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TRANSCRIPT
www.kitd.com ©KIT digital All Rights ReservedCompany Online Video Presentation Name August 2011
Connected TV Summit ‐
Moscow
06 March 2012
Stuart Sanders |
Director Sales
A next generation strategy for TV Companies trying to cope in the
digital age …
World leader in next generation IP based video
• Broadcasters
• Pay TV Operators
• Cable
• Satellite
• IPTV
• New Online Entrants
KIT digital are the world’s leading provider of IP based video delivery Software and Solutions
In your control …
Out of your control …
Competition
Piracy
Changing Consumption Patterns
Devices
Monetisation
Cost Control
Technology &Infrastructure
Competition
• De‐regulation ... regional boundaries are coming down• New Entrants … TV business is attracting lots of new entrants … some of them giants• Piracy … its getting easier and easier to get premium content illegally• Cord Cutting … means companies already losing money to competitors
5%
The percent reduction in overall cable
subscriptions in the US over the last year. Hulu
and Netflix were the fastest growing TV
subscription services in the US in 2011.
Source: comScore
KIT Factoid
Changing Consumption Patterns
• Linear to VOD
• Devices
• Social TV
• Companion Applications
100 Million
The amount of videos watched per day online
in the US … That’s an increase of over 40% on
2011
Source: comScore
KIT Factoid
Devices
• Are STB’s still as relevant? Not in additional rooms of the house (multi‐room) • General explosion in devices, some used as companion …• The future is very hard to predict
175 Million
The number of connected living room devices
in Western Europe by 2015. TV sets will
account for 41%.
Source: IHS Screen Digest
KIT Factoid
Piracy
• Way too easy to get premium content online for free … its getting easier too• Usually download over streaming• Can be viewed easily on main screen now too
• Way too easy to get premium content online for free … its getting easier too• Usually download over streaming• Can be viewed easily on main screen now too
70%
The percentage of 18 – 29 year olds who
admitted to downloading Movies or TV shows
illegally in North America
Source: Huffington Post
KIT Factoid
Monetization &Cost Control
• The tide is turning …
Companies are starting to make money
• Great content at the right price with a great end‐to‐end experience …
will make money
• Controlling costs is one of the main barriers
• The tide is turning …
Companies are starting to make money
• Great content at the right price with a great end‐to‐end experience …
will make money
• Controlling costs is one of the main barriers
$487M
The size of the online movie market in North
America in 2011. This is expected to more
than double in 2012.
Source: IHS Screen Digest
KIT Factoid
Technology &Infrastructure
• Availability of bandwidth is probably the single biggest limiting factor• Content protection and rights enforcement create another large challenge• Explosion of devices compounds these problems
• Availability of bandwidth is probably the single biggest limiting factor• Content protection and rights enforcement create another large challenge• Explosion of devices compounds these problems
29.7%
The percentage of peak internet usage in North
America taken up by Netflix …
exceeding that
of P2P or BitTorrent for the first time in 2011.
Source: Financial Post
KIT Factoid
tip no. 1adapt or die
1.
Make the right level of investment
2.
OTT is preferred to closed network
3.
Focus on your strengths
4.
Great user experience is key
5.
Content is King
6.
Be distinctive
IF YOU DON’T PROVIDE A SOLUTION SOMEONE ELSE WILL
tip no. 2You have to have vod
1.
OTT VOD is the most cost effective and flexible
2.
Its all about flexibility …
linear, VOD, catch‐up
3.
Connected TV’s will have the largest impact
4.
You need a Social TV strategy
ALL TV COMPANIES MUST HAVE A WELL DEVELOPED IP STRATEGY
tip no. 3Its all about devices
1.
Orientate your device strategy around your particular market
2.
Leverage consumer devices instead of rolling out your own
3.
Cover as many as possible as soon as possible
4.
Don’t build silo’s
ALL TV COMPANIES MUST HAVE A MARKET FOCUSSED DEVICE
STRATEGY
tip no. 4Ignore the pirates
1.
Protect your content with DRM, watermarking, Geo‐filtering
etc.
2.
Don’t erect proprietary walls – make it simple and make the
experience great
3.
Embrace IP to give consumers the content they want
4.
Go after the serial infringers
TV COMPANIES NEED TO OFFER BEST‐IN‐CLASS CONTENT
PROPOSITIONS AT REASONABLE PRICES
tip no. 5Convergence is key
1.
Your digital strategy must be joined up to compete with the likes of
Apple and Netflix
2.
You need to be able to offer flexibility and consistency across devices
3.
The correct building blocks will help you reduce costs through
automation
4.
Build the right business model
TV COMPANIES MUST PULL DOWN THE SILO’s AND PUT THE RIGHT
BUILDING BLOCKS IN PLACE
tip no. 6Find bandwidth partners
1.
With the right commitment to spend, the other technical barriers
are
manageable
2.
The largest ongoing variable cost is related to bandwidth
3.
Leverage more than one bandwidth partner in any given market
AVAILABILITY OF BANDWIDTH IS THE LAST REMAINING BARRIER TO
SUCCESS
World leader in next generation IP based video
• Strategic consulting services
• User experience
• Device strategy
• Converged IP based video solutions
• Integration with core TV systems
• Social TV
• Platform Operations
KIT digital are the world’s leading provider of IP based video delivery Software and Solutions
Just some of our larger customers …
KIT Video Platform Overview August 2011 www.kitd.com ©KIT digital All Rights Reserved
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