Commercial TV!

My television. My rules.

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Sometimes you’ve gotta bat for the other side to know what it feels like!

You’re watching Castle on Star World, and you are thoroughly engrossed but just when the tension is unbearable and you’re wondering what’s going to happen next, the ubiquitous commercial break kicks in. What a pain in the butt!

What do you do during the commercial break?

Read a newspaper?

Surf channels? – only to discover that the television networks are hand-in-glove with each other; they have conspired to inflict paid advertisements on you – the unsuspecting viewer – synchronized to be played out at the same time.

If you happen to be one of those unscrupulous (to the advertisers) techno-geeks (No, I’m not knocking technology or geeks!) and can afford these gizmos, you would either have TIVO so that you can watch your favorite  programs undeterred by the threat of commercial disruptions, or you may have switched to IPTV , where you watch your pre-recorded and time shifted programs when you please , at your leisure and convenience. Of course, you can always have your programs pre-recorded the old-fashioned way on your VCR or DVR. Or if you are the patient type,you can just catch them on YouTube or Lulu, just a bit later.

Quote of the day:
Defining and analyzing humor is a pastime of humorless people. – Robert Benchley

I , unfortunately, suffer from none of the above luxuries. And although I have a broadband connection, it is not truly mega-speed. And so, my usual reaction is to find something else to do during those three minutes of inanity simultaneously muting the set;my ears do not wish to endure the cacophony of pretty (petty?) housewives and even prettier (pettier?) models and actors intent on selling me soap,shoes, jewelry  and other FMCGs – they strive to invite, lure and seduce me into becoming part of their anesthetized, antiseptic,sanitized, made-for-TV world.

But then I get to thinking that surely there exist some viewers who prefer these very commercials that I dislike,deride and avoid with such antipathy. And if so, why should they be burdened by the interruption of content meant for mass viewers? Why can there not be a dedicated channel for commercials? A niche channel! I am, of course, not alluding to those annoying,pesky TV shopping networks that have half-hour long infomercials on which every product is touted as the panacea to your undreamed, unfulfilled desires – products that tout convenience and are anything but that. They just happen to be convenient means of relieving your pocket. And not with much finesse, if I dare say! (They prey on your insecurities and work best when you’re down in the dumps!)

MTV's original logo, officially in use from 19...

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How about a channel on the lines of an MTV , a VH1 or even a Channel V, dedicated to commercials and just commercials. Great commercials! Seductive commercials! Top 20 Commercials! Most Wanted Commercials!

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Maybe a program dedicated to those monstrous Hollywood commercials plugging Japanese and Korean products aired solely on East Asian networks. (The commercials aren’t monstrous; the premiums charged by the stars to endorse those products are! Ask Arnold Schwarzenegger! Just some loose change for pocket-money!)

Middle East Television

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Or those nauseous commercials made for the Middle East market that actors from Bollywood, Mollywood and Tollywood parade in selling, well, almost everything. Just goes to show that you could be idiotic on-screen and earn a lot of moolah – just elsewhere!

 How about some golden oldies added to the mix to indulge nostalgia? Create your own digital commercial contests?

Just picture it – a channel that does not have to bother with programming. Content will be served by the advertisers with no commercial breaks! The commercial is the program. What will advertisers not do for free air time?

In India, music channels – in the local languages – run themselves. Film music is the most popular form of audio/video entertainment. Reality shows are mostly song or dance based or both. Thus content is easily available and advertisers flock to these channels because of the sureness of eyeball capture. Mass media was never more mass!

Can something similar be done with TV commercials?

Is there an idea here somewhere? Or am I just rambling? Ranting? Or just being plain loony? Of course, this might not be such a great idea; all programming is now a long paid commercial – the deft/brazen product placements prove that!

Your thoughts?

Have a great day!

Disclaimer: I have not verified if any such channel exists! Pardon my ignorance!

