MASTERING
ANYTIME
A look at the new paradigms
of digital distribution
ANYWHERE

A PRESENTATION BY BERTRAM GUGEL
2

PART 1 Painting the Scenery
Video on the Net
PART 2 Introducing the players
New Distribution
PART 3 Explaining some rules
How to participate
3

PART 1
Video on the Net
4

One of the most promising opportunities:
Online Videos.
NO
BITE
NEW MARKET UPSIDES CANNIBA
INTO TV
LIZATION

Let‘s take a closer look at the
TURBULENT
market of online videos.
6

ONCE UPON A TIME...
August 1998, 15.000 Views/Day
7

TODAY...
YouTube:
>300 Mio. Unique Users/month
worldwide
more than
7500 Web TV
Stations
MyVideo:
U. S. Internet users view
30 Mio. views/
About 500 14,3 Billion
month (05/2008)
Video online videos/month*
*12/2008
Portals worldwide.
Source: Dec 2008 ComScore

It‘s a time of new paradigms.
9

STAR
THE NEW PARADIGM.
> 25 Mio users/month
A 13 year old YOUTUBE star...
...is generating more clicks than the BILD.de video content.

STAR
THE NEW PARADIGM.
Sou
lja
B oy
51 Million Profile Views on MySpace Ø 550.000 Video Views/Day
➡ ➡
840.000 Friends on MySpace 226 Million Video Views on YouTube
➡ ➡
127.000 Subscribers on YouTube Univeral Music Deal / #1 Billboard-Charts USA
➡ ➡
11

D I S T A N C E PARADIGM.
THE NEW
Video entertainment moves closer to the consumer.
3m
50 cm
10 cm
12

DISTRIBUTION PARADIGM.
THE NEW
From a few EXCLUSIVE distribution channels to U B I Q U I T Y .
iPod vending machine
13

USER INTERACTION PARADIGM.
THE NEW
PAST PRESENT FUTURE
A g g r
Coop eration e g a t
Own Production
i o n .
14

VALUE CHAIN PARADIGM.
THE NEW
TRADITIONAL
Access/Device
Production Packaging Ad inventory Distribution Consumption
EMERGING
Production Repurposing Aggregation Distribution Access/Device Consumption
Ad Inventory
New Player
Traditional Player Audience
15

BIG OPPORTUNITY
=
VIDEO
„Online video is here to stay and evolving faster and in more dynamic ways than anyone
imagined, even a few years ago.
If you embrace this opportunity, you will evolve your business model and find new
channels and opportunities to deepen engagement, discover new viewers and find new,
substantial revenue opportunities.“
Chad Hurley, Co-Founder of Youtube, MIPCOM 2008
16

TRUE,
But that‘s only half the story...
17

WHY ACTUALLY ONLINE VIDEOS?
18

WHY ACTUALLY ONLINE VIDEOS?
expensive to produce.
Videos are darn
Quarterlife:
$300.000 Production,
48 minutes produced,
8 Episodes,
$37.500 Episode,
2 Millionen viewers in total,
outcomeof web: almost 0
19

WHY ACTUALLY ONLINE VIDEOS?
difficult to distribute!
Videos are
Output, Transcoding, Thumbnail Generation, Batch-Upload, Metadata-Export, Metadata-Import into CMS, CDN-
handling, editing Player-Page, editing players, editing of playlist, integrating videos into playlists, integrating
videos into Player, Playlist arrangement, launch on Site, launch of Player, launch of Playlist, launch of Videodata,
Management of Serverspace, Traffic shaping, Peak-Management, broad band check, Playercheck, technical user
requirements, User-Tracking, tracking of playing habits, Accessibility, Fall-Back-Content, Video-Sitemap,
Searchengine Optimisation, Site Search, video index

