opportunity for ott user experience technology
TRANSCRIPT
Agenda
• Overview of OTT Ecosystem
• OTT Market Sizing & Trends
• Breakdown of User Experience Technology Segment
• User Experience Technology Competitive Landscape & Funding
• Market Impacts of Growth in Subscribers & Watch Time
• User Experience Technology Segment Growth Dependencies
Mohamed Khalil ([email protected])
The OTT Ecosystem is based on content creation & distributionwrapped with infrastructure required to grow and monetize audiences
Over The Top Technology Ecosystem Buyer / Audience
Content &Distribution
Creation and distribution of audio, video, and othermedia content delivered over the Internet withoutthe involvement of a multiple-system operator(MSO) in the control or distribution of the content
Video subscribers(individuals / HHs)
UserExperience
Enablement technology that allows OTT contentdistributors to enhance content discovery, userinteractivity, and cross platform experiences as wellcurates personalization for the target audience
OTT contentplatforms
MonetizationSolutions that enable OTT content distributors togenerate ad revenue, target consumers effectively,and measure ongoing performance
OTT contentplatforms
Source: New York Times, Siemens Convergence Creators
Focus of Conversation
Mohamed Khalil ([email protected])
Widening Availability of Broadband Infrastructure• Growth in Global broadband use (~8.5% CAGR
since 2008), coupled with lower cost of OTTservices continues to drive more volume
International Expansion• APAC is estimated to grow at the highest
CAGR for the OTT market during the forecastperiod due to rising connectivity of broadband
Attractive Pricing & Content Libraries• Consumers cite expanding content libraries
and attractive pricing relative to cablesubscriptions as the main reason forconsumption of OTT services
Flexibility• Consumers are showing favorability towards
the ability to watch “on their own time” andon any device within reach
2111
23
7
19
10
+17.2%
2020
28
2015
62
UserExperience
Monetization
Content &Distribution
Source: Market & Markets, Point-Topic, Nielsen, Digital TV Research, LEK
OTT market expected to grow more than 2X by 2020 as a result ofincreased broadband access, flexibility, and cost effectiveness
OTT Market Size ($B) Trends & Drivers of Growth
5 yr. CAGR
14.0%
13%
26.3%
Total No. of Subscriptionsmultiplied by avg.
subscription revenue
Rationale
Total No. of content viewsmultiplied by revenue per
view
Based on Report by marketresearch firm, Digital TV
Research
Mohamed Khalil ([email protected])
There are three core pillars for OTT User Experience, each witha specific target customer & value proposition
Description Go To Market Model Advantages Risks
ContentDiscovery &
Personalization
Technology that streamlinesOTT content provider abilityto identify target audiencebased on personal interests/ characteristics as well as
provides a personalizedexperience for the end user
Target Customer:OTT Content
ProviderPricing: “Per View”
pricing
• Provides recurringrevenueopportunity
• Easily capture ROIImpact
• Severalcompetitors insegment
• Low switchingcosts
Cross PlatformExperience
Seamlessly enabling aunified viewer experience
across any device as well ascontinuity and consistency
as a viewer transitions fromone device to another
Target Customer:OTT Content
Provider /Distributor
Pricing: Upfront Fee+ recurring fees
• Continuousincrease in multi-device viewershipgrowing demand
• Provides recurringrevenueopportunity
• OTT providersdevelopingcapability in-house
• Continuousinnovation asdevice marketwidens
UserInteractivity
Technology empowering theaudience to engage withcontent allowing video to
become actionable
Target Customer:OTT Content CreatorPricing: License Fee(based on volume of
content)
• High switchingcosts
• Licensing feemodel securesfuture revenues
• Highly customizedservice
• Severalcompetitors insegment
Source: Vindicia & Ooyala research, IAB, Market & Markets Mohamed Khalil ([email protected])
Several companies have a focus on developing cutting edgesolutions across each of the OTT User Experience Pillars
UX Pillar Company Funding Description
Cielo24 9.7M Video data technology solutions transform multimedia files to become as searchable as text by adding rich media data to optimize, tagand index video and media assets.
