opportunities convergence offers film and television producers

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Visual Entertainment in 2020 Opportunities Convergence Offers Film and Television Producers

Meredith Beal Senior Technology Advisor, African Media Initiative Event Director, Broadcast Film & Music Africa

The Game Has Changed

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Growth of All Digital Platforms

•  Telco growing fastest – taking subscribers from other platforms (12% of total market)

•  Terrestrial broadcasters are completing digitization but some viewers are migrating to pay platforms

•  Digital TV households: 2013 1.5 bill > 2020 1.65 bill •  Terrestrial digital and telco digital will double in

market share •  OTT fastest growing segment followed by telco

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Growth of All Digital Platforms •  Broadcast remains the medium of choice for mass

market advertising •  Pay TV growing but not as fast as OTT •  Broadcast & satellite decreasing •  OTT revenue projections for 2020 of 70 billion - HALF to

NEW aggregators and half to existing players (Source: CAGR 2013-2020)

•  Telcos deliver ¾ of world’s broadband IP traffic and are projected to deliver nearly $50bn of 3rd party content through their networks

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Our Networked Society

•  By 2020 90% of all IP data traffic will be video, 60% of it Internet video

•  By 2020 there will be 50 billion connected devices,15 billion video enabled devices connected to broadband IP

•  As Wi-Fi becomes ubiquitous more and more video content will be consumed

•  On-demand TV/video content will surpass live/linear broadcasts

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Our Networked Society

•  Market revenues in 2013 were around $550 billion. By 2020 expected to exceed $750 billion

•  Advertising will become more targeted and profiled •  Smart aggregation and recommendation services

are best positioned to take advantage of opportunities

•  Bundling of services and content are key value creators

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It’s About AGention

•  People don’t care where their viewing content comes from, they just want to see what they want when they want and where they want (on multiple devices)

•  At that point it’s about who has attention •  Once you get past the hardware it’s about making

content available in as many ways as possible

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From Home TV to Mobile TV

Internet Penetration in Africa

Source: Internet World Stats © 2014 Miniwa9s Marketing Group

Online Viewing

The African Diaspora

•  According to the World Bank, there are more than 39 million Africans living in North America; 113 million in Latin America; 13.6 million in the Caribbean; and 3.5 million in Europe.

•  Egypt 2.5 million •  Nigeria 1.25 million •  South Africa close to 1 million •  90% of Africans who have moved outside of Africa

have Internet access.


•  Collaborations with African television and film producers abroad as well as the greater diaspora (that is, African Americans, Blacks living in Europe and Asia, etc.) offer an opportunity to improve production values, leverage social networks and expand the quality of cultural content.

•  Co-production and co-distribution deals, social media promotion pacts and other arrangements of mutual benefit are on the rise.


•  One such example is a collaboration between a production company owned by an African-American film and TV star and a Kenyan production company. It is a reality show following the activities of several Africans who moved to Los Angeles.

•  Arrangements like these open opportunities to bring

higher production values to African stories.

Current International Demand

•  Hour-long dramas with narrative storytelling that create a compelling connection to the characters are in demand.

•  First-run digital dramas with high production values and sufficient volume to package and sell.

•  Because of the trend started by shows like “Prisoners of War,” “The Killing,” “The Returned,” and others, there is a growing demand in the U.S. and acceptance of non-English speaking dramas.

•  In the United States, short-form comedy has seen the most success in the digital medium.

No Longer Locked into Time Formats

•  Not just 30 minutes or 1 hour •  Five-minute Segments

o  5-minute Movies – Comedy/Action o  How-To Instructional Content o  Cooking Shorts o  Sports Interviews

•  Ten-minute Mini Documentaries or News Shorts o  Agriculture/Farming o  Health & Fitness o  Business Entrepreneur Profiles

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WHO

Trends

•  More producers (leveraging decreasing production costs and collaboration for economies of scale) – maximizing profits through reach & exclusivity)

•  Distribution – several big aggregators and small niche ones – looking for unique selling points – there’s great opportunity in niche programming

•  Consumers – Looking for simplicity & personalized experiences –

Current International Demand

•  Hour-long dramas with narrative storytelling that create a compelling connection to the characters are in demand.

•  First-run digital dramas with high production values and sufficient volume to package and sell.

•  Because of the trend started by shows like “Prisoners of War,” “The Killing,” “The Returned,” and others, there is a growing demand in the U.S. and acceptance of non-English speaking dramas.

•  In the United States, short-form comedy has seen the most success in the digital medium.

Summary

•  Content Partnerships Accelerate Market Entry •  Distribution Deals Expand Territory •  Niche Channels Will Explode Post Migration

o  Health o  Agriculture o  Vernacular o  Hobbies, crafts & other affinities o  Local Sports o  Fashion o  Home Improvement

The Future of TV

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Meredith Beal Senior Technology Advisor, African Media Initiative Event Director, Broadcast Film & Music Africa

[email protected]