manuel García Sánchez

Geb.: 14.01.1978

Grosse Präsidentenstr. 5, 10178 Berlin

Tel.: 0176 22120126; 030 / 48492048

JMG_Sanchez@web.de

Studium

Okt. 2005 - Feb 2007:

International Technology Transfer Management an der TFH Berlin

(Masterstudiengang, FiBBA und ACQUIN-Akkreditierung). (Note: 1.4)

Masterarbeit: "New Trends In Internet Market An Exemplary Evaluation Of Strategic

Chances And Risks For The Mobile Network Industry". (Note: 1.0)

Sept. 1996 - Juni 2001:

Telekommunikationsingenieur (Telekommunikationsinformatik und

Nachrichtentechnik) an der Technischen Hochschule für Telekommunikation der

Polytechnischen Universität von Madrid.

Diplomarbeit: "Anwendung von Suchtechniken genetischer Algorithmen für die

Bestimmung der optimalen Lösung". Spezialisierung: Telematik, Planung und

Steuerung von Netzen (Note: 9.0 von max. 10.0)

Berufliche Erfahrungen

Seit April 2007:

Business Development, Akquisition, IT-Systems bei URSUS Kapital Berlin

Tätigkeiten: Investorenakquise- und Betreuung, Researches, Analysen aller Art,

internationale Kommunikation mit Kunden; Website- und Datenbankerstellung und

Verwaltung.

Dez. 2005 April 2007

Werkstudent bei Siemens AG Berlin

Tätigkeiten:

Erstellung eines HTML-Interface für Anfrage, Modifikation,

Update und Kontrolle von Datenbanken für Projektleitung

Nov. 2004 Mai 2005:

Privater Anbieter von Lösungen für IT-Probleme

Tätigkeiten: Hilfe bei der Erstellung von Internetseiten, Arbeit mit Excel, Photoshop, MS-

Office. Übersetzungen von WebSeiten ins Spanische.

Mai 2004 Apr. 2005:

Mitarbeiter im Fitnessstudio MG Fitness, Stuttgart

Tätigkeiten: Verbesserung und Überwachung der EDV zur Verwaltung von Kundendaten,

Kostenkontrolle, Administration; Empfang; Kursleiter

Nov. 2002 Nov. 2003:

Analyst und Programmierer in der Informatikabteilung der Firma El Corte Inglés, im

Bereich "Ticketing und Reisen" (Zusammenschluss der Systeme für Tele-Verkauf von

Karten)

Tätigkeiten: Anforderungsanalyse; Projektleitung und Kontrolle mit Excel und MS-

Project. Programmieren in Visual C++.

Sept.2001 Sept. 2002: Software-Systementwickler für die Luftfahrtkontrolle mit der Programmiersprache

ADA, in der Firma Indra ATM, Madrid

Tätigkeiten: Erarbeitung von Lösungstechniken genetischer Algorithmen, Anwendung

der Tools TCL und TCL-TK für graphische Darstellungen, Qualitätssicherung von

Software

Sept. 2000 Aug. 2001: Praktikant beim F&E-Projekt bei Firma Philips Eindhoven, Madrid

Tätigkeiten: Programmieren von Echtzeitsystemen (mit C++ und VisualC++), Verbindung

zwischen MS-Windows und Trimedia

Juni 2000 Sept. 2000:

Praktikum in der Firma Sema Group, Madrid

Tätigkeiten: Administration und Kontrolle von Datenbanken, Programmieren in SQL und

SQL-PLUS, Unix-Systemadministrator, Teilnahme an der Erarbeitung von Projekten mit

JAVA und C

Sonstige Ausbildung

Sprachen:

Englisch: Hohes Niveau in Wort und Schrift, TOEFL- und First Certificate

Deutsch: Mittleres Niveau in Schrift, höheres Niveau in mündlicher Kommunikation

(Teilnahme an Sprachkursen der Volkshochschule Stuttgart und der TFH Berlin)

Spanisch: Muttersprache

EDV-Kenntnisse:

Programmiersprachen: Visual Basic und VBScript, ASP, HTML, SQL, C, C++, Visual

C++, Java, Turbo Pascal, ADA, UML, Assembler (MCHC11, MC68000-Motorola)

Fundierte Kenntnisse von: TCL-TK, JavaScript (Scriptsprachen); Matlab, Maple;

Crystal Report; Adobe Photoshop, Windows XP und Microsoft Office

Erfahrung in der Projektleitung mit MS-Project

Beherrschung von: Excel, PowerPoint, Word, Access

Teilnahme an IT-Kursen:

Nov. 2000: Mikrorobotik-Kurs an der Polytechnischen Universität von Madrid

Nov. 2001: Linux-Kurs an der Polytechnischen Universität von Madrid

Betriebswirtschaftliche Kenntnisse und Führungsqualifikationen

Sept. 2002 Nov. 2002:

Management-Kurs ,,Junge Unternehmer":

Grundlagen der Betriebswirtschaft und der Unternehmensführung, Rechnungswesen,

Marketing, Vortragstechniken, Teamfähigkeit

Sept. 2000 Sept. 2001: Präsident der studentischen Organisation SATELEC:

Veranstaltung von Jobmessen und Firmenforen an der Polytechnischen Universität von

Madrid, Erarbeitung und Vorbereitung von Homepages, Zeitschriften, Werbung, Interviews

Sept. 2000 Sept. 2001: Organisator der Abschlussfahrt des Jahrgangs an der Universität:

Vorbereitung der Fahrt nach Kuba, Durchführung eines Treffens mit Studenten der

kubanischen Universität zum Erfahrungsaustausch, politische und fachliche Diskussionen,

umfangreiches Kulturprogramm

Hobbys und Freizeitaktivitäten

Kulturelle Interessen:

Lateinamerikanische Tänze: hohes Niveau, Teilnahme an Wettbewerben, Showtanz

und Auftritte, Erfahrung als Lehrer

Ehrenamtliche Salsa-Showtanz-Auftritte auf Veranstaltungen (z.B. für Aids-Hilfe, beim

Tag der Kultur in Stuttgart , im Altersheim, ...)

Kino: kurze Spielfilme für Studentenwettbewerbe

Zeichnen und Malerei: Erfolgreiche Teilnahme an Wettbewerben der Ölmalerei und

des kreativen Gestaltens in Madrid

Reisen: Rundreise mit Rucksäcken, Interrailreise

Sport:

Judo: schwarzer Gürtel, Sieger von individuellen und Gruppenwettbewerben

Leichtathletik: Lang- und Marathonlauf

Radsport; Schwimmen ...

Berlin, den 01.06.2007

José Manuel García Sánchez

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

0 INDEX

INDEX

GENERAL INFORMATION

1.1

NTRODUCTION

1.2

IST OF FIGURES

1.3

IST OF TABLES

INTERNET 9

2.1

ENERAL CONSIDERATIONS

2.1.1

NCREASING NUMBER OF USERS

2.1.2

NCREASING BROADBAND ACCESS TO THE INTERNET

2.1.3

IGH RATES OF MEDIA CONSUMPTION

2.1.4

RRIVAL OF THE NEXT INTERNET PARADIGM

: W

2.0 13

2.2

E-MAIL 20

2.2.1

ENERAL ANALYSIS

2.2.2

ONCLUSIONS

2.2.3

OOGLE AND

AHOO

COMPARISON

2.3

MEDIA ONLINE

: THE SECOND DIGITAL WAVE 25

2.3.1

VIDEO ONLINE: VIDEO PORTALS 28

2.3.1.1

General analysis

2.3.1.2

Conclusions 30

2.3.1.3

Google and Yahoo! comparison

2.3.2

GETTING INTO THE LIVING ROOM: TV ONLINE 34

2.3.2.1

General analysis

2.3.2.2

TELCOS, CABLE AND SATELLITE OPERATORS

2.3.2.3

ONLINE PLAYERS

2.3.2.3.1

General analysis

2.3.2.3.2

Google and Yahoo! comparison

2.3.2.3.3

Conclusions 53

2.3.2.4

MEDIA CONGLOMERATES

2.3.2.5

GLOBAL IPTV MARKET OVERVIEW

2.3.2.6

IPTV: CONCLUSIONS

2.3.3

MUSIC 64

2.3.3.1

General analysis

2.3.3.2

Conclusions 67

2.3.4

MEDIA ONLINE: GENERAL CONCLUSIONS 68

2.4

SEARCHING 69

2.4.1

ENERAL ANALYSIS

2.4.2

ONCLUSIONS

2.4.3

OOGLE AND

AHOO

COMPARISON

2.5

INFORMATION 75

2.6

SOCIAL NETWORKS 76

2.6.1

ENERAL ANALYSIS

2.6.2

ONCLUSIONS

2.6.3

OOGLE AND

AHOO

COMPARISON

2.7

ADVERTISING 83

2.7.1

ENERAL ANALYSIS

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.7.2

ONCLUSIONS

2.7.3

OOGLE AND

AHOO

! C

OMPARISON

2.8

VOIP

2.8.1

ENERAL ANALYSIS

2.8.1.1

Nowadays market analysis

2.8.1.1.1

Fixed VoIP

2.8.1.1.2

Wireless VoIP: impact on MNOs

2.8.1.1.3

Market initiatives

2.8.2

MESSAGING AND VOIP CLIENTS: ONLINE OPERATORS 103

2.8.2.1

SKYPE 104

2.8.2.2

YAHOO! MESSENGER

104

2.8.2.3

MICROSOFT 105

2.8.2.4

GOOGLE TALK

105

2.8.2.5

VOIP-MESSAGING MOST POPULAR CLIENTS COMPARISON

106

2.8.3

ONCLUSIONS

107

2.9

GAMMING 110

2.10

E-COMMERCE 111

2.11

ONLINE PLAYERS GOING MOBILE 114

2.11.1

GOOGLE 114

2.11.2

YAHOO! 116

2.11.3

MICROSOFT

AND

APPLE 117

2.11.4

SKYPE 118

2.11.5

ONCLUSIONS

119

2.12

INTERNET SERVICES: COMPARATIONS AND CONCLUSIONS 120

2.13

INTERNET PLAYERS: GOOGLE AND YAHOO!: GLOBAL STRATEGY

ANALYSIS

126

2.13.1

OOGLE

126

2.13.1.1

Business model

126

2.13.1.2

Position in value chain: SWOT analysis

128

2.13.1.3

Strategy analysis

129

2.13.2

AHOO

132

2.13.2.1

Business model

132

2.13.2.2

Position in value chain: SWOT analysis

132

2.13.2.3

Strategy analysis

133

2.13.3

GOOGLE

AND

YAHOO!

