Pay TV phase three document - Stakeholders - Ofcom

Pay TV phase three document – non-confidential version
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� TV through internet-connected games consoles. Some forecasts have predicted
consoles forming up to half of the market for downloaded movies. Consoles have
the potential to combine television viewing (bringing Internet-delivered VoD to the
television set) and gaming 454 .
� Video downloaded onto portable devices such as an iPod or portable games
consoles.
7.17 The Deloitte report also noted the possibility of ‘wild cards’, which might have
potentially disruptive effects (positively or negatively) such as mobile TV taking off or
next-generation DVRs pulling content direct from the internet. These particularly
make the point that innovation is inherently unpredictable.
7.18 We have also looked at recent consumer research carried out by Essential and
presented to Ofcom. Their report suggests that the overwhelming consumer demand
is for long-form (i.e. full programmes rather than clips) on demand content on TV.
According to the research, VoD consumption will start to “take off only once it is
widely and easily available through the TV screen” 455 . The report also identifies other
qualities for successful long form VoD services, for example:
� Offering a wide range of content under one roof.
� Integration with other viewing options e.g. linear channels and the hard drive –
regardless of delivery technology.
� Content portable across platform/devices once purchased 456 .
7.19 The Cisco Visual Network Index (VNI) is an effort to forecast the growth and use of
IP networking worldwide, and provides a useful perspective on the forward looking
potential of TV and other video services delivered over IP. The most recent
forecast 457 suggests that:
� The sum of all forms of video (TV, VoD, Internet, and P2P) will account for over
91 percent of global consumer traffic by 2013. Internet video alone will account
for over 60 percent of all consumer Internet traffic in 2013.
� Real-time video is growing in importance. By 2013, internet TV will be over 4
percent of consumer internet traffic, and other video will be 8 percent of
consumer internet traffic. TV has gained substantial ground in the past few years:
globally, P2P TV is now slightly over 7 percent of overall P2P traffic at over 200
petabytes per month.
454
New Media Markets, Julia Glotz “Consoles ‘could take biggest share of VOD market'”, 15 May
2009.
455 Essential, “VOD: State of Play”, a consumer research report, September 2008, slide 7.
456 Ibid, slide 12.
457
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