non-linear scheduling 23 october 2014. setting the stage 2 to launch stand-alone online service in...
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NON-LINEAR SCHEDULING
23 October 2014
2
Setting the Stage
To Launch Stand-Alone
Online Service in 2015”
– Deadline.com Oct 15, 2014“This is the most exciting inflection
point domestically and
internationally in the history of
HBO.”John Plepler, HBO Chairman &
CEO“ Announces Its Own Live TV and Streaming Service” – Techcrunch.com - Oct 16, 2014
“
launches VoD
service for Asian Movies”
– Variety.com, Sept 11, 2014
“ now in France, Germany,
Austria, Switzerland, Belgium and
Luxembourg.”
Press Release Sept 18, 2014
Latin American Channels
Launches Online VOD Service”
– Deadline.com Oct 15, 2014
This is why we are talking about Non-Linear Scheduling today.
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Executive Summary – Business Problem
• The Networks group has experienced significant growth over the past 15 years with 125 channel feeds in 159 countries– Manual or outsourced scheduling for non-linear component
• Non-Linear agreements are expanding in scope and volume– Carriage agreements requiring catch up content – Crackle asset volume growing 35% annually– New SVOD offerings for Digital Networks– Not having catch up content will erode our brand.
• Consumers shifting rapidly to OTT / Online viewing vs. Pay TV– HBO Go, CBS All Access, ESPN NBA Service, Netflix in Germany– Non-Linear is a primary platform, not just tethered to linear.
• Content is only available provided we can schedule it– Multiple platforms, providers– Network (linear) tether for catch-up
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Executive Summary – Business Problem
• Lack of a Non-Linear scheduling system leads to increased…– Manual tracking of thousands of assets– Double-checking to catch common errors– Effort and people to manage schedules and assets– Errors impacting delivery of content– Missed dates on platform deliveries– Risk of not achieving business goals
• Also resulted in lost revenue for content– Rights exist, content unexploited on a valid platform– Content not made available on time– Agreements not pursued due to manual overhead
• The implementation of a centralized non-linear scheduling system will support the growth in our Networks business and allow for us to scale for future growth
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Proposed Solution
• A global non-linear scheduling system will allow us to– Update schedules for diverse business needs: on-net content,
distributed content, events, promotional elements – Update workflow tracking for multiple teams to traffic increased
content volumes for multiple regions– Update , track and centralize metadata and art asset
management– Update schedule rights to reduce manual errors generated by
overlapping, yet disparate, documents and human error
• A global non-linear scheduling system will allow us to embrace new business models and windowing approaches– Support rising TV engagement with second screen apps– Innovate with new products and the way we deliver content– Enhance value for Cable Operators with TVE and OTT services
This project will implement non-linearvalue chain
Playout
Media
Pro
duce
rs
ExternalStudio
ProductionCompany
SPE Other
Contract(& Term sheet)
IngestReceiveVerify
ConformQCEdit
Transcode
LibraryTransmissio
nReady
Deliver
TranscodePackage
Finance
L NL
Business Intelligence
1
Ad Sales
Linear
Non-Linea
r
Promotions
Plan, Manage, Optimize
campaingns
B 2 B & Mobile
Affiliates, Ad Sales,
Partners
Affiliate Mgmt
Contract, Obligations,
& Sales
CRMManage
customer relationship
s
GPMS
IntegrationHUB2
3 4
9
7
6
8
5
10
Facilities Manageme
nt
Client Profiling
7 7
7
7
77
7
7
LinearNon-
Linear
Global TV InitaitiveGlobal Networks InitiativeDigital Networks and New VODGlobal Finance Initiative
3rd Party Data
VOD/OTT/Mobile
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Invoices U.S. SPT Order Sheet (Features)
Watchlist, LCI, etc. Schedules
Watchlist Creative Brief
Master Inventory Schedule
Manifest Materials Work Order
Quarterly Schedule
Channel Art Creative Brief:
New and Relights
Promo Schedules (Video, Lower
Thirds, Display)
Promo Creative Brief
Master Licensor Document
Slideshow & Merch Tool Promotion Schedule
Slide Art Request Google Sheet
Crackle Ecosystem Less Spreadsheets = Less ProblemsDocuments That Can Be Consolidated by a Non-Linear Scheduling & Workflow System
*NOTE: Does not include documents that might be generated by Creative, Video Operations, or Operations
We wouldn’t launch a linear channel without a scheduling system. Why wouldn’t we do the same for a non-linear platform?– Rebecca Agbe
Financial Summary
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Year One Project Costs Five-Year Summary and Payback Software: $0 Five-Year Total Cost: $5,146,668Hardware: $0 Five-Year Total Benefit: $7,956,848Internal Labor: $71,820 Five-Year Net Benefit: $2,810,180External Labor $481,858 Internal Rate of Return: 28%Misc./Other: $65,000 Net Present Value at 10%: $1,188,579TOTAL $618,678 Payback in Months: 35.54
Blended Onshore/Offshore Labor Rate: $70
Project Benefits (Yearly) Funding by Fiscal YearHard $ Benefits ( Revenue Enhancement) $282,400 FY15( Inception Funded) $150,000
Soft $ Benefits (Cost Avoidance) $267,840 FY15 (Remaining Request) $468,678
Soft $ Benefits (Effi ciencies) $767,782 FY16 $1,275,990
TOTAL $1,318,022 TOTAL $1,894,668
Depreciation: FY16 FY17 FY18 FY19 FY20 FY21
$80,523 $322,094 $322,094 $322,094 $322,094 $214,729
Ongoing Costs: $650,400
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Benefits
Category Benefit Timing 5-Year Benefit Description
RevenueEnhancement
$282,400 Yearly $1,815,304 • About 200K in lost revenue in direct distribution deals for Crackle. We can get an additional 1-2 deals every year with a system. • Approximately $8000/month in lost revenue for Crackle as there are no centralized reports that show rights that can be exploited to be scheduled.
