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Business Modelling Tutorial

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32 pages
Information Society Technologies ENTHRONE “End-to-End QoS through Integrated Management of Content, Networks and Terminals” Contract No. 507637 Training Tutorial Business Modelling In Digital Distribution Market Author(s): OTEplus Contributor(s): Status -Version: V1 M24 Contractual Date of Delivery: Submission Date: 28/02/06 Workpackage, Task: WP9.2 Distribution – Security*: CO Deliverable Type **: R 142 Total number of pages: Abstract: The aim of this tutorial is to introduce the Digital Distribution Market and Business Modelling and Issues addressed through ENTHRONE for this market. Market Characteristics are placed in order to give an overview of the market under consideration. Keywords: Business model, business requirements, Digital Distribution Market  Copyright by the ENTHRONE Consortium, 2005 D38f – Training Tutorial Business Modeling in Digital Distribution ENTHRONE Market Document Revision History Date Version Author/Editor/Contributor Version Description Final Version 16/12/2003 0.1 OTEplus 2 of 32 D38f – Training Tutorial Business Modeling in Digital Distribution ENTHRONE Market Table of contents 1. The Digital Distribution Market ............................................................................................................ 7 1.1. A Transforming Market......................................................................................................... ...
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 Information Society Technologies ENTHRONE End-to-End QoS through Integrated Management of Content, Networks and Terminals” Contract No. 507637  
 
Training Tutorial  Business Modelling In Digital Distribution Market
 Author(s):OTEplus Contributor(s):  Status -Version: V1 Contractual Date of Delivery:M24 Submission Date:28/02/06 Workpackage, Task:WP9.2 Distribution – Security*: CO Deliverable Type **:R Total number of pages:142  Abstract:aim of this tutorial is to introduce the Digital Distribution Market andThe Business Modelling and Issues addressed through ENTHRONE for this market. Market Characteristics are placed in order to give an overview of the market under consideration. Keywords:Business model, business requirements, Digital Distribution Market Copyright by the ENTHRONE Consortium, 2005  
 
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Author/Editor/Contributor OTEplus       
Version 0.1       
Date 16/12/2003       
 
 
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Document Revision History
Version Descri tion  Final Version       
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D38f – Training Tutorial Business Modeling in Digital Distribution Market  Table of contents 1. The Digital Distribution Market ............................................................................................................ 7 1.1. A Transforming Market................................................................................................................ 7 1.1.1. Market Trends.......................................................................................................................... 7 1.1.2. Broadband Audio-Visual Market............................................................................................. 8 1.1.3. Converging Industries.............................................................................................................. 8 1.2. Nuts and Bolts of the Market...................................................................................................... 10 1.2.1. Content Delivery.................................................................................................................... 10 1.2.2. Content Protection ................................................................................................................. 12 1.2.3. Content Management............................................................................................................. 14 2.  16Business Modelling Conceptual Analysis ............................................................................................ 2.1. Conceptual Analysis .................................................................................................................... 16 3. The ENTHRONE value network ......................................................................................................... 18 3.1. Definitions .................................................................................................................................... 18 3.1.1.  18 ......................................................................................................................Business model 3.1.2. Value networks/ Value webs ................................................................................................. 20 3.1.3. Classification of business entities involved in the ENTHRONE’s market spaces................. 20 3.1.4. Business entities overview and main attributes of their business model ............................... 23                             
 
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D38f – Training Tutorial Business Modeling in Digital Distribution Market  Abbreviations In this document, the following abbreviations apply:  AAAAuthentication/ authorisation/ accounting APPApplication platform provider ASPApplication service provider B2BBusiness to business B2CBusiness to consumer B2B2CBusiness to business- business to consumer combined business model BCPBusiness Content Provider BGPBorder Gateway Protocol CDNivery network Content del CPContent Provider cSLSSLS between customers and providers  DIDigital Item DIADigital Item Adaptation DIDDigital Item Declaration DIDLDigital Item Declaration Language  DRMDigital Rights Management  DVBDigital video broadcasting DVB-SDigital Video Broadband by Satellite DVB-SIDVB- Service Information DVB-TDigital Video Broadband - Terrestrial 2E QoS eE2eQoS End-to-end Quality of Service GPRSGeneric Packet Radio Services I/FInterface IMSIntegrated Management Supervisor  IMTInfo Mobile Terminal IPMPIntellectual property management and protection ISPInternet service provider ISWCInternational standard musical work code  ISRCInternational Standard Recording Code LANLocal area network MHPMultimedia Home Platform NONetwork Operator NQoSNetwork QoS PCPPersonal Content Provider PDPPolicy Decision Point PEPPolicy Enforcement Point POTSPlain Old Telephone System
 
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D38f – Training Tutorial Business Modeling in Digital Distribution Market 
 PQM PQMS PQoS pSLS PSTN QoS REL SLA SLS TS TVM Processor UMTS WLAN  
 
