casbaa 2015 - video moves revenue
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VIDEO MOVES REVENUE EXECUTIVE MEDIA LUNCHEON 27 October 2015
Brought to you by Brightcove In Partnership with Akamai
WELCOME ADDRESS Andy Feinberg, President, International
AGENDA
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1340 – 1405 Monetising Video
Ben Morrell, Senior Technical Consultant Media, Brightcove
1405 – 1430 OTT Delivery with Quality and Scale
David Habben, Chief Media Strategist, Akamai
1430 – 1455 Fireside with Scripps Networks Interactive Derek Chang, Managing Director, Asia-Pacific Operations, Scripps
Tomer Azenkot, General, Manager, Asia, Brightcove
1500 – 1600 Networking Tea and Snacks
SPECIAL THANKS
©2015 Brightcove Inc. 6 |
MONETISING VIDEO Ben Morrell, Senior Technical Consultant for Media, Asia, Brightcove
• Media Publishers – The Ecosystem
• Service Proliferation Trends
• Video Monetisation Models – Live Examples
• Monetisation Trends & Challenges
• Pitfalls to Monetising Video
• The Monetisation 3-point Checklist
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Media Publisher Ecosystem
Non Linear TV: Explosion of Services
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Broadcasters Pay TV OTT from Broadcasters & Pay TV
FTA on HbbTV
Sports Licensees Online Channel
DTC model)
Content Programmers Content Aggregators
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Types of TV/Video Consumption of Mobile Phones (‘000)
Source from comScore: MobiLens 3 month Average January 2015
Shift in Viewing
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35,157
54,056
36,967
44,225
73,255
41,515
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
Paid TV / Video
Web-based Videos
Live / On-demand TV
22% Paid TV/Video
15% Web-based Video
12% Live On-Demand TV
2015
2014
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Shift in Viewing
44% 50% 58%
15% 17%
17%
41% 33%
24%
Q1 2014 Q3 2014 Q1 2015
PC
Mobile
OTT
Source from Hulu Internet 2015: The Shift to the Living Room Continues
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Shift in Viewing
Service Proliferation Trends
Services models:
• Standalone entertainment (HBO Go)
• Live and sports centric content (NFL Now)
• MVPDs providing alternative to linear TV
• Streaming players (Apple TV)
Threats:
• Cannibalism of linear TV (??
Opportunities
• Market Education
• Combat piracy and torrent sites
• Seamless user access to content
Service Proliferation Trends
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The Netflix Effect
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Live in 50 countries
69 mn subscribers =
avg $8.99 MRR per sub
$1.34bn revenue
(July2015)
Launch in 200
countries by end 2016
Australian ISPs see surge in broadband traffic, 50% traffic from Netflix
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Market cap grew from $6.5B to $27B (~60 CAGR) from January 2013 to 2015; ~69M paying global subscribers (38M U.S)
Generated ~$1.5bn in revenue in 2015; 9m in paid subscribers as of April 2015
Fastest-growing OTT service – in first year signed up 1M paying subscribers representing $120M in revenue (run rate)
Projected revenues to hit $1B by end of 2016; recently closed deal to power HBO’s OTT platform
Initial launch leverage existing ~90M Amazon Prime subscribers; will launch decoupled ad-supported subscription service in 2015
~45.3M monthly users with valuation between $500-950M
Over 800K shows / 350k movies purchased per day; 2015 estimated revenue at $1.5bn on iTunes videos
Show Me The Money
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Monetisation Models
Monetising Live Sports: Direct to Viewer
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AVOD across multi-devices and platforms: Network Ten enables a seamless viewing experience
“We are dedicated to providing
high quality entertainment
anywhere, anytime. Thanks to
Brightcove Once, delivering ad-
supported content on platforms
like Apple TV and Sony Bravia is
a simple process.” Rebekah Horne, Chief Digital Officer, Network Ten
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AVOD revolutionised Free to Air TV: HbbTV goes live in Australia and New Zealand
"We selected Brightcove, along
with our broadcast partners, in
order to ensure our viewers have a
consistent experience across all
platforms. Two of our key goals
with FreeviewPlus were to deliver
an engaging experience and an
easy-to-use platform, and
Brightcove’s video solutions are
