create compelling digital tv services consumers want

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Create compelling digital TV services consumers want Telecoms World Middle East 15 September 2015

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Page 1: Create compelling digital TV services consumers want

Create compelling digital TV services consumers want Telecoms World Middle East 15 September 2015

Page 2: Create compelling digital TV services consumers want

Head of UX, New Business Ooredoo Group Previously SKY TV, Microsoft, Thoughtworks

#UX #UI #Design #TWME @Ultraman

About me

Page 3: Create compelling digital TV services consumers want

1.  Get over the first hurdle How do I convince stakeholders to build my TV Product?

2.  Create innovative products fast How do I validate my ideas quickly enough?

3.  OTT vs IPTV How do I choose which is best for my company?

4.  Future-proof your TV strategy How do I own, distribute and monetise content wisely?

5.  Test and learn How do I improve products, reduce churn and strengthen customer loyalty?

Agenda Creating compelling digital TV services consumers want

Page 4: Create compelling digital TV services consumers want

People don’t watch TV like this anymore…

Page 5: Create compelling digital TV services consumers want

Expectations are changing

•  Multi-screen •  OTT •  Mobility •  Self-service •  Customization •  Personalization •  Participation •  Social community •  Shared ownership •  Co-creation

Page 6: Create compelling digital TV services consumers want

6

Where do you start?

https://www.reddit.com/r/gaming/comments/1vqh4s/what_vr_headsets_should_look_like_according_to/

Page 7: Create compelling digital TV services consumers want

1. Get over the first hurdle

Use research to convince stakeholders to build your TV Product

Page 8: Create compelling digital TV services consumers want

Prove it works elsewhere

•  14% YoY increase in IPTV subscribers 2013-14 •  May 2014 OTT TV launch

•  Free for existing IPTV subscribers

•  Premium TVOD movies and TV series first

•  Multi-screen: PC’s, smartphones and Smart TV’s •  Recent related stories, articles and reviews

•  16 live TV channels, on the go

•  Live sport

•  Subscribe for $7.4/month promo for two months

Note: 1Converted from HUF to $ using exchange rates of Q1 2015 from Oanda.com Source: Magyar Telekom’s annual report and quarterly reports, accessed in Jun 2015; Digital TV Europe, ‘Magyar Telekom sees multiscreen, IPTV boost’, Mar 2015; Broadband TV news, ‘Interactive, multiscreen boosts Magyar Telekom’, Mar 2015; OG Analysis

•  Quick uptake of OTT TV service (companion) •  High daily usage % •  Increase PayTV ARPU and subscriber base

As of Mar 2015, 100,000 subscribers registered for TV GO, and more than half used it on daily basis

In Q1 2015, significant growth in PayTV ARPU

(5% YoY) in Hungary, primarily driven by IPTV uptake

Page 9: Create compelling digital TV services consumers want

Simultaneous TV viewing

Stay up-to-date On the road

Discover what matters most to your customers

“People travel a lot for work and pleasure, this would be useful to have on long drives, will keep the children and ourselves entertained”

“There are always fights in the house for the TV in the evening, this service will put away this problem, I can watch what I want and so can my kids”

“When your waiting to pick up your wife from some place or when your at an event of some kind and not having a good time, this works as a good escape ”

I want to remain entertained I want to watch my favorite soaps

I want to reduce stress at home

•  Mobile data •  Live TV •  Multi screen

Page 10: Create compelling digital TV services consumers want

TECHNOLOGY

UI / UX*

MARKET RESEARCHCustomer insightIndustry insightRegional insight

OG NB TEAMSFuture Strategy / innovationInternational Roadmap definitionWorkshop facilitation

PlatformAgile/Lean project deliveryProgramme/project management

Proof of concept creation Concept validation / usability testingDesign support / vision setting

COMMERCIAL

MARKETING

OG Business strategyOG Sales strategy

BrandingAdvertisingProduct strategy

OPCOBusiness prioritiesLocal RoadmapLocal experts

Involve stakeholders early

PARTNERSCapability supportAdditional expert advisory

•  Workshops •  Presentations •  Usability test sessions

Page 11: Create compelling digital TV services consumers want

2. Create innovative products fast

Use Lean UX & rapid prototyping to validate your ideas

Page 12: Create compelling digital TV services consumers want

Prioritise the biggest problems

Current TV consumption

Evolution of pay TV

Triggers and barriers

Value and ROI

Decision-making

Pricing & payment

Purchase behavior

•  TV viewing behavior

•  Level of TV service adoption and consumption

•  Piracy

•  Where, when, why, with who?

