casbaa 2015 - video moves revenue

VIDEO MOVES REVENUE EXECUTIVE MEDIA LUNCHEON 27 October 2015

Brought to you by Brightcove In Partnership with Akamai

WELCOME ADDRESS Andy Feinberg, President, International

AGENDA

©2015 Brightcove Inc. 5 |

1340 – 1405 Monetising Video

Ben Morrell, Senior Technical Consultant Media, Brightcove

1405 – 1430 OTT Delivery with Quality and Scale

David Habben, Chief Media Strategist, Akamai

1430 – 1455 Fireside with Scripps Networks Interactive Derek Chang, Managing Director, Asia-Pacific Operations, Scripps

Tomer Azenkot, General, Manager, Asia, Brightcove

1500 – 1600 Networking Tea and Snacks

SPECIAL THANKS


MONETISING VIDEO Ben Morrell, Senior Technical Consultant for Media, Asia, Brightcove

•  Media Publishers – The Ecosystem

•  Service Proliferation Trends

•  Video Monetisation Models – Live Examples

•  Monetisation Trends & Challenges

•  Pitfalls to Monetising Video

•  The Monetisation 3-point Checklist


Media Publisher Ecosystem

Non Linear TV: Explosion of Services

10 |

Broadcasters Pay TV OTT from Broadcasters & Pay TV

FTA on HbbTV

Sports Licensees Online Channel

DTC model)

Content Programmers Content Aggregators

©2015 Brightcove Inc..

Types of TV/Video Consumption of Mobile Phones (‘000)

Source from comScore: MobiLens 3 month Average January 2015

Shift in Viewing


35,157

54,056

36,967

44,225

73,255

41,515

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Paid TV / Video

Web-based Videos

Live / On-demand TV

22% Paid TV/Video

15% Web-based Video

12% Live On-Demand TV

2015

2014


Shift in Viewing

44% 50% 58%

15% 17%

17%

41% 33%

24%

Q1 2014 Q3 2014 Q1 2015

PC

Mobile

OTT

Source from Hulu Internet 2015: The Shift to the Living Room Continues


Shift in Viewing

Service Proliferation Trends

Services models:

•  Standalone entertainment (HBO Go)

•  Live and sports centric content (NFL Now)

•  MVPDs providing alternative to linear TV

•  Streaming players (Apple TV)

Threats:

•  Cannibalism of linear TV (??

Opportunities

•  Market Education

•  Combat piracy and torrent sites

•  Seamless user access to content

Service Proliferation Trends


The Netflix Effect


Live in 50 countries

69 mn subscribers =

avg $8.99 MRR per sub

$1.34bn revenue

(July2015)

Launch in 200

countries by end 2016

Australian ISPs see surge in broadband traffic, 50% traffic from Netflix

17 |

Market cap grew from $6.5B to $27B (~60 CAGR) from January 2013 to 2015; ~69M paying global subscribers (38M U.S)

Generated ~$1.5bn in revenue in 2015; 9m in paid subscribers as of April 2015

Fastest-growing OTT service – in first year signed up 1M paying subscribers representing $120M in revenue (run rate)

Projected revenues to hit $1B by end of 2016; recently closed deal to power HBO’s OTT platform

Initial launch leverage existing ~90M Amazon Prime subscribers; will launch decoupled ad-supported subscription service in 2015

~45.3M monthly users with valuation between $500-950M

Over 800K shows / 350k movies purchased per day; 2015 estimated revenue at $1.5bn on iTunes videos

Show Me The Money


Monetisation Models

Monetising Live Sports: Direct to Viewer


AVOD across multi-devices and platforms: Network Ten enables a seamless viewing experience

