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 Dema...
Agenda
 Video on Demand: Introduction and definition
 Cause and Effects:
 Internet Access and Audience
 USA Crisis and...
Agenda
 Video on Demand: Introduction and definition
 Cause and Effects:
 Internet Access and Audience
 USA Crisis and...
Video on Demand: Introduction and definition
 Video consumption
 Free access - Youtube
 Video On Demand known as VOD is...
Video on Demand: Introduction and definition
 Entertainment business
 Do not need to:
 follow the schedule of the TV ch...
Agenda
 Video on Demand: Introduction and definition
 Cause and Effects:
 Internet Access and Audience
 USA Crisis and...
Cause and Effects:
Internet Access and Audience
USA Crisis and Cable TV fee
Netflix VOD Operation and Content
Negotiati...
Cause and Effects:
Internet Access and Video
Audience
 USA Crisis and Cable TV fee
 Netflix VOD Operation and Content N...
Internet Access and Video Audience
 Changed how to
communicate and get
entertained: habit of
watching TV
The total video
...
Internet Access and Video Audience
 Internet changed how to
communicate and get
entertained: habit of
watching TV
 Compu...
Internet Access and Video Audience
 Share of Television
Viewing by Device
(18-44 years old)
348 responses
The Multiscreen...
Internet Access and Video Audience
 Public consequence:
 TV programs were recorded and upload on Youtube
 Find it onlin...
Cause and Effects:
 Internet Access and Audience
USA Crisis and Cable TV fee
 Netflix VOD Operation and Content Negotia...
USA Crisis and Cable TV fee
 USA economic crisis - 2007 - peak in 2009.
Consequences:
 Financial arrangements
 Identify...
USA Crisis and Cable TV fee
 Netflix was already known in the market by
delivering DVD‟s.
 The company saw in this scena...
Cause and Effects:
 Internet Access and Audience
 USA Crisis and Cable TV fee
Netflix VOD Operation and
Content Negotia...
Netflix VOD Operation and Content
Negotiation
 Netflix background:
Reed Hastings
had to pay $40
in fines due date
returni...
Netflix VOD Operation and Content
Negotiation
 Now: + than 37 millions subscribers*
 Do not disclose the number of title...
Netflix VOD Operation and Content
Negotiation
 With the healthy business
situation content providers
started to “coming t...
Cause and Effects:
 Internet Access and Audience
 USA Crisis and Cable TV fee
 Netflix VOD Operation and Content Negoti...
Cable TV own VOD products and Market
competition
 After watching the VOD trend cable TV consider
creating their own VOD
...
Cable TV own VOD products and Market
competition
“Foxtel Play gives even more Australians who might
not be able to access ...
Cable TV own VOD products and Market
competition
 Consequence for clients when a market
competition exist:
 prices becam...
Agenda
 Video on Demand: Introduction and definition
 Cause and Effects:
 Internet Access and Audience
 USA Crisis and...
Summary
 Different areas had to develop before Video On
Demand became a possibility
 Economic aspects that happened duri...
Agenda
 Video on Demand: Introduction and definition
 Cause and Effects:
 Internet Access and Audience
 USA Crisis and...
Discussion
 Do you have the habit of waiting for a TV program to
start?
 Do you watch video online? Are they legal? (fro...
Agenda
 Video on Demand: Introduction and definition
 Cause and Effects:
 Internet Access and Audience
 USA Crisis and...
Conclusion and Recommendation
 VOD is winning a fixed position in the society
 New habits will probably be irreversible
...
Conclusion and Recommendation
 All parts of this market will need to adapt and
improve their service:
 devices industry ...
Conclusion and Recommendation
In a close world where
options to get
entertainment will not be
the main issue perhaps the
n...
Agenda
 Video on Demand: Introduction and definition
 Cause and Effects:
 Internet Access and Audience
 USA Crisis and...
Reference List
 „The Multiscreen Marketer‟, 2012. IAB. Retrieved 25 August 2013 from
http://www.iab.net/media/file/The_Mu...
THANK YOU.
Contact
maklein87@gmail.com
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Video on Demand - Cause and Effects

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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

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  • Video on Demand - Cause and Effects

    1. 1. 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”?
    2. 2. 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
    3. 3. 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
    4. 4. 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
    5. 5. 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
    6. 6. 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
    7. 7. 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
    8. 8. 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
    9. 9. 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
    10. 10. 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
    11. 11. Internet Access and Video Audience  Share of Television Viewing by Device (18-44 years old) 348 responses The Multiscreen Marketer, page 15, online
    12. 12. 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
    13. 13. 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
    14. 14. 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)
    15. 15. 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.
    16. 16. 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
    17. 17. Netflix VOD Operation and Content Negotiation  Netflix background: Reed Hastings had to pay $40 in fines due date returning of the movie Apollo 13 1998: Founded NETFLIX. His clients would choose the title online, order the DVD, receive it at home, and return by mail 1999: monthly subscription. No due dates, late fees, or shipping and handling - 2007: one billion DVDs delivered
    18. 18. Netflix VOD Operation and Content Negotiation  Now: + than 37 millions subscribers*  Do not disclose the number of titles in its catalog  Was never able to negotiate movie releases with the content provider  New releases are sold as „gold‟ and they are exhibited in the premium hour Netflix subscribers = US$ 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
    19. 19. 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)
    20. 20. 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
    21. 21. 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
    22. 22. 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)
    23. 23. 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.
    24. 24. 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
    25. 25. 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
    26. 26. 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
    27. 27. 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?
    28. 28. 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
    29. 29. 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
    30. 30. 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
    31. 31. 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…
    32. 32. 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
    33. 33. 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
    34. 34. THANK YOU. Contact maklein87@gmail.com

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