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Having a niche is not limiting yourself « Appletree Marketing ideas for successful businesses

They do exactly what they say on the tin. They supply and fit just tyres. Because they are so focused on one aspect of the market, they were able to efficiently collect payment online, allow us to select the tyre we needed, immediately source said tyre, have it ready for me at my convenience, wait for me to get there through the terrible afternoon traffic, quickly strip the old tyre from the axil, and replace the new tyre at lightening speed.No fuss, prompt delivery, efficient processes and excellent customer service. There wasn’t anything else to clutter up their performance. Their focus on delivering one product as best as they could in as efficient manner as possible was paramount. Now if their marketing was better they could become the top of their industry, outstripping their competitors through product, process and eventually price, not to mention convenience (a highly neglected factor many businesses choose to ignore).Excellent service in just one niche will enable you to increase your efficiency, status, expertise, credibility, trustworthiness, relationship with customers, perfect your processes, maintain your reputation – whereas an outfit that offers everything under the sun is bound to suffer, since where is their focus?

Having a niche is not limiting yourself « Appletree Marketing ideas for successful businesses

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Starting a New Business

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Mr. Fix-It Ltd.

We treat your homes like our own!

Linus Fernandes/Kalliroi Patsali/Giorgos Elia/Petros Loizou

 

Confidentiality Agreement

The undersigned reader agrees that the information provided in this document is confidential and any disclosure of any information contained within, intentional or otherwise, may cause serious harm or damage to Messrs Linus Fernandes, Kalliroi Patsali, Giorgos Elia and Petros Loizou.

The reader is bound not to disclose this information without the written express consent of the above listed Messrs.

Upon request, this document is to be returned to :

Linus Fernandes/Kalliroi Patsali/Giorgos Elia/Petros Loizou.

___________________________________________________

Signature

___________________________________________________

Name (Typed or Printed)

______________________

Date

This is a business plan. It does not imply any offerings.

Information of key contact person

Name: Linus Fernandes

E-mail: xxxxxxxxxx

Address: Cyprus International Institute of Management

21 Akademias Avenue

P.O Box 20378

2151 Aglandjia

Nicosia, Cyprus

Tel: +357 22462246

Fax: +357 22331121

Mobile number:

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Capitalism: Its Two Variants

A vector image of :Image:Capitalismlogo.

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There exist 2 variants of capitalism: Individual Capitalism and Communitarian Capitalism.

Individual Capitalism is epitomized by the United States. Japan , at the other extreme, exhibits a form of communitarian capitalism.

The 2 tables below outline the differences between the 2 systems.

MAJOR CONCEPTS & ASSUMPTIONS
UNDERLYING THE ECONOMIC SYSTEM

CONCEPTS & ASSUMPTIONS

PURE COMMUNITARIAN CAPITALISM*

PURE INDIVIDUALISTIC CAPITALISM

How to optimize the performance of a system: Cooperation at all levels will optimize the system. Competition at all levels will optimize the system.
The key driving force in the economy: The desire to build for the future. The desire for current consumption and leisure.
Motivation for work: Work provides utility. Individuals live to work. Work provides disutility. Individuals work to live.
Responsibility for skills and training prior to employment: Responsibility of society. Strong high schools and apprenticeship programs. Responsibility of the individual beyond relatively weak high schools. Few apprenticeship programs.
Relationship between government and business: Government supports and cooperates with business to optimize the system. Government regulates business to promote competition. Click for Summary of the 2001 and 2005 ASCE Report cards on U.S. Infrastructure.
Government policy: Promote growth in supply. Promote growth in demand.

