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TV Everywhere
1. TV
Everywhere:
Cableco's
response
to
Hulu/Netflix
led
Over
the
Top
problem
or
evolution
of
Internet
delivered
TV
model
Recently
Internet
delivered
premium
video
hit
the
tipping
point.
Netflix
and
Hulu
led
this
Internet
delivered
TV
revolution.
Netflix
not
only
lined
up
12k+
titles
for
delivering
it
over
the
internet
via
portal,
but
also
helped
its
employees
build
a
$100
"Over
The
Top"
set
top
box
Roku
(sold
180k
boxes
in
less
than
one
year).
Hulu,
A
NBC-‐Fox
joint
venture,
came
out
from
nowhere
and
started
generating
more
ad
revenues
than
giants
like
YouTube.
Combination
of
Netflix
and
Hulu
was
offering
sufficient
enough
entertainment
for
the
consumers
to
cut
their
payTV
cord,
especially
during
the
financial
meltdown.
This
trend
is
set
to
accelerate
with
increased
proliferation
of
connected
video
gaming
consoles
and
connected
TVs.
TV
industry
is
on
a
slippery
slope
and
its
$300b
market
cap
is
under
serious
risk.
TV
everywhere
is
one
initiative
that
can
stabilize
this
slide
and
help
TV
industry
reinvent
new
business
model
for
new
platforms
like
Internet
and
Mobile.
Hulu's
birth
and
its
potential
impact
on
TV
industry
Hulu
was
created
to
alleviate
ratings
and
revenue
pains
of
broadcast
networks,
but
it
may
become
source
of
destruction
US
TV
industry.
In
2007,
Top
four
TV
giants
(CBS,
NBC,
New
Corp,
Disney)
generated
$22b
from
broadcast
TV
networks
and
approximately
$16b
from
cable
TV
networks
business.
Unlike
broadcast
TV
networks,
Cable
TV
networks
make
money
from
both
advertising
and
carriage
fees.
Broadcast
networks
make
money
only
from
advertising,
which
is
vanishing
fast.
It
is
expected
to
hit
$36b
in
2010
from
$43b
in
2008.
With
DVRs
expected
to
hit
50%+
penetration
by
2010,
whole
broadcast
business
has
been
under
serious
risk.
Availability
of
pirated
TV
shows
on
sites
like
YouTube
also
had
negative
impact
(e.g.
Before
Viacom
asked
YouTube
to
bring
down
Comedy
Centrals
Daily
show
with
Jon
Stewart,
it
was
consistently
ranking
in
top
viewed
videos).
Due
to
all
these
trends,
in
2008,
NBC
and
Fox
together
formed
Hulu.com
with
the
objective
of
recovering
lost
TV
ad
dollars
from
Internet
media,
in
hopes
that
one
day
pennies
of
Internet
will
match
the
Analog
TV
dollars
due
to
the
Page 1 of 6
2. sheer
size
of
Internet.
Today,
Although
Hulu
CPMs
are
30-‐50%
more
than
TV
CPMs,
advertising
minutes
are
only
one
quarter
for
online
version
vis-‐a-‐vis
same
episode
on
TV.
This
means
greater
than
60%
of
TV
ad
revenues
are
at
risk
when
show
moves
from
broadcast
to
Internet.
Recently
Disney
also
joined
Hulu
as
an
equal
partner
to
NBC
and
Fox.
From
usage
point
of
view
Hulu
with
CBS's
TV.com
can
provide
most
of
the
broadcast
programming
to
consumers
and
entertainment.
Although
cable
and
Satellite
penetration
is
90%,
but
no
cable
TV
network
generates
more
than
40%
average
weekly
cumes
(The
cume
is
the
percentage
of
homes
in
a
market
that
tune
to
a
particular
station
for
six
minutes
or
more
during
a
measurement
period)
and
in
contrast
ABC,
CBS,
Fox
and
NBC
consistently
clock
reach
over
70%.
Pay
TV
providers
charge
consumer
for
200+
channels,
but
in
reality
these
consumers
watch
about
8-‐12
channels
and
if
most
of
them
are
broadcast
channels
(as
seem
by
Ave
weekly
cumes)
and
its
content
is
also
available
online
then
risk
of
cord
cutting
becomes
imminent,
which
eventually
put
the
whole
TV
industry
at
risk.