FINAL

OMPARISON

136

MOBILE TELEPHONY

138

3.1

MOBILE SERVICES 138

3.1.1

COMMUNICATION 139

3.1.1.1

MESSAGING: SMS MMS IMS

139

3.1.1.1.1

SMS 140

3.1.1.1.2

MMS 140

3.1.1.1.3

MIM: MOBILE INSTANT MESSAGING

141

3.1.1.1.4

UNIFIED AND INTEGRATED MESSAGING

142

3.1.1.1.5

VIDEO MESSAGING

142

3.1.1.1.6

CONCLUSIONS 143

3.1.1.2

PUSH TO TALK

143

3.1.1.3

WIRELESS E-MAIL

144

3.1.1.4

MOBILE BLOGGING

145

3.1.1.5

WIRELESS VoIP

145

3.1.1.6

MOBILE VIDEO TELEPHONY

147

3.1.2

ENTERTAINMENT 147

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

3.1.2.1

MOBILE TV BROADCASTING

147

3.1.2.2

VIDEO STREAMING AND DOWNLOADING

148

3.1.2.3

MUSIC STREAMING AND DOWNLOADING

148

3.1.2.4

MOBILE GAMING

149

3.1.3

PERSONALIZATION 150

3.1.3.1

Ring tone downloads

150

3.1.4

INFORMATION AND CONTROL 150

3.1.4.1

Mobile search

150

3.1.4.2

Location based services

151

3.1.5

FINANCE AND COMMERCE 151

3.1.5.1

Mobile banking

151

3.1.5.2

Mobile payment

152

3.2

MARKET ANALYSIS 153

3.3

CONCLUSIONS 153

TELECOMMUNICATION INDUSTRY DYNAMICS: POSITION IN VALUE CHAIN,

STRATEGY ANALYSIS

155

FIXED-MOBILE CONVERGENCE

161

5.1

ONVERGENCE SERVICES

GOING MOBILE

162

5.2

ARKET INITIATIVES TOWARDS CONVERGENCE

163

RECOMMENDATION OF ACTIONS / STRATEGIC POSITIONING FOR MOBILE

NETWORK OPERATORS

164

6.1

NETWORK IMPROVEMENT TOWARDS "

IMS

" 166

6.2

EVELOPMENT OF INTERNET

CONVERGING MOBILE PORTALS

169

6.3

CONTENT PROMOTION

171

6.4

PEN GARDEN

STRATEGY

172

6.5

SSUME AND EXPLOIT ROLE OF

SMART PIPE

" 173

6.6

ERSONALIZED SERVICES

174

6.7

EW PRICING MODELS

SERVICES BUNDLES AND NEW REVENUE SOURCES

175

6.8

OLLABORATIONS IN ORDER TO COMPETE GLOBALLY AS A

PLAYER

176

6.9

ROMOTE NEW GENERATION HANDSTES

177

6.10

NNOVATION

178

6.11

CONCLUSIONS 179

FINAL CONCLUSIONS

181

LIST OF TECHNICAL TERMS

183

APPENDIX 185

9.1

NTERNET BUSINESS MODELS

185

9.2

ORLDWIDE BB USERS

191

9.3

MAIL

MAIN PLAYERS COMPARISON

192

9.4

IDEO ONLINE WEBSITES

COMPARISON

193

9.5

GERMAN SOCIAL NETWORKS 195

9.6

OOGLE VIDEO BRANDING

196

9.7

P2P INITIATIVES 197

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

9.8

IPTV: M

ARKET INITIATIVES

198

9.9

IPTV:

KEY

PLAYERS

IN SPECIFIC SEGMENTS

198

9.10

EUROPEAN BROADBAND MARKET 199

9.11

ADVERTISING FORMATS 200

9.12

NLINE ADVERTISEMENT

PAYMENT CONVENTIONS

201

9.13

OOGLE AND YAHOO

ACQUISITION HISTORY

202

REFERENCES 203

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

1 GENERAL INFORMATION

1.1

INTRODUCTION

Internet. Broadband access. Mobile telephony. Fixed telephony. TV.

Google. Yahoo!. Social networks. Mobile network operators. Telecommunication

operators. Media conglomerates. Citizen media.

All these terms have always been traditionally considered independent, but nowadays the

interrelations among all of them happen more often and are becoming deeper: a new

global scenario is being defined, in which communications, entertainment and

information are converging, being provided by global conglomerates in our PCs, TVs and

mobile devices.

Nowadays technology advances will soon enable to provide users with the best internet

experience "on the go". Services hosts, access providers, vendors, media owners and

online players now realize that the barriers that traditionally have separated their markets

dilute, bringing them all in a common-global market. Internet business models have now

to converge with traditional structures and merges and acquisitions happen to reach

competitive positions in foreign markets.

The paradigm of internet will influence and change the most popular services as they are

currently known. Fixed communication providers already suffer a loose of voice revenues

in favor of the cheapest online communication. Mobile operators are facing now the same

situations and find themselves on a delicate strategic situation: with VoIP nearing a

competitive QoS, voice along doesn't seem to be for a long time enough as unique

revenue source... Even watching TV will be soon an enriched personalized experience

through the new IP end2end platforms. Will the online players be the ones successfully

accomplishing a vertical expansion of their business? How will the mobile operators

react? Which will be the paper of the network access providers? What about the media

and content? How will all that affect the customers?

In this document will be described the nowadays situation on the different markets

involved in the converging scenario, and how the respective players situate themselves

strategically. An initial global point of view will be followed by the definition of

strategies and trends of each of them independently, and the determination of the merging

points and relations among them. The effort will be focus firstly on offering

recommendations and comparisons concerning specific environments. Step by step the

basis of the competition environment in the converging market will be defined, offering a

strategic map of the involved players. The last chapter will concretize particular

propositions of action for the mobile network operators to strategically face their

strengths and weaknesses in the defined scenario.

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

1.2

LIST OF FIGURES

Figure: Global internet users and growth rates... 10

Figure: Geographic distribution of internet users ... 10

Figure: Worldwide internet users/ 20 countries with the biggest internet population/ worldwide internet

penetration rates... 11

Figure: Broadband Penetration Growth / Motivation for subscribing BB access / Kinds of BB access

worldwide ... 12

Figure: Internet use... 13

Figure: all content going digital ... 13

Figure: web 2.0 memo-map... 14

Figure: E-Mail service growth expectation... 20

Figure: World top 4 e-mail service sites: comparison: nb of users... 20

Figure: World top 4 e-mail service sites ... 21

Figure: E-MAIL service: main players comparison according to driving factors ... 24

Figure: World top 5 video-search sites ... 28

Figure: Video Online: Google & Yahoo! comparison ... 33

Figure: New generation of services at home ... 35

Figure: Multichannel IP Video Offerings: Global subscriber Forecasts... 36

Figure: 4 IPTV potential customer segments ... 38

Figure: 4 IPTV potential customer segments ... 39

Figure: cable/satellite/telco "traditional" services offer ... 40

Figure: US Telcos /cable/satellite market potential ... 41

Figure: IPTV and 4-3 play services - telco, cable, satellite comparison... 45

Figure: IPTV market - players' strategic movements ... 46

Figure: IPTV- Yahoo! current service offer ... 50

Figure: IPTV- Google and Yahoo! strategic initiatives' comparison ... 52

Figure: IPTV players... 58

Figure: Percentage of broadband subscribers taking TV services 2006... 60

Figure: IPTV market: telcos/cable/online/media Providers' strategic position... 62

Figure: Music sales in 2005 and 2006 ... 64

Figure: Online music: worldwide market revenue previsions... 64

Figure: Music online consumption main drivers... 65

Figure: Regional differentiations /Decrease of illegal music consumption ... 66

Figure: search engines comparison ... 69

Figure: search engines trends and strategies... 70

Figure: Short term trends in search technology... 72

Figure: strategic position of search engine tech ... 72

Figure: Search technology: strategic positioning of Google and Yahoo! ... 74

Figure Most searched terms in 2006 ... 74

Figure: WEB 2.0: social-networks categories... 76

Figure: Worldwide most popular Social networks: Popularity/Participation/Members comparison... 77

