ovp space and opportunity kit
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OVP Space and Opportunity
JOSEPH OLIVER | October 2011
JOSEPH@JOSEPHOLIVER.NET
> OVP Market Overview
Digital Media Services Framework
HomeMobile
Hotspots
SMB
M&E industryM&E industry
Richmediaflow
OVP Platform
OVP Player
Communications, Retail and Enterprise industriesCommunications, Retail
and Enterprise industriesEnd-usersEnd-users
management, workflow and delivery
Music
TV and RadioBroadcasting
Film Studios
Publishing
Wireless
Internet Telcos
Cable Satellite
Cinema
Viewer experienceContent analytics and
Monetization
Roll-up of infrastructure, content, and applications that enable new end user media services
Media retailers
General retailers
Media Services
…
Advertising Content,
Data, Applications
Enterprise
The OVP Market is Evolving, with Convergence Only a Starting PointThe OVP Market is Evolving, with Convergence Only a Starting Point
• Blurring the lines for service providers, content creators and device makers
• Need to make applications and content available to customer anytime, anywhere
• Blurring the lines for service providers, content creators and device makers
• Need to make applications and content available to customer anytime, anywhere
• Highly fragmented market to be unified either by consolidation or partnerships
• Integration of siloed systems in a workflow
• Highly fragmented market to be unified either by consolidation or partnerships
• Integration of siloed systems in a workflow
• Asia Pacific growing rapidly• Still evolving in terms of adoption of next generation services and products and hence present a growing opportunity
• Asia Pacific growing rapidly• Still evolving in terms of adoption of next generation services and products and hence present a growing opportunity
• Services present great revenue potential• System Integration is emerging as a key driver in the market
• Services present great revenue potential• System Integration is emerging as a key driver in the market
Market TrendsConvergence
Consolidation& Partnerships
Increasing role of Professional Services
Peak activity between now and 2012
Peak activity 2011 to 2012
Peak activity 2011 to 2015
Emerging Markets
Mar
ket
Driv
ers
Short-term Long Term
Apple iOS CE strategy fuels market surge in
media capable devices
Increased adoption of mobile video
worldwide is driving the demand for
specialized solutions touching all 3
screens
Increasing broadband
penetration and bandwidth utilization
fuels explosion of digital video access
and in turn has created demand for specialized solutions
Supply & demand growth drivers for digital video deliverySupply & demand growth drivers for digital video delivery
Increased web based consumer video services driving
consumption trends
IPTV take-off pushes demand for broader
solutions offering
OVP Market – Market Segmentation (World), 2010
Source: Frost & Sullivan analysis.
MEASUREMENT NAME MEASUREMENT TREND
Market Stage (Nascent, Growth, Mature) Nascent —
Market Revenues (2010) $212.3 M ▲
Market Size at End of Forecast Period (2015) $364.2 M ▲
Average Price (per month) $2,000 ▲
Base Year Market Growth Rate 10.0% ▲
5 Year Forecast Market Growth Rate (CAGR) 11.4% —
Customer Price Sensitivity (scale of 1 to 10, Low to High) 6 ●●
Degree of Technical Change (scale of 1 to 10, Low to High) 7 ▲
Market Concentration (% of base year market controlled by top three
competitors)
50.4% ▼
OVP Market – Worldwide Market - 2010
TRENDDecreasing Stable Increasing
▼ ●● ▲Market Overview
Total Online Video Platforms Market: World, 2010
Source: Frost & Sullivan analysis.
OVP Market - Revenue Forecast by Region (World), 2010 - 2015
Year North America & Latin America
($ Million)
Europe($ Million)
Asia-Pacific($ Million)
Total($ Million)
2010 169.8 31.8 10.6 212.3
2011 182.2 37.4 14.0 233.5
2012 199.6 41.5 18.1 259.2
2013 219.7 49.8 23.4 292.9
2014 242.8 55.8 29.5 328.1
2015 262.2 65.5 36.4 364.2
CAGR 9.1% 15.5% 28.0% 11.4%
Source: Frost & Sullivan analysis.
Key: NALA – North America & Latin America; EMEA – Europe, The Middle East, & Africa; APAC – Asia Pacific
Note: All figures are rounded; the base year is 2010.
OVP Market - Competitive Environment (World), 2010
OVP Market: Competitive Structure, 2010(World)
Number of Companies in the Market 30 with revenues greater than $1M USD
Competitive FactorsCost, performance, schedule, support, technology, reliability, contractor relationships, customer relationships
Key End-user GroupsMedia & entertainment companies, video publishers, content syndicators, enterprise customers
Major Market ParticipantsBrightcove, Ooyala, thePlatform, Kaltura, KIT digital, Limelight Networks.