WHY ACTUALLY ONLINE VIDEOS?
hard to market:
Videos are (still)
„Even if web video got the same
CPMs as TV, because online
VIDEO
PICTURE GALLERY
viewers will tolerate less
advertising, a 30-minute
3 MINUTES
3 MINUTES
program on the web with two
1 VIDEO
6 PAGES vs.
vs. minutes of advertising yields
1 Ad Impression
at least
approximately 1/8th as much
12 Ad Impressions
revenue per viewer.”
21

WHY ACTUALLY ONLINE VIDEOS?
SO
SHEEP
SHEEP SH
SHEEP EE
P
BECAUSE THEY ALL DO?
SHEEP
SHEEP
22

THAT‘S WHY:
HIGH DEMAND
THERE IS A
26 million Unique Viewers in May 2008 (GER) or 75 % of the German Onliners
3 billion viewed videos/month (GER)
115 videos per user or 15 video-minutes per day (GER)
23

AND THAT‘S WHY:
www.itsgreatentertainment.tv
= Mass Customization = Emotional impact

AND...
www.greatentertainmentmakesgreatadvertising.tv
= Transitional Media Mix = Interactivity instead of Interruption = Context Relevance

WHAT‘S MORE
26

Remember soap operas?
Roadsidepictures (http://flickr.com/photos/roadsidepictures/137886970/)

50 years ago ...
„Single Sponsor Era“
Coke Time Colgate Comedy Hour
28

... and TODAY!
29

HOW TO SUCCEED?
NEW STRA
DISTRIB TEGY
UTION
TIME

PART 2
New Distribution Channels
31

1
VIDEO PORTALS
33

2
TV STATIONS ON THE NET
34

3
VoD OFFERINGS
35

4
IPTV PLATFORMS
36

Where‘s the money?
$
$
$ $
Al … !
$
$
$

4
IPTV PLATFORMS
$$$
$$$
38

3
VoD OFFERINGS
$$
$$
39

2
TV STATIONS ON THE NET
$$
40

1
VIDEO PORTALS
$
41

vs. WALLED GARDEN
OPEN ACCESS
‣ UGC environment ‣ „Brand Safe“
‣ commercialization? ‣ Revenue Streams
‣ easy access ‣ Einstiegshürden
‣ viral ‣ social Viewing
‣ big reach ‣ reach?
‣ PC based ‣ TV-Connection
‣ easy sharing ‣ DRM
‣ free ‣ paid
42

GOT IT?

OPEN ACCESS
MARKET OVERVIEW
Hulu Metacafe
Rocketboom
YouTube
MyVideo
EQAL
Joost
ZDF
CBS
PRO iTunes
UGC
Netflix
Amazon
45
Maxdome
RTL Now
IPTV
TV
WALLED GARDEN
WEB CONTENT
TV

...VIDEO IS BIG.
46

...VIDEO IS BIG.
BUT: YOUTUBE IS BIGGER.
• 40 % of all US Video Streams in Dec 2008
• 13h of video content are being uploaded
every minute!
• 5,9 billion viewed videos/month (US)
• 300 million unique viewers in Dec 2008 (WW)
VIDEO
3 Minuten
1 Video
1 Ad Impression
47

WHY YouTube?
Google
Lazy Sunday
 Flash?
 Sharing?
 User Upload?
 Saturday Night Live?

2.0
=
3,9bn Views 620m Views 284m Views

YouTube‘s got talent!
50

YouTube‘s got news!
74m Views 5,6m Views 116m Views
51

ALL BASES COVERED
52

Web-TV
CONTENT

WEB-TV IS EVERYWHERE ...
78 % of all Americans viewed an online video
309 minutes of video / Month
95 Videos per Viewer
Every mayor online portal has a WebTV offering

POSTERCHILD: Rocketboom
700 views/day Distribution deal with Sony Pictures TV
„The Rise of the Video Blog“
Rolling Stone
250.000 views/day
1 Video format
100.000 views/day
1 page
Werbung, Sponsoring
$80.000 in advertising
12 Video formats
4 Video formats
12 pages
1 page
AppleTV, TiVo, PS3, PSP, ...
2004 2006 2008
55

