Cisco Blogs

Cisco Blog > SP360: Service Provider

Trading Mobile Dollars for IoT Pennies

Jeff Zucker of NBC Universal coined the prescient expression “Trading analogue dollars for digital pennies” in 2008 to describe the huge gap that he was observing between the lucrative promises of online and digital advertising and the reality of the meager revenues that it was in fact producing.  Could the same be true of the Internet of Things (IoT) revolution?  Are we trading the hundreds of dollars that we are generating from mobile users for the pennies that providers get for connecting “things”?

Connecting the 50 billion projected devices, or things, to the Internet is the cornerstone of the Internet of Things.  Given the challenges of remoteness, mobility and the cost of wiring up these devices, many of these connections will be made over mobile networks.  In fact, Beecham Research estimates that the number of cellular machine-to-machine connections will grow to 1 billion by 2020, up from 172 million in 2013.  It is no wonder that the mobile operators are salivating at the prospect of all this new revenue to be earned from connecting inanimate objects.  This windfall is especially at a time when there traditional mobile business is under attack.  Changes in voice usage and bundled minutes are causing voice revenues to decline and data revenues are under attack from Wi-Fi connections and over-the-top providers (see The Mobile Paradox). Read More »

Tags: , , , ,

Online Entertainment – What’s more important – Content or Technology?

Mary Meeker - Morgan Stanley Slide on the Online Advertising Market

At the Web 2.0 Summit 2010, internet analyst Mary Meeker presented data, shown above. The chart she offered drives home an important point to media and entertainment companies – 28% of our time spent with media in the US is on the internet – so we expect our media brands to deliver online. And Nielsen also released data this summer  showing 22% of the time people spend on the internet is with social media. In aggregate, Web users spend a total of 110 billion minutes on social Web sites and blogs each month. Therefore media companies must tailor and create engaging digital content to speak to the audiences who want to interact with content brands online and across social media sites. But what’s more important when trying to create appealing media experiences for socially engaged audiences who are spending 28% of their media time online: Is the technology experience more important than the content? Or is the content more important than the technology experience? Vivi Zigler, President of NBC Universal Digital Entertainment (bio link here), attempted to address this question at the Digital Media Conference West in San Francisco:

Vivi Zigler tells us in the clip that NBC Universal has to tailor and tweak existing technologies to the story lines of the NBC TV shows and to the shifting tastes of the online audiences to create engaging experiences.  How does NBC Universal adapt technology to changing television story lines and still create an engaging and quality experiences? (continued ..)
Read More »

Tags: , , , , , , , ,