market situation of tv industry
TRANSCRIPT
MARKET SITUATION OF TV INDUSTRY
Agnese Lubka matr.№20852Heidi Kotiranta matr.№20840
Dana Mynarikova matr.№20816Oleksandra Soroka matr.№20856
Hochschule Harz 2013
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Table of contents 1. Current market situation & trends 2. TV advertising and how it works3. TV industry online4. New technologies 5. Future of TV industry6. Activity
3 Current Market Situation
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Facts and FiguresThe world broadcasting and cable TV market: Expanded by 6% in 2010 to exceed
$373,000 million Expected to reach almost $475,000
million by 2015Source: MarketLine
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Current trends Internet TV – becoming the preferred
choice of consumers Personal TV viewing: on - demand options,
increasing channels Possibility of watching TV across multiple
devices
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Current Trends Rise of 3Ds movies pulls people away
from their TVs LCD and Flat-Panel Screens Dominate TV is Going Social : viewers are
multitaskingSurfing the web
43%
Talking on the phone30%
Texting/ Send-ing emails
27%
What Americans are doing while watching the TV?
Source: Deloitte survey 2011
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Facts and Figures
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Facts and Figures
9 TV advertising and how it works
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1st TV advertisment Broadcast in the United States on July 1,
1941 The watchmaker Bulova paid $9 for a
placement on New York station WNBT before a baseball game
It was 10-second spot
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The basis Advertisements typically pay for the cost of the
programming you are watching Time slots for advertisements are sold by
television networks for the highest possible price
In an ideal situation, the price advertisers pay for commercials will cover the cost to produce the show and still make enough money for the network to profit off of it
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Ratings
Ratings play a big part in television advertising
Statistics collected by the Nielsen Company show exactly what types of people are watching what shows
The higher the ratings (the more people watching) for a particular show, the higher the price a network will be able to charge for advertisement space during commercials
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TV networks on their shows Major networks have
embraced the evolution of digital media
From daily Facebook posts and regular Tweets driving conversations
TV networks are a prime example of content marketing as they keep audiences coming back, season after season, increasing their ratings and profits
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Future
16 TV Industry Online
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Internet Television A general term that covers the delivery of
television shows and other video content over the Internet by video streaming technology
Professionally created content, distributed through the Internet.
Intended as a free means of distribution and is open to all.
86% of all Internet consumers in the US now watch online videos
12-17 year olds Americans already spend 33% of their online time watching videos.
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Internet TV and TV channels TV channels want to and have to offer their
programs online to reach a larger audience Additional viewing materials
Making of Behind the scenes Interviews And much more
Many channels are offering the material only for a limited time
Advertisement
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Example of MTV US webpage
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Other forms of Internet TV Web television
A term often used to characterize short programs or videos created by a wide variety of companies and individuals (YouTube)
Internet Protocol television (IPTV) Internet technology standard for use by
television broadcasters.
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IP-TV (Internet Protocol Television)
A system through which television services are delivered using the Internet protocol
IPTV services may be classified into three main groups: live television time-shifted television: catch-up TV, start-over TV video on demand (VoD).
Using high-speed access channels into end-user premises via set-top boxes or other customer-premises equipment
Advantages Interactvity Video on Demand
Limitations Need of a high speed Internet connection The IPTV is sensitive (right time, right order, unreliable data)
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OTT (Over-the-top)
Refers to delivery of video and audio over the Internet without a multiple system operator being involved in the control or distribution of the content.
The provider is not responsible for the viewing abilities, copyrights, and/or other redistribution of the content.
Content that arrives from a third party and is delivered to an end user device.
NowTV, Netflix, WhereverTV, Hulu
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Netflix Netflix, Inc. is an American provider of on-demand
Internet streaming media (Available to North and South America, the Caribbean, United Kingdom, Ireland, Sweden, Denmark, Norway, Finland, the Netherlands)
“Watch Instantly“ – Internet video streaming As of September 2013 Netflix reported global
streaming subscribers at 40.4 Million (31.2 million in U.S.)
Netflix currently has exclusive pay-TV deals with major and mini-major movie studios.