Market Share of Top 6 Competitors 66.9%
Other Notable Market ParticipantsOrigin Digital, Ramp, Livestream, Twistage, Sorenson Media, Unicorn Media, Castfire, VMIX, Flumotion, Qbrick, VBrick
Distribution StructureDirect sales, partner and reseller channels, systems integrators, OEMs
Notable Acquisitions and Mergers Limelight Networks acquired Delve Networks in August 2010
Source: Frost & Sullivan analysis.
OVP Market - Drivers and Restraints WW, 2010 – 2015 M
arke
t Driv
ers
Mar
ket R
estr
aint
s
1-2 years 3-4 years 5 yearsMarket demand for OVP – effective and streamlined services
Growth of ad spend online drives uptake
Potential absorption of OVP into larger technologies, eliminating the need for a stand-alone OVP solution
Growth in end-user connected devices and demand
Market size may be limited due to costs vs. revenue potential
Volume of available content and video consumption
Confusion about the OVP value proposition
Impact: High Medium Low
Smart Grid Market: Key Market Drivers and Restraints (World), 2011-2015
Expansion into enterprise drives growth
Unclear product, service, and vendor differentiation
Potential short product life due to replacement technologies
OVP Market Dynamics Iceberg
Over 100 competitors
TOP 5 Business View
Highly fragmented marketplace
Pricing challenges & erosion
Consolidation on horizon
Vendor Ecosystem Customer Perspective
Customer Perspective
Ease of use“Build Vs buy” still a strong debate
Strong API roadmap
Best analytics/monetization
Similar product stack
As the consolidation waters recede, “services at the ends” will separate and define OVP leaders
5 competitors with equally compelling offerings
Difficulty in differentiating vendors
Confusion surrounding OVP Value
Still a lack of video standards
ROI still difficult to define for many
How to Differentiate
consulting support
Customer growth
Customer solutions
Value at the ends
Services at the ends will separate and define the leaders in the OVP space during the coming consolidation period and will fortify pricing.
Customer experience should be seamless and become a trusted partnership over time.
• Front end: Professional Services• Integration: Video Platform• Back end: Customer Success (Support)
Customer integration
Value ecosystem
Needs to be a seamless practice focused on enablement and support
“Value-at-the-ends” leverage zone
Quick Case Study:
Geek Squad 2010 Revenue: $3bnBest Buy Total 2010 Revenue: $8bn
Cost Mitigation & ROI
Product Differentiation
Customer Satisfaction &
Loyalty
37% Services Value to Business
= $ REV + Margin
• Creates new recurring revenue and margin streams• Increases customer satisfaction• Enables launch of new differentiating products and services
OVP Market – Competitive Landscape Analysis, 2010
The base year is 2010. Source: Frost & Sullivan analysis. The base year is 2010. Source: Frost & Sullivan analysis.
Ooyala Brightcove Kaltura ThePlatform Limelight
Professional ServicesProfessional Services
• Content Migration• Custom Development• Basic Consultation• Optimization Services• Product Training
New Services Opportunity
Apples-to-Apples Comparison of Top 5 OVP’s
• Content Migration• Custom Development• Basic Consultation• Optimization Services• Product Training
• Content Migration• Custom Development• Basic Consultation• Optimization Services• Product Training
Common
Differ
• Workflow Analysis• Systems Integration• Advanced Training• Open Source Strategy
• Content Migration• Custom Development• Basic Consultation• Optimization Services• Product Training
• Content Migration• Custom Development• Basic Consultation• Optimization Services• Product Training
• Origin Services• CDN Strategy• Mgd Infrastructure• Solutions Integration• Live Events
• Workflow Analysis• Feasibility Studies• System Architecture
• Content Strategy• Systems Integration• Advanced Training
* Production Services * Creative Services * Marketing Services
• Change Mgmnt• Business Continuity• Live Events
• API Strategy• Deep Analytics
• API Strategy• Pro A/V workflows
* Managed Partners
> Broadcast & Cable Opportunity
Ericsson Consumer Stats (June 2011)75% of EMEA are watching content, of which:
• 93% watching broadcast• 70% time-shifting• 50% using internet• 50% looking to connect computer to TV• 37% looking to connect touch devices to TV
Key Drivers in B&C Environment
