Paradigm shift with Digital Content Creation Digital Analog

Paradigm shift with Digital Content Creation Digital Analog Satellite/Cable/DSL TV Content Radio Content TV/STB TV Broadcasting Satellite/Cable/DSL Wireless TV/STB Radio Broadcasting Web/Doc Content Broadband IP Mobile Content Wireless PC/ Laptop Wireless Radio PC/ Laptop Phones /PDAs new digital content Cable/DSL Wireless 1. The traditional one-to-one relationships between content service, distribution channel and consumption device no longer hold true. Phone/ PDA Consumer Device Digital Ent. Center Game Console 2. Digital content creation techniques and digital distribution channels allow repurposing and monetization of same content for multiple channels and consumption devices.

Market trends: Changing Landscape Industry Trends Description 1 Digitization of Content • Content creators have new ways to access consumers and to display and repurpose content • Content “velocity” increases over network through peer-to-peer transmission 2 Shift to Broadband 3 Proliferation of Devices • Devices enable storage and access to digital content in new ways • New level of personalization possible 4 Intellectual Property Rights • New business models and channel structures require new framework acceptable to all stakeholders • Digital rights management critical to the solution 5 Content Revenue Models 6 Connectivity Revenue Models • Telecom companies: Content distribution capabilities in addition to traditional connectivity • Cable companies: Connectivity capabilities in addition to traditional content distributors • Sustainable models require framework to encourage consumer adoption, minimize piracy, and compensate content creators and distributors • Infinite bandwidth for a fixed price • Sustained price and margin erosion

Digital media is popular among broadband users (data below is 1 year old, it’s grown since)

Music Industry Value Chain in USA • Value chain is driven primarily by retail sales of CDs • Traditional model incurs significant costs of artist discovery, physical manufacturing, and inventory/retail Music Retailers Music Labels Artists, Composers Publishers (Harry Fox) (esp Walmart, Bestbuy) Consumers Viacom (MTV, VH 1) Collection Agencies (ASCAP, BMI) $28 B Radio (esp Clear. Channel) Advertisers

Television Production Value Chain in USA • The television production value chain is driven by advertiser spending on broadcast and cable networks, and consumer spending on: – Cable & satellite subscription fees. – The purchase and rental of home videos on DVD and VHS. Broadcast Networks TV Producers (Studio or Independent) Financing Partners Participants Guilds (e. g. AFTRA) Cable & Sat. Networks Video Sale & Rental Stores $57 B $52 B $24 B Advertisers Consumers

Entertainment Industry Value Chain Downloads, Streaming, Subscriptions Ads Consumers Internet Distribution . 2 9 $ B $28 $B 24 B 2 B $5 Advertisers $57 B Movie Theaters Publishers, Collection Agencies CD Retailers Video Sale & Rental Stores Cable & Satellite TV Operators Broadcast Networks TV & Radio Music Labels TV Producers Studios Artists, Actors, Mgmt, Guilds, Other

數位內容保護與流通之關鍵技術 Digital Rights Management 使用者認證及付款機制 管 理 保護 Watermarking 數位內容 保護與 交換及轉換 管理與儲存 權益追蹤 DRM Content Delivery Network 流通 Caching 快取機制 Load Balance Streaming 串流技術 負載平衡 -Proxy Server - Transparent Caching 非模糊性(unambiguousness) 鑑定時無需原始影像 (authentication without original source) 安全性(security) 強健性(robustness) 非偵測性(un-detectable) -Server LB - Global LB -Multicasting - On Demand 透明性(transparency) CDN (Contents Delivery Networks)