• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Video on Demand - Cause and Effects
 

Video on Demand - Cause and Effects

on

  • 287 views

Understand what are the causes and effects of the increased use of “Video on Demand”: ...

Understand what are the causes and effects of the increased use of “Video on Demand”:
- Internet Access and Audience
- USA Crisis and Cable TV Fee
- Netflix VOD Operation and Content Negotiation
- Cable TV own VOD products and Market competition

Statistics

Views

Total Views
287
Views on SlideShare
285
Embed Views
2

Actions

Likes
0
Downloads
2
Comments
0

1 Embed 2

https://twitter.com 2

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Add Youtubepic in the background
  • Add Netflix pic with dvd

Video on Demand - Cause and Effects Video on Demand - Cause and Effects Presentation Transcript

  • M A R C E L A K L E I N S E P T E M B E R / 2 0 1 3 What are the causes and effects of the increased use of “Video on Demand”?
  • Agenda  Video on Demand: Introduction and definition  Cause and Effects:  Internet Access and Audience  USA Crisis and Cable TV Fee  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition  Summary  Discussion  Conclusion and Recommendation  Reference List
  • Agenda  Video on Demand: Introduction and definition  Cause and Effects:  Internet Access and Audience  USA Crisis and Cable TV Fee  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition  Summary  Discussion  Conclusion and Recommendation  Reference List
  • Video on Demand: Introduction and definition  Video consumption  Free access - Youtube  Video On Demand known as VOD is a process that enable users to watch videos whenever they wish to.  Required: Device (TV, Mobile, Tablet, Computer) + internet connection + content provider
  • Video on Demand: Introduction and definition  Entertainment business  Do not need to:  follow the schedule of the TV channels  move physically to a certain place to watch or rent a movie
  • Agenda  Video on Demand: Introduction and definition  Cause and Effects:  Internet Access and Audience  USA Crisis and Cable TV fee  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition  Summary  Discussion  Conclusion and Recommendation  Reference List
  • Cause and Effects: Internet Access and Audience USA Crisis and Cable TV fee Netflix VOD Operation and Content Negotiation Cable TV own VOD products and Market competition
  • Cause and Effects: Internet Access and Video Audience  USA Crisis and Cable TV fee  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition
  • Internet Access and Video Audience  Changed how to communicate and get entertained: habit of watching TV The total video audience was concentrated on the big screen
  • Internet Access and Video Audience  Internet changed how to communicate and get entertained: habit of watching TV  Computers, notebooks and smartphone are now little televisions accessing websites that provide videos
  • Internet Access and Video Audience  Share of Television Viewing by Device (18-44 years old) 348 responses The Multiscreen Marketer, page 15, online
  • Internet Access and Video Audience  Public consequence:  TV programs were recorded and upload on Youtube  Find it online its favorite show or news  Business consequence:  New scenario could affect advertisement revenue (Advertisement)  Build a Youtube channel uploading their own content
  • Cause and Effects:  Internet Access and Audience USA Crisis and Cable TV fee  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition
  • USA Crisis and Cable TV fee  USA economic crisis - 2007 - peak in 2009. Consequences:  Financial arrangements  Identify other possibilities to access entertainment “A sharp rise in housing vacancies due to the mortgage crisis alone has led to five million fewer U.S. households viewing pay-TV services”. (The NPD Group, para. 2, online)
  • USA Crisis and Cable TV fee  Netflix was already known in the market by delivering DVD‟s.  The company saw in this scenario the opportunity to grow its business in a niche not yet explored: online.
  • Cause and Effects:  Internet Access and Audience  USA Crisis and Cable TV fee Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition
  • Netflix VOD Operation and Content Negotiation  Netflix background: Reed Hastings had to pay $40 in fines due date returning of the movie Apollo 13 1998: Founded NETFLIX. His clients would choose the title online, order the DVD, receive it at home, and return by mail 1999: monthly subscription. No due dates, late fees, or shipping and handling - 2007: one billion DVDs delivered
  • Netflix VOD Operation and Content Negotiation  Now: + than 37 millions subscribers*  Do not disclose the number of titles in its catalog  Was never able to negotiate movie releases with the content provider  New releases are sold as „gold‟ and they are exhibited in the premium hour Netflix subscribers = US$ 10/month - full access to a “second hand” content Cable TV subscribers = more than US$ 100/month – some new releases + scheduled “second hand” content *Netflix.com – 2013