the essential foundation.” Tom Cotter, Chief Information and Product Officer,
Mediaworks
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TVOD: Cricket Australia Live & VOD
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SVOD: Unlimited Streaming of Videos Across Multi-Devices and Multi-Platforms
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SVOD: Flexible Bundles to Suit Every Consumers’ Needs
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Flexi SVOD: Garage Entertainment Streams Action Sports Videos with Flexible Pricing Packages
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Online Channels
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Monetising Trends & Challenges
Trend: The Shift in Digital Video Ad Spend
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$2.65 $3.54
$4.52 $5.32 $5.78 $6.23 $6.64 $0.24
$0.66
$1.44
$2.45
$3.67
$4.88
$6.07
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2012 2013 2014 2015 2016 2017 2018
Digital Video Ad Spending by Channel, ‘12-’18 in billions
Desktop Mobile
Source from IAB, PwC, eMarketer, June 2014
Ad Yield: Video advertising fill rates increased across the board
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PUBLISHERS BROADCASTERS
77% à 92% 64% à 67%
56% à 88% 57% à 70%
55% à 89% 54% à 74%
Source: 2014 SNL Kagan, “Media Trends, Actionable Metrics, Benchmarks & Projections for Major Media Sectors, 2014 Edition
Internet video publishers capture only a fraction of the best possible ad monetisation revenue
(Actual Monetisation)
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Internet Video Publishers Capture Only a Fraction of the Best Possible Ad Monetisation Revenue
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Example Challenges
• No ad delivery solution for LIVE streams
• No single ad network has enough inventory
• Ad network has no SDK for Windows 8 app
• 10-15 % ads are lost due to download performance issues
• 10-30 % ads are blocked by ad blockers
Ad performance loss is caused by hard technical challenges of delivering video ads to multiple devices & apps in a complex Internet ecosystem
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Common Pitfalls
Common Pitfalls to Monetising Video
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• Overcomplicating subscription offerings
• Delivering a bad user experience
• Lack of consistency of service across devices
• Inability to identify the high value genre
• Losing revenue from ad blockers
The Rise of Ad Blockers: A win for consumers? No.
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41% of web users are equipped with ad-blockers
Source: The rise of Ad Blocking Report, from Adobe & PageFair, 2015
Global Ad Blocking Growth
Blocking ads continues to build on the strong growth rates seen during 2013 and 2014. The findings: • Globally, usage of ad blockers grew by 41% YoY (Q2 2014 – Q2 2015) • As of June 2015, there were 198 million monthly active users for the major
browser extensions that block ads
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Checklist for Monetising Video
Simplifying the Complexity Behind Monetising Video
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AUDIENCES ENGAGEMENT REVENUE
1st point - Audience
Build The Audience
Create Content Niches & Personalisation
Extension of Existing Services
Business Model Flexibility
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2nd point - Engagement
Devices & OS – Native or Mobile Web
User Experience Create Engagement/Discovery – Social Media
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CONTENT
ON THE GO
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3rd point - Revenue
Paywall Flexibility, Dynamic Business Model Ad Servers & Standards
Strategy around Ad Blockers
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Strategy Around Ad Blockers
Ad optimisation technology that allows publishers to:
Maximise Ad Delivery
Streamline Viewing Experiences
Increase Revenue Across Desktop & Mobile
Combine SSAI with Player Management Service
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To Wrap Up…
You focus on your business, while we make sense of the ever evolving dynamic market with best-in-class solutions.
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With new devices every week, we enable devices reach and counter ad blocking.
We are a technology provider with the expertise and flexibility to scale with you.
MONETISING VIDEO Ben Morrell, Senior Technical Consultant for Media, Asia, Brightcove
THANK YOU!