 

MAJOR BUSINESS CONCEPTS ATTITUDES AND PRACTICES

CONCEPTS ATTITUDES & PRACTICES

PURE COMMUNITARIAN CAPITALISM

PURE INDIVIDUALISTIC CAPITALISM

Dominant objective and focus: Building for the future with long term focus. Profit maximization with short term focus.
Organizational Structure: Horizontal, flat or lean with relatively few layers of management. Bottom up consensus decisions. Vertical with many layers of management. Top down autocratic decisions.
How profits are used: As fuel to keep investing and building. To increase consumption and leisure for stockholders.
Hierarchy of organization’s constituencies: 1. Employees
2. Customers
3. Stockholders
4. Suppliers
1. Stockholders
2. Customers
3. Employees
Employment and job security: Lifetime employment promotes bonding. Uncertain employment discourages bonding.
Responsibility for training after employment: Companies provide cross training and job rotation. Individuals are mainly responsible for their own skills.
Route to management: Long multi-function internship. From college, to single function specialization, to management.
Management attitude toward teamwork: Teamwork and cooperation are essential for optimizing the system. Teamwork is risky. Individual performance will optimize the system.
Management behavior in economic recession: Cut:
1. dividends
2. management compensation.
3. workers pay and jobs as last resort.
Cut:
1. workers pay and jobs
2. management compensation.
3. dividends.
View of leadership: A leader manages processes or work. A leader manages results.
Management attitude toward problems: Understands the variability within the system and tends to blame the system first. Specialist has less understanding of the system and tends to blame employees.
Tools of management: Employee empowerment, group praise and profit sharing. Statistical control. Managers facilitate, counsel, teach and provide resources. Management by objectives, merit ratings, incentive pay, quotas, standard rates and quantities, piecework and annual ranking of employees. Count results.

So where do you think BRIC/BASIC countries place themselves?

Source: http://maaw.info/Chapter1.htm#FRAMEWORK:%20TWO%20GLOBAL%20VARIANTS%20OF%20CAPITALISM

 

Web Services, SOA, BPM, and Cloud Computing – VII

Outline of a cloud containing text 'The Cloud'

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What, in heaven, is cloud computing? If you think you already know what cloud computing is about, then this post is not for you. But you can choose to read on, if you like.

The understanding of cloud computing can be as hazy as the term itself.

It seems as though there’s this cloud into which your input disappears and you receive your output , again, via the cloud or that is what all those diagrams depicting cloud computing seem to imply.

Cloud computing seems to be a definitely cloudy term to define the ability to access your applications wherever you go. Cloud computing harnesses or leverages the power of the internet to give you distributed applications that can be accessed from multiple devices (note , it is devices and not multiple computers; multiple devices include multiple computers! Sorry if I sound pedantic!)

Cloud computing definitions include “wherever you go, your applications are”, “the big rental station in the sky.”

The latter because in a multi-tenant cloud computing system, you are in effect sharing resources with other entities or enterprises , all transparent to you and to each other. Hey, what am I saying? Cloud computing is inherently multi-tenant , ask any blogger! But maybe we’re just referring to virtualization, eh? But I am getting ahead of myself here and let’s just start with the definition of cloud computing.

I have defined Cloud Computing elsewhere as:

Cloud computing is outsourcing your computing requirements on demand allowing agile response to ever changing business needs.

Cloud computing is a service. It is usually classified into 3 kinds:

Software As A Service (SAAS)

Platform As A Service  (PAAS)

and Infrastructure As A Service (IAAS).

Wow, you might say, that’s just fine. You’ve simplified it further for me (sarcastically). Now I’m even more confused!

Software As A Service is exactly that; it is a service that fulfils a certain application need , not locally but in the cloud. To give you an example, WebMail services such as Yahoo! Mail, GMail & Windows Live Mail are the simplest form of software as a service. Yes, webmail has been around for quite some time, you may say. But then its the definitions that are new, not the service itself. You may not remember the term ASP (Application Service Provider). Well , SAAS is just a new term for ASP. At your workplace, you may encounter CRM services such as SalesForce.com and Zoho CRM. These are examples of  SAAS applications offered as cloud offerings. These are a boon to non-profit and SMEs to allow them to ramp up quickly without any major up-front capital expenditure. Another relevant example of SAAS is QuestionPro.com and SurveyMonkey. These are  internet based market research tools for individuals and corporates.

Cloud application services or "Software as a Service (SaaS)" deliver software as a service over the Internet, eliminating the need to install and run the application on the customer’s own computers and simplifying maintenance and support. (Sounds suspiciously like ASP!)