Figure: Social-networks categories: popularity/activity/registered users' comparison ... 78

Figure: Social Networks strategy analysis and recommendations of actions ... 80

Figure: Social Networks: Google & Yahoo! strategy analysis ... 82

Figure: internet/broadcast and cable TV Annual ad revenue in the first 11 years ... 83

Figure: Global advertising market revenues... 84

Figure: what type of advertisement is more relevant to customers? ... 84

Figure: Advertising trends and tendencies... 85

Figure: Advertising Google services' offer ... 86

Figure: Advertising Yahoo! services ... 88

Figure: Advertising Google and Yahoo! efectiveness comparison... 91

Figure: Google and Yahoo! in the adv. market ... 92

Figure: VoIP main providers ... 94

Figure: Fixed VoIP to mobile/national/international calls comparison: users call minutes and spent ... 95

Figure: Western EU fixed VoIP market predictions (call minutes and revenues: fixed VoIP 

international/national/mobile)... 95

Figure: Costs of switching to VoIP Average approximations ... 96

Figure: Cost comparison between new internet telephony providers and common carriers ... 98

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

Figure: Jajah use of the VoIP to seek the cost for international mobile calls ... 102

Figure: Messaging and VoIP most popular clients ... 103

Figure: comparison between VoIP-messaging clients ... 106

Figure: VoIP market predictions 2012... 107

Figure: gamming market- analysis and predictions... 110

Figure: e-commerce in West Europe, 2005 ... 111

Figure: e-commerce sites US users ... 112

Figure: Ebay global market share... 112

Figure: e-payment million of users of most popular systems ... 112

Figure: Daily Pageviews / reach on most popular websites ... 121

Figure: Most visited websites Nov'06 ... 121

Figure: USA broadband most used services ... 124

Figure: USA vs GERMAN online likes... 124

Figure: Top 10 most popular websites worldwide ... 125

Figure: Google Services: percentage of use... 126

Figure: Google services success estimation ... 127

Figure: Google general strategy direction as a result of forces analysis ... 131

Figure: Google general strategy direction as a result of last initiatives... 131

Figure: Yahoo! general strategy direction as a result of forces analysis... 135

Figure: Yahoo! general strategy direction as a result of last initiatives ... 135

Figure: Google & Yahoo!: Revenues comparison ... 136

Figure: Google & Yahoo!: Expenses comparison... 136

Figure: Yahoo! and Google strategy direction comparison... 137

Figure: Mobile applications classification... 138

Figure: Mobile applications spending 2005 vs 2006 estimations ... 139

Figure: MMS and SMS volume and revenues expectations... 140

Figure: wireless e-mail market predictions... 144

Figure: Worldwide biggest MNOs (regarding nb of subscribers)... 153

Figure: Mobile services: conclusions... 154

Figure: Telcos retail revenue growth average approximation (2004-2005) ... 155

Figure: quad-players challenge ... 156

Figure: Telcos /cable/satellite: comparing IPTV service... 157

Figure: IPTV market - players' strategic movements and recommendations for Telcos ... 160

Figure: IMS platform implementation's strategies Recommendation for MNOs ... 167

Figure: IMS implementation: strategies comparison ... 168

Figure: Recommended platform for MNO mobile-internet portal ... 169

Figure: MNO mobile-internet convergence portals: recommendation and priorities for services

implementation ... 170

Figure: Conclusions MNOs in the convergence scenario: revenues predictions... 175

Figure: Conclusions - MNOs' new sources of revenues ... 176

Figure: Conclusions Recommendations for MNOs: strategy positioning ... 179

Figure: MNO Investment priority recommendations ... 180

Figure: Conclusions convergence services providers' development phases ... 181

Figure: Internet Business Models: Resume ... 190

Figure: Video online sites comparison... 194

Figure: Germany's top social networks ... 195

Figure: Google promotes its Google Video... 196

Figure: P2P initiatives ... 197

Figure: Telcos different strategies approaching IPTV service... 198

Figure: Different partnerships strategies approaching IPTV service ... 198

Figure: Google and Yahoo! ACQUISITIONS ... 202

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

1.3

LIST OF TABLES

Table: data acquisition as competitive advantage ... 16

Table: recommended practices for the adaptation of applications to the web 2.0 ... 18

Table: E-mail service - SWOT analysis... 24

Table: Video Sites comparison ... 28

Table: Use of search engines for video-online ... 29

Table: Video online market - SWOT analysis... 31

Table: IPTV- telcos, cable, satellite SWOT comparison ... 44

Table: Online players and IPTV: SWOT analysis ... 53

Table: Some of the largest media conglomerates... 54

Table: Media providers: SWOT analysis ... 55

Table: IPTV - SWOT analysis ... 61

Table: Music online market - SWOT analysis ... 67

Table: Media online market - SWOT analysis... 68

Table: Search market - SWOT analysis... 73

Table: Social networks - SWOT analysis... 79

Table: Online Advertising Industry - SWOT analysis ... 90

Table: Mobile telephony costs comparisons: traditional and new VoIP providers... 97

Table: Online players mobile portals: features comparison ... 119

Table: Best offer for most demanded online services ... 123

Table: Google - SWOT analysis ... 128

Table: Yahoo! - SWOT analysis ... 133

Table: Telcos and IPTV: SWOT analysis ... 165

Table: Top 20 countries with highest nb of internet users... 191

Table: Email services comparisons of global leaders ... 192

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2 INTERNET

Internet is living creature, influenced by its environment, and evolving with it.

The internet market evolves in a very rapid way, and although there are several services

with high degree of maturity and acceptance, the market is usually driven by new trends.

The advances in technology and the investments in communication networks enable the

apparition of new trend drivers, that make companies like YouTube to reach a market

value of more than 1 billion US$ in less than one year

2.1

GENERAL CONSIDERATIONS

The new trends on internet, called to play a decisive role on its future development, are:

Internet goes mobile

Cooperations between until now pure internet players and mobile operators are

getting more and more commons, and develop a complex net of collaborations.

The new mobile devices offer all kind of services: video, credit-card swiping,

global positioning system functions, instant access to information on internet,

mobile-TV... everything on-the-go. The most used and common internet

services, like the news, search machine and e-mail are already accessible on

mobile device. And the great success of some trends, like video sharing or the

net-communities will probably be offered to the customers on their mobile

devices as soon as the technology permits it.

Wireless access network is spreading:

WiFi

hotspots, hot zones and now entire

wireless cities: entire cities were provided with wireless Internet access,

following initiatives of different players in the telecommunication market. New

technologies make possible that the number of wireless cities increase (like

Edge

Technology

, which uses the next generation of WiFi, called

WIMAX

)

VoIP

Companies like

Google

Microsoft

and

Yahoo!

are getting into the Internet

phone-service game, presenting competence to the traditional Telcos by taking

advantage of the low costs of the voice transmission through IP.

Social networks

2005 was the ignition, 2006 the maturation and 2007 will be the redefinition:

weblogs

will be supplied by

vlogs

, which instead of words use videos to provide

content, accompanied by pictures ant commentaries.

Weblogs communities

photo-sharing networks

video-sharing networks

... Internet social

communities experimented the biggest growth of users in the web services, and

the main internet giants want a piece of the cake. IPTV, digital TV, video content

and VoIP (voice over IP) are expected to be the top products and services for

2007, with spending in network infrastructure for these three areas projected to

increase significantly -- by 77%, 81%, 71% and 76%, respectively

Internet itself is on trend: its growth rate does not seem to have any limit, and nowadays

it has become a fundamental part of daily life. The key drivers will be presented on the

next points:

http://www.tvover.net/2006/11/15/IPTV+VoIP+Investment+High+For+2007.aspx

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.1.1

INCREASING NUMBER OF USERS

The internet number of users will experiment a continuous increment. The use of printed

media is expected to decrease, and the cable and satellite services will have 1% growth.

Figure: Global internet users and growth rates

Asia will experiment the highest growth rates, with increasing importance in China.

Comparing the internet users' distribution in continents, we can make the next

conclusions:

Figure: Geographic distribution of internet users

Particularizing for more specific regions, we find that USA, Japan, China and Germany

concentrate a 52% of the total internet users' population

, reason because in some

chapters we will consider information regarding these countries is more relevant.

2 Founts: World Bank,CIA Factbook (2005), Jupiter Search (206),PWC (205), Yahoo! STIMATIONS (2006)

3 Founts: www.seomoz.org/blog.php?cat_id=3, Yahoo!'s Analyst Day PDF file

http://www.comscore.com/press/release.asp?id=1002

, http://www.budde.com.au/reports/Category/Global-Overviews-12.html

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

On the next figure we compare the number of users of the 20 countries with a higher

internet population.

Figure: Worldwide internet users

/ 20 countries with the biggest internet population

/ worldwide internet

penetration rates

See appendix for more detailed information

5 http://www.budde.com.au/reports/Category/Global-Overviews-12.html

6 http://www.budde.com.au/reports/Category/Global-Overviews-12.html

7 Point Topic, Q4 2005;

www.bbwo.org.uk/broadband-3233

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.1.2

INCREASING BROADBAND ACCESS TO THE INTERNET

The internet users tend to subscribe

broadband access: it is expected to reach

the 413 millions subscribers by year-end

2010.