Perceived Quality Meter Perceived quality management system Perceived Quality of Service SLS between providers Public Switched Telephone Network Quality of Service Right Expression Language Service layer agreement Service layer specification Transport stream TV & Multimedia Processor Universal Mobile Telecomm. System Wireless LAN
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D38f – Training Tutorial Business Modeling in Digital Distribution Market  1. The Digital Distribution Market
ENTHRONE 
1.1. A Transforming Market The Digital Distribution Market is served in a number of different industries: the Internet, Mobile Communications and Broadcasting. Several market trends are driving the growth of the digital distribution market. But another important aspect of these trends is that these traditionally distinct industries are now increasingly converging into a single market.  The evolution of the Internet, the emergence of broadband access and the convergence of the industries rise from being a threat to the traditional media and entertainment market to significant enablers for a boosting transformation to the digital distribution market.  1.1.1. Market Trends  Internet Evolution.The Internet is steadily evolving into richer form of electronic media which is increasingly video & audio centric as opposed to being concentrated on just text and graphics. It is becoming increasingly evident that the Internet is not just about text and graphics anymore. It is progressively more about audio, video, and other forms of rich multimedia delivery and communications, commonly referred to as Digital Media. Additionally, it’s not just about PC connected devices anymore. Increasingly, cell phones, PDAs, and consumer electronic appliances like the TiVo are being connected to the Internet.  While it is evident that the Internet has evolved much like a living organism as it matured, the evolution doesn’t just happen as a natural consequence of the passing years. There are a number of factors inducing the changes and driving it toward a more Digital Media centric Internet experience. Among these are advancing computer technology, steadily increasing penetration of broadband Internet access, and continued growth in home networking.   Advancing Computer Technology.PCs inevitably get more powerful. Current models are almost nine times faster and have fifteen times more hard disk memory. Moreover, they are often equipped with ports for higher-speed peripherals and commutations. They have accelerator cards capable of rendering high quality graphics. Cd-rewriteable drives are almost standard today and DVD rewriteable drives are entering the market on top-of-the-line systems.  If trends continue as in the past, in another five years the typical new PC might have aone-terabyte(1,000 Gigabyte) hard drive. That’s enough capacity to hold more than 140 full-length motion pictures at DVD quality. At VHS quality it could hold about 1,000 movies. Home computer users could have the equivalent of an entire Blockbuster store on their hard drives.   Growing Broadband Access.Households with broadband access are much more likely to consume Digital Media. According to the Pew Internet & American Life Research Project broadband users are three times more likely to stream Digital
 
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D38f – Training Tutorial Business Modeling in Digital DistributionENTHRONE Market  Media content as compared to ordinary narrowband subscribers. Similarly, they are over four times as likely to download music. Of course the reason that streaming and downloading are more popular with users is that they can access and send the characteristically larger Digital Media files more quickly than a narrowband subscriber.  1.1.2. Broadband Audio-Visual Market One example of multiple Internet use is the development of broadcasting-type services over high-speed Internet, which is referred to in this report as broadband audio-visual services. It is technically feasible to transmit a variety of media through different platforms. For instance, video can now be delivered by high-speed Internet, such as ADSL, and through wireless networks. This trend can be seen as a form of so-called ‘convergence’ of services between telecommunications and broadcasting. The advent of broadband Internet access, which has increased bandwidth, has made it possible to provide services competing with over-the-air broadcasting based on the Internet platform.  The process of convergence is also taking place through digitalization in terrestrial television broadcasting, although at a slower pace than had been foreseen several years ago. A number of OECD countries, however, have set targets for digitalization. In Austria, for example, digital television will have completely replaced analogue signals by 2012. In Japan, digitalization of terrestrial television will start in December 2003 and it is expected to be completed by 2011. Indeed, some OECD countries have dramatically increased the coverage and sales of digital television in recent years. The United States is a leader in this area, and there are 1,230 stations in at least 192 television markets transmitting a digital signal as of September 2003. Factory-to-dealer sales of digital television products in the United States in 2002 totalled 2,487,502 units and USD 4.2 billion, which surpassed 2001 sales by 73% in volume and 61% in revenue terms. Some estimates indicate a reduction by 24% in the number of households worldwide which use analogue terrestrial broadcasting as their primary television service by 2008 as digital television grows. This ‘digital revolution’ not only expands the number of channels carried on traditional over-the air broadcast but also enables the delivery of a variety of content, some of which was only seen in the telecommunications arena previously. While terrestrial digital television may compete directly with broadband audio-visual services, it also allows for sharing a variety of digital content between different platforms.  Digital interactive broadband audio-visual services are in particular bringing broadband telecommunications and television broadcasting closer together. Using high-speed Internet for broadcasting, online services, such as video-on-demand (VOD) and live streaming, is generating a new market. Broadband audio-visual services can also expand accessibility to content, by which it might even increase traditional television audiences. There has been a shift in the role of Internet from a text medium to ‘broadcasting’ for audio-visual information and entertainment, both over the traditional television and the Internet.  1.1.3. Converging Industries The trend of ‘convergence’ of services between telecommunications and broadcasting is also under way across all the Information, Communication and Entertainment industries.
 