  • Network-based access to, and management of, commercially available (i.e., not custom) software
  • Activities that are managed from central locations rather than at each customer’s site, enabling customers to access applications remotely via the Web
  • Application delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to a one-to-one model, including architecture, pricing, partnering, and management characteristics
  • Centralized feature updating, which obviates the need for downloadable patches and upgrades.

At the next level, is Platform As A Service, If you are a blogger and have your blogs hosted via a blogging service such as WordPress.com, then you are using a Platform As A Service. WordPress.com , in this case, is the platform provider for you to use the blogging service to create and post content.

Cloud platform services or "Platform as a Service (PaaS)" deliver a computing platform and/or solution stack as a service.It facilitates deployment of applications without the cost and complexity of buying and managing the underlying hardware and software layers.

Finally, there’s IAAS or Infrastructure As A Service. If you decide to host your own web-site or move your blog to a hosting service such as VSNL or Yahoo! Small Business, then you are accessing Infrastructure As A Service, You have access to the infrastructure provided by the hosting service provider and you can install your applications within the constraints of supported programming language, supported database  and storage space provided. Of course, there are the other IAAS providers such as Amazon EC2 and Google App Engine, that you may be more familiar with , if you are technically minded. I chose to give you examples that we are familiar with in our use of the internet.

Cloud infrastructure services or "Infrastructure as a Service (IaaS)" delivers computer infrastructure, typically a platform virtualization environment, as a service. Rather than purchasing servers, software, data center space or network equipment, clients instead buy those resources as a fully outsourced service. The service is typically billed on a utility computing basis and amount of resources consumed (and therefore the cost) will typically reflect the level of activity. It is an evolution of web hosting and virtual private server offerings.[40

Other not so well-known cloud offerings include Network As A Service (NAAS), Storage As A Service and Security As A Service though the third may be considered a subset of Software As A Service.

When cloud computing is mentioned , the related words we hear are cost savings, the ability to provide for dynamic computing needs (via hybrid clouds and/or public clouds) and the efficiencies gained at being able to reallocate vital resources to more productive uses. Cloud computing is also referred to as utility computing since resources in the cloud can now be turned on or off as dictated by our requirements. IT has become a commodity. So how elastic are its demand & supply curves? And I’m not being laconic!

But besides big dollar savings for large firms, it is also about how small firms can gain a competitive edge by being able to focus on delivering value and not worry about large infrastructural investments; applications can be sourced from cloud computing providers – leased may be the term more familiar to cloud computing advocates. The option to bring these applications in-house to private or internal clouds resides with the enterprise depending upon how their funding and inferentially ramp-up progresses. The economics of cloud computing, for SMEs and non-profits, is very compelling indeed.

That’s all for now! You can keep your head in the clouds! And don’t sport a clouded countenance! Just kidding!

Have a great day!

Air Asia in India

Airbus A320 (9M-AFA) der Air Asia

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Tony Fernandes, the feisty owner of AirAsia, has focused his sights on India. Making his no-frills model work here won’t be easy.

Read more here>>>

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T-Commerce – Teeing Off

A list of countries with IPTV availability (in...

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Written in 2007, the introduction to a biz plan for a T-commerce solutions provider.

1 Introduction

Buy Interactive has a vision of bringing online retailing into the drawing room of millions of television viewers via its innovative use of technology. The goal is to integrate the converging technologies of media, the internet, the wireless and retailing to facilitate the extension of e-commerce to t-commerce & m-commerce.

1.1 Objective

The objective of this business plan is to outline a strategy for an interactive solutions software company to target the emerging market for interactive television with a specific focus on interactive shopping as the application of technology with the existing Internet infrastructure as the communication backbone. The convergence of media, the Internet and online retailing is the hub of this identified niche in the content management software industry. Further aspects to be explored are an extension of online advertising and promotions to this targeted market segment.

