an overview of rtl group’s digital strategy · 2017-01-25 · video services build scale in web...
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A global force in online video
Entertain.
Inform.
Engage.
An overview of RTL Group’s digital strategy
January 2017
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2
Multi-channel
networks
3
Advertising
technology
4
TV = Total Video
Agenda
2
1
Evolution of the
video market
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The television business is becoming more and more competitive
Competition
More
channels
Convergence
More
players
Complexity
More
choice
3
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Fragmentation is accelerating
1950 2016
TV
channels
Online
channels
4
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High-end drama Entertainment Digital-first
MAINSTREAM NICHE PREMIUM NICHE DIGITAL
New distribution platforms allow for niche productions
MAINLY AD FUNDED MAINLY PAY FUNDED
5
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Our families of channels have built strong non-linear services
6
GERMANY
TV Now 6 channels available
in one offer
NETHERLANDS
+29% video views
(2015 vs 2014)
FRANCE
900m video views
in 2015
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2
Multi-channel
networks
3
Advertising
technology
4
TV = Total Video
Agenda
7
1
Evolution of the
video market
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8
Illustrative
Content Aggregation Distribution
Broadcasters/networks Cable/DTT/DTH Studios/Production companies Linear
Multi-channel networks OTT “Channels” / Content Creators Non-
linear
The role of MCNs is similar to that of broadcasters – they aggregate channels and sell advertising
MCNs provide a range of services to content creators including production,
audience development, distribution and monetisation
Zoella El Rubius RCL Beauty
101
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Strong digital brands covering key themes
9
Partners
#1 IN FASHION/BEAUTY
#1 IN PRE-SCHOOL KIDS
#1 IN HIP-HOP
Examples: non-exhaustive
Gaming Music Sport News Entertainment & Comedy
Kids Lifestyle Fashion & beauty
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Fashion MCN1) #1
9
16
2014 2015
VIDEO VIEWS
In billion
Massive video view growth establishes RTL Group as clear #1
+78%
VIDEO VIEWS
In billion
Global MCN1) #1
24
602)
2014 2015
10
+150%
Source: Internal figures, consolidated view for BroadbandTV, pro-forma for StyleHaul and Divimove, 1) SocialBlade ranking Jan. 2016, 2) BroadbandTV 2015 video views include YoBoHo
VIDEO VIEWS
In billion
European MCN1) #1
6
16
2014 2015
+167%
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2
Multi-channel
networks
3
Advertising
technology
4
TV = Total Video
Agenda
11
1
Evolution of the
video market
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RTL Group aims to improve monetisation skills and reach new inventory segments
Build premium
non-linear
video services
Build scale
in web original and
short-form video
Build new sales competencies
with cornerstone investment
in digital programmatic advertising
US ranking
of delivered ads
In billion
(comScore, March 2016)
1 Yahoo / BrightRoll 3.6
2 RTL Group / SpotX 2.7
3 AOL / AdapTV 2.6
4 Facebook / LiveRail 1.9
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Campaign-based sales
People-driven sales
Premium typically sold
directly
Impression-based buying
Auctioning (in real-time)
High volumes increasingly
sold automated
High CPM
Lower CPM
Catch-up TV
Multi-channel
networks
OFFERING
Web original
content
MONETISATION
1
2
3
13
Monetisation models get more complex
TV
Content
(long-form)
Non-TV content
(mainly short-form)
Advertising inventory volume
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Technology is a key driver
Improve monetisation skills
Leading video ad
monetisation platform
Scale in US,
global reach
State-of-the-art
ad technology
TV
Content
(long-form)
Non-TV content
(mainly short-form)
Advertising inventory volume Source: RTL Group estimates based on Magna Global, Siemer, eMarketer, Forrester Research
9.4
8.1
24.8
2018
2.7
15.4
Traditional
Programmatic
2013
5.4
3.1x
Global market for online video advertising
In USD billion
14
Pioneer in
programmatic TV
Audience
optimisation
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Acceleration steps to build ad-tech stack
Add-on investments (also minority stakes)
Extend
capabilities
2
Roadmap in
execution
Grow assets
1
✔ ✔
Secure EU-footprint
with acquisition
3
Strengthen
European presence
On going through SX
and also Smartclip
4
Build ad-
server
Widen ad tech
family and group
wide projects
(✔) ✔
15
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2
Multi-channel
networks
3
Advertising
technology
4
TV = Total Video
Agenda
16
1
Evolution of the
video market
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BROADCAST DIGITAL CONTENT
Video is at the heart of our strategy …
Develop and optimise new offers
Grow global brands
Capture digital growth
17
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SALES
Solutions for convergent
video advertising
USAGE
Capture long and
short-form video growth
BROADCAST
DIGITAL CONTENT
… as broadcast, content, digital merge into Total Video
PROGRAMMING
Build brands for
mainstream and niche
TECHNOLOGY
Cross-screen
media technology
18
TOTAL VIDEO
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2013 2014 2015
DIGITAL REVENUE
In € million
Advertising
Non-advertising
233 295
508
Digital has become a key driver of RTL Group’s top-line growth …
ONLINE VIDEO VIEWS RTL GROUP
In billion
17
36
105
2013 2014 2015
+72.2%
4.0% 8.4% % of total RTL revenue
19
Source: all internal figures
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… further improves RTL Group’s well diversified revenue mix
RTL GROUP 2015 REVENUE SPLIT
In %
20
49.4
4.3 4.1
22.0
8.4
11.8
€6.0bn
TV advertising
Radio advertising
Platform revenue
Other diversification
Digital
Content
Other revenue
TV advertising
61%
49%
DEPENDENCY FROM TV ADVERTISING
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A GLOBAL FORCE
IN ONLINE VIDEO
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