Our EVP Americas, Sefy Ariely spoke about "OTT: Have it your way" at NexTV Summit 2014.
It seems that everyone is hungry for OTT Video delivery these days. While it definitely is nourishment for every content service provider's strategy, that does not mean that there is one right way to eat it. As long as the key ingredients are in place, you can prepare it your way, to suit your business and your customers. In our session, we will discuss what those key ingredients are and review a few case studies of operators who are successfully doing it their way.
2. Typical Concerns Regarding OTT Services
• Monetization
• Content Rights
• Consumer Adoption
• Differentiation
• Cost of Ownership/Cost of Evolution
3. Ingredients:
• 3 cups premium content
• 2 tablespoons of DRM
• 20 grams of advertising
• 4 packs of bitrates
• 1 CDN
• 1 package of differentiation
• Personalization and Discovery
• 1 User Experience
• Multiple devices
Instructions:
Heat the origin server to 300 degrees. Take
the content rights, the transcoding and
bitrates and roll them into video profiles.
Blend in the advertising. Mix premium
content with DRM, pour into CDN and let
settle. Bake with differentiation for 45
minutes. Sprinkle with personalization and
discovery to taste and chill until
authenticated. Add monetization sauce.
Careful: Very engaging when hot. Pour into
the User Experience mold. Serve in tablets,
smartphones, TVs and PCs. Feeds up to
millions of subscribers.
OTT Video: What is the recipe for success?
4. There is no single recipe, as long as you…
• Make OTT an integral part of your strategy
• Accept OTT as a key driver of consumer satisfaction and
appreciation
• Establish an OTT offering that is a full meal, not just an
appetizer
• Make sure you leverage your strengths and differentiating
ingredients
• Choose your ingredients carefully, don’t just take whatever is
nearest
5. Participants (our customers):
• The DTT operator
• The incumbent IPTV provider
• The content aggregator
• The competitive broadband/mobile operator
Master Chef: OTT
Temporada 15: Hornada OTT
VO is proud to present…
6. Contestant No. 1:
The DTT Operator
• Strong Pay TV DTT player with no network assets
• Recently added VOD and Catchup TV over-the-Top to the STB
• Abundance of fibre in the region (>100Mbps) is driving subscribers
to competitors/online video
• Multi-screen services come naturally for triple-play operators and
this poses a threat to their existing subscriber base
• What are their strengths?
• Existing, high-quality TV service
• Premium Content
• Subscriber base
• Available bandwidth
7. Contestant No. 1:
What did they do?
• Delivering content to multiple screens/devices in order to
‘protect’ their DTT customers (an add-on to the Pay DTT
service)
• Was planned to distribute content inside the home via the STB
• Converted to OTT due to availability of bandwidth and need to
extend the service outside the home
• Linear and On Demand content, personalized
recommendations, on iOS/Android tablets/smartphones, PCs,
OTT STB, Smart TVs, game consoles and Chromecast
• Now considering OTT TV as a potential stand-alone service
(without requiring a DTT subscription), enabling them new
growth
• Scheduled Launch: July, 2014
8. Contestant No. 2:
The incumbent
• Successful IPTV/Hybrid service with >5M subs
• 27M mobile subscribers with access to a very limited content library
(primarily on demand)
• Robust Pay TV offering, wide variety of content (linear and on
demand)
• Strong competition from Pay TV operators as well as online video
• Ongoing consolidation in France between fixed IPTV operators and
mobile operators
• What are their strengths?
• Subscriber base
• Nationwide Broadband Network (fixed/mobile)
• Content and Experience
9. • Initiated a multi-screen service, to be synched with the Pay TV
service, in order to align the mobile TV service as much as
possible with the Pay TV service
• Expanded the reach of the service to all devices: tablets,
smartphones, PCs, games consoles, Smart TVs
• Secured content rights to ensure that subscribers had access
to the same content over Wifi/3G/4G as they have in the
home
• Implemented EST model in the video service to allow
subscribers to take their content with them wherever they go
Contestant No. 2:
What did they do?
dential -
10. Contestant No. 3:
The Content Aggregator
• Content provider/aggregator with an array of well focused
content targeted at a specific market segment
• Limited distribution options on existing Pay TV infrastructure
• Under-served market segment that represents a window of
opportunity
• Available content rights for OTT
• Potential distributors lack the infrastructure for OTT content
• What are their strengths?
• Well focused content
• A well defined demographic
• Expertise in finding distribution partners
11. Contestant No. 3:
What did they do?
• Established a cloud platform for content preparation for linear
and non-linear viewing
• Created a cloud architecture for securely delivering the
content through a white-labeled OTT service
• Expanded their content offering to include a wider variety of
channels, as well as getting VOD rights
• Targeted tablets, smartphones, Smart TVs, Game Consoles and
PCs in order to provide maximum accessibility to the content
• Offered distributors a compelling bundle of technology and
content
12. Contestant No. 4:
The competitive broadband Operator
• Insufficient growth for IPTV (limited coverage)
• Declining Pay TV market, market-wide loss of subs
• Difficult economic situation, high un-employment leading to an
emphasis on low cost solutions
• Lack of competitive differentiation on IPTV
• Abundance of pirated content due to lax anti-piracy rules
• Dominant Pay TV provider focused on a higher-tier of customers
• Cable players unable to compete on a national basis
• What are their Strengths?
• National access (through OTT)
• Subscriber base (through mobile/fixed broadband)
• Content expertise and experience
13. Contestant No. 4:
What did they do?
• Launched a low-cost (12€) focused service with the top premium
channels and access to VOD, in HD and…fully OTT
• Sports package and SVOD available for small incremental cost
• Provided low cost STBs that can also receive DTT (popular in Spain,
though very regional)
• Focused on 3 core concepts- Simplicity, Innovation and Value for
Money
• Presented a network agnostic, innovative service that is accessible
on tablets, Smart-TVs, smartphones, games consoles, PCs, STBs
• The results:
• >40% TV growth in 6 months…
• High Customer Satisfaction
• Low support costs
15. Every Chef has their secrets
• Make sure that OTT is in your strategy
• OTT is a key driver of consumer satisfaction
• Create consistency in your OTT content offering
• Use your strengths and focus on differentiation
• Work with proven solutions
Monetization-
Through subscriptions?
Advertisement?
Churn reduction/reduce customer acquisition?
Create growth opportunities
Content Rights
Unique to OTT?
Same content store?
Complimentary content/extras on OTT
Relinquish control to the network?
Consumer Adoption
Marketing efforts
Education challenges
Penetrating older demos
Differentiation
Content exclusivity/original content?
Pricing?
User Experience
Features
Accessibility
COO/COE
Device changes
Multiple formats
Lack of standardization (e.g TVs, GCs)
App evolution
Distribution/Transmission costs
Strictly OTT?
TV Everywhere?
2nd Screen strategy
OTT STBs/Smart TVs- TV-centric strategy
Focus on price- YouTube
Focus on content quantity- YouTube, Netflix
Focus on specific niche of content- ESPN, HBO, NBA/MLB
Focus on accessibility- Hulu, Netflix
80% of those under the age of 35 and over half of the others, watch TV shows/movies online weekly
Cord-shaving behavior has nearly doubled since 2010; 26% are saying they are spending less on Pay TV because of online video
TV Everywhere Adoption- Over 60% between the ages of 18-44
In the US, tablet sales have overcome laptop/netbook sales
OTT Service Adoption- Overall a 25% rise (Parks)