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D38f – Training Tutorial Business Modeling in Digital DistributionENTHRONE Market  Markets that were formerly distinct, discrete and vertical in nature are coalescing across their old boundaries. Horizontal competition, focused on value chain layers, is becoming as important as vertical competition spanning entire value chains.  To date, the component segments of the Information, Communication and Entertainment market have operated largely in parallel, each defined essentially in supply side terms, with their own distinct definition of the end-customer. Television is marketed to viewers and subscribers, fixed telephony to subscribers, radio to listeners and print to readers and so on. The fact that these people are one and the same has not yet shaped the marketplace.  
            !  "##$  The degree of inertia and old economy influence which prevails in is illustrated by the current profile of sector revenues. Print is still a major platform and advertising remains the principal revenue source. The cash flows derived from commissions on e-commerce are still small. The current significance of the B2C electronic channel needs to be kept in perspective. Physical shops will continue to dominate retail, while, according to Forrester, the PC will continue to dominate e-commerce. In terms of its revenue streams, the market still lies largely in old economy territory.  The competitive landscape in the broadband digital age will be much more open. Competition within the Information, Communication and Entertainment market is already strongly multi-dimensional. Companies from a diversity of starting points define their ambitions and markets in increasingly overlapping terms such as ‘share of customer’ and ‘share of e-commerce’. Increasingly, these companies are operating in the so called ‘attention economy’, where long-term value is derived from being able to gain and retain the focus of the consumer regardless of traditional boundaries.  
 
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D38f – Training Tutorial Business Modeling in Digital Distribution Market  
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 "   %  &  '            !  "##$
  The customer tomorrow will be a individual who use technology information technology, information, and intelligence to save time and money, reduce inconvenience and risk, and open up opportunities in every area of life. This will be achieved using whatever connections are necessary between people, interface devices, information, content and applications. The power of the system lies largely in these connections, hence the term ‘hyper-connected individual’. This process will take place across all aspects of an individual’s worlds, going beyond his or her ‘consumption’ activities to take in other roles such as worker, parent, club member, traveller, spectator or enthusiast. Furthermore, future visions of ‘always-on’ hyper-connection, with individuals accessing ‘whatever they want, anytime, anywhere’.  
1.2. Nuts and Bolts of the Market The Digital Distribution Market is all about provisioning of quality content to the widest possible consumer market. To succeed in this, players in the market have been struggling in implementing efficient content delivery mechanisms, robust content protection tools, backed up by flexible content management systems. 1.2.1. Content Delivery Various content delivery mechanisms exist, with the choice between them depending on several factors. The key parameters that affect this decision are content type, operator and user equipment, asset protection requirements (Digital Rights Management; DRM), user preferences and popularity.
 
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D38f – Training Tutorial Business Modeling in Digital DistributionENTHRONE Market  Four mechanisms can be identified for the delivery of digital multimedia content to subscribers over a telecommunication network, based on two criteria. On the one hand, content can be either streamed to the user or downloaded. With streaming, the content is consumed” in real-itme by subscribers. A streaming server sends a “content stream” that can be used immediately (i.e. viewed or listened to) by the receiver before the full content has been delivered. A minimum amount of buffering will be provided at the receiver side to guarantee the “smoothness” of the received content under varying network delay conditions. However, this delivery method requires a certain quality of service assurance (e.g. with regard to jitter) from the communication network in order to work properly. In an IP network, lost packets are typically not retransmitted. The higher-layer protocols can deal with a certain amount of packet loss; the network manager has to make sure that the actual packet loss does not exceed the acceptable limits. In the case of downloading, the complete content needs to be delivered before the consumer can enjoy it. In an IP network, downloading is typically done using a protocol such as the Transmission Control Protocol (TCP), which can retransmit segments in the event of packet loss. Frequent retransmissions caused by packet loss or extreme jitter will decrease the download efficiency, but it will not affect the quality when the content is subsequently viewed. On the other hand, content can be either delivered in unicast or in multicast mode. With unicast, content is delivered at a specific moment in time from a specific server to a specific subscriber (point-to-point delivery). In contrast, multicast delivers the content simultaneously to a group of subscribers (tree-structured delivery) and broadcast delivers to all subscribers.  
 Streaming Downloading Unicast “Immediate Satisfaction” “Delivery for Later  News Satisfaction”  “Hollywood” Content Collector’s Content  Video on Demand Video Clips  Streaming Juke-Box Movies Songs   Multicast/Broadcast “Live Entertainment” “Pushed Information”  TV Local Information  iTVPlesr iodica   Internet Radio (Software Upgrade) ('     The examples in the figure above illustrate the four basic delivery mechanisms. The first cell of the matrix (streaming + unicast) is well suited for applications in which users require immediate satisfaction. Video on demand (in the narrow sense) is an example. When dinner is over, you contact a video server and immediately start watching your chosen movie. The second cell (download + unicast) represents the best known delivery method, which is widely used today for all non-real-time, non-multimedia content. This method is well suited to the delivery of general content which is not required to be used immediately. The third cell (streaming + multicast) is the best approach for the delivery of popular realtime content. “Real-time” means that itis important to receive the content at
 
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