"93% of strategy execs said that exploring new business models is as important in this current economic climate as cutting costs and retaining customers."
STL Partners Brainstorm Participant Survey

Focus

Part of the New Digital Economics AMERICAS Executive Brainstorm and Developer Forum, and run in parallel with Mobile Apps 2.0, the 4th Digital Entertainment 2.0 Executive Brainstorm buildson output from last autumn's events held in LA and London and continues to explore "new business model opportunities for Film, TV and Games in an increasingly multiscreen, HD/3D, mobile world".

For senior strategists in the communications, media and entertainment markets, the Palo Alto leg of our interactive brainstorm series focuses on Multiplatform Services & Digital Locker Strategies (looking in particular at the opportunities around UltraViolet), Connected TV's and Tablets, and Lessons from Apple – Fostering Alternative Ecosystems.

In the evening there is a special AppCircus developer showcase/forum with 200 local app developers and a networking reception.

AGENDA

0800 Registration Open

0830 Welcome, Introductions & Warm Up

Facilitator and Moderator: Simon Torrance, CEO, STL Partners

0915 Multiplatform Services & Digital Lockers

Introduction

Two related and major trends are converging to transform the entertainment industry. The first is obviously the shift online; the second sees the emergence of the different devices – connected TVs, Tablets and mobile phones - that is breaking the tie between the type of content and the delivery method. Individually these have prompted an explosion in disruptive challengers. However, the long term winners will be those that are able to address both trends to deliver any content to all devices whether that is achieved by creating a single distribution platform, a device-led multi-platform strategy or through the connected home.

Video content is at the forefront of the transition and aggregation services such as Netflix and Hulu have moved beyond the PC and onto TV and Tablets. Delegates at the most recent EMEA and US Digital Entertainment 2.0 Executive Brainstorms suggested that the other potential winner of this is likely to be Apple, especially as it has the ability to distribute across all its device formats. However, content owners, distributors, retailers and telcos have a common desire to ensure that Apple doesn’t become the default platform for all online distribution, as it has for music.

Leading the alternatives are digital lockers and initiatives such as UltraViolet (UV), the brand adopted by the DECE (Digital Entertainment Content Ecosystem) consortium. This is significant because it is an industry development with major backing from all areas of the value chain. Recently been launched it shows much promise but customer adoption is still at a very early stage.

What are the key steps that need to be undertaken to make this a success? Who and how will its advocates benefit from this success?

Key objectives of this morning session

Build understanding of the opportunities and challenges around multi-platform digital distribution
Positioning digital lockers in the market and building insight, dispelling myths, clarifying misunderstandings
Set out the key milestones for launching UV services and products
Identify key risks for all those involved (and potential barriers to success)

Share potential approaches to mitigate these risks

Identify next steps at an industry level and for individual organisations

Hypotheses

There will be a shake-up in the industry that will see many of the new platforms emerge and go bust. New doesn’t equate to success.
Platforms that are inclusive of as much content and as many formats as possible, such as digital lockers, have greater chances of success as consumers have tired of repurchasing content for new platforms.
Service Providers have experience and expertise in multi-platform distribution that could position them as important players in the content distribution ecosystem.

Key questions to debate

How fast will the transition from old methods of consuming media to new platforms be?
What are the factors that will define a platform’s success?
What is the strategic case for Service Providers to offer premium video content (in the early windows)?
Is there enough demand and margin in on demand video to justify the investment for content owners and the rest of the value chain? Which players gain the greatest strategic advantage?
Does Apple have too strong an advantage to be overcome and which weaknesses can be exploited?

Presenters and Panellists

Short stimulus presentations x 3 (from the Communications, Media and Entertainment industries), followed by debate with participants using our ‘Mindshare’ interactive technology, followed by a panel discussion.

Presenters and Panellists include:

John Senior, Partner, Bain & Co
Thomas Gewecke, President Digital Distribution, Warner Bros
Keith McMahon, Senior Analyst, Digital Entertainment 2.0 Initiative
Jason Forbes, SVP of Strategy, New Products & Marketing, Time Warner Cable
Leszek Izdebski, Managing Director, Global Media Group, IBSG, Cisco

(Watch this space for updates. Other event 'stimulus speakers' here).

Further reading

Entertainment 2.0: New Sources of Revenue for Telcos?
The Impact of Netflix: Can Telcos Help Hollywood?

1100 Break

11.30 2011: the year of the digital locker

Hypotheses

2011 will be a critical year for digital lockers (and DECE/UV in particular)
Getting services launched will mean coordinating a series of milestones across multiple partners. Meeting these will be critical.
Those looking to launch digital locker services face a number of challenges, notably in: customer adoption, service provider and other channel partner engagement, commercial model development and technical implementation.
These challenges represent areas of potential risk for all of those involved

Issues to explore - Meeting the challenges, mitigating the risks

Consumer adoption: Getting consumers to engage with digital locker brands and platforms: Register, use, manage locker
Channel take-up: Getting potential channels (eg. Service Providers and other retailers) to fit digital lockers alongside existing on-line plays. Understanding the strategic role of premium content in customer engagement and loyalty. Understanding the impact of streaming on telecoms networks (esp. mobile)
Commercial models: Defining a balanced ecosystem that works for all parties. Media preparation, storage, delivery, rights management, settlement services, technical support, locker account support (e.g. recovery)

Questions to address

What are the key milestones and associated deliverables for launching Digital Locker services this year?
What are the key challenges in driving consumer adoption of digital lockers?
How can these be overcome?
What on-line and off-line case studies can we learn from in terms of commercial models? Who pays for the digital locker infrastructure and how do they pay?
Who “holds” the customer data and meta-data? How can this data be safely shared by customers for recommendations and discovery?
What are the key ‘next steps’ for UltraViolet and retail partners?