.2 The Organization

The company, Buy Interactive, is a software products company with a focus on developing solutions for interactive/IP television. The crux of the software solutions are the set-top box, the software stack on the box and a broadband internet connection. Current applications of interactive/IP television are mostly sports-casting, picture-in-picture, video -on-demand, email, interactive games, & information portals; these have limited interactivity. Buy Interactive intends to focus on leveraging existing online retailers and their offerings to bring them to your fingertips.

1.3 The Service

The service offered by Buy Interactive is a unique shopping experience for the couch potato; the not-so-internet-savvy user, the one who is more comfortable with traditional media such as the television & video. No more time-wasting spent on the internet searching for deals; the best deals are brought to you to your finger-tips for use via the ‘power-pad’.

The business model also provides for advertising revenue to be collected by the cable & telephone networks based on the pay-per-click, pay-per-lead and pay-per-sale.

1.4 The Market

1.4.1 Geographic Market

The scope of this project proposal is to be limited to the geographic area of Cyprus with potential users CYTA and PrimeTel. The software will be provided as private label allowing the licensors to customize the look and feel of the software and use a consistent interface. Branding can be a combination of the online retailer and/or the operator.

1.4.2 Current Usage

CYTA MiVision market share among residential broadband users was about 10% when it was first introduced in July 2004. PrimeTel and its competing TriplePlay [includes ADSL 2+] service is currently aiming for a market share of 10-15% of IPTV subscribers. CYTA MiVision currently has 23,000 subscribers to IPTV with growth in subscriptions ranging from 500 to 1000 subscribers per month. PrimeTel, on the other hand, have new customers at the rate of 2000 per month. CYTA MiVision plan to introduce 2 new services soon, namely nPVR and Time-Shift TV. CYTA MiVision’s contract with Amino for STB’s specifies that orders (unit contract price) are placed for STBs based on demand, as the need arises. The price for each STB to the customer is 50 CYP , a one-off price. PrimeTel’s suppliers are Kreatel Communications, a recent acquisition by Motorola. STBs are currently being offered free by Prime Tel to new customers, mirroring a trend in most IPTV providers, to subsidize the STB in anticipation of selling value-added services and recovering the initial cost from the service revenues. Both Amino and Kreatel Communications STB devices both run on the LINUX operating system.

1.4.3 Growth Potential

Broadband usage in Cyprus at the end of the first quarter of year 2006 was 12.1% from 4.1% in 2005. 46% of households have internet access from home. Internet, mail order & telephone sales for the first half of 2007 show a jump in spending from £8.83 million for the whole of 2006 to £25.4 million.

This subscriber base has experienced increasing growth over the past 3 years, from 2004 to 2006, and the potential to convert these to IPTV customers increases as the broadband subscriber base increases. The other way to drive growth is to use the IPTV offerings to get television viewers (99% of the Cypriot population own a television) to switch over with a less intimidating offering, especially for non-computer owners (almost 50% of the population). Once a tipping point for this service is reached, growth will be exponential. Signs of this happening in the broadband market are evident. Extrapolating to IPTV and from there to Buy Interactive’s products is how we predict growth for our products.

IPTV in India
IPTV, in India, is currently offered by MTNL in Mumbai and BSNL in Pune, Kolkata and Bangalore.Other companies with plans to rollout IPTV Triple Play offerings in the near future include Reliance InfoComm and Bharti Airtel.
The PSUs

MTNL were the first to launch IPTV in India, namely in Mumbai and New Delhi in October 2006.

Subscribers now number less than 1,000 for MTNL, but the company is hoping for a high conversion rate as broadband connections grow to a target of 500,000 each in Mumbai and Delhi.Currently, MTNL has 225,000 broadband lines out of a total of 4.5 million fixed line subscribers in the two cities. To enable transport of high-density video content, MTNL is using compression technologies that can zip as much as 3 megabits per second.

