Zorgvuldige datacenter-keuze geeft online diensten solide basis

The evolution of the content and digital media ecosystem

Download Zorgvuldige datacenter-keuze geeft online diensten solide basis

De inkomsten van online media-diensten, afkomstig van onder meer video, gokken en games, zullen de komende vijf jaar aanzienlijk groeien. Tegelijkertijd neemt de complexiteit van deze sector toe. Zo moeten leveranciers technisch aansluiting vinden bij een keur aan advertentie-oplossingen, betaaldiensten en platforms. Er liggen belangrijke kansen. Het zorgvuldig kiezen van datacenters levert de basis voor een solide online diensten uitrol, concludeert media-analysebureau IHS Screen Digest in deze whitepaper. Mediabedrijven kunnen aanzienlijk besparen op transit-kosten door datacentra te kiezen waar hun servers rechtstreeks verbonden kunnen worden met die van hun partners. Zo besloten  het Amerikaanse gamesbedrijf Zynga en sociale netwerkleverancier Facebook gebruik te maken van hetzelfde Equinix datacenter. Deze leverancier van datacenter oplossingen realiseerde een rechtstreekse verbinding tussen de servers van beide partijen. Deze stap resulteerde aan beide zijden in lage transit-kosten, snelle communicatie en uitstekende prestaties.

november 2012
  • Management-samenvatting
  • Advertentie-inkomsten bepalen groot deel waarde van de online content-sector
  • Online gaming loopt voorop binnen deze gefragmenteerde sector
  • Hoewel zwaar gereguleerd, groeit de online gok-industrie snel
  • Groeiend gebruik van cloud om mediadiensten te ondersteunen
  • Het complexe speelveld van het online content-ecosysteem
INSIGHT REPORT IHS Screen Digest Broadband Intelligence Service April 2012 The evolution of the content and digital media ecosystem Careful choice in data centre provides a solid foundation for online service deployments Territories covered in this report US, UK, France, Germany, Netherlands, Switzerland · The online media sector is a rapidly growing industry, fuelled by the growth in reach and speed of consumer broadband connections. By the end of 2011, 63 per cent of Western European households subscribed to broadband services. · The media, gaming, gambling and advertising industries reached an aggregate 150bn in value across five European markets (UK, France, Germany, Netherlands and Switzerland) in 2011, with online media representing almost 10 per cent of the sector value. · There is increasingly complex set of relationships between online service deployments and supporting technologies ­ including cloud services, workflow solutions, payment gateways, advertising solutions, platform management systems, CDNs and other service components ­ that mean that online service providers have a host of communication needs with third party systems. · Appropriate choice of data centre can help organisations improve service performance, as well as reduce costs, by co-locating their core server bases with those of key partners. Data centre solutions provider Equinix has already connected partners such as Facebook and Zynga within its data centres, improving page load times (positively affecting quality of service), as well as reducing transit costs for the companies. Executive Summary As broadband penetration in Western Europe reaches over 63 per cent of households, and is expected to climb to 70 per cent by 2015, online media services are becoming a force in their own right. In 2011, the online media and content industry, comprising paid-for audiovisual entertainment, display advertising-funded sites, online gaming and remote/online gambling, reached nearly 150bn in aggregate value across five European markets ­ UK, Germany, France, Netherlands and Switzerland. While this figure is still relatively small in comparison to the value of the parent sectors, representing only 10 per cent of media and content revenue across the five markets, growth rates are high for online media, and an increasing proportion of revenue is expected to be derived from the online content industries over the next five years. Contact sales@screendigest.com +44 (0)20 7424 2820 However this growth brings with it an increasing degree of complexity. New technologies bring with them new players. Online advertising for instance, has seen a whole host of different companies injected into the value chain, covering measurement of usage, delivery of advertising, inventory optimisation and bidding, amongst others. In other sectors, the situation is no less complex. Online video service providers are faced with a vast array of connected devices to which they need to deliver content, and may have to integrate with numerous advertising solutions, payment gateways, video platforms, content delivery networks, and even other content providers. The emergence of consumer `cloud' offers, such as UltraViolet, that give customers the opportunity to upload, store and then watch/listen to purchased content are further complicating the landscape. But while complexity is bringing additional challenges to the sector, there are also opportunities for companies to ensure that their businesses are well positioned going forward. Choice of location for