Taboola 160M Taboola is the world's leading content discovery platform, serving 360B recommendations to over 1B unique visitors each month on theweb's most innovative publisher sites, including NBC, USA Today, The Weather Channel, Tribune and Fox Sports.
Watchmi N/A Easy to integrate content discovery solution based on an intelligent recommendation technology with a complex set of personalizationoptions
Rabt 0.5M Rabt is using machine learning to personalize video content experiences and Over-The-Top services.Jinni 7.5M Jinni is a content-to-audience platform for personalizing entertainment discovery & marketing
DigitalSmiths 38.3M Digitalsmiths connects consumers to relevant video content through personalized search and recommendations. (acquired by Tivo)
BoxFish 10.0M Boxfish is a patented suite of text analytics and AI algorithms engineered to extract relevant, hidden audiences.MondoPlayer 39.0M Offers a dedicated video content discovery App, claim to index more than any other competitor
Accedo 11.3M Cloud based platform solution that enables customers to cost-efficiently roll out and manage application offerings for multiple devicesYou.i tv 27.0M platform helps companies create stunning cross platform video apps for several devices and platforms
Elemental 45.6M Allows you to engage and grow viewership while expanding delivery of broadcast content to new platforms such as connected TVs,mobile devices and tablets. (Acquired by Amazon)
sixty:no N/A empower broadcasters, operators and content owners to stand out in the rapidly changing, competitive world of multi-platform TV withsolutions that make TV look good and feel right to demanding global audiences
StreamUp 0.2M Users are able to browse the site and search for channels to watch and chat with other viewers, or create their own channel.Vibby N/A Empowers audience to seamlessly share the best moments from your content in any format and on any platform
Wirewax N/A WIREWAX is the interactive video tool for creating engaging video experiences. Connect anything in video to everything online.
Cinematique 5.4M technology allows viewers to interact with anything they see in a video, creating the next generation of video for consumers, publishers,and brands.
HapYak 1.9M HapYak is empowering people to experience videos on the web more like they do together in person: with remarks, insights, opinionsand personality.
Touchcast N/A TouchCast's Authoring Suite is a real-time compositing engine that allows creators to embed interactive elements - web pages,documents, videos, pictures - into the video image content itself.
Adways N/A Adways has developed an innovative and easy-to-use cloud-based platform to create HTML5 interactive videos.
Video Path N/A Videopath is engineered to empower viewers, using interactivity to trigger a deeper level of engagement and exploration.
Zentrick 3.4M Zentrick provides smart, interactive video solutions for marketers, advertisers and publishers that make video actionable andaccountable.
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Source: CB Insights, Crunchbase, Corporate Websites Mohamed Khalil ([email protected])
Growth in average time spent watching OTT content is creatingexponential growth in the number of OTT viewing sessionsProvides a good opportunity for services with per view pricing
Source: The Diffusion Market, FierceCable, Ovum
983910
754
629
494
359
2018 2019 2020
+22.3%
2016 20172015
Average Time Spent Watching OTTTV Annually in the US (hrs.)
193177
160
140130
100
2015 20182016 2017 2019 2020
+14.1%
No. of OTT Subscribers in the US (M)
664
564
422
308
225
126
20202018 2019
+39.5%
20162015 2017
No. of Unique OTT Viewing SessionsAnnually (B)
Based on average view time of17 minutes per session(Source: Ooyala Survey)
Mohamed Khalil ([email protected])
Content Discovery provides the largest market growth opportunity acrossall UX pillars due to exponential growth in OTT viewingOther UX pillars are dependent on volume of OTT providers, facing potential consolidation
Future Growth Dependencies & Risks
ContentDiscovery &
Personalization
• Pricing based on volume ofcontent view
• Market will grow due to growthin audience volume and timespent watching OTT content
Cross PlatformExperience • Pricing is based on Licensing to
OTT content provider /distributor
• Market growth potentiallylimited as OTT providerconsolidation occursUser Interactivity
3
13
10
5
23
7
2015 2020
OTT UX Technology Market Size ($B)
Rest of UX MarketContent Discovery
5 year CAGR5 year CAGR
39.7%39.7%
16.6%
Price per view forContent Discoverybased on market
players ($0.02 / view)
Mohamed Khalil ([email protected])