Currently, a subscriber has to pay a lifetime payment of Rs 3,500 (approximately 87 USD) [Prices have dropped to Rs. 1000 approx. 25 USD for current new subscribers] for a set-top box, and a monthly rental of 120 rupees for 52 channels in Delhi. As volumes grow, it is expected that STBs will be made available free of cost. The service of course is dependent on the customer already being a broadband internet subscriber with MTNL. Bundling of services such as Internet connection and IPTV are not offered as yet.

MTNL has increased the accessibility of IPTV in a 3 km radius from each telephone exchange, from the initial 800 metres each, and plans to start rolling out fibre optic cables that will reach 20 km from the nearest exchange. MTNL has invested $120 per subscriber to enable the IPTV service, and is betting on instant interactivity to view desired programmes and convenience of viewing to be the distinguishing features.

BSNL, the other large public communications company with most of its subscribers in the Tier II cities & towns, envisaged a “quantum jump” in broadband penetration by issuing around five million new connections over the next few months. These would include an estimated three million broadband connections across 1,000 cities and another two million connections in the rural segments. Currently, 1.15 million subscribers used BSNL’s DataOne, a 40 per cent share of the broadband segment of 2.5 million subscribers.[As of April 2007 India had 2.43 million broadband subscribers, by April 2008 it is expected to rise to 4.21 million. India has around 65 million cable and satellite homes. If even 10 per cent take IPTV then 6.5 million IPTV subscriber base is not a small one].This is projected to grow to 20 million by 2010 according to TRAI.

PricewaterhouseCoopers, on the other hand, says that while the number of TV households in India is expected to grow to 130 million by 2012, DTH will account for less than a tenth of this number and IPTV less than a hundredth.

Bharat Sanchar Nigam Ltd (BSNL) is conducting a feasibility study to launch broadband multiplay service, including voice, video and Internet protocol television (IPTV). The service, to be offered in 789 cities across the country, would be available at an eight megabites per second (MBPS) speed connectivity, instead of 2MBPS.

Cable operators such as Hathway are expected to enter this market as well. Current efforts to digitize their network and then move into the IPTV space with Triple Play offerings.

Further competition to Telco IPTV providers are expected from Tata Sky and Dish TV, two DTH players currently consolidating market share.

Reliance Communications & Microsoft have signed a 8 year contract to supply IPTV services. The world’s biggest software maker is expected to earn $500 million, or Rs1,965 crore, based on a revenue-sharing formula in the contract as part of license fees for its software. Reliance Communications will use Microsoft’s MediaRoom IPTV platform, a deployment that Microsoft has valued at about $500 million. The carrier appears poised to invest as much as $1 billion on its IPTV project.

The Indian Context

Over 50% of India’s telephony infrastructure can support IPTV ,which for a developing country is very impressive.

Global IPTV revenue is expected to touch $17 billion by 2010. Smooth billing of services is crucial to ensure consumer satisfaction. The bundling of telephony, internet access and television channels makes it necessary to provide a single billing facility to the users. Software that provides this as well as integration of discount schemes is key to making sure that transition is smooth and hassle-free.

At IBE 2007, held in Mumbai between 25 and 27 October, it was predicted that there will be one million IPTV subscribers in India by 2011.

Mobile Telephony & IPTV

Besides the use of telephone and cable networks, Reliance Communications Ltd. , Bharti Airtel and BSNL are experimenting with WiMax wireless technologies to deliver IPTV services to consumers via their existing wireless networks. Government regulations have been eased to facilitate increased bandwidth; this coupled with better compression techniques, that already deliver content to mobile phones, should enable IPTV services via wireless networks for the Indian consumer. The consumer is thus faced with a multitude of choices from which a bouquet of services may be chosen. Thus, a congruence of choices implies convergent services for the end-user.

The regulatory body TRAI is struggling to come to terms with the different vying technologies that can provide these bouquet of services; a rapid overhaul of the existing laws & regulations is called for.

Revenue Sharing Concerns

The biggest fear of content firms when it comes to archiving of their programmes, is piracy and proper revenue-sharing. It is essential that the operator, whether it is the cable-industry or the telecom operator, shares the correct figures about the number of people who watch it and gives the right share of revenue to them. Else the question remains as to why should the content firm should provide its programming to be played as re-runs.