Presenters and Panellists

Presenters and Panellists include:

Tim Dodd, VP & General Manager, Neustar Media
Mark Teitell, Executive Director, DECE
Tom Sauer, VP Corporate Strategy, AT&T
Jim Taylor, CTO, Rovi

(Watch this space for updates. Other event 'stimulus speakers' here).

Further reading

Entertainment 2.0: Can Telcos help save the Video Distribution Industry?
Analysis of UBS Media & Comms Conference - Some like it Hot

1330 LUNCH

Afternoon: New Growth Opportunities at the intersection of Entertainment, Apps and Personal Data (merged with Mobile Apps 2.0)

1430 Connected Home 2.0

The connected home has long been a vision of futurologists. Now it is starting to become a reality with the emphasis shifting from the PC to the TV and the mobile device. Video, and related applications such as interactive games, are driving consumers to the television and a battle is developing around set-top boxes and TV-based applications. The mobile device, however, remains relevant as many consumers seek a seamless viewing experience between the TV and the mobile and others see the mobile device as the new intelligent remote control.

In this session we explore how this market will play out, identity where the key control-points are and clarify what strategies are required from content owners and aggregators, device manufacturers, operators and developers to make the vision a near-term reality.

Key questions to debate

Games have already proved that that the TV can be a sit-forward experience as well as a lean-back one. Increasing bandwidth on both the down- and up-link will increase the use of the TV as destination for playing games, consuming multiple sorts of content and social networking.
The set-top box will continue to be a crucial control point and the battle among broadcasters, cable and telco operators and device manufacturers will intensify.
Networking around the home will also become increasingly important with competition between wired and wireless solutions increasing.
Building a strong developer community will be critical if the TV is to move beyond simply being a source for video consumption.
An integrated experience between the mobile and the home TV will become a competitive advantage for those players that can offer this. Building an integrated Electronic Programme Guide (EPG) on to the mobile will be required if the mobile is to replace the existing TV remote control.

Key questions to debate

What are consumers really seeking from a connected experience and what is the relative importance of the PC, TV and mobile in this?
Will the current excitement around the TV continue – will it become the central hub for connectivity and, if so, what will drive this?
What is the best strategy for key players in the ecosystem - content owners and aggregators, device manufacturers, operators and developers to build a connected experience for consumers?
What role will the mobile device play in the connected home and beyond it?
What are the critical success factors for building a connected experience encompassing the home, buildings, things and people?

Presenters and Panellists
Short stimulus presentations x 3 (from representatives from the Communications, Media and Entertainment industries), followed by debate with participants using our ‘Mindshare’ interactive technology, followed by a panel discussion.

Presenters and Panellists include:

Rishi Chandra, Product Lead, Google TV
Zia Zaman, Chief Strategy Officer, North America, LG Electronics
Colin Dixon, Senior Partner, The Diffusion Group
Mike Afergan, CTO, Akamai
Andy Capener, Director of Marketing, Service Provider Mobility, Cisco

(Watch this space for updates. Other event 'stimulus speakers' here).

Further reading and viewing

Digital Entertainment 2.0: Tablets / Smartphones to run Multi-Screen Experience?
Smart TV and the Connected Home
BSkyB Platform - Lessons
Online Video Usage - YouTube thrashes iPlayer, but for how long?

1600 Break

1630 Lessons from Apple: How to foster vibrant content ecosystems

Apple and Google have proved themselves masters of developing new digital ‘ecosystems’ that stimulate and build innovative, flourishing, and valuable new markets. What can be learned from their and others’ successes, and what strategies should telcos, digital entertainment market players, and others in the digital economy use to foster valuable new ecosystems?

Hypotheses

There are significant further opportunities to create new digital ecosystems.
Key design strategies include aligning the interests of numerous players, a degree of openness, and retaining key strategic control points.
Telcos and others can foster and participate in these new ecosystems, but only if they successfully embrace the key strategic principles rather than try to produce copies of the leading ecosystems.

Key questions to debate

What are the key lessons from Apple, Google, and other successful ecosystem builders?
In what areas are there opportunities to build new ecosystems that add value to the Digital Economy?
How can telcos and the wider industry foster these alternative ecosystems?

Presenters and Panellists

Short stimulus presentations x 3 (from representatives from the Communications, Media and Entertainment industries), followed by debate with participants using our ‘Mindshare’ interactive technology, followed by a panel discussion.

Presenters and Panellists include:

Omar Javaid, VP Converged Media, Motorola
Keith McMahon, Senior Analyst, STL Partners
Shawn Price, President, Zuora
Omar Khan, Chief Strategy Office, SVP of Products & Services, Samsung Mobile
David Merkoski, Executive Creative Director, Frog Design

(Watch this space for updates. Other event 'stimulus speakers' here).

Further reading

Digital Hollywood: How to 'Out-Apple' Apple?
Apple iPad Business Model Analysis
Entertainment 2.0: New Sources of Revenue for Telcos?
Entertainment 2.0: Can Telcos help save the Video Distribution Industry?

1815 Close

Evening: Showcase of Cutting-Edge International Apps

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