The higher speed accessing the internet

and the commodity of being always online

are the main reasons for the increasing

demand. The gradual, but consistent,

reductions in monthly service prices and

the beginnings of effective bundling

strategies that link high-speed Internet

service with video and telephony services

are also factors that improve the

broadband subscribers

. The increasing

availability of broadband services and new

applications that rely on high-speed

connection (online games,

communications) will increase its adoption

rate.

DSL remains the leading broadband access

technology. On a worldwide basis, it

currently accounts for 69% of all

broadband subscribers

Figure: Broadband Penetration Growth

Motivation for subscribing BB access

/ Kinds of

access worldwide

8 http://www.internetworldstats.com, Dec 2006, Park Associates, 2006

9 Foutns : In-Stat Forecast,

www.instat.com/press.asp?Sku=IN0603199MBS&ID=1634

10 Founts : eMarketer 2005

11 Founts: Park Associates, 2006 : VoIP white paper

http://www.oecd.org

, 2006

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.1.3

HIGH RATES OF MEDIA CONSUMPTION

Content consumption is the fastest growing sector online:

Figure: Internet use

In detriment of the

off-line consumption

media, the online

consumption

worldwide

experiments big rates

of growth, and the

tendency is expected

to accelerate in the

next years.

Figure:

all content going digital

2.1.4

ARRIVAL OF THE NEXT INTERNET PARADIGM: WEB 2.0

Internet has changed: after the bursting of the dot-com bubble in the fall of 2001, a

turning-point was fixed, which lead to what nowadays O'Reilly Media defined in 2004 as

web 2.0

. On their web you can find this picture, which really good identifies what it is

understood as web 2.0:

13 Founts: OPA Internet Activity Index, Comsecore Media Matrix, Yahoo!

14 Founts :

www.audioholics.com/.../demandforHDTVIPTV.php

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

Figure: web 2.0 memo-map

Although it exists no global agreement about the exact significance and

necessity of this term, nowadays can be observed a second generation of

internet-based services, such as

social networking sites

wikis

blogs

communities

sharing networks

, new

e-commerce

and

communications

formulas

that emphasize online cooperation and sharing among users.

Several particularities that characterize the new internet:

Google becomes the new standard

delivered as a service, with customers paying, directly or

indirectly, for the use of that service. None of the trappings of the

old software industry are present. No scheduled software releases,

just continuous improvement. No licensing or sale, just usage.

De-centralized internet

Napster, Overture or Google success came from understanding the

internet as the addition of all the web sites all over the world.

Overture

and

Google

figured out how to enable ad placement on

virtually any web page.

Napster

(though shut down for legal

reasons) built its network not by building a centralized song

database, but by architecting a system in such a way that every

downloader also became a server, making therefore the network growing which

each user.

15 Founts:

http://www.oreillynet.com

, Dec 2006, Chris Anderson

Leverage customer

self-service and

algorithmic data

management to

reach out to the

entire web, to the

edges and not just

the center, to the

long tail and not

just the head

...

Network effects

from user

contributions are

the key to market

dominance in the

Web 2.0 era

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

The service gets better the more people use it

When every client is thought to also work as a server, the sharing of files is much

more efficient: files are broken up into fragments that can be served from

multiple locations, transparently joining the network of downloaders to provide

both bandwidth and data to other users. The more popular the file, in fact, the

faster it can be served, as there are more users providing bandwidth and

fragments of the complete file.

Building collective intelligence

Some examples:

Hyperlinking

: a user add new content on the web, and other users discover it,

evaluate it and link to it from their own sites: the internet grows through

associations and repetitions like the way the human brain works

Yahoo!

was conceived as a catalog or collection of links to the best evaluated

sites, according to the opinion of thousands of users one reason for the

successful transition from the web 1.0 to the 2.0

Google

, through its

PageRank

, makes uses of the link-structure of the web to

find which the most interesting sites are

Ebay

is just the enabler of the interactivity among his users, and the community

of buyers and sellers it was able to built gives it a great advantage among any

competitor that may offer the same services

Amazon

is just one more e-commerce site, offering the same products as many

competitors, but it found success through fomenting the user engagement: user

evaluation, comments and reviews, which allow the site to offer its clients in real

time the more popular products of each category.

Wikipedia

consist on an innovative experiment: an encyclopedia, in which the

content is created by any user, and can be edited by any other user. An

experiment on trust, which seems to work: the company belongs to the big 100

internet companies, and is expected to climb soon to the big 10.

Tagging

consists on a new style of collaborative categorization of sites using

freely chosen keywords tags. By this technique a picture of a baby can be

classified as baby and cute overlapping associations that the brain itself uses.

That principle was used successfully by sites like

del.ic.ous

and

Flickr

, one of

the reasons because they become as important as they are in

bookmarking

and

photo sharing.

Cloudmark

is one more example of collaborative work: all the users aggregate

their opinions when classificating mail as spam or not, making the filtering of

messages easier.

Traditional advertisement is no more used:

Mouth to mouth

, or

viral

advertisement

: recommendations propagating directly from one user to another

are the way the really good products in the web 2.0 become popular.

Confidence on the

peer production methods of open source

: a growing part

of the web's infrastructure (

including the Linux, Apache, MySQL, and Perl, PHP, or Python

code involved in most web servers

) relies on this method, in which anyone can add a

project, anyone can download and use the code, and new projects migrate from

the edges to the center as a result of users putting them to work.

The

incremental web

, or the

live web

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

One of the most successful new services of the web 2.0 is the

blogging

, just a

personal home page, but daily updated. The blogging grew thanks the

RSS

technology

: it allows someone to link not just to a page, but to subscribe to it,

with notification every time that page changes. It is now being used to push not

just notices of new blog entries, but also all kinds of data updates, including stock

quotes, weather data, and photo availability. The

permalinks

appeared, pointing

dynamically to any individual entry, and notifying to the user any change.

That enables immediate notification of posts or articles added to any

page, and causes reactions: chat, discussions, forums... Not only can

people subscribe to each others' sites, and easily link to individual

comments on a page, but also, via a mechanism known as

trackbacks

, they can see when anyone else links to their pages, and

can respond, either with reciprocal links, or by adding comments.

We, the media

In the web 2.0 are we, the internet users, the ones who decide what is

important. Now, what formerly was just the audience, will substitute a few

people dictating where the internet is going to.

Information management is the core competency of the web 2.0 companies

Google's web crawl, Yahoo!'s directory (and web crawl), Amazon's database of

products, eBay's database of products and sellers, MapQuest's map databases,

Napster's distributed song database: the information becomes the most valuable

asset of the web 2.0 companies.

Software API's are not seen any more as a fount of incomes for the companies:

control of key data sources, especially if those data sources are expensive to

create and are able to generate demand on the net, will be the chief source of

competitive advantage.

Companies invest growing capital on management, expansion and security of

their databases; the information becomes registered intellectual property of the

companies

("Maps copyright NavTeq, TeleAtlas," or with the new satellite imagery

services, "Images copyright Digital Globe")

: software is largely open source, the core

competence lies on the information.

Data ownership and management will give the companies who faster develop

their information systems a competitive advantage. 2 different strategies can be

identified, depending on the sort of data:

Data that is difficult to create (product

identifiers)

"Intel Inside" strategy: companies

owners as single and unique source of

competitive data

Data collected from users

User aggregation strategy: company

who first reach a critical mass of users &

information, and turns this aggregate

data into a system service, will drive the

market

Table: data acquisition as competitive advantage

The most significant nowadays initiatives, towards developing wide information

systems, with specific content, are taken by the next companies:

The race is on to

own certain classes

of core data:

location,

identity,

calendaring

public events,

product identifiers,

namespaces

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

Identity information

PayPal

Amzon's 1-click

, communications systems

providers,

Google

(pretends using phone numbers as an identifier for Gmail

accounts, what may be a step towards embracing and extending the phone

system) own valuable information from its users. Also startups like

Sxip

(Sxip

Identity is the market leader in Identity 2.0, an internet-scale approach to identity and

access management that is simple, secure and open

)

work on web 2.0 identification

subsystem, which manage user identification information transparently.

Calendaring

EDBV

builds the world's largest shared calendar via a

wiki

-style

architecture of participation

Mapping

Digital Globe

spent $500 million to launch their own satellite to

improve on imagery services

Exactly as the rise of proprietary software led to the Free-software and open-

source movement, it is expected that the rise of proprietary databases will lead to

a Free-Data movement within the next decade.

Internet software is delivered as a service, not as a product

That implies several changes in the companies' business models:

Operations must be treated as core competency: Google's system

administration, networking, and load balancing techniques are perhaps

even more closely guarded secrets than their search algorithms. Google's

success at automating these processes is a key part of their cost advantage

over competitors. Dynamic systems are used, which required constant

changes and adaptation therefore the big role of languages as Perl,

Phyton, PHP, and recently Ruby in the web 2.0 companies.

Software must be maintained on a daily basis: the "Beta" logo accompany

more oft the web sites of offered services like Gmail or Windows Live

Mail. It is called the "Perpetual Beta".

Users must considered co-developers: Real time monitoring of user

behavior shows which new features are used, and how they are used, and

that lets companies improve the offered services.