1.5 The Strategy

Competitive positioning strategy is to position Buy Interactive as being a total customer solutions (TCS) provider to IPTV providers; the initial focus is to be the best available product and move towards offering customized solutions, consultancy, training and maintenance services to our customers. The strategy model is based on the Delta framework with specific reference to using technology to provide a competitive advantage. System Lock In(SLI) would be an ideal situation; however, we envisage regulatory and customer resistance/customer sophistication as hurdles to any move in that direction. Key to capturing value via our revenue model is the achievement of critical mass in our complementors markets; we hope to ride the network effects of high market share achieved by our partners/customers. Our aim is customer’s mind-share.

1.6 The Business

The business is to provide a complete suite of software services packaged to allow the cable & DSL providers, primarily to enable t-commerce and secondarily the ability to create advertising content tailored by demographics, location & program content. The interactive/IPTV providers are the customers for the packaged products with Buy Interactive providing installation, consultation, customization and maintenance services, thus providing a Total Customer Solution.

1.7 The Mission

Our mission is to provide state-of-the-art interactive software solutions for the IPTV platform, to provide our customers a competitive edge by the right use of technology to meet their business needs and serve their customers better.

Interactive solutions at your finger-tips”

1.8 Key Success Factors

  • Total Customer Solution Provider

  • Customer Satisfaction & Long-Term Relationships

  • Strong Management Team with Key Technical Personnel

1.9 Customers/Complementors/Alliances

Our core targeted customers are to be the IPTV providers, who would use our products to track & report advertising views, lead statistics, and conversion to sales of advertised products. We also envisage a market for content creation software that would be used by content programming companies, that can synchronize advertised products with the programming content. Direct selling channels/home shopping networks such as QVC, HSN (QVC & HSN already have interactive TV shopping applications) and Shop@Home TV is another customer avenue to be explored. The business model rests on the ability to form strong strategic alliances with online e-tailers to enable their offerings for IPTV. The ability to get strong branded e-tailers to buy in early is critical to the success of the business. The other option is to build a strong local conglomerate of e-tailers and converge their services and products via our software service. This would however require an additional investment in time, capital and training.

1.10 Service/Product Delivery

Delivery of our products would be done by a team of software professionals, that include system administrator, an account manager and a software developer for trouble-shooting issues. Customization of requirements would have to be signed off by the customer and the account manager, after feasibility studies in consultancy with product managers and software architects is completed. Schedules & time-tables for different mile-stones of product delivery are to be agreed on with the customer. Provisions for staging the software and pilot deployments are other important aspects that will have to be considered. All these costs are to be borne by the customer with clauses inserted enabling the customer to pull out if necessary at any stage. Clauses to compensate for new requirements , either overlooked , inadvertent or caused by new regulations will be part & parcel of the contracts. These agreements would be drafted in consultation with our retained lawyers; special provisions to protect our intellectual property (IP) would also be factored in.

1.11 Product/R&D

1.11.1 Base Products & Features

The E-Tailer Enabler

The Enabler is the core product offered by Buy Interactive. The Enabler brings the online retailer to your television set leveraging the use of web-services, HTTP/HTTPS, SSL and the STB stack of software services to provide a much more user-friendly experience for the television viewer. The Enabler has 2 components, the Controller hosted at the operator’s central site and the on-the-fly Intelligent Renderer of the streamed/pulled deals available currently at the online retailer selected. The currently watched television show’s content descriptor tags are scanned for relevant key-words and matched against a local data-base of products and categories. These are then used to pull deals from the online retailer via their provided Web-service APIs and these can be rendered as the user wishes either in a full-screen window or a smaller picture-in-picture (PIP) window. The initial version would leverage the embedded browser components and create HTML pages on the fly to be viewed in the STB browser for speed-to-market. A further development would be a customized viewer with much more interactivity and better graphics; this could be a driver for customer lock-in by the use of a richer user interface.

