I have examined and compared international and Hungarian non-linear content providers. I have selected six international, and twenty services from fifteen different Hungarian companies. I came to the following conclusions: In the international and Hungarian market the leader in the subscription based business model is clearly the Netflix. However, the Apple and Google's service is the leader in the transactional business model, and their huge advantage is that they are present natively on their own operating system devices. The service can be accessed directly from hundreds of millions of mobile and tablet devices. We cannot deduct such a conclusion from the Hungarian market, since in most cases it is necessary to have cell phone or TV subscription to access the video library, and most of the operators treat the extra content as additional service. In my opinion, the major providers are UPC, Telekom and Telenor. All three companies actively advertise their service and have thousands of hours of video content available in their video service, and are using all business models mixed. Further time is needed to increase the awareness and usage of these services. Also in the other parts of the world it is just getting started to discover the potential in the mobile devices and unique content. The coverage and speed of Internet networks is dynamically growing, but the cost of mobile data is still expensive.

1. THE REVOLUTION OF
CONTENT CONSUMPION
Will TV exit the living room?

2. WHY I CHOOSED THIS TOPIC?
• Technological development (smart devices)
• The changing content consumption habits (not just home)
• Increased interactivity (new and plus content)
• High consumer involvement (decision role)
• Real data set (for companies)

3. GLOSSARY
IPTV – Digital TV service transmitted over the
Internet using IP standard (set-top-box)
DVB – Digital Video Broadcast over: Terrestrial,
Satelite, Cable (set-top-box)
VOD – Video On Demand: watching audio and video
materials from a special storage space
OTT – Over The Top: Service accessible via the
Internet
FREE/PAY-TV

4. INTERNATIONAL TRENDS
OTT share from the total
PAY-TV revenues
OTT share from the total
filmmaker entertainment industry

5. BUSINESS MODELS
SVOD: Monthly subscription
TVOD: Transaction-based payment (DTO, DTR)
AVOD: Does not have to pay (or small) for the
content, but includes ads
FVOD: Free content (Linked to registration,
promotions, the content is often outdated)

6. INTERNATIONAL COMPANIES
SVOD AVOD TVOD

7. HUNGARIAN COMPANIES
I HAVE EXAMINED 20 SERVICES FROM 15 COMPANIES
Service Type Business
model
Library offer Monthly fee Rental fee/
SD film
Rental fee/
HD film
Buying SD/HD
UPC library VOD TVOD*
Large − 500-970 500-970 −
Telekom library VOD TVOD*
Large − 499-599 760-999 −
Invitel library VOD S/TVOD*
Large 590-690** 420-720 − −
MinDig TV Plusz VOD FVOD − − − − −
iTunes OTT TVOD Large − 1240-1550 1550 4030/4805
YT/Play Movies OTT TVOD Large − 880 1100 3300/4400
Hungarian TVOD services (Across set-top-box and internet / The price is in HUF)
*Cable or satellite TV subscription is required for usage
**Optional, only needed to access extra content
Service Type Business
model
Library
offer
Live
broadcast
Monthly fee Rental fee
UPC MyPrime VOD SVOD Large − 1490 Ft. −
Telekom Moziklub VOD S/TVOD Large − 1500 Ft. 850-1990 Ft.
Hungarian SVOD services (Through Set-top-box / The price is in HUF)

8. HUNGARIAN COMPANIES
Service Type Business
model
Live
broadcast
Monthly fee TV Monthly fee for
library
Opinions/points
Android
Opinions/points
iOS
Horizon GO Free TV FVOD* Yes − 1490 45398/3,6 25/4
TVGO OTT F*/SVOD Yes 2-3000 1500 4622/3,2 −
DIGI Online Free TV FVOD* Yes − − 1305/3,9 −
MinDig TV Free TV FVOD Yes − − 13362/3,6 595/2,5
Telenor MyTV OTT SVOD Yes 1290/3490 690-1990 7825/3,9 46/3
Vodafone Red OTT S/TVOD − − 1990/900 588/4,2 120/4
Netflix OTT SVOD − − 2480-3720 2610524/4,4 94/3,5
HBO GO OTT FVOD*/** − 2100 < Ft. − 1700/3,9 243/2,5
RTL MOST OTT FVOD − − − 13014/3,4 551/2
FilmBox Live OTT S/FVOD* − 1000 < Ft. 1250 420/3,4 7/1
Teletéka web OTT F/SVOD Limited − 999 − −
ITT/OTT TV OTT SVOD Yes 800 − 274/3,8 13/3
Hungarian SVOD and FVOD services (Application and website / The price is in HUF / 2016.05.07.)
*Cable or satellite TV subscription is required for usage
**PAY-TV package and/or other service subscription in needed

9. PRIMER RESEARCH
QUALITATIVE: NETNOGRAPHY (NETFLIX service)
◦ What characterizes the opinions about the Hungarian Netflix
service?
◦ In what groups can be classifyed the consumers based on
their attitudes towards content providers?
◦ Examined period (January 6 – May 6, 2016)
SOROZATJUNKIE (8), COMMENT (42), ORIGO FILM SECTION (28. article)
Observer Netnography (objective, free from influence)
Four consumer groups: Price sensitive, Skeptic, Missionary and
Disappointed

10. PRIMER RESEARCH
QUANTITATIVE: ONLINE QUESTIONNAIRE
Marketing research problem:
◦ What kind of communication tools needed to reach the target group?
◦ What kind of interactive and quality content needed to reach out the
target group?
◦ How does traditional TV viewing having a central role and what
alternatives are there?
Active period (May 1 – May 6, 2016)
SOURCE: FACEBOOK, E-MAIL, INSIDE THE COMPANY
All fillers: 81 people, form the target group: 18-34 (58%)
60.5% man, 40.7% has university degree, 84% from Budapest

11. PRIMER RESEARCH
RESULTS:
- Favorite genre in Comedy, they don’t like Horror
- The program is downloaded through Torrent : 55.6%
- Users who use video library: 34.6%
- Users who knows live TV applications: 90.1%
- Best-known OTT service: Netflix 66.7%
- Most downloaded application: HBO GO 22.2%
- Most subscribers: Netflix 18.5%
- Most important aspects against services: price + quality
- The most hold back factor: very expensive, the Torrent is
free, did not give any interest

12. PRIMER RESEARCH
PROPOSALS:
- Change of perspective: free vs. paid (torrent vs. royalties for filmmakers and
crew)
- Reduce the price for mobile Internet (high data traffic)
- Increasing awareness: highlight unique content, price (prepare comparative
campaign) „teaching” the consumers
- Online advertising: social media, thematic pages
- Active communication during promotional periods: increase the first users
ratio
- Advertisement in the cinemas: DVD + Blu-Ray vs. VOD/OTT (the digital copy
is much cheaper)
- Winning model: AVOD (Because of the advertisement the service is free)

13. THANK YOU FOR YOUR
ATTENTION!