  • Netflix VOD Operation and Content Negotiation  With the healthy business situation content providers started to “coming to Netflix for deals instead of vice versa.”  Content providers had to start to consider a new business model to sell content. Studios “are considering them a viable distribution partner. ” (Fitzgerald, qtd in Foley, para. 2, online)
  • Cause and Effects:  Internet Access and Audience  USA Crisis and Cable TV fee  Netflix VOD Operation and Content Negotiation Cable TV own VOD products and Market competition
  • Cable TV own VOD products and Market competition  After watching the VOD trend cable TV consider creating their own VOD  Client subscribe for regular Cable TV + have access to content by others devices
  • Cable TV own VOD products and Market competition “Foxtel Play gives even more Australians who might not be able to access the core service the freedom and flexibility to enjoy Foxtel across multiple connected devices and at price points to suit different budgets and tastes.” (Freudenstein, qtd in Griffith, para. 19, online)
  • Cable TV own VOD products and Market competition  Consequence for clients when a market competition exist:  prices became more affordable  the quality of the product and service improves  companies start to create ever better business option to hold consumer loyalty.
  • Agenda  Video on Demand: Introduction and definition  Cause and Effects:  Internet Access and Audience  USA Crisis and “expenses” on Cable TV  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition  Summary  Discussion  Conclusion and Recommendation  Reference List
  • Summary  Different areas had to develop before Video On Demand became a possibility  Economic aspects that happened during the last 6 years had an important role  Although cable Tv seemed to have had a solid empire, the emergence of Netflix shook the business structure
  • Agenda  Video on Demand: Introduction and definition  Cause and Effects:  Internet Access and Audience  USA Crisis and “expenses” on Cable TV  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition  Summary  Discussion  Conclusion and Recommendation  Reference List
  • Discussion  Do you have the habit of waiting for a TV program to start?  Do you watch video online? Are they legal? (from a provider, such as Foxtel) or illegal? (For a Youtube channel)  Would you pay to for a Video on Demand product?  Do you have Netflix in your country?
  • Agenda  Video on Demand: Introduction and definition  Cause and Effects:  Internet Access and Audience  USA Crisis and “expenses” on Cable TV  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition  Summary  Discussion  Conclusion and Recommendation  Reference List
  • Conclusion and Recommendation  VOD is winning a fixed position in the society  New habits will probably be irreversible  The sensation of having the power of choice will increase even more in the following years  The convenience of reaching any content anytime and anywhere will became regular
  • Conclusion and Recommendation  All parts of this market will need to adapt and improve their service:  devices industry - updated to video trends to produce devices capable to support the upcoming features  content producers and provider - develop a suitable scrip for the online viewer  telecom companies - provide high internet connection  advertisement agencies – create campaigns avoiding the traditional TV advertisement language
  • Conclusion and Recommendation In a close world where options to get entertainment will not be the main issue perhaps the next challenge will be how to help the audience to choose what they will watch…
  • Agenda  Video on Demand: Introduction and definition  Cause and Effects:  Internet Access and Audience  USA Crisis and “expenses” on Cable TV  Netflix VOD Operation and Content Negotiation  Cable TV own VOD products and Market competition  Summary  Discussion  Conclusion and Recommendation  Reference List
  • Reference List  „The Multiscreen Marketer‟, 2012. IAB. Retrieved 25 August 2013 from http://www.iab.net/media/file/The_Multiscreen_Marketer.pdf  „The NPD Group: Average Monthly Pay-TV Subscription Bills May Top $200 by 2020‟, 2012. NPD Group. Retrieved 25 August 2013 from https://www.npd.com/wps/portal/npd/us/news/press-releases/pr_120410/  Fitzgerald, B., qtd in Foley, M., 2013. „Here‟s Why Content Providers Suddenly Adore Netflix‟, Wall St Cheat Sheet. Retrieved 25 August 2013 from http://wallstcheatsheet.com/stocks/heres-why-content-providers-suddenly-adore- netflix.html/?a=viewall  Freudenstein, R. qtd in Griffith, C., 2013. „Just hit play: Foxtel launches broadband internet ground-breaker‟, The Australian. Retrieved 25 August 2013 from http://www.theaustralian.com.au/australian-it/personal-tech/just-hit-play-foxtel- launches-broadband-internet-ground-breaker/story-e6frgazf-1226687739169  Netflix, 1997 (updated 2013) Retrieved 25 August 2013 from https://signup.netflix.com/MediaCenter/Overview
  • THANK YOU. Contact maklein87@gmail.com