Cost Avoidance
$267,840 Yearly $2,302,639 • Crackle’s device parting and day parting initiatives requires them to curate additional hours of content and schedule content on device specific platforms. • Direct delivery requires accounts for increased volumes that must be packaged and worked through Operations team. Manual tracking of workflows requires additional labor that would be saved with a system in place.
Operational Efficiencies
$767,781 Yearly $3,838,905 • Crackle US, Crackle LATAM, Germany, Central Europe – Efficiencies achieved by a) eliminating spreadsheets, documents, emails. b) reducing manual errors while editing spreadsheet c) centralizing workflow information in a dashboard reducing emails.
Grand Total$1,318,021 Yearly $7,956,848
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Intangible BenefitsCategory DescriptionBusiness Benefits
Revenue
Improved ratings for linear programming resulting from increased non-linear exposure.
Ensure that our subscriber fees in carriage deals are not impacted by providing the ability to efficiently and quickly schedule content for digital platforms
Operational EfficienciesLess effort and more accuracy when scheduling content for non-linear platforms
Risk Mitigation
Ensuring that we meet our obligations with direct distribution platforms by providing reports on scheduled content on 3 rd party platforms
Strategic Benefits
Provide better negotiation leverage in Operator deals by allowing us the ability to scale content to more non-linear platforms that are tethered to linear channels.
Enhance the value for our customers by getting content to the non-linear platforms within 1-7 days
IT Benefits
Strategic BenefitsEstablishes a centralized global scheduling system that can be utilized by other LOB’s.
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Competitive Analysis
• Other studios have implemented non-linear scheduling systems to compete in the digital landscape– ABC Networks, AMC Networks (US), Vubiquity (US), BT Vision (UK),
Channel 5 (UK), Orange (France) and Telefónica (Spain) have chosen BeBanjo
• Nine non-linear vendor solutions were analyzed to identify a non-linear scheduling system that would work for Television Networks– The proposed solution is with vendor BeBanjo who are a major
leader in the non-linear scheduling space– BeBanjo is a cloud based solution and has an existing relationship
with Mediamorph that we already leverage. – We will build Product, Rights and Schedule integrations with
BeBanjo through a centralized operational data store (ODS)
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Timeline
• November 2014: Project start• March 2015 – Phase 1 Go live• August 2015 – Crackle, Western Europe and Central Europe Live
APPENDIX
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Volume projection
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Asset volume is projected to increase dramatically for both Licensed and Original Content in U.S. & Canada
U.S. (Based on MRP 2014)Fiscal Year Budget # of Assets Annual Increase of # of Assets (%)
FY15 $8MM 18,455 FY16 (estimated) $11.5MM 26,529 44%FY17 (estimated) $13.5MM 31,143 17%FY18 (estimated) $20MM 46,138 48%
Canada (Based on MRP 2014)Fiscal Year Budget # of Assets Annual Increase of # of Assets (%)
FY15 $800k 25,429 FY16 (estimated) $2MM 63,573 x2.5FY17 (estimated) $2.6MM 82,644 30%FY18 (estimated) $3.5MM 111,252 35%
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Revenue Projection
FY12 (Actuals) FY13 (Actuals) FY14 (Actuals) FY15 (Forecast) FY16 (MRP) FY17 (MRP) FY18 (MRP)
$17,609 $19,768 $34,505
$60,200 $80,050
$123,000
$162,950
Total Revenue ($ in thousands)
FY15 and beyond includes ad sales revenue from Playstation
Scheduling on non-linear platforms can add up quickly…
AXN(Central Europe)
Czech Republichttp://www.axn.cz/
Hungaryhttp://hu.axn.com/
Slovakiahttp://www.axn.cz/
Romaniahttp://www.axn.ro/
Polandhttp://www.axn.pl/
Bulgariahttp://www.axn-bulgaria.com/
VODCatch up
Without a global platform, business users have built a variety of processes…
GPMS
External Sources
Linear Rights
VOD Rights
SchedulingProgramming Grid
(Contains product, rights and schedule data)
Material Order and Delivery
Metadata Packaging and
Delivery
Linear Schedule
RightsProduct
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InvoicesU.S. SPT Order Sheet
(Features)
Watchlist, LCI, etc.
Schedules
Watchlist Creative
Brief
Master Inventory Schedule
ManifestMaterials
Work OrderQuarterly Schedule
Channel Art Creat ive Brief: New
and Relights
Promo Schedules (Video, Lower Thirds,
Display)
Promo Creative
Brief
Master Licensor
Document
Slideshow & Merch Tool Promotion Schedule
Slide Art Request
Crackle EcosystemMo’ Spreadsheets = Mo’ ProblemsEvery asset is copied, pasted, and tracked through a proliferation of documents. One change necessitates many changes and re-issuing the documents to various stakeholders via email.
Below is an example of some Programming Team documents impacted by scheduling and merchandising one feature.
*NOTE: Does not include documents that might be generated by Creative, Video Operations, or Operations