ott: the next big thing in broadcast & media
DESCRIPTION
TRANSCRIPT
![Page 1: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/1.jpg)
OTT: THE NEXT BIG THING IN BROADCAST & MEDIA
![Page 2: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/2.jpg)
Over-the-top (OTT, Over-the-top Video) - n. -
def.- Premium video services delivered over the Internet
to televisions and other connected devices.
![Page 3: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/3.jpg)
CATEGORY PLAYERS
Connected TVs
Connected STBs
Connected TV Platforms
Gaming Consoles
Content & SW Services
![Page 4: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/4.jpg)
2011 – The Year of the Cable Cut
![Page 5: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/5.jpg)
• In Q2, 711,000 subscribers cut cable TV
• 6 of 8 operators suffered worst quarterly losses
![Page 6: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/6.jpg)
SNLKagan points to these factors:
• Economic woes
• Promotional churn
Not so fast!
![Page 7: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/7.jpg)
% of U.S. cord-cutting homes remains stable as cable & broadband homes grow
Jan 2008 Jan 2009 Jan 2010
70
60
50
40
30
20
10
0
Perc
ent (
%) o
f Pop
ulati
onSource: Nielsen National People Meter Sample (Jan 2008 to April 2010)
GROWTH OF MEDIA PLATFORMS
54.8
61.6
66.3
3.23.9 3.9
Cable & Broadband
Cable - No & Broadband -Yes
of US cord-cutting homesas cable and broadband homes grow
![Page 8: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/8.jpg)
Young: 54% of likely cord cutters are under 40.
Educated: 97% have graduated high school;69% pursued or are pursuing post secondary education
Employed: 90% are employed, full-time students, or retired
Not Poor: 57% make more than $50,000 / year
Source: Gigaom / Strategy Analytics, Multiplay Market Dynamics Service
• 13% of American’s surveyed plan to cut the cord
• Cord cutters are young, educated & affluent
![Page 9: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/9.jpg)
Who? When?
![Page 10: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/10.jpg)
OTT Players and their Hurdles
![Page 11: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/11.jpg)
*Source: Forrester Study 2010
Connected TVs
4 PROS :
• Heavy industry support:
o Best Buy to sell only connected TVs by 2011
o Wal-Mart promises the same by 2012
• 43 M+ Connected TVs in US homes by 2015*
6 HURDLES :
• Consumers: 61% are unaware, and 40% question the value*
• Not enough processing power to offer compelling services and UE
Most Connected TVs sold will never be used in connected mode
![Page 12: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/12.jpg)
4 PROS :
• Apple TV – Good UE and Apple’s muscle
• Boxee – Innovative platform / market buzz
• Roku – Great content and low price point
• TiVo - Great brand clearly now focused on apps and connected features
6 HURDLES :
• Consumers don't want to buy another box when cable provides one for free
• None of these services provide the same level of content as cable
• Most consumers won’t cut the cord for one of these services
Connected STBs
![Page 13: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/13.jpg)
4 PROS :
• Potentially the most promising player
• Offers a stepping stone to OTT : builds on existing TV experience
• Provides an app marketplace
6 HURDLES :
• Lack of broadcaster cooperation
• Complexity
• Expensive
• No app marketplace at launch
Connected TV Platforms
![Page 14: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/14.jpg)
Gaming Consoles
4 PROS :
• Massive install base
• Easy to use and install
• 60% of Netflix streaming
6 HURDLES :
• Only 6% of Console owners watch streaming video
• Lack of content - too little too late
![Page 15: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/15.jpg)
Content & SW Services
4 PROS :
• Netflix is winning here
o Play nice with content owners
o Available on every Internet TV platform
o Account for 20% of the Internet’s bandwidth usage during primetime
• Vudu - Massive library, high quality streaming and the muscle of Walmart
6 HURDLES :
• None are a complete solution
![Page 16: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/16.jpg)
Incumbent Cable and Satellite Operators
• Most threatened by OTT
• Fighting back with TV Everywhere
• Adding OTT services of their own
• Deep content relationships getting even deeper (Comcast/NBC Universal merger)
Incumbent Telcos
• OTT providers will capture the value of their IPTV investments
• Adding OTT capabilities to their IPTV offerings
• Creating their own pure OTT offerings
![Page 17: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/17.jpg)
What will it take?
![Page 18: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/18.jpg)
Key Success Factors:1. Powerful processors
![Page 19: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/19.jpg)
2. Apps marketplace (like mobile, only bigger)
o Support for 3rd party apps
o Complete SDKs
o Social discovery
o Apps will become the new channels
![Page 20: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/20.jpg)
3. Great User Experience including set-up and ease-of-use
![Page 21: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/21.jpg)
4. Premium, timely content live and on-demand
![Page 22: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/22.jpg)
5. Interactivity to extend the TV viewing experience
![Page 23: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/23.jpg)
6. OTT business models for content owners
![Page 24: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/24.jpg)
7. Advertisers sponsoring interactive experiences
![Page 25: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/25.jpg)
7. Consumer education and marketing
![Page 26: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/26.jpg)
8. Broadcast networks need to get on board
![Page 27: OTT: The Next Big Thing in Broadcast & Media](https://reader033.vdocuments.site/reader033/viewer/2022061207/5484daae5806b5d6588b46d6/html5/thumbnails/27.jpg)
9. Single platforms that have it all
o Ad supported free content
o Subscription content
o Paid VoD from 1 provider