TVEveryWhere:
Cablecos
attempt
to
maintain
PayTV
bundling?
Like
in
many
other
countries,
TV
industry
in
US
also
generates
revenues
from
two
sources
1) pay
TV
subscribers
2) 2)
TV
advertisers.
Cablecos
generates
almost
$61b
from
basic,
premium
and
pay-‐per-‐view
programming
with
almost
60%
penetration.
TV
industry
as
a
whole
attracted
$69b
in
ad
revenues
in
2008,
out
of
which
$43b
(expected
to
decline
to
$36b
in
2010)
came
from
broadcast
networks
and
$26b
(expected
to
increase
to
$27b)
from
Cable
networks.
Broadcast
and
TV
networks
generate
almost
$50b
in
form
of
carriage
fee
Page 2 of 6
3. from
all
the
pay
TV
subscriptions.
Carriage
is
fees
paid
by
TV
service
provider
like
Comcast
to
TV
networks
like
Disney
and
ESPN.
It
varies
from
32
cents
for
MTV,
45
cents
Nickelodeon,
86
cents
for
Disney
and
to
as
high
as
$4
per
subscriber
for
ESPN.
Out
of
100-‐
115$
triple
play
ARPUs
of
Cablecos,
average
$55
comes
from
pay
TV
and
due
to
bundling
and
carriage,
shares
of
all
the
content
and
service
providers
are
protected,
any
haphazard
attempt
to
unbundled
it
can
backfire
as
it
did
in
Music
(Offering
consumers
option
of
buying
hits
instead
of
albums
to
fight
against
Nepster
led
music
piracy
eventually
led
to
destruction
of
music
companies'
market
value)
and
News
paper
industry
(Undermined
value
of
news
paper
premium
content
by
offering
it
for
free
Online
and
also
craigslist's
free
classified
alternative).
TV
everywhere
is
non
exclusive
and
won't
stop
Content
providers
from
providing
content
to
Hulus
and
YouTubes.
However,
given
the
choice
between
Hulu
and
TV
Everywhere,
television
programmers
have
an
incentive
to
go
with
the
latter
due
to
dual
income
from
both
advertisers
and
consumers
in
form
or
carriage
fee.
This
makes
TVEveryWhere
delivers
yesterday's
business
model
on
today's
platform.
Due
to
this
very
reason,
NBC
and
Disney
executives
are
now
talking
about
subscription
based
section
in
Hulu
service.
Page 3 of 6
4. TVEveryWhere
what
is
it?
TVEveryWhere
is
a
service
concept
built
around
authentication
and
entitlement,
which
offers
premium
TV
content
online
available
for
free
to
anyone
who
subscribe
to
multi
service
operator's
(MSO)
offer.
This
name
was
coined
by
Time
Warner.
Before
Comcast
adopted
this
name
for
its
initiatives,
it
was
using
OnDemand
Online
to
describe
its
initiatives.
As
of
today
TVEveryWhere
epitomize
technical
and
business
response
of
Cablecos
to
protect
content
bundling,
pricing
and
pay
TV
business
models
from
internet
TV
alternatives
like
Hulu,
without
devaluing
the
content.
Following
are
the
broad
principles
of
TV
everywhere
announced
jointly
by
Time
Warner
and
Comcast.
1. Bring
more
TV
content,
more
easily,
to
more
people
across
platforms.
2. Video
subscribers
can
watch
programming
from
their
favorite
TV
networks
online
for
no
additional
charge.
3. Video
subscribers
can
access
this
content
using
any
broadband
connection
4. Programmers
should
make
their
best
and
highest-‐rated
programming
available
online
5. Both
networks
and
video
distributors
should
provide
high-‐quality,
consumer-‐
friendly
sites
for
viewing
broadband
content
with
easy
authentication
6. A
new
process
should
be
created
to
measure
ratings
for
online
viewing.
The
goal
should
be
to
extend
the
current
viewer
measurement
system
to
include
advertiser
ratings
for
TV
content
viewed
on
all
platforms.
7. TV
Everywhere
is
open
and
non-‐exclusive;
cable,
satellite
or
telco
video
distributors
can
enter
into
similar
agreements
with
other
programmers.