Lightweight programming models

RSS

and

REST

become so popular in the nowadays web-programming because

of their simplicity and flexibility. They focus on syndicating data outwards,

supporting the

end-to-end principle

for the application development, what

means focusing on the real use of the application. Barriers are no more useful,

since open source became the best way of software improvement, and the re-use

of software a very common rentable practice. That all can be resumed in 3 main

principles:

Loosely coupled systems

Syndication instead of coordination

No barriers for code protection

Software applications for multiple devices

16 Sxip.com

17 Founts:

http://www.oreillynet.com

, Dec 2006, Chris Anderson

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

The

iPod/iTunes

combination is the best example of this idea: the goal is

mobile access to media; the enabler is the PC, acting as a simple cache and

control station; and internet seen as a "simply" fount of data. The application

itself, or internet alone does not represent any value, but the coordination of all in

a service.

Enrich the users' experience

Applications that learn from their users foment participation and communication,

and enables sharing all kinds of data, are call to succeed in the web 2.0

generation. Initiatives as an address book, that can be shared on and e-mail

account and a mobile phone, updated daily from both of them and easily

accessible from mobile other fixed devices, with integrated communication

services (chat, IM, VoIP), recognition of addresses or media, will lead the

application market.

In the next table we offer some recommendations on how to adapt optimally a web

product to the main new web 2.0 requirements:

Internet's content comes from millions of

users and small pages

Improve customer-self service and data-

management to reach the edges of

internet, not just the center

Growing hunger for data

Competitive advantage in own-secure-

unique sources of data

The users are key providers of new content

to the services they use

Design software architectures that

foment users' involvement in adding

value

Users are not willing to disturb themselves

for adding value to the service they use

Applications must be design to

aggregate user data as a side-effect of

the use of the application

Intellectual property protection limits re-use

and free transmission of ideas

Follow existing standards, use licenses

with few restrictions: open source

Principe

Internet applications are living beings, which

grew with the customers' feed

engagement of the users as testers, in

order to implement continually new user

requirements

web 2.0 applications work in a network of

cooperating data services

web services interfaces, content

syndication, re-use of third data services

and loosely-coupled systems: cooperate,

don't control

Mobile telephones, PDA's, TV, Video-

consoles ... More and more devices access

internet

Any internet application must be able to

integrate services across handheld

devices, PCs and internet servers

Table:

recommended

practices

for the adaptation of applications to the web 2.0

Video portals, photo-sharing networks, mail services, mapping, e-buying ... All the

internet services will be analyzed, showing the main players and the characteristics that

differentiate the most successful ones. We will obtain this way a complete picture of the

Internet nowadays, in which we will be able to compare the different tendencies and the

different strategies the companies are following.

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

Companies like

YouTube

didn't seem to have any fount of incomes, but it was bought for

1'65 US$ billions. More and more internet companies offer their services totally for free,

from comparing prices in shops in a local area to finding the best partner among millions

of members in a dating community... In this chapter we will include a brief classification

of the different business models that can be observed nowadays on the internet industry.

business model

can simply be defined as the way a company makes business, by which

it generates revenue. It indicates the position of a company into the value chain, and

describe its interaction with the others members and players. These relations among the

members of a value chain can be direct and uncomplicated, drawing simple busies

models (f.i., the creation or offer of a product or service to the customer, which will be

directly charged).

But exist also more complicated models, where a lot of different parts interfere in the

creation of the service or product, and the allocation of the origin of the incomes of each

part becomes very complicated (in a television channel we can find since content

creators, advertisers, distributors and the final clients: how does each part become its

revenues

not

easy

clarify).

Commerce realized thorough internet will give rise to new kinds of business models,

different from the classic ones, because of the new environment. But on the other hand,

the web is also likely to reinvent tried-and-true models, bringing into the new "web

format" already tested and successful ideas. The auctions are an example: they have been

used widely during centuries to set the prices and sell all kind of goods; the web just

copied the idea, and empowered it by the creation of worldwide communication networks

and

communities

users.

Internet business models have been classified and organized in many different ways, and

nowadays there is no definitive worldwide accepted classification, due to the influencing

factors considered and the continues changes and evolution of the internet environment.

Here we present one classification, proposed by

DigitalEnterprise.org

, which resumes

the basic categories of business models observable on the web, as an attempt to present a

comprehensive and argumentative study of them.

The way each company implements these models may differ according to its particular

strategy, being very common the combination of several models, which conform very

specific strategies. Indeed, the business model of a company is considered as intellectual

property, and is even protected with patents. Some patents relative to e-commerce have

already been granted, but it is not easy to distinguish what is really innovative as business

model in the internet, what makes that some of the more remarkable patents are being

discussed

the

courts.

Consult the table in appendix for more information about the models considered in this study for the

classification of the mentioned companies, and its main characteristics.

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.2

E-MAIL

2.2.1

GENERAL ANALYSIS

With almost 500 millions users

Worldwide

, the e-mail is one of

the most used online services, and

nowadays a must in the social and

professional communication. The

expectations indicate that the

service's use will increase in the

next years, and all experts coincide

on that it will be one of the key

services in order to gain users.

Figure: E-Mail service growth expectation

The tendency in the e-mail services points to the web 2.0: the main players test the

version of their e-mail services, in order to provide their users with a real Web 2.0

experience in all meanings. The specific development directions will be shown on the

next sub-chapter, providing examples.

In the next figure we compare the main e-mail service players in a worldwide

comparison:

Figure: World top 4 e-mail service sites: comparison: nb of users

Yahoo! is the best positioned e-mail providers on a users-base. But the better adoption of

the web 2.0 new requirements may cut the difference with the other providers: the

internet big three are nowadays testing their web 2.0 mail services, and offer to their

users beta versions. On the next lines we will offer a short description of the main factors

to consider when comparing and evaluating the new e-mail services:

INTERFACE

18 Founts: emarketer, July 2006

19 Founts:

http://www.techcrunch.com,

2006/11/09

250

228

GMAIL

YAHOO MAIL

MSN

AOL MAIL

Com paration (M i l l i ons of user s) of the bigge s t 3 global e -m ail s e r vice s

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

The use of

Ajax Technologies

enables the independent load of messages

separately, and the user won't have to wait for the reload of the complete site

when clicking on an item.

Tabbed messaging

enables the enhancement in the

management of messages, enabling the user to keep track on multiple messages

at once.

Yahoo

and

MSN

adopt an Outlook-style interface, trying to attract all the user

of desktop e-mail clients. A dual-pane layout presents the messages, more text is

presented on the screen, and the user can access a menu by a right-mouse-click.

In the other hand,

Google

bets for an easier interface, with a lot of white space

and not so straight lines, and demands less dragging and dropping.

Figure: World top 4 e-mail service sites

SPEED

Google

is the client who a better work did on this matter, far ahead from his

competitors: while by Gmail messages are open instantly, several irregular delays

occur by MSN, and especially by Yahoo, although the improvement comparing

with the previous versions is also notable.

ADS

Only the paid version of

Yahoo! Mail

is totally ads free

Yahoo

and

Windows Live Mail

display animated ads, trying to catch the

attention of the users, but distracting him.

Gmail

displays discreetly text ads, based on the text of the message the user is

reading personalized advertising, but on the other hand: what about the

confidentiality of the privates e-mail content?

CONTENT ORGANIZATING

Yahoo

and

Windows Live Mail

allow the user to drag and drop messages into

folders, which are not collapsible (no possibility of moving folders into other

folders or creating subfolders).

20 Founts:

http://www.techcrunch.com,

2006/11/09

Yahoo Mail

used the former

Oddpost

client platform, and adapt it to a Outlook

layout style.

It was the first to include

drag-and-drop

and arranges messages in tabs to help

you multitask.

Google mail

presents as much

information as its competitors, but wins in

the easiness of management

The new MSN,

Windows Live Mail

presents a labeled banner with warning

information about the security

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

Figure: RSS feeds management in

Yahoo! e-mail

Gmail

enables a labeled organization of content:

tagging

the mails means, that

the user can add a label to each mail, which easies the localization of every item.

His filtering option are also more developed as by his competitors, allowing the

user to automatically delete, forward or archive messages, or even attaching them

a label for its organization.

SECURITY

Although all of them made improvements in this matter,

Windows Live Mail

found the best solution for the security management: it displays a banner on top

of every message to inform you a suspicious senders or contents, allowing you to

accept or reject in, and even warns you of potential

phishing scams

based on an

analysis of the e-mail's sender address.

SERVICES INTEGRATION

In the

Web 2.0

mail services integration will

play a very significant role. Even though the

Yahoo!

and

Microsoft

make more efforts

towards the integration of services in their

pages, is

Gmail

the most integrated e-mail

service: the

Google Talk beta IM

client

allows the user to chat in a

Gmail

page and to

view transcripts of sessions there. Its language

capabilities enable automatic flagging of

potential appointments found on the mails for

scheduling on the

Google Calendar beta

, and

displaying a

Google Maps

link when it

recognizes an address in the content of an e-mail.

In the organization of

RSS feeds

Yahoo

the one getting the best results: it

organize the news feed into folders in the inbox, classifying it according to

diverse criteria, and enable the ser to collapse or expand the RSS folder, and even

to view a summary of the content without having to open a new navigator

window.

Gmail

displays the content of the RSS feeds one by one, opening a new window

to view the content. But it enables search by topic to add new feeds, unlike

Yahoo!

Windows Live Mail

lacks of any RSS reader

FORMATTING

All three rivals let the user format text and select from multiple font styles when

composing a message, but

Gmail

is the only one who doesn't allow add cute

emoticons or change backgrounds, but on the other hand,

Gmail

is the only one

in moment with spelling checker that works in

Firefox

and

Mozilla

browsers.