•  Awareness of Pay TV Services like OSN and BIS

•  Appeal of content brands

•  Reactions to censorship

•  Illegal services like Dish TV and Tata Sky

•  Subscription thresholds (vs OSN, BIS or Omantel)

•  Quality of content selection, video playback

•  Social, effort, norm deviance

•  Control

•  Relevance

•  Timing

•  SVOD, TVOD, PPV, premium

•  Subscription / package options

•  Device choice (STB), Smart phones, Tablets and Phablets, Web, Smart TV, Games Consoles

•  Bill payment

•  Live TV epg, record, Catch-up, recs

•  social/family, current trends, new cinema releases,

•  Influence

•  Empathy

•  Pricing for a purchase decision

•  Consumer product expectation vs price

•  Payment options

•  Availability - retails stores, third party dealers, retailers e.g.Carrefour

•  Top up/re-subscription methods /preference

•  Discounts, Incentives and promotions

•  Timing & availability

Page 13: Create compelling digital TV services consumers want

Build a Minimum Viable Product… in 2 weeks

Key screens and interactions New brand and UI

Existing digital agency = Quick sign-off Existing technology platform

Content / Pricing (focus group)

Page 14: Create compelling digital TV services consumers want

Test on popular devices

•  1:1 video •  Diary study •  App tracking

Page 15: Create compelling digital TV services consumers want

3. OTT vs IPTV

Choose which Middle Eastern TV opportunity is best for your company

Page 16: Create compelling digital TV services consumers want

Decide what you need

•  User adoption •  Content rights •  Content delivery •  Network •  Routing •  Quality of service •  Unicast vs multicast •  Regulation •  Costs vs ROI •  Speed to market •  Competitior advantage

Page 17: Create compelling digital TV services consumers want

Deploy strategically

Region 1 New product launch (Q4 2015) •  New brand •  New UI and UX •  New content

Region 3 New product launch (Q2 2016) •  IPTV trial •  Multiple locations •  New features

Region 2 Product extension (Q1 2016) •  Extend existing TV service •  Bundling options •  Regional content

Page 18: Create compelling digital TV services consumers want

Have a flexible plan

2015 Q3 Q4 Q1

2016 Q2

•  Android devices •  iOS devices •  PCs / Macs (Chrome, IE,

Safari, Firefox)

•  STB •  Dongle

•  Games console •  Smart TV app

•  Windows 10 devices •  Games console 2

•  Live TV •  nPVR •  Catch-up

•  SVOD OTT TV service

•  Operator Billing

•  PayPal •  Credit card

•  Product Packaging

•  Multi-DRM •  Manage

profile

•  New language •  TVOD •  Social strategy

•  Recommendations

Page 19: Create compelling digital TV services consumers want

4. Future proof your TV strategy

Own, distribute and monetise content wisely

Page 20: Create compelling digital TV services consumers want

Innovate to increase TV service uptake

Apart from these, telcos should focus on other activities such as acquisitions, increasing TV CapEX, and launching own channels

Bundled Services STB features OTT-VOD Services

Access over multiple devices

Live and catch-up TV

Extensive VOD library

Free access for promo

period

Remote recording

Common remote for

TV and STB

Play, pause, and rewind

live TV

External hard drive

Customize bundles

Discounted prices

Bundling of devices

Free limited access to

OTT

Personal channel list

Record one channel,

watch another

Profile targeted content

Free cloud storage space

Discount on other

services

Device purchase discount vouchers

First level of engagement

Differentiators

Page 21: Create compelling digital TV services consumers want

Build a robust TV delivery ecosystem

•  Modular / De-coupled •  Flexible •  Connected

Download to go

New Payment method

Social network recommendations

VR Goggles

Page 22: Create compelling digital TV services consumers want

Note: 1Excludes the online and mobile components of TV advertising; 2Includes broadband, VOD, OTT video, music, video games, and other digital media; 3Calculated using the expected CAGR for 2013–18 and advertising revenue forecast for 2018 Source: PwC, ‘Global entertainment and media outlook 2014-2018’, accessed in Mar 2015; McKinsey & Company, ‘Global Media Report 2014’, Sep 2014; Digital Strategy Consulting, ‘Global ad trends: Digital ‘to account for third of all revenue by 2018’, Jun 2014; OG Analysis