core server bases within data centres may not seem the obvious point to start, but through careful choice in co-location solution, companies can save transit costs by directly connecting to the systems belonging to partners sharing the same data centre, as well as reducing la- © 2012 Screen Digest www.screendigest.com | www.isuppli.com The evolution of the content and digital media ecosystem tency issues. In the US, casual gaming company Zynga and social network Facebook are directly connected within an Equinix data centre, with the result of lower transit costs and improved latency and service performance. Advertising is driving much of the value of the online content sector The online media and advertising sector is one such area which has seen rapid growth over the last few years. A drive for diversification of revenues away from the stagnating traditional TV advertising and publishing landscapes has helped to stimulate growth in the online advertising world. Accompanied by better addressability and measurement systems, favourable demographic usage, and new advertising formats, online advertising was worth 12bn in net revenues across UK, Germany, France, Netherlands and Switzerland in 2011, and we expect this to rise to an aggregate 15bn by the end of 2014. While much advertising revenue is locked up within search advertising ­ Google, Microsoft and smaller search providers ­ display advertising is seeing growing spend. Newspaper sites, online video services and even retailer websites are all contributing to increased marketer spend in the online display sector. Emerging technologies such as real-time bidding are helping to accelerate the value of the display advertising sector. Real-time bidding allows marketers to bid, in real-time, for a web user's attention. Web users are segmented based on the site they're visiting, their past browsing history and other factors, and marketers compete to place adverts around content which these users are viewing, based on pre-set criteria which match the user characteristics. Like financial trading, real-time bidding is a high-frequency trading mechanism and fast, reliable connections are important for bidder positioning. While a relatively small proportion ­ circa 15 per cent ­ of the online display advertising market is now trading through real-time bidding, the advantages provided by the technology ­ largely increasing the monetisation of existing inventory ­ mean that it is an attractive solution for publishers. Net advertising revenues by format - m UK, DE, FR, NL, CH 60000 50000 40000 30000 20000 10000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 cinema advertising out-of-home magazines newspapers radio internet television Source: IHS Screen Digest Much has been made of the growing consumption of video content via the Internet , and although there is a great deal of hype surrounding usage that still only represents just a few percent of total TV viewing, most major TV companies now have online video services of some form. The vast majority of public service and key commercial broadcasters in Europe have their own online catch-up offers, providing access to programming 7-14 days post-broadcast. It is these services which are driving both consumption of online video, and the bulk of the value of the online video sector through advertising. IHS Screen Digest estimates that in 2011, online TV services generated 0.5bn in revenue across the major Western European markets, and anticipates a further 35 per cent growth through 2012. Nonetheless, there are challenges for the sector to overcome if the medium is ultimately to replace traditional TV. Fragmentation of end-user devices is one of the current hurdles faced by the sector. While organisations such as the BBC have the resources to optimise their online services to ensure they are available on a wide range of different consumer devices, other more commercially-minded companies are having to prioritise development for a smaller number of © 2012 Screen Digest 2 www.screendigest.com | www.isuppli.com The evolution of the content and digital media ecosystem the more popular devices. Standards may provide one solution for this issue, with initiatives such as HbbTV allowing content companies to develop services which simultaneously meet the specifications of multiple devices, while at the same time, third party providers of online video platforms such as Brightcove are developing solutions which manage delivery to a wide range of different devices. A fragmented sector, online gaming boasts many facets As an industry, the gaming sector has adopted the Internet with open arms, with most modern games relying on consumer broadband connections for some part of their lifespan ­ be they browser-based games, delivered from a download-to-own or streaming on-demand store or requiring broadband access to enable multiplayer or other features. Despite this, the majority of actual spending on games in Europe and North America still revolves around physical discs for consoles, however online purchase of and access to games is a growing business segment. In 2011, `digital' represented 18 per cent of the value