“We are dedicated to providing

high quality entertainment

anywhere, anytime. Thanks to

Brightcove Once, delivering ad-

supported content on platforms

like Apple TV and Sony Bravia is

a simple process.” Rebekah Horne, Chief Digital Officer, Network Ten


AVOD revolutionised Free to Air TV: HbbTV goes live in Australia and New Zealand

"We selected Brightcove, along

with our broadcast partners, in

order to ensure our viewers have a

consistent experience across all

platforms. Two of our key goals

with FreeviewPlus were to deliver

an engaging experience and an

easy-to-use platform, and

Brightcove’s video solutions are

the essential foundation.” Tom Cotter, Chief Information and Product Officer,

Mediaworks


TVOD: Cricket Australia Live & VOD

©2015 Brightcove Inc.. 23 |

SVOD: Unlimited Streaming of Videos Across Multi-Devices and Multi-Platforms


SVOD: Flexible Bundles to Suit Every Consumers’ Needs


Flexi SVOD: Garage Entertainment Streams Action Sports Videos with Flexible Pricing Packages


©2015 Brightcove Inc.

Online Channels


Monetising Trends & Challenges

Trend: The Shift in Digital Video Ad Spend


$2.65 $3.54

$4.52 $5.32 $5.78 $6.23 $6.64 $0.24

$0.66

$1.44

$2.45

$3.67

$4.88

$6.07

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

2012 2013 2014 2015 2016 2017 2018

Digital Video Ad Spending by Channel, ‘12-’18 in billions

Desktop Mobile

Source from IAB, PwC, eMarketer, June 2014

Ad Yield: Video advertising fill rates increased across the board


PUBLISHERS BROADCASTERS

77% à 92% 64% à 67%

56% à 88% 57% à 70%

55% à 89% 54% à 74%

Source: 2014 SNL Kagan, “Media Trends, Actionable Metrics, Benchmarks & Projections for Major Media Sectors, 2014 Edition

Internet video publishers capture only a fraction of the best possible ad monetisation revenue

(Actual Monetisation)


Internet Video Publishers Capture Only a Fraction of the Best Possible Ad Monetisation Revenue


Example Challenges

•  No ad delivery solution for LIVE streams

•  No single ad network has enough inventory

•  Ad network has no SDK for Windows 8 app

•  10-15 % ads are lost due to download performance issues

•  10-30 % ads are blocked by ad blockers

Ad performance loss is caused by hard technical challenges of delivering video ads to multiple devices & apps in a complex Internet ecosystem

32 |

Common Pitfalls

Common Pitfalls to Monetising Video


•  Overcomplicating subscription offerings

•  Delivering a bad user experience

•  Lack of consistency of service across devices

•  Inability to identify the high value genre

•  Losing revenue from ad blockers

The Rise of Ad Blockers: A win for consumers? No.


41% of web users are equipped with ad-blockers

Source: The rise of Ad Blocking Report, from Adobe & PageFair, 2015

Global Ad Blocking Growth

Blocking ads continues to build on the strong growth rates seen during 2013 and 2014. The findings: •  Globally, usage of ad blockers grew by 41% YoY (Q2 2014 – Q2 2015) •  As of June 2015, there were 198 million monthly active users for the major

browser extensions that block ads


Checklist for Monetising Video

1st point - Audience

Build The Audience

Create Content Niches & Personalisation

Extension of Existing Services

Business Model Flexibility


2nd point - Engagement

Devices & OS – Native or Mobile Web

User Experience Create Engagement/Discovery – Social Media


CONTENT

ON THE GO


3rd point - Revenue

Paywall Flexibility, Dynamic Business Model Ad Servers & Standards

Strategy around Ad Blockers


Strategy Around Ad Blockers

Ad optimisation technology that allows publishers to:

Maximise Ad Delivery

Streamline Viewing Experiences

Increase Revenue Across Desktop & Mobile

Combine SSAI with Player Management Service


To Wrap Up…

You focus on your business, while we make sense of the ever evolving dynamic market with best-in-class solutions.


With new devices every week, we enable devices reach and counter ad blocking.

We are a technology provider with the expertise and flexibility to scale with you.

MONETISING VIDEO Ben Morrell, Senior Technical Consultant for Media, Asia, Brightcove

THANK YOU!

casbaa 2015 - video moves revenue

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