Explore an AD-supported model

• Matched to entertainment content • Unobtrusive TV experience •  Timely, Targeted, Social • Easy purchase path •  Flexible payment methods • Any device, any time • Monitor customer, advertiser and

commercial partner needs •  Fit-for-purpose formats •  Premium video content support

! Middle East and Africa will witness the fastest growth in TV advertising revenue

! Online TV advertising is expected to more

than double its share of the total TV advertising revenue between 2013–18

132 164

215

2009 2013 2018F

3

Global TV Advertising Revenue ($ bn), 2009–18F

5.5%

Page 23: Create compelling digital TV services consumers want

5. Test and learn

Trial and continuously improve products, reduce churn and strengthen loyalty

Page 24: Create compelling digital TV services consumers want

Simplify your offer

Platinum 1

Platinum 2

Platinum 3

Gold 1 Gold 2 Gold 3

Silver 1 Silver 2 Silver 3

A

Basic packages

D B C

97%

2%

1%

10%

ADD-ON 1A

ADD-ON 2A

ADD-ON 3A

ADD-ON 1

ADD-ON 2

ADD-ON 3

Upgrade Add-ons

Thematic Add-ons

0% 5. Remove upgrade add-ons

3.Shift expensive/flavored to Premium

2.Include common channels across all silver packages

1. Include all FTA

4. Merge Gold and Platinum packages

6. Integrate add-ons within premium bouquets

•  Too complex to understand •  Hard to sell •  Complicated integration

Premium

1

Premium

2

Premium

3

+ A + B +C

+ A + B + C

+ A + B + C

BASIC

•  Easy to understand •  Fewer options •  Simple integration

Page 25: Create compelling digital TV services consumers want

Give customers content they want

Some of the popular National channels Some of the popular regional channels

Recommendation: Include these daily viewing channels in packages targeted to Asians

“Watching these channels is our way of keeping up with what is happening back home, this our way of feeling connected”

Page 26: Create compelling digital TV services consumers want

Continuously improve the service

Focus Groups

•  5-6 respondents in each group

•  Interactive group discussion

•  Response variety and cross fertilization of thoughts

•  Group-dynamics to highlight different / common interests

•  multiple view points about different TV services, channels, genres, role of each TV service…etc.

Home Immersions

•  VIBRANT – Takes place in the user’s natural surroundings; involves audio, visual, time

•  PERSONAL– Helps user’s respond to stimulus they already have (i.e. what they own, use, consume)

•  COMFORTABLE– Observational and participative rather than interrogative or evaluative

•  The family-setting is a realistic approach as TV and internet related experiences / decisions might be done together

Page 27: Create compelling digital TV services consumers want

1.  Get over the first hurdle Use research to convince stakeholders to build your TV Product

2.  Create innovative products fast Use Lean UX & rapid prototyping to validate your ideas

3.  OTT vs IPTV Choose which Middle Eastern TV opportunity is best for your company

4.  Future-proof your TV strategy Own, distribute and monetise content wisely

5.  Test and learn Trial and continuously improve products, reduce churn and strengthen customer loyalty

In Summary Creating compelling digital TV services consumers want

Page 28: Create compelling digital TV services consumers want

a.  Subscriber growth b.  Reduced churn c.  ARPU and EBITDA growth d.  Offset declining fixed voice revenue e.  Increased uptake of other services (bundle) f.  Increased viewership g.  Brand trust and loyalty

What is the impact of launching a TV proposition?

Answer… ALL OF THE ABOVE

Page 29: Create compelling digital TV services consumers want

September 21, 2015 Name Presentation 29

Eewei Chen Head of UX, New Business Ooredoo Group [email protected] +974 5032 5263

Thank you