Competitive Landscape Analysis

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E R I C K A P A T T E N

S U M M E R I N T E R N : D O M E S T I C N E T W O R K D I S T R I B U T I O N

C O L L E G E M A R K E T I N G

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Agenda

• Introduction

• The College Audience

• The Landscape

• Comparisons

• Conclusions

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ObjectivesIdentify the ways in which our competitors and our partners are communicating with the college demographic through their own platforms:

1. Discover ways in which content is distributed in the college space

2. Determine ways others are marketing to the college demographics

3. Explore and provide recommendations of opportunities to market HBO to the given demographic

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ConsiderationsIn including insights from across the industry this analysis will specifically focus on:

DistributionHow the content is getting on campus

MarketingCommunication and promotions

DigitalStreaming platforms and authentication

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Competitive Landscape Analysis

THE COLLEGE AUDIENCE

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Growing Up Millennial

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Electronic-Filled Socially-NetworkedDiverse Confident

** Alloy Media

How Millennials Watch

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HBO took advantage of an existing opportunity. The growth of online video usage has provided HBO GO, MAX GO, and HBO NOW to serve the needs of the college audience.

HBO’s streaming service allows college students to access their media on the platforms they want, when they want.

HBO’s Presence in the College Market

• Distribution: • HBO has offers within the university space to accommodate colleges and universities wishing to launch on

campus.

• Marketing• Business to Consumer: Brand Ambassador Program

• Peer to peer engagement leading the discussion about HBO GO & HBO NOW on campus

• Business to Business: Trade Shows

• Presence at many national shows

• Conversations with college administrators to launch HBO, HBO GO, & MAX GO on their campus

• Digital• HBO has a strategy in place allowing on campus residents at select universities to use their university

credentials (user name and password) to log into GO streaming services.

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HBO bulked in the college space

Competitive Landscape Analysis

COMPETITIVE ANALYSIS

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1. Strong presence among the college space2. Accessibility for college students3. Focused marketing efforts to the millennial generation

ComcastON-CAMPUS STRATEGY: XFINITY ON CAMPUS

• Comcast launched Xfinity On Campus at 14 universities • This service allows on-campus college students to watch live

TV and On Demand content on their IP-enabled devices

• This streaming service is equipped with approximately 80 channels including access to the WatchESPN and AMC Mobile apps

• No charge for cable on campus• Students must pay to upgrade to premium content

channels

• $9.95 for any single service

• $5.00 more per month for additional service

OFF-CAMPUS STRATEGY: COMCAST STREAM

• Comcast Stream will be a $15 per month streaming video service (Launch early 2016)

• This service will consist of local broadcast stations & HBO

• On-demand movies & shows (excludes: ESPN, AMC, and Fox News)

• NBC

• CBS

• ABC

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Comcast has not accepted the Licensee Fee Waiver offered by HBO. Instead, they want students to pay incremental subscriptions to access premium channels.

Sling Television• Sling TV is the OTT service provided by Dish

• At $20 per month, Sling TV delivers more than 20 basic channels as well as ESPN and ESPN2• HBO is one of the only premium channels available

now on Sling TV

•Sling TV will be launching a College Tour from October 1- 24. • HBO/ DISH team is in conversations about sponsoring a

portion of this tour

• The targeted regions are locations have an overlap in HBO GO core schools

• Proof of Sling subscription will allow college students to attend a private off-campus music event

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Showtime

BULK LINEAR

Showtime for $0.99• Offer: Add Showtime w/ HBO OR STARZ for

$0.99• Offer Window: December 2015 – June 2016 (6

month offer window with potential to extend offer if its successful)

• Restrictions:• New universities ONLY, universities that have had

SHO in the last 2 years are not eligible• Universities not eligible for property or dealer

incentives

• This Showtime package does not seem to take away from HBO in the college space. Instead, it could enhance HBO’s distribution

STREAMING

• Showtime’s stand-alone streaming service is available for $10.99.

• Strategic partnerships have allowed Showtime to launch their new service on HULU with an additional price of $8.99/ month in addition to the $7.99/month HULU subscription

• In addition to the partnerships, Showtime is also offered through Apple and Roku.

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ESPN

•Distribution• ESPN is distributed through traditional channel

lineups or on IPTV systems on college campuses.

•Digital• Using campus wifi, students are able to access

ESPN3 with their campus credentials

• Available on many different devices

•Marketing• The ESPNU college program allows students to

engage in bringing informative, compelling, and entertaining content to ESPN studio shows.

• ESPN also hosts College GameDay which brings gameday coverage of the best college games in football

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ESPN is the largest distributor of sports content in the United States. Currently, there are no OTT plans because of the challenges that are faced in televised live sporting events.