WEB STUDIOS

WEBISODES
8,8 M Views 130 M Views
7,4 M Views
3,8 M Views
= No Partner – no reach!
75k Views

TV-Web

CATCH UP TV

SYNDICATION
‣ reaches 92% of US online users
‣ >300 partners
‣ 360% growth in video views year/year
CBS.com
fosters
‣ 21,5% of US online users visited CBS.com
‣ +41% growth Year/Year
CBS.com (ABC -9%, NBC -18% Fox 6%)
‣ longest visits of all network sites (10:24min)
60

Web

AN EVIL PLOT TO DESTROY TV (The World)
62
! NBC & News.Corp JV
! 272m Views on YouTube
! Syndication to AOL, Yahoo!, MSN,
MySpace, Comcast, ...

TV STATION 2.0
 Google AdSense+Video
 „multimillion-dollar-
budgeted cartoon series“
 50 Episodes
 Distribution through
Google AdSense, YouTube
and Widgets
 Sponsored by Burger King

Cable Co

VoD
65

VoD with a twist
10M Subscribers
66

BOX plays
67

PROBLEMS
No Web effects, On demand
mentality, DRM, Costs, Home
Connectivity, No instant gratification

Other

MOBILE
‣ reaches 92% of US online users
‣ >300 partners
‣ 360% growth in video views year/year
70

P2P
71

LIVE

What if?
Interaction
Reach Engagment
On Demand
Live
Controle
Emotion
Revenue
direct Response
73

Why not?
Interaction
Reach Engagment
On Demand
DISTRIBUTION
STRATEGY AND
Live
Controle
Emotion
TACTICS Revenue
direct Response
74

PART 3
How to participate
75

REACH ON THE NET
1,73 Mio. Unique 1,94 Mio.
Video User in 30 Viewers in 15
Days Minutes
1,9
vs.
RTL Aktuell 18:45 / 03.02.
Quellen: Comescore Nov. 2008 / AGF

WHAT MATTERS ...
Max Reach
Targeted Demographics
High class and engaging environment
High quality content

OPTIONS
Revenue sources
Paid content Advertising
Transaction Traffic
One
Sub. PPU CPM CPC CPO
time
Content/services
Video TV Programs Platform UGC
Catch Catch Syndi Destin White-
Live VoD Live VoD Original Captured
Up Up cation ation label
Devices
PC TV/ Console Mobile phone Other mobile devices
Distribution
Fixed broadband Wireless broadband Cellular Broadcasting
78

WebTV
Revenue sources
Paid content Advertising
Transaction Traffic
One CPM
Sub. PPU CPC CPO
time
Content/services
Video TV Programs Platform UGC
Catch Catch Syndi Destin White-
VoD
Live Live VoD Original Captured
Up Up cation ation label
Devices
PC TV/ Console Mobile phone Other mobile devices
Distribution
Fixed broadband Wireless broadband Cellular Broadcasting
79

TV Stations
Revenue sources
Paid content Advertising
Transaction Traffic
One
CPM
Sub. PPU CPC CPO
time
Content/services
Video TV Programs Platform UGC
Catch Catch Syndi Destin White-
Live VoD Live VoD Original Captured
Up Up cation ation label
Devices
PC TV/ Console Mobile phone Other mobile devices
Distribution
Fixed broadband Wireless broadband Cellular Broadcasting
80

The final question?
81

The final question?
HOW DO WE GET THERE?
Revenue sources
Paid content Advertising
Transaction Traffic
One
Sub. PPU CPM CPC CPO
time
Content/services
Video TV Programs Platform UGC
Catch Catch Syndi Destin White-
Live VoD Live VoD Original Captured
Up Up cation ation label
Devices
PC TV/ Console Mobile phone Other mobile devices
Distribution
Fixed broadband Wireless broadband Cellular Broadcasting
82