Consult the comparison

table in the appendix

to view a resume of the diverse factors that we use to

compare the most important e-mail services.

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.2.2

CONCLUSIONS

From a technology point of view, among the big-internet players, Google is better

prepared for the next mail generation, because of 3 main reasons:

Internal organization: automated labeled options

Service integration: maps, calendar and chat

Personalized advertisement: looking forward to informing, instead of

disturbing

better monetization of the service

But the main players are moving in the same technological direction as Google, what

means that in the short-medium term its technological better implementation will not

mean a competitive advantage.

Yahoo! has a much higher customer base, in a service in which the users are not willing

to change to a competitor (changing the e-mail address would be a disturbing task, and

the commodity of knowing a service used daily), and that gives Yahoo several

advantages:

Bigger customer's base & customers' fidelity

more information

personalizing e-mail

creating community

Bigger variety of services & experience in community creation

bigger

opportunities for creating community

The strategy of the companies seems to point to the implementation of a many web 2.0

characteristics as possible, and integrate as many services as possible. E-mail is a key

service in any internet player, and therefore the own development is preferred to growth

throw direct acquisition. The investments of the companies are more directed in 2

directions:

Improvement of services: investment in web 2.0 technology

implementation, and services implementation

Customer base enlargement: acquisition of other companies like social-

networks, which besides provide community creation opportunities

In the text table we will try to underline the most influencing for e-mail service:

E-MAIL SERVICES

STRENGTHS WEAKNESSES

ÆMost demanded "traditional" internet

service, considered: a "must" for any

internet portal

ÆDomination of 3-big players as most

used worldwide e-mail providers

OPORTUNITIES RISKS

ÆNew web 2.0 paradigm

ÆIntegration with other services: Social

networks, search engine, news, maps,

events management...

ÆPartnership with specialized e-mail

ÆOwn development:

Not reaching services level offered

for main providers

Bad image

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

providers

ÆMobile portals

ÆCollaboration: Dependency on

partners

Table: E-mail service - SWOT analysis

2.2.3

GOOGLE AND YAHOO! COMPARISON

On the next figure we tray to present the strategic position of both companies regarding

the 2 factors described as the most important to care about when evaluating the e-mail

service.

Figure: E-MAIL service: main players comparison according to driving factors

The size of the circles indicate the number of users

The arrows points from the short-past position of the company's strategy to the direction of future development

With discontinuous lines we show the limits of the development and accomplishment of the companies in each comparison factor

In resume: Yahoo! is the mail provider number 1 worldwide, near followed by MSN.

Users nowadays are no willing to change their mail because of a more beautiful interface,

and that enforces Yahoo! market share, at least in the near future: its capability to adapt

its service to the new generation mail requirements, the web 2.0 mail, will determine if

the difference with Google, which is making great investment in innovating his e-mail

service, will increase or decrease. The service integration and intern message operability

will play an important role. And in these matters Google is making more advances.

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.3

MEDIA ONLINE: THE SECOND DIGITAL WAVE

We will start this chapter with a brief resume of the most important factor to consider in

the media online market, which will be deeper analyzed on ahead, together with the

tendencies.

A. STRENGTHS

Online-media consumption is doubling every year:

Online music, movies and games will comprise by 2008 an $11 billions industry.

In less than three years, online video spending has grown from virtually nothing

to almost $500 million. According to eMarketer estimates this figure will more

than double over the next three years

With the growing penetration of broadband internet access in worldwide

households, and the disposition of higher bandwidths, the consumption of online-

content is increasing day by day.

Massive diversification of media: citizen media

Internet users are creating new content:

blogs

wikis

social networks

and

interchange sites

empower the so called

citizen journalism

citizen media

transforming the traditional passive users into active media creators. Citizen

media gradually take audiences out of the traditional media and traditional media

are slowly trying to adapt by becoming more "participative", making their users

create information, for example, by sending their own news.

More and more artists use the internet as a way of advertisement, and not only for

new incomers, but also for celebrities. New tools and online services make it

easy for any internet user to capture, edit, remix and change any video content.

The creation of original content has also experimented a big growth, and is the

main reason of the expansion of sites like YouTube. Video applications are also

growing with its better availability: personal entertainment, education/training,

teleworking, and videoconference are only some examples.

Technology improvement:

towards bringing new media services into the living room:

IPTV

Internet protocol television

(IPTV) uses IP as the transport platform to send

video signals to the television via high-speed Internet connections such as fiber-

to-the-X connections (FTTx) and/or next-generation digital subscriber lines

(xDSL). With this technology, consumers will be in complete control of what,

when, and where they watch television programming.

online video standard format: Flash video format

Adobe-Macromedia

Flash technology

makes it possible to embed video both

within web sites as well as within custom applications such as RSS readers and

aggregators as well as within customizable widgets of any kind as well as within

traditional desktop applications. It is recognized as the most powerful enabler for

the adoption and distribution of video online.

Improve exchange of large files:

P2P

technology

21 Founts: http://www.akamai.com/dl/brochures/akamai_media_delivery_sb.pdf

22 Founts:

http://www.masternewmedia.org/online_video/online_video_future_predictions

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

Originally more used for the interchange of (media mostly) files among users

with shared interested, the P2P (Peer to Peer) networks rely on the broadband

capacity of the integrants of the P2P network, and not on the servers. These

technology is been nowadays improved, been used even for

VoIP

service

See particularities in

appendix-P2P

B. WEAKNESSES

Main threats: copyright, rights management and campaign against piracy

Specifically, the media business needs support for Digital Rights Management,

which is the key enabler for online media distributed services allowing a flexible

use by consumers; it also needs more cooperation from

ISPs

in protecting music

from piracy on their networks.

Dependency on band disposition

The new generation of media-consumption services requires broadband access,

in order to provide the customer with the content and QoS expected. If this

broadband access is not available, the service can not be offered. The main

players are conscious of that, and already make great investments in distribution

and access networks.

Regional media consumption preferences

The success of regional content represents a weakness for the traditional media-

broadcaster players, who offer content in a global or country basis. The

exploitation of niche-media consumption markets in specific regions is also a

business opportunity that the technology will enable in medium term: regional

specification of content

C. RISKS

Domination of big players:

The big online players, media conglomerates and users' access providers will

compete fiercely for acquiring a good position in the very profitable media

distribution market: the consolidation of the market will end with a small number

of dominating companies, what means that the bigger part of the competitors will

be thrown out of the market.

These big players are:

Online big three:

Yahoo!, Google

and

Microsoft

Telcos:

France Telecom

Telefonica

...

Content conglomerates

The seven current media conglomerates are

Disney, CBS, Time Warner,

News Corp, Bertelsmann AG, Viacom

and

General Electric

. These

companies together own more than 90% of the media market

Monetization models not probed yet

With the inclusion of video as delivered service, the consumption of broadband

will increase, and the billing of the companies providing it will have to consider

it: the one-bill approach may not be sustainable in a medium term, and other

models will be necessary. Billing for downloaded-viewed files, band occupied,

23 Founts:

http://en.wikipedia.org/wiki/CBS_Corporation

, Jan 2007

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

time, or for each service separately, and very specially advertisement, will be

some tendencies.

D. OPORTUNITIES

Reach specifically targeted audiences: service personalization

Expand its advertising channels: Ads embedded in videos, music files, games,

banners, mobile phones...

Content distribution monetization

Advertisement is the main source of incomes for the offer of free content: Google

may be the first one developing a solid monetization, in which videos protected

by copyright will be financed through advertisement.

Payment per download is another alternative: Movie studios are quickly

embracing the pay download market as a viable alternative to high-cost DVD and

indirect retail-based distribution models.

The cross-selling opportunities

Specially exist for the marketers, because the users who spend money on media

online usually purchase different kinds of media.

Huge market exploitation

Music is the most consumed digital media; the demand of video online increase

non-stop, and TV online is called to be the next application killer: media

consumption in all it forms and possibilities represent a very big market

opportunity

E. TENDENCIES / CONSIDERATIONS

New consumption model: from broadcasting to a

demand system

The media consumption model is changing, passing from a system in which the

broadcaster decides what to offer, to a demand system, in which the users are the

ones who decide what, where and when to view. We could call it the "second

digital wave", characterized with an increasing degree of customer participation

and interaction.

Purchase and co-operations between pure-content and online partners

will be more and more frequent, when content providers realize of the necessity

of improving the availability of their offer: content offer of traditional players

(TV channels), will go online, pulled by the growing demand, and their contents

will have to be optimized for the search engines and on-site search functions, as

well as for both general terms of search (such as artist and actor names, movie

and TV show titles and music labels) and specific titles (of songs, movies, shows,

etc.), in order to in order to capture the broadest possible audience. The online-

content aggregators (

AOL, Google, Yahoo, MSN,

and

Apple

) will also look

for a better position in the media market, entering in the content providers'

market.

Music is the most popular type of media consumed on the web, but Video follows it with

high rates of growth. News Clips, radio broadcasts, podcasts and video clips (humorous

outtakes, home video and other short-form video found on sites such as

YouTube

Google Video

), online-TV contribute also to the growth of media online consumed. In

order to study the market situation and the main players on each sector, we will

differentiate these main 3 types of media, and study them separately.