Industry Migration
Industry Drivers
Business Implications
Implications Requirement
Module-based Business Opportunity
• Away from tape to digital formats• From traditional distribution to 3 screen delivery
• Broadband adoption is now maturing rapidly• Technology Advances across systems and devices• Consumer Demand for multiple screen content
• New revenue opportunities• Increased business process efficiency• Cost saving opportunities
• Assets now need to be consolidated and centralized to manage interaction and transaction• Migration to cloud based services requires guidance• “Build Vs Buy” question still being asked by customer
• Enables OVP to scale service as customer needs scale• Enables OVPa to meet differing solutions requirements• Consulting will grow to develop and support offerings• Will future proof OVP, while enabling expansion into new vertical opportunities as they develop and mature
Traditional Delivery
Emerging Delivery
Broadcasters Cable Satellite
Ecosystem Segmentation
BIG 4 Networks Nationwide Affiliates
PEGReligiousSpanish
IPTV OTT Mobile
• Over 1300+ stations• 327M TV sets in US• 115M TV Homes• $35.2b rev in 2010• $10b ad rev in 2010
• 84 cable operators• 565 cable channels• 80,000 schools• *128m cable homes• $93.7b rev in 2010
• 6 key operators• most channels• 100’s WW channels• 38m satellite homes• $20b rev in 2010
USA TV Market Size and Scope
• 20 core broadcasters• 45% US Households • Univision, Telemundo
• Public access• Education access• Government access
•Opportunity likely found via Education access
Top Line Data Points• 327m TVs in US
• 116m TV homes• 210 DMA’s in USA• 48 DMA’s in Canada
Sizable opportunity for OVP Player in the USA alone :
• 4 Network Broadcasters• 20 Core Nationwides’• 118 Affiliate Groups• 84 Cable Operators• 75 Top PEG’s (DMA >25)• 50 Top Religious Broadcasters• 20 Top Spanish Broadcasters• 1300 TV Stations• 565 Cable Channels
• 20 Nationwides •Top 100 DMA’s• 50% US Households• PBS, CW, ION
• Air in all DMA’s• O&O map in top 10• FCC 39% DMA Cap• ABC, NBC, CBS, Fox
• Air in all DMA’s outside O&O• 61% US Households• 118 private groups• Belo, Hurst, Sinclair• Cox, Tribune, Gannet
• 50 core broadcasters• Top 5 Avg 40 affiliates• 30% US Households
• Verizon FIOS•ATT U-verse• Ericsson (Tandberg)
• Netflix• Hulu• Vudu
• MobiTV• Apple
Broadcast & Cable Business Drivers
MonetizationRequirements
Emer
ging
Del
iver
yRe
quire
men
t Cost Pressures
Limited Resources
Unit A Unit B
Unit C Unit D
Unit E
Unit A Unit B
Unit D
Unit E
Unit CBusiness Groups
Cloud Based Collaboration
Distribution & Syndication Consistency
BusinessUnits
Partners
News Wires
Licensee Territory
Player
OVP
OVP
Top commercial drivers for global broadcasters8,000+ broadcast professionals in 100+ countries participated in the 2011 BBS, making it the largest ever and most comprehensive market study of the broadcast industry.
• The top commercial driver identified was multi platform content delivery• The second commercial driver identified was the need for file based operations / workflows
Broadcast & Cable Overview
Service Opportunity – Major Market B&C
Service Opportunity – Small Market B&C
• Top 30 DMA’s• Competitive need to deliver to 3 screens now• Market size likely justify spend
• 1M (DMA 30) to 7.5M (DMA1) TV homes• Likely does not require onsite work:
• Plugin can be installed/tested remotely• Training can be managed remotely
• Real-time analytics useful for assignment desk• Enables focus on daily content strategy• Useful for programming testing• More data value for local advertising sale
• DMA 25 to 100• Value in CMS / workflow capabilities
• Needs MOS integration• Container (active x plugin) in rundown
• Estimated 5 - 10 days onsite for integration and training – depending on requirements
Streaming opportunity for DMA 1 Station (very rough estimates – DATA NOT QUALIFIED)
• DMA reaches 7.5M TV Households• Avg station receives 2% viewer participation online = 150K online viewers a day• Avg viewer watches 3-5 stories = 450K to 750K streams day (Source: ABC News, DMA #6)• Top 3 stories Avg 300% greater viewing = 1.35M streams per day• DMA 1 station delivers approx 1.8M – 2.1M streams per day• DMA 1 station delivers approx 54M – 63M streams per month• DMA1 market (4 Broadcasters) total estimated at 216M a month / 2.5b p.a.