of the 6bn gaming market in UK, France, Germany, Netherlands and Switzerland. Much of the money beyond download stores in the online gaming sector revolves around Massively Multiplayer Online Games (MMOGs), characterised by games such as World of Warcraft, as well as general Multiplayer Online Games (MOGs). These games operate broadly in two tiers, those which require a monthly subscription, and those which are free to play, but make money through microtransactions ­ users buy in-game items for real money. A newer market entrant to the online gaming space is the social network game category. Social network games are typically casual games designed to appeal to non-gamers, and run within social networks such as Facebook. Zynga is perhaps the most well known of the social network gaming companies in the market, with its high profile `Ville' series of games. Facebook revealed that Zynga was responsible for 12 per cent of its revenue in 2011. Social network games generate their revenue largely through microtransactions, but advertising is a growing revenue stream for many. The latest, and perhaps most ambitious, launches in the online gaming sector have come from a range of companies which operate video-streamed games on-demand solutions. Firms such as OnLive and Gaikai allow users to play high-end games on thin clients ­ the companies run the games on remote servers, and simply stream the visuals to the users. While the services are new, they target the same groups of gamers who would normally spend on console or PC games. Strategies differ across the sector - companies such as OnLive have targeted telcos for partnerships, aiming at using their networks to ensure consistent service delivery, while competitor Gaikai has concentrated on making syndication deals with other websites, expanding its effective visibility through partnerships. For such gaming services to offer multiplayer options at scale, they need hardware to match. Every gaming platform or service is different, but for a large scale massively multiplayer game, 80 blades might be necessary per 10,000 concurrent users. And as usage of online gaming services has grown, processing power requirements have expanded to match. In addition, many online games, particularly those aimed at the high-end of the market, require low latency for a good user experience, making the very location of the server-base important. Many games companies have chosen to locate their server bases in the Netherlands as a hub for reaching Western Europe. Heavily regulated, online gambling is still growing fast A controversial subject in many markets, online gambling services are nonetheless enjoying rapid growth ­ while bricks-and-mortar gambling establishments have seen little expansion in their traditional businesses over the last few years, the online sector has been growing at a rate of 50100 per cent per year in some markets. Gambling remains a heavily regulated industry, and in many countries, under strict state control. Online gambling (aside in some cases from lottery services) is effectively illegal in the US and in many European markets, including Germany, Netherlands and Switzerland; however relaxed attitudes towards actively limiting consumer access, with restrictions focusing on online gambling service advertising, has meant that extra-territorial online gambling sites have flourished. Many pan-regional sites and services actively target consumers in European markets where local online gambling services are not permitted. © 2012 Screen Digest 3 www.screendigest.com | www.isuppli.com The evolution of the content and digital media ecosystem The UK is perhaps the most deregulated gambling market in Europe, and as such boasts the most developed online gambling sector. IHS Screen Digest analysis of UK gambling commission data and company figures indicates that regulated online gambling represented 8 per cent of the gambling sector in 2010, with extra-territorial services targeting the UK being worth at least as much again. Elsewhere in Europe, regulation is slowly thawing. Online gambling was legalised in France in 2010, and was followed by a veritable explosion in the value of the market. In Germany, although operating online gambling services is still currently illegal, legislation is being looked at which will permit the entry of a limited number of existing bricks-and-mortar outlets into the online sector. Alongside allowing the expansion of existing operations, the legalising of online gambling services has allowed a number of new online-specialists to enter the gambling sector. Companies such as Bet365, Bwin and Betfair have joined traditional players such as Betfred, William Hill and PMU in competing for consumer spend. Sports betting exchange Betfair now boasts close to 1m active customers and saw 8 per cent revenue growth in 2011. The online specialist has substantial ambition and aggressively promotes its services ­ the company recently launched a new Google Chrome extension which uses keyword technology to overlay Betfair odds on competitor websites. Particularly for betting services referencing real-world events, the speed and reliability