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.3.1

VIDEO ONLINE: VIDEO PORTALS

2.3.1.1 General analysis

In 2006 online video passed from being something you just log on and watch to become

something you share. In fact, the number of video sharing sites that have come online in

the past indicates that the video online market is something to take in consideration, and

should not be confined to just insignificant entertainment. Hundreds of thousands of

consumers sharing video online,

and that is originating a deep

impact on the consumed band

and consequently on the

broadband providers revenues.

The market share of the main

players is resumed on the next

picture:

Figure: World top 5 video-search

sites

After the acquisition of

YouTube

Google

owns almost 50% of the worldwide video-

online markets, what gives it an advantageous position in this important market. On the

next table we resume the most popular video-online sites:

Technical Ranking

WORLDWIDE

USA

Video Ranking

Better positions in global

Ranking

Global

Ranking

Video Ranking

global

Ranking

Blip.tv

YouTube

Yahoo Video

YouTube

VideoEgg

MySpace

MSN Video Search

MySpace

Google Video

MySpace

Dailymotion

Yahoo Video

Google Video

Yahoo Video

MySpace

MyVideo

YouTube

MSN Video Search

MySpace

MSN Video Search

Google Video UK

Google Video

100

Veoh

Google Video

YouTube

Google Video

Metacafe

Clipfish

100

Google Video

Photobucket

AOL

Yahoo Video

Sevenload

100

Grouper

Metacafe

150

iFilm

Adicting Clips

Jumpcut

iFilm

683

Metacafe

AOL

Putfile

984

vMix

Break.com

Eyespot

Bolt

1089

Dailymotion

singingfish

WORLDWIDE

GERMANY

Popularity Ranking

Table: Video Sites comparison

From this table we can observe several particularities:

YouTube

Yahoo!

MySpace

and

Google

dominate the worldwide market

24 Founts: Hitwise.com, Aug 2006

25 Founts: Nielsen//NetRatings U.S. Home and Work Audience, July 2006, Hitwise.com, Aug 2006;LightReading, Aug 2006

Top 5 video-search websites: marketsahre worldwide

MySpace

24%

MSN

Google

Others

YouTube

42%

Yahoo

10%

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

Nevertheless, there are several sites, concentrated in the particularities of a more

regional demand, with a big market share in their home-market

Like the German

MyVideo

, considered as the German YouTube, one of the most

used website in German language

Video searching

Search services all over the world experiment a bigger click-through to

video/movies than for the rest of content one more evidence of the current

video-trend.

The most popular web sites become the most search-petitions for videos.

Remarkable is the example of

AOL:

In Sept 06 it accounted for 11% of all click-

throughs to video/movie sites but only 7.9% of all Internet click-throughs:

Table: Use of

search engines

for video-

online

*Minimum

requirement =

1.5% share of

video/movie

click-throughs

Market trends:

Featuring web 2.0 paradigm: from simply video streaming to include:

- Chat

- Sharing/community tools

- Interactive/personalized advertising

Market movements:

Big players acquiring video distribution/creation companies, with no

revenue model or developing own video services:

Microsoft

launched

Soapflox

, focus on distributing video in an

integrated way with its bundle of services

News Corp

, owner of

MySpace

social network, built and promoted

MySpace video

Sony

bought online video sharing site

Grouper

in August'06 for

just $65 million.

Viacom

bought

iFilm

in 2005 and

Atom Entertainment

in August

($250 million).

AOL

, a unit of

Time Warner

, bought

Truveo

($50 million) and

online video advertising company

Lightningcast

Going mobile

YouTube

will deal with

Verizon Wireless

in the US, to create a

service that will allow users to upload videos direct into their

mobile devices. The videos will also be reachable through an on-

demand TV channel.

26 Founts: Nielsen//NetRatings UK MegaView Search, home data only, Sept 06

Rank

Search Engine*

Share of click-

throughs to

video/movies

Share of click-

throughs to

entire Internet

'Likelihood'

rating for

video/movies

AOL

11.0%

7.9%

39%

Yahoo!

11.6%

10.4%

12%

Google

70.7%

68.6%

Orange

2.3%

-1%

Ask.com

1.9%

3.4%

-44%

MSN

1.5%

4.2%

-64%

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

MySpace

is also looking for a partner to go wireless in Europe

Traditional distributors jump into internet through collaborations or by

launching new sites

ProSiebenSat1 Media

bought a 30% stake in

MyVideo

September 2006, a German Video Portal with more than 4.5

millions daily visits

This way it becomes the first German broadcasting group who decides to meet

the challenge of "internet", that offer the advertisers a new channel to reach the

masses. The deal underlines the interest of traditional media groups globally to

secure a share of internet advertising, which growth is causing traditional media

distributors' revenues to decrease. Besides, MyVideo means a new very popular

source of content, the so called citizen videos: having reached such an acceptance

on the web, Sat1 is bringing now that content to the TV (through several

programs that show the top internet-ranking videos), building the bridge TV-

Internet.

Launched at the end of April-2006, ProSieben said MyVideo's German website

registers about 2 millions downloads every day. MyVideo also runs less

frequented sites for Poland, France and Spain.

RTL Television

, ProSieben's German rival and a part of media

giant

Bertelsmann

, last month launched the site

Clipfish.de

, which

boasts about one sixth the number of films of MyVideo's 60,000

TV Genius

launched

searchbbcvideo.com

, a new website to

search and list all videos currently held online by the

BBC

New business opportunity

There is a tendency to import successful online ideas from the USA to regional

markets, adapt them and than sell them to big players, who want to come into this

market. The

Samwer Brothers

have already experience in this practice in

Germany: they sold the auction house

Alando.de

E-Bay

several years ago,

and in 2004 they sold

Jamba

to the US

VeriSign

For more details, to get a wider view into the nowadays video-online offer, comparing the websites in terms

of used technology and users' evaluation, consult the appendix:

Video Portals Comparison

2.3.1.2 Conclusions

In the text table we will try to underline the most influencing for Video Portals:

VIDEO PORTALS

STRENGTHS WEAKNESSES

ÆIncreasing content consumption

ÆBig and easy monetization

possibilities, direct and indirect

(advertisement)

ÆHigh market growth expectance:

x user readiness

ÆLegal situation: copyright and content

property issues

ÆHigh bandwidth requirement for

expected QoS:

x dependency on customers' access

line

27 Founts:

http://www.lightreading.com

, OMMA Magazine Archives, Dec 2006

28 Founts:

http://www.ft.com

, Sept'06

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

x ready technology

x broadband extension

ÆHigh rates of customer's content

creation: citizen media

x dependency on customers'

visualization devices

ÆNo/low current monetization

ÆCompetition: big fishes taking

positions on the market

OPORTUNITIES RISKS

ÆBusiness opportunities:

x content creation: Citizen media

exploitation

x content distribution (mobile and

fixed): broadband access,

visualization devices

x tools for content management:

search, share, catalog...

x pay-per-view business

ÆAdvertising supported extra services

(music management, information,

news...)

ÆSocial networks as distribution

channel

ÆDomination of big players:

x Internet portals in media

searching /management

x Concentration of media

ownership

ÆVideo as piece of a bundle service for

3-4 players

ÆInefficient Monetization models

Table: Video online market - SWOT analysis

As key drivers for the Video-online business, we will distinguish:

Adoption of web 2.0 features

Content: traditional and citizen media

Positioning in new scenarios: going mobile / going into the living room (

IPTV

)

2.3.1.3 Google and Yahoo! comparison

GOOGLE

In the first week of April´06,

Google

had in his main searching site a new link:

Google

VIDEO

. That means a great effort in advertising, when we consider the millions of

people who visit daily the page, all over the world.

The success of Google's Video branding strategy can be appreciated on the

appendix figure

Nowadays the link remain there, but only in the .com site: the other national versions

have instead a link to Google Groups, or just one link fewer. That shows that the

company may not be ready to offer a competitive product in other languages.

Google did not make any big investment in order to gain video market share, until the

acquisition of

YouTube

in Oct-2006 for 1,65 US$ billions: that pointed an inflexion point

on its strategy:

Facts:

YouTube does not provide any revenues (yet)

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

the technology or the business are not 1,65 US$ billions wert

but it has established 31 millions audience

Step into web 2.0:

Google adopted the style of

YouTube

to their own Video Site, adding Ratings,

Tagging, blogging and Comments: nowadays we could say that

Google Video

represents therefore its biggest step into the web 2.0, giving a preview of how

they will develop the sharing and new characteristics. It is at the same time a test

for social searching, in order to develop the whole offer of services according to

the new web 2.0 user expectations.

Strategy positioning in video advertising

Since several months after the purchase it is still running totally independently,

the strategy that Google follows is not so evident directed to gain competence as

video-social-network, and points more to improve and expand its core business,

advertisements, to new customers.

Let us analyze the 2 possible options:

Integrate YouTube into Google

Î risk of losing one of the more trendy

brands on the Internet.

Leave YouTube independent

Î risk diluting Google's own brand (Google

Video).

The poor market share of Google Video (see "World top 5 video-search sites" in

the

List of figures

) may force it to integrate both portals, although the initial

intentions show a try to improve separately their own Video Service.

YouTube is also a god start for jumping into the

iTV

business (see

Main Players

comparison - Media Online

), what also interests Google.

YAHOO!

Video distribution was a part of Yahoo's strategy since the beginnings of the company:

already in 1999 it acquired

Broadcast.com

, but failed in getting the expected audience.