TVEveryWhere:
Technology
Although
there
is
a
broad
agreement
on
principles
of
TVEveryWhere,
but
key
implementation
details
can
differ
among
service
providers.
Comcast
TVEveryWhere
trials
will
be
built
using
MoveNetwork
and
Comcast's
thePlatform
technologies.
Time
Warner
may
adopt
combination
of
Adobe
and
thePlatform.
thePlatform
is
already
used
as
online
video
platform
for
Time
Warner's
roadrunner,
Cablevision
and
Cox.
thePlatform
is
also
expected
to
announce
a
big
deal
with
European
pay
TV
provider
sometime
in
September'09.
Comcast
TVEveryWhere
trial
will
allow
customers
to
log
into
Fancast
and
Comcast.net
to
view
their
cable
programming
online.
Comcast
will
use
desktop
player
built
using
Move
network
technology
to
stream
content
on
both
PC
and
Mac.
Although
Comcast
has
not
announced
any
details
on
bit
rate
of
the
online
cable
package,
but
it
has
said
that
content
will
be
available
in
both
SD
and
HD.
Viewers
wont
be
allowed
to
save
or
transfer
content
to
any
portable
device,
though
these
service
may
be
offered
by
service
provider
in
future.
Page 4 of 6
5. TVEveryWhere:
Comcast's
TV
Everywhere
trial
and
content
partners
Comcast
is
launching
this
trial
with
5000
customers
next
month
and
it
expects
to
launch
this
service
to
all
of
its
customers
via
Fancast
and
Comcast.net
portal
by
Q4'09.
Who’s
In:
CBS;
Time
Warner
Inc.
(TNT,
TBS,
HBO,
Cinemax);
Starz
Entertainment;
Scripps
Networks
(Food
Network,
HGTV,
DIY
Network,
Fine
Living
Network);
Cablevision
Systems’
Rainbow
Media
(AMC,
IFC,
WE
TV,
Sundance
Channel);
A&E
Television
Networks
(A&E,
History
Channel);
Comcast
Networks
(E!,
Style
Network,
G4,
FearNet);
Hallmark
Channel;
MGM
Impact;
BBC
America
Who’s
Not:
Viacom’s
MTV
Networks;
NBC
Universal;
News
Corp.’s
Fox;
Disney/ABC
Television
Group;
Discovery
Communications;
Showtime
Networks
TVEveryWhere:
Consumer
reaction
About
73%
of
Comcast
and
Time
Warner
Cable
subscribers
surveyed
said
TVEveryWhere
services
-‐-‐
which
promise
access
to
a
wealth
of
video
online
for
no
extra
charge
-‐-‐
are
an
"excellent"
or
"good"
idea,
according
to
research
firm
Solutions
Research
Group.
87%
of
respondents
using
Hulu.com
or
Fancast.com
approved
of
the
TVEveryWhere
idea.
The
top
10
channels
respondents
said
they
wanted
to
access
in
full
over
the
Web
at
home
were
ABC
(also
available
via
Hulu.com),
CBS
(Also
available
via
TV.com),
NBC
(Also
available
via
Hulu.com)
and
Fox
(Also
available
via
Hulu.com)
—
followed
by
ESPN,
HBO,
CNN,
Discovery
Channel,
History
Channel
and
Syfy.
TVEveryWhere:
What
about
Telcos
and
Satellite
TV
providers
DirecTV,
Dish
Network,
Verizon
Communications
and
AT&T
are
aligned
with
the
concept
of
TVEveryWhere,
which
will
allow
subscribers
to
log
in
and
access
content
through
any
participating
Page 5 of 6
6. "Web
service"
using
a
standardized
authentication
and
entitlement
mechanism.
Unlike
AT&T
and
DirecTV,
dish
network
and
Verizon
have
not
publicly
endorsed
the
idea.
AT&T
and
DirecTV
have
announced
its
development
plans
for
TVEveryWhere
services.
Comcast
is
bit
different
in
its
implementation
plans,
it
plans
to
distribute
TVEveryWhere
services
via
Fancast
and
Comcast
portals
only.
Comcast
is
known
for
its
aggressive
marketing
and
delivery
schedule
and
with
Comcast's
theplatform,
Plaxo,
Fancast
under
its
sleeves,
it
can
afford
to
lock
its
online
content
plans
under
its
portals.
Page 6 of 6