of connections are paramount in ensuring that odds reflect reality ­ time is very much money in this sector. As a consequence, similarly to the online gaming sector, the location, as well as the size of the core infrastructure is critical for many online gambling houses. Increasing use of the cloud for the support of media services Although a current industry buzzword, the `cloud' is nonetheless increasingly important as both a component of consumer service propositions, and from a business support perspective. Services offering consumers the ability to access their content anywhere, on any device, are available across a range of different media formats. Games retail services such as Steam allow users to download their previously-bought titles onto new hardware (including single-purchase access for games released on both PC and Mac), while in the movie world, studios are ploughing investment into UltraViolet, the digital locker system aimed at helping to maintain the value of the retail video business. Meanwhile, companies such as Amazon allow users to upload their own content to virtual libraries for later consumption. But beyond the consumer front-end, cloud services are being used increasingly to support businesses ­ again, across media formats. In the games sector, access to cloud computing allows MMOG companies to respond swiftly to activity peaks ­ adding additional processing power to deal with demand. Cloud editing solutions are beginning to be deployed to help production companies deal with the challenges of creating rough cut edits off-site, although for most producers and broadcasters, there is a long way to go before current workflow solutions are completely replaced by cloud alternatives. Nonetheless, there are advantages in using cloud workflow solutions, particularly for non-traditional media companies and services. OTT video specialists and online video advertising solutions providers do not necessarily have substantial legacy workflow infrastructure, meaning that cloud services may be a viable option. Cloud transcoding solutions provided by companies such as Zencoder offer alternatives to in-house infrastructure, and are options for companies with greater peaks and troughs in demand for transcoding solutions than broadcasters. With the increasing reliance on cloud solutions, media companies are finding that they are becoming part of a wider ecosystem of technology providers and other content companies. Furthermore, those firms operating online services, even if they host their core infrastructure themselves, do not operate in a vacuum. Websites and systems will typically integrate with multiple other partners. This can be as simple as the integration with a payment gateway, however can encompass other parts of the online value chain, beyond workflow solutions and platform management to advertising solutions and content delivery. At each stage, media companies rely on partner services to support their own systems. © 2012 Screen Digest 4 www.screendigest.com | www.isuppli.com The evolution of the content and digital media ecosystem Careful choice of data centre provides the foundation for a solid online service deployment The choice of a data centre is an often overlooked component of online service deployments. For services which require very low latency ­ for instance, financial services and some gambling and gaming services, data centre choice is a crucial part of deployment strategy. Likewise, for systems requiring heavy security or guaranteed up-time, data centre location is a similarly critical issue, but for services where latency or down-time is a smaller issue, location of servers may be considered a lesser concern. However, even for these companies, there are potentially a range of benefits, including service performance gains and cost savings, cost to be made through a careful choice in data centre. A good example of the possibilities raised by appropriate data centre selection is provided by colocation service provider Equinix, which realised that two organisations which integrate closely with one another ­ gaming company Zynga and leading social network Facebook ­ had both chosen to co-locate within the same data centre. The realisation of this allowed Equinix to connect the two companies' server deployments up directly, allowing both partners to make transit cost savings and accelerate communication. In a world where page load times have significant effects on customer traction and monetisation. While this specific example relates to the social gaming world, the concept can be utilised more widely across the media sector and beyond. The diagram `the complex nature of the online content ecosystem' indicates just some of the connections which companies operating in and supporting the online content industry maintain. Each of these connections potentially represents an opportunity for the involved parties to co-locate in the same data centre and benefit from their proximity. The complex nature of the online content ecosystem Workflow solutions Sports gambling service Gaming solutions OVP Payment gateway Gaming/ gambling service Broadcaster/ content owner CDN