Finance Vision

and

Yahoo! Platinium

(2003) were also unsuccessful initiatives in the

distribution of media content, due mainly to the customer's lack of appropriate access

network. But now this access exists, and Yahoo's experience brought it to the first

positions in the market.

The directions that Yahoo! could take in the video market are:

Citizen media

Content disposition

The company has very deep relations with some of the biggest media

conglomerates, and has the biggest rates of this "copy right" content, through

collaborations with most of the biggest media conglomerates.

improve visual quality, regardless of bandwidth expense

29 Founts : Yahoo ! Annual Report 2005

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

C. Comparison: conclusions

Whereas Google seems to be better positioned in matters of video advertising, Yahoo!

seems to center its activity as entertainment provider. We offer a graphical view of these

conclusions:

Figure: Video Online: Google Yahoo! comparison

Considering the 3 main key drivers defined for this market on the conclusions, Yahoo!

may be a better content provider, with a higher customers' base, a longer partnerships

experience with top media conglomerates, and new initiatives in favor of the citizen

media (like the partnership with

Reuters

). Google shortened this distance after the

purchase in October 2006 of YouTube, but still does not have such a big offer.

If we consider now the nearness to the web 2.0 paradigm, Google may have made a step

forward with the acquisition of YouTube, but Yahoo! also improves its current interface.

Both of them develop initiatives to enter new markets (IPTV and mobile video), and here

is Yahoo! the one making the faster advances (

Meedio

Akimbo

), while Google shows

interest, but does not make direct investment at the moment.

See the chapter IPTV online players for more information

Yahoo! defines its strategy as entertainment provider: therefore the delivery of video is a

key driver of its future actions, and that is the reasons of the last efforts on improving its

advertisement system (purchases of

RightMedia

AdInteract

), market where Google

dominates.

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

2.3.2

GETTING INTO THE LIVING ROOM: TV ONLINE

2.3.2.1 General analysis

A. Introduction

TV online is coming. There is a great effort in making TV independent of the device on

which the user may access to it. The protocol IPTV will be the distribution standard,

enabling the offer of a big variety of services, among which TV is only one.

Internet protocol television

(

IPTV

) uses IP (Internet Protocol) as the transport platform

to send video signals to the television via high-speed Internet connections (such as fiber-

to-the-X connections: FTTx: Fiber To The Home, Fiber To The Curb, and/or next-

generation digital subscriber lines, xDSL). With this technology, consumers will be in

complete control of what, when, and where they watch television. Moreover, given the

versatility of the IP network, consumers will have the opportunity to use many more

services. We will mention the most extended nowadays

Personal TV- from one-way programming to an interaction with users

IPTV only delivers those channels which are being viewed by the subscriber and

has the potential to offer practically an 'unlimited' number of channels. The user

will get the freedom to control what and when they want to watch.

Cable and satellite broadcasters generally send all television signals at one time

and then the consumer chooses which signal to show on the television set. This

means that lots of bandwidth is used unnecessarily. IPTV uses

switched IP

technology

, by which all the TV data is held in a center location and only the

channel that the consumer at home chooses is sent. This means much more

bandwidth for either better quality broadcasts or the ability to add much more

data choices due to the fact that bandwidth is no longer such a big issue.

Video on Demand (VoD)

After years of doubting of this service will ever have the expected demand, now

it seems to become a competitive differentiator and one of the key for success in

the market at home. It may attract the "Blockbuster" customers, by providing the

same content, but adding value to the offer

Anywhere Television Service

Internet TV Services Providers (ITVSP) will provide personalized TV,

recognizing the IP direction of the device anywhere it may be connected

Global Television Channels

Video service outside the local, often regulated, areas.

EPG: Electronic Program Guide

It consists on a screen guide that enables a broadcast television user to navigate,

select, and find content by time, title, channel, genre, etc, by use of their remote

control, a keyboard or even a phone keypad.

Personal Media Channels (PMC)

30 Founts:

http://www.dslforum.org/latestnews/IPTVASurvivalStrategyorRevenueGeneratorforTelcos.pdf

Founts:

http://www.iec.org/online/tutorials/iptv/topic04.html

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

An IP television customer can be assigned a personal television channel. Then,

the user can upload media to their personal media channels and can thus allow

friends and family to access their pictures and videos, also via their IP

televisions.

Addressable Advertising

The IP television has a defined profile that is used to personalize the

advertisement, what may suppose 10 to 100 times bigger revenue.

Multicast

By using the IP multicast feature in providing an IPTV service, a service provider

can conserve bandwidth in their core and access networks. When more than one

user is viewing the same channel in a home network, the service provider may

only deliver a single video stream. But, at the same time, the home network

technology must be competent to distribute this towards multiple users on the

home network

Privacy and Security

The user data on the home network is protected and no outsiders or intruders

have the power to intercept.

Web-like interface format

Looking for the interactivity with the user, the TV will adopt user-friendly

interface.

The new offer of service can be resumed on the next figure:

Figure: New generation of services at home

B. Expectations

Big market Potential

WORLDWIDE:

global market for IPTV video equipment and services will reach the US$7,2

billion in 2008; there will be an estimated 53 million IPTV subscribers by 2009

31 Foutns :

www.juniper.net/.../jnews_article_060601.html

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

EU:

After a slow ramp-up, Forrester predicts one in four European xDSL/fiber

broadband subscribers will have IPTV within 10 years, with penetration ranging

from 13% in the UK to 33% in France; 74% of European households will have

digital TV by 2009

US:

The U.S will be a more difficult market for IPTV, due to high existing pay-TV

penetration, and stiff price and service competition that is likely to come from the

entrenched operators in the cable and satellite sectors. The Americas and Western

Europe are expected to be the biggest markets in terms of revenue per user basis.

Asia Pacific:

This region

will count

with 2 of each

3 subscribers

by the

beginning of

2007. China

will be the

future IPTV

biggest

consumer due

to rapid

urbanization,

fast growing

economy and

expanding

middle class

Figure: Multichannel IP Video

Offerings: Global subscriber

Forecasts

Barriers:

Customer

demand: Cable and satellite dominate the video entertainment market, and

for the IPTV players it will be difficult to deliver the current most viewed

content, due to the established contracts and relations with cable and

satellite operators

Consumer familiarity with IPTV service is very low although youth today

are much more aware of it when compared with people belonging to other

age groups. The service's acquisition cost will be the most significant

factor across all countries and age groups

Bandwidth limitations will prevent it from being the most used media

distribution method

Regional dependency - customs, regulatory conditions

32 Founts: Forrester Research

33 Founts: Parks Associates Whitepaper, 2006

34 Founts:

http://www.tvover.net/2006/10/27/Global+IPTV+Market+Analysis+20062010.aspx

Founts :

http://www.iptvarticles.com/iptvmagazine_2005_10_IPTV_billing.htm

Foutns :

www.audioholics.com/.../demandforHDTVIPTV.php

Foutns : Multimedia Research Group, MRG Inc, Jan 2006

José Manuel García Sánchez

TFH BERLIN: ITTM - Master Thesis (Feb. 2007)

Challenges:

Cost: ads supported service: Advertising is going to be the key for the

development of TV Online services. The user will have to pay only for

very special content.

Measurement: how to track consumption of media in multiple device, on-

the-go and at home. Sales figures, registrations and page views will be

leading indicators.

Getting web based content on the TV will create new business

opportunities for content providers

Experts see creation of new content one of the areas that will experiment the

biggest growth and that will generate biggest business opportunities with the

possibilities that IPTV offers: from pizza sellers on the neighborhood to global

marketing campaigns: a new world of possibilities for video content production

Which are the present indicators of such a tendency?

Increasing consumption of digital content, and preference of the internet users for

consuming media on TV:

While 25% of Internet users are interested in watching downloaded TV shows

and movies on their PCs, 38% (50% more) are interested in watching that video

on their TVs. Among the 18-34 year olds the numbers are even more evident:

68% showed interest in watching the media on the TV, compared with a 45%

who prefer the PC

Consumers are dissatisfied with their current TV experience: more than 50% of

consumers miss more than one program per week, while 85% frequently find

there is nothing on TV they want to watch

Broadband expansion

It is an important indicator, due to the necessity of a wide band connection to the

user in order to provide the required services with the necessary QoS (see

increasing broadband access

)

Technology improvements:

MPEG-4

enables a higher compression and better quality for the transmission of

video format, what means that a lower bandwidth is necessary to deliver HD

services.

But not only are the access and distribution networks being improved: the

disposition on the market of new devices are changing customer attitudes, who

demand personalized services: see the chosen content on any device anywhere at

any moment.

At the customer side, there are 2 main tendencies providing him with the IPTV

receiver devices:

PC-TV

: companies offering programming to a PC are viewed as more

consumer-friendly systems, but less robust systems

STB

(Set Top Boxes): STB companies, and cable operators, posses better and

Details

Seiten
Erscheinungsform: Originalausgabe
Jahr: 2007
ISBN (eBook): 9783836603607
DOI: 10.3239/9783836603607
Dateigröße: 8.6 MB
Sprache: Englisch
Institution / Hochschule: Beuth Hochschule für Technik Berlin – VI - Informatik, Studiengang ITTM Master (International Technology Transfer Management)
Erscheinungsdatum: 2007 (Juni)
Note: 1,0
Schlagworte: internet mobile network suchmaschine technology transfer management online services

Autor

Jose Manuel Garcia Sanchez (Autor:in)