CBSALL- ACCESS

• Distribution• $5.99 per month includes live TV, next day

streaming, and episodes on demand• Live TV is available in 68 cities across the United States that

offer local CBS broadcasts

• Many CBS classic CBS shows are available through different video services.

• CBS All-Access offers a week long free trial where subscribers can then upgrade to the full package.

CBS SPORTS

• Monthly subscription ($9.95)

• Live Annual ($99.95) *Promotional code available • Access includes coverage of 100+ schools, On-demand

clips & exclusive content

• Multiple devices enabled

• Live video & audio coverage for blackouts

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Netflix

• Netflix does not have a focused distribution effort in the college space• $9 per month for High-Definition streaming

• If Netflix launches on college campuses, they will have the infrastructure enabled for quicker streaming• Netflix Open Connect localizes peak Netflix

traffic through a caching system, which optimizes video quality to the end user

• There is no bulk authentication strategy in place at the current time

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Amazon Prime• Distribution

• Amazon Prime has paired their Prime Instant Video with the entire Prime platform. The subscription for Prime is $99/year or approximately $8.25/ month.

• With your .EDU account, you can start a 6-month free trial.

• After the trial the membership will roll to Amazon Prime for 50% off.

• Marketing• With a Prime Subscription subscribers will have access to:

• Prime Instant Video

• Music Streaming service

• On-Campus Initiative

• Amazon brand ambassadors receive free Prime shipping benefits and exclusive discounts that ease the challenges of being in school.

• Increase Amazon Student membership drive awareness of Amazon’s selection as an online retailer through engaging customer experiences on campus.

• Digital• Amazon Prime benefits can be shared through an Amazon Household

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HULU

• College students are able to subscribe to a free month of HULU Plus with .EDU subscription

• $7.99, Hulu subscribers can access premium programming anytime with Hulu enabled devices

• Currently, Showtime is the only premium content available on HULU

• HULU has previous relationships with Barnes and Noble where students received special discounts from HULU during Back-to-School move in

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PlayStation Vue

• Distribution • Plans are available in select cities:

• New York

• Philadelphia

• San Francisco

• $49-$69 per month The plans come in three different options and over 75 networks

• Marketing• PlayStation will need significant marketing help due

to the saturation of the market in which they are responding with partnerships like Apple and Showtime

• Digital • Recording views in the cloud for 28-days• Showtime Partnership

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With the infrastructure in place through the gaming console, PlayStation has entered the market bringing live content and broadcast television.

Competitive Landscape Analysis

COMPARISONS

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Landscape Comparison Provider Price .edu discount Availability on Devices Special Features

HBO (Bulk Linear) Licensee Fee Waiver No Yes HBO GO/ MAX GO

HBO NOW $14.99 No Yes

Xfinity On-Campus Extra for premium channels Yes Yes Access to apps

Comcast Stream $15 No Yes Local broadcast stations

Sling Television $20 per month + optional packages No Yes Alternative to live cable TV

Showtime Streaming $10.99 No Yes Strategic partnership packages

ESPN - No Yes Free streaming on educational networks

CBS Sports $9.95(monthly)/ $99.95(yearly) No Yes Blackout games

CBS All-Access $5.99 No Yes Live TV, Next Day Streaming, On-demand

Netflix $9 No Yes Netflix Open Connect

Amazon Prime $8.25 Yes Yes Prime Subscription

HULU $7.99 Yes Yes Partnerships

PlayStation Vue $49-$69 No No Cloud Storage

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Device ComparisonProduct Price Product Promotion

Google Chromecast $29.99 Low cost streaming stick that plugs into the HDMI port

For a limited time, buyers received a $20 Google Play credit when they purchased Chromecast

Amazon Fire TV Stick $39.00 Connects to HDMI port. Offers 4x the storage and 2x the memory of Chromecast

Prime customers get unlimited access to popular movies and TV shows with Prime Instant video. This includes ‘The HBO Collection’.

Apple TV $69 Wireless connection to stream HD programing. Includes iTunes movies, Netflix, and Vimeo.

None available

Roku 3 $99.99 A Roku account is free, but payment info is required to access certain channels. Connects to the TV through an HDMI cable.

When purchasing Sling TV, the consumer is eligible to receive a free Roku Streaming Stick or 50% off Roku 3. Prepay three months of service to receive offer.

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Competitive Landscape Analysis

CONCLUSION & RECOMMENDATION

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Conclusions

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Among the competition, HBO excels in these two categories:

1. Brand Ambassador Program

2. Bulk distribution among college campuses

My recommendation is:

1. An .edu discount to college students on HBO NOW

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Questions?