Ad solutions Ad value chain Source: IHS Screen Digest The complex nature of relationships in the online content ecosystem With increasing average page load times as content load of websites increases and the growth of time critical services in the online advertising world, such as real-time bidding, choice in colocation solution will be increasingly critical for online services looking to optimise the consumer experience, as well as take advantage of the inherent potential cost savings presented by such a strategy. Although it would seem in an increasingly virtual world that the location of processing power would be a consideration of lesser importance, the growth in cloud and third party managed services is helping to drive increased use of data centres, and the early stages of content and technology data-hubs. And as this use continues to grow, there will be ever increasing scope for content providers and technology solutions to take a measured approach when it comes to choosing where to place their servers ­ ensuring that they co-locate alongside key partners, with the associated benefits, is a clear advantage of such a strategy. © 2012 Screen Digest 5 www.screendigest.com | www.isuppli.com The evolution of the content and digital media ecosystem North America USA Asia China Hong Kong Europe UK 1700 East Walnut Avenue Suite 600 El Segundo, CA 90245Phone: 310.524.4000 Public Relations: Jon Cassell 408.654.1714 jcassell@ihs.com John Ward 310.524.4013 jward@ihs.com Irene Liu (China) 86.755.83643.145 iliu@ihs.com Sales & Products: 8/f - No 1 Chatham Road South Kowloon, Hong Kong 80HGK1 Main Telephone: +852-2368-5733 Contact: Jason Ma Email: jma@ihs.com Phone: +852.2834.7833 Shanghai Lyme House Studios 30-31 Lyme Street London NW1 0EE United Kingdom + Sales & Products: + sales@screendigest.com France Room 1401, BaoAn Tower Dongfang Road 800 Shanghai, P.R. 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China 518033 Contact: Irene Liu Email: iliu@ihs.com Phone: +86.755.8364.3145 Japan Tokyo Spiegelstrasse 2 81241 Munich Germany Contact: Manfred Thiel Email: mthiel@ihs.com Phone: +49.89.2070.260.5 5720 Smetana Drive Suite 218 Minnetonka, MN 55343 United States Phone: 952.935.0400 BUREX Kyobashi, 2-7-14 Kyobashi Chuo-ku, Tokyo 104-0031, Japan Contact: Mayuko Kataoka Email: sales.info@isuppli.co.jp Phone:+ Kyoto Kyoto Research Park Building 4-3F 1 Awata-cho Chudoji Shimogyo-ku Kyoto 600-8815 Contact: Junzo (Jim) Masuda Email: jmasuda@ihs.com Phone: +81.075.315.8930 www.iSuppli.co.jp Korea Seoul 2003 Suseo-Hyundai-Venturebil 713 Suseo-dong, Kangnam-gu Seoul, Korea 135-884 Contact: J.H. Son Email: json@ihs.com Phone: 82.2.2040.611 Taiwan Taiwan Room 618, 6 Floor, No. 1 Industry E. 2nd Road Science Park, Hsin-Chu, Taiwan ROC Contact: Mavis Wang Email: mwang@ihs.com Phone: +886.3.578.3538 © 2012 Screen Digest 6 www.screendigest.com | www.isuppli.com The evolution of the content and digital media ecosystem Important information for Intelligence for Investors subscribers IHS Screen Digest Intelligence for Investors service is not FDIC insured and offers no bank guarantee or any guarantee of any kind. Investments you make based on information delivered by IFI may lose money. This presentation is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations. It is the responsibility of any person or persons in possession of this material to inform themselves of and to take appropriate advice as to any applicable legal requirements and any applicable taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any investments. This presentation does not constitute a solicitation in any jurisdiction in which such a solicitation is unlawful or to any person to whom it is unlawful. Moreover, this presentation neither constitutes an offer to enter into an investment agreement with the recipient of this document nor an invitation to respond to the document by making an offer to enter into an investment agreement. Opinions expressed are current opinions as of the date appearing in this material only. Neither we nor any third party makes any representations or warranties express or implied, in respect of any information or products obtained from, through, or in connection with this site. In no event will we or any third party be liable for any damages of any kind, including, without limitation, direct, indirect, incidental or consequential damages, resulting from any defect in the information of this site or otherwise. © 2012 Screen Digest © 2012 Screen Digest 7 www.screendigest.com | www.isuppli.com ContaCt Equinix Location AM1 & AM2: Luttenbergweg 4 1101 EC Amsterdam Zuid-Oost Netherlands Location AM3 Science Park Amsterdam: Science Park 610 1098 XH Amsterdam Netherlands Postal address: Equinix Postbus 12478 1100 AE Amsterdam The Netherlands Website: E-mail: Phone: Twitter: www.equinix.nl marketingNL@eu.equinix.com +31 (0)20 753 79 50 twitter.com/EquinixNL About Platform Equinix Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 700 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. © 2012 Equinix, Inc. WP-EN QUACLD 1F1-COVER MB-CL 1206 www.equinix.nl
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