Stream opportunity DMA 30 Example – 35M a month / 408M p.a:
• DMA reaches 1M TV households• Avg station receives 2% viewer participation online = 20,000 online viewers a day• Avg viewer watches 3-5 stories online per session = 60 – 100,000 streams per day• Top 3 stories Avg 300% greater viewing = 180,000 streams per day• DMA 30 station delivers approx. 280,000 stream per day• DMA 30 station delivers an approximate 8.5m streams per month• DMA 30 across total (4 major broadcasters) is approx. 35M streams a month / 408 Million p.a.
Affiliate Broadcaster Stream Estimates - Top 30 DMA
‘Top 30 DMA opportunity in the 10’s to 100’s of billions in streams per annum.’
Dat
a M
odel
Use
r, M
edia
, seq
uenc
e, s
yste
m
Broadcast & Cable – Case Methodology“from broadcast to cloudcast”
Infrastructure
MediaflowMetadataflow
ScopeBusiness needs
Workflow
IA
P
Broadcast Ops
The context and the business goal:-Organization structure, - Accountability- business process (Type of content, destination and sources)-Business like cycle phases
Operational guide and end-user settings-Who does what and how?-User configurations-What are the media/content rules?-What are user and group?
Media and meta continuum- What are Applications- What CODEC and Wrapper, Pivotal CODEC?- interface needs?- Technical processes- ………
Software and network architecture- Technology, Protocol,…- Interface specification- IT Backup and resilience strategy- ………
Transport and physical layer- Evaluation of technology infrastructure- IP plan- ………
Specifications
Deliv
ery
Framework Structured Consulting & SI Practice
Validationprocess
workflow Operationalcommitments
> Verticals of Opportunity Outside The M&E Space
Live Events – Overlapping Value
Tactical Value
Live Event
Event Planning
Event Production
• Differentiator• Deeper enablement• Wider footprint
• Maps across all customers
• Enhances offerings• More end-to-end
CustomUX /UI
Onsite Engineering
Support
Driver for future offering in retail captive audience
delivery
Strategic ValueStrategic Value
TransmissionManagement
MarketingServices
Live Platform Support
Outsource Partner Internally Managed
Sporting
MusicAwards
Cultural
Conferences
Corporate
Seminar
PoliticalOVP
Corporate
New Product Opportunity
“Video Presenter”
Internal solutions
Website / Branding Corp Comms
TrainingEvents / Seminars
PartnersGEO UnitsCustomers Resellers
Services Opportunity:• WFA• CMS Consolidation• Business Logic / Process• System Integration• Content Origination• Production services• Creative Development• Training
• Front end: Video & PowerPoint /Keynote presentation tool
• Think “video” WebEx• Back end: compiler
• Collaboration• Iteration history• Review /approve• Private screening room
OVP Platform
> Sales Approach / Considerations
Synopsis on customer landscape: Today the internet is seeing tremendous growth of consumers who are searching for entertainment, this growth is generating the boom of content offering destinations that have an increasing need for community architectural tools, commerce solutions and rich media platform integration.
Criteria: Sales teams should ascertain the following when engaging customers• What type of traffic (Volume/Demographic) does the customer have?
• What type of Media solution does the client currently have?
• What type of funding does the client have?
• What is the core offering of the company?
• What can we do to help create a more complete service/commerce offering?
• Are they examining the value of analytics and monetization
• Have they spoken to any other company regarding a OVP solution? If so who?
Customer Criteria
An OVP’s services offerings should be positioned externally to inform and engage customers surrounding the “best-of-breed” Video Platform and full service, end-to-end, turn-key solutions enablement practice.
• Enables customers to create unique media solutions• Platform and solution flexibility, so as needs change, so does the solution• Leveraging our expertise in profitable content-to-market delivery• Complete modular and scalable, full service solution• Allows a customer to focus upon their core competencies• To co-develop and manage a uniquely branded Channel offering • To empower a customer with streaming video analytics and monetization
Customer Positioning
Approach to Professional Services Selling
• Address, define and understand the pain-points of the customer• Examine how the customer has already attempted to answer these
pain-points• Can the solution be scaled• Has a budget been approved• Develop a relationship with the customer that is built upon trust
Engage:
Win:• Demonstrate business case – how does this bring efficiencies while
reducing CapEx & OpEx• Reference existing client success’• Build a solutions strategy that enables workflow and enhances
productivity• Focus on the business OVP vendor can do Well and respond to
Quickly
THANK YOU!
For more information contact:Joseph Oliver
(O) 650.520.2959(M) 310.420.2265
joseph@josepholiver.net
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