Netflix’s series such as Lilyhammer, House of Cards (3 EMMY awards), Hemlock Grove, and Orange is the New Black
25 New technologies
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Display technology For the past 75 years – the cathode ray tube (CRT) Plasma
Picture quality – lighter, less bulky, wice colour scale – contrast
× Phosphors lose luminosity over time× Hight power consumption
LCD – the most widely produced and sold Lower power usage than plasma× Worse contrast ratios× Blurring and ghosting during fast-moving images
OLED – future? curved display Great contrast ratio× Current costs× Lifespan
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Resolution
First TV‘s with UHDTV resolution come to the market Called also 4K Has 3840 x 2160 pixels – 4 times more than Fulll-HD the image is visually smoother and sharper
SDTV HDTV UHDTV
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3D TV Conveys depth perception to the viewer Displays offset images that are filtered
separately to the left and right eye. Two strategies: wear eyeglasses to filter images to each eye, have the light source split the images directionally
into the viewer's eyes (no glasses required). 3D faces uncertain future
Preferring 3D in cinema Makes some people sick
According to the latest forecasts 3D TV is expected to be in 1.6% of all homes by 2015
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Smart TV Something like smartphone among old phones Sometimes referred to as connected TV or
hybrid TV is any TV that has internet access built in
allowing it to access a range of online services: video on demand, social networking, instant messaging, full web browsers.
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Futuristic Cisco‘s Wall TV Cisco believes that most homes will have
borderless LCD displays, tiled across an entire wall
Controlled by tablet
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Mobile TV Associated with mobile phones and other mobile digital
devices Cell phones provide the best posssible way to reach out to
users Includes:
Pay-TV service Free-to-air
Additional features: Downloading TV programs and podcasts Ability to store programming
Device Manufacturer's challenges Power consumption Memory Display Processing power
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Mobile TV TV-vide usage isn‘t all that mobile
82 % of tablet TV usage and 64 % of smartphhone TV usage occurs in the home
49 % more convenient 13 % want to watch multiple episodess 5 % because of fewer ads
Viewing Mobile TV remains a small part of overall TV consumption
Reason
33How do you imagine the future of television?
Future of TV Industry
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Future of TV
Creators Retailers
Distributors
Technolog
y developers
Mr. Potato
Internet is changing the TV industry…1. What is future of TV?2. Will smaller devices become more used?3. Will the 30 seconds spot decline
because TV is everywhere available?
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Future of TV
Limited means to deliver their producst without distribution access Exploring opportunities to go direct to the customer
Creators Retailers Distributors
Technology
developers
Mr. Potato
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Future of TV
Broadcasters are being turned into retailers
Traditional revenues streams are threatened -> only Live is still strong
VoD will be differentiated on price and brand
Creators Retailers Distributors
Technology
developers
Mr. Potato
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Future of TV
Analog being switched off IP-TV and OTT or hybrid Satellite
Creators Retailers Distributors
Technology
developers
Mr. Potato
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Future of TV
Smart TV Connected TV Multiple connected device brands
Creators Retailers Distributors
Technology
developers
Mr. Potato
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Two-screen usage 50 % of tablet owners view both features
TV shows and movies on device 80 % of UK teens use second screen to
communicate with friends when watching TV
50 % of UK inhabitans using social media while watching TV
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Social TV Answer = Social TV A synthesis of TV and social networking Audience engaging with TV via second
screens (e.g. laptops) and connected TV systems
People talk 24/7 about TV on Facebook or Twitter
41 Music Quiz
Questions?
Thank you for your attention!
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5060hz#utm_medium=selfpromo&utm_source=avmania&utm_campaign=copylink http://cstonline.tv/tv-industry-links-worldwide http://gigaom.com/2013/08/23/ready-for-the-future-of-tv-too-bad-the-industry-is-still-just-
talking/ http://news.discovery.com/tech/gear-and-gadgets/online-videos-forcing-tv-change-130814.htm http://mashable.com/2011/07/20/consumer-trends-tv/ http://www.reportlinker.com/ci02097/Television-Broadcasting.html http://www.thepulsenetwork.com/content-marketing-post/how-tv-networks-use-content-
marketing-to-promote-their-shows-year-round/ http://www.wired.com/underwire/2013/02/nielsen-online-viewing-ratings/ http://www.slideshare.net/sarahlou79/the-effects-of-television-advertising-to-society http://econsultancy.com/de/blog/7731-how-can-marketers-use-offline-ads-to-drive-people-online