GET YOUR EXPECTATIONS RIGHT

Info Info Info
STOCK
Info
Wirtschaft
Inland
BUILD
Info
Info
NACHRICHTEN
Genuss Politik
KULTUR
Info
Info
Info
Info
Views
MUSIK
NTERTAINMENT
Info
News
Emotion
Genuss
Emotion Info
GOSSIP
Vergnügen
Music videos, Comedy, Entertainment, ...
Unterhaltung
Vergnügen Inszenierung
84

AUDIENCE
PUT YOUR CONTENT IN FRONT OF THE
✦ All Platforms
✦ All Channels
85
✦ encourage linking,
sharing, forwarding
✦ Be everywhere for
maximum reach

EVERYTHING‘S DONE
RIGHT?
86

EVERYTHING‘S DONE
RIGHT?
WRONG
87

PLANNING TIMING
‣ campaigns ‣ Get in the right
‣ analytics context
‣ release circles ‣ Use hypes, memes
‣ release times and events
‣ Use inside
‣
exposure
‣ Use high
engagement
‣
88

PLAN for different usage patterns
Short-Head Longtail
14.000 14.000
Event Video Evergreen
Sleeper
3.500
Sleeping beauty

OPTIMIZE for different platforms
Ø 900 000 vs. Ø 70 000
90

CONNECT THE DOTS
Optimierung Ausspielen Thumbnail
Transcoding
Technische
Hilfestellung
Frontend
Batch-
Upload CDN-
Übergabe
INNOVATIONS
Metadaten-
Playlist
Export
IT
Server
Player
Seeding
CMS
Plattform
Anbindung
DISTRIBUTION
CONSULTING
SEO
Archiv
Traffic
Shaping
Format- User
entwicklung Tracking
CONTENT
Peak
Management
Produktion
Rechte Indizierung
91

NETWORKING
Optimierung Ausspielen Thumbnail
Transcoding
Technische
Hilfestellung
Frontend
Batch-
Upload CDN-
Übergabe
INNOVATIONS
Metadaten-
Playlist
Export
IT
Server
Player
Seeding
CMS
Plattform
Anbindung
DISTRIBUTION
CONSULTING
SEO
Archiv
Traffic
Shaping
Format- User
entwicklung Tracking
CONTENT
Peak
Promotion Management
Produktion
Rechte Indizierung
92

NETWORKING
Optimierung Ausspielen Thumbnail
Transcoding
Technische
Hilfestellung
Frontend
Batch-
Upload CDN-
Übergabe
INNOVATIONS
Metadaten-
Playlist
Export
IT
Server
Player
Seeding
CMS
Plattform
Anbindung
DISTRIBUTION
CONSULTING
SEO
Archiv
Traffic
Shaping
Format- User
entwicklung Tracking
CONTENT
Peak
Growth Management
Produktion
Rechte Indizierung
93

NETWORKING
Optimierung Ausspielen Thumbnail
Transcoding
Technische
Hilfestellung
Frontend
Batch-
Upload CDN-
Übergabe
INNOVATIONS
Metadaten-
Playlist
Export
IT
Server
Player
Seeding
CMS
Plattform
Anbindung
DISTRIBUTION
CONSULTING
SEO
Archiv
Traffic
Shaping
Format- User
entwicklung Tracking
CONTENT
Peak
Conversion Management
Produktion
Rechte Indizierung
94

BUZZ

Landmark Videos
Viral
Featured
Viral
96

Inventory
Views per month

Cooperations & Featurings
Views within 5 days

TIME!
Give it some
viewers share links to the videos they watch
over 50% have watched videos with others
Videos can produce a strong affinity
Videos reach user on a new level
Offer Users content and tools to engage
99

THANK YOU.
Contact
Bertram Gugel
T: +49 30 2000 607 41
M: +49 179 22 1 77 63
b.gugel@asd.tv
info@gugelproductions.de
gugelproductions.de
asd.tv