The Analyzer/Tracker

The Analyzer/Tracker tracks the user clicks per displayed product/advertisement, the no. of views, and conversion to actual sales. This data is used by the operator to bill the e-tailer using a weighted formula based on click count, time spent on related views and translated sales. A percentage of this revenue would be royalty fees accruing to Buy Interactive.

The Distributor

The Distributor component deals with the distribution of advertising and programming related content to the STBs. Premeditated content such as graphics, video & audio can be distributed to the STBs to be scheduled to play along with scheduled programs, ads & events. The pull process is then limited to the prices and deals being offered for the products. The distributing process is transparent to the television viewer; content can be cached at servers located closer to the area to reduce network latency similar to the process used for Video-On-Demand (VOD). This meta-data is to be rendered by the Intelligent Renderer and synced along with the program & ad content.

The Service Updater

The Service Updater component updates the software stack of services on the STB. The Service Updater component seeks to ensure that the STB is autonomic, I.e. It is self-diagnosing and can fix itself except in the most rare circumstances. The STB can communicate with the Updater service and intimate it as to the current status of the STB, it’s content as well as the playout of content, if necessary. The Service Update STB component can check for updates if available and download them to be applied either immediately or at a programmed time or on shutdown or start-up. Care is taken to ensure minimal disruption of the viewer’s schedule.

The Shopping Cart

The STB services platform will include a shopping cart functionality that is owned by the service operator. This can be configured to override the e- tailer’s shopping cart or used for the operator’s promoted products such as telephone & cable equipment to be purchased.

The Billing System (BS)

The Billing System provides the television viewer statements of their online purchasing activity sent out to them either by mail or e-mail.

It also has B2B functionality to bill the e-tailer for service provided. All this is enabled via a server side billing system that is scalable to meet the growing subscriber base. This would integrate seamlessly with the Subscriber Management System to provide a complete customer management system.

The Subscriber Management System (SMS)

The Subscriber Management System would integrate with the operator’s existing customer database and would add additional tables to provide for additional customer specific data needed for the SMS & BS to function.

SME E-commerce Server

For small merchants and local retailers, the SME E-commerce server provides a service where they can hawk their goods and services. This will be provided to local businesses as a SAAS application that can be accessed via their own customer accounts, so that they can upload details of their goods and service including pricing, special discounts, promotions and sales. The E- commerce server is an Open Source based application server, that will have a stack of web-services provided on top of the existing application to enable these to be pulled to the STB to be rendered. An instance of this Application Server will also serve as a proof-of-concept to be shown to prospective clients.

Data-warehousing (DW)

The total suite of offerings would be incomplete without being able to facilitate data- warehousing to enable managerial decisions for the operator. The initial implementation would use an off-the-shelf implementation with data warehousing specialists and business analysts to work together to identify the various data-marts & dimensions to be stored in the data-warehousing system. This differs from the data-warehousing solutions currently implemented & used by both the e-tailer & the service operator.

1.11.2 Add-Ons & Extended Product Lines

The Content Creator

The Content Creator software allows the user to create tailored content using graphics, audio, video and animation to produce MPEG2 and MPEG4 content.

The Content Editor

The Content Editor allows the user to edit existing content mostly to create or edit additional tags to describe the content and add relevant key words and date information.

E-auction Server

The E-Auction server is an application server that incorporates all the features of an e-commerce server plus the ability to store various bids and dynamic pricing of goods and services. This feature will be an enhancement of the SME e-commerce server and will include features that enable tracking bids , closures. Merchants will also have the facility to upload their product offerings and latest deals.

1.11.3 Technology to be used

LINUX OS for embedded devices/Windows CE

Java2 Micro Edition(J2ME) / .NET platform

Java XLETs/Windows API

Proprietary Extension/Set-top Box APIs

SOAP web-services

RESTful web-services

HTTP/HTTPS/SSL

Embedded Browser

RFID for single-sign on

E-commerce Application Server (Open Source)

WebServices API for E-commerce Application Server

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