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CommunicAsia 2013, Multi-network Forum - Dragongate Entertainment
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CommunicAsia 2013, Multi-network Forum - Dragongate Entertainment


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"Monetizing OTT in Asia - A Content Owner’s Perspective" …

"Monetizing OTT in Asia - A Content Owner’s Perspective"
by William Pfeiffer, CEO, Dragongate Entertainment

Asia is the world’s largest consumer of video content and a fertile ground for unauthorized offshore OTT services where a lack of regulation favors the growth of Internet-based pirate video operators, according to CASBAA. However operators are addressing this challenge by creating legitimate and engaging OTT services that add value for subscribers and attract a new generation of video hungry customers.

The ultimate goal is to offer an OTT video experience that is consistent across devices and consumption models, such as download and offline viewing. It needs to provide a seamless authentication process by managing security and content rights in the background, while creating one-to-one relationships with consumers to leverage targeted content recommendations and advertising.

At the Multi-network Solutions in the Real World Forum at CommunicAsia the panelists discussed how Asian operators are experimenting with new revenue models, service offerings and user experiences driven by OTT video networks.

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  • 1. #multinetwork #communicasia Monetizing OTT in Asia - A Content Owner’s Perspective William Pfeiffer CEO Dragongate Entertainment
  • 2. CONSUMERCHOICES 1970 1980 1990 2000 PAST 2010 NOW 2 PremiumCable/PPV DBS Satellite Video iPod & IPTV Amazon Instant Video VOD/SVOD Netflix Google TV Hulu Plus HBO GO Showtime Anytime Apple TV Hulu YouTube DVD TiVo Xbox Cable TV NBC ABC CBS Cell Phones Netflix Redbox Roku Vudu Wireleless & 3G PlayStation FOX Internet EVOLUTION OF CONTENT DISTRIBUTION The Impact of Over-The-Top Platforms on Home Entertainment Evolving Distribution Platforms and Increasing Consumer Choices Amazon Video on demand Redbox Intant Amazon Video on Demand
  • 3. 3 INBILLIONSOFUSD ? 2008 2009 2010 2011 2012 How OTT options impact consumer $25 B $20 $15 $10 $5 Source:DEG,FTIConsultingEstimates North America Consumer Spending: Home Entertainment Total Electronic Receipts Total Physical Receipts 2008 2009 2010 2011 2012
  • 4. 5 2008 2009 2010 2011 2012 2013 2014 2015 2016 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Source: FTI Consulting Estimates Physical % of Home Entertainment Electronic % of Home Entertainment US Home Entertainment Trends: Where is the Crossover Point?
  • 5. 4 %OFTVSETUSERS Primetime TV Viewing: US Live TV Recorded TV Video Game Streaming Video 40% 20% 82% 83% 64% 26% 6% 17% 6% 16% 7% 8% 2008 2012 60% 80% 100% Source: Business Insider 2004
  • 6. The Shift is Accelerating  New Ernst & Young study predicts that by 2015, 57% of revenues for media and entertainment companies will come from digital activities, as compared with 47% in 2013  Netflix now has as many U.S. subscribers as HBO — Hastings thinks he can eventually double or triple his current 30 million to 60-90 million  Hastings: “While we are passing HBO in domestic members in 2013, it will be several years before we are peers with them in terms of original programming, Emmy awards, and international members.” #multinetwork #communicasia
  • 7. 60% Growth in 2012 Worldwide OTT Revenue  Companies such as Netflix, Hulu, Apple, and Amazon helped drive the OTT video market past $8 billion in 2012.  The three largest markets—North America, Europe, and Asia-Pacific—experienced YoY growth in excess of 50% in 2012.  The continued spread of connected CE and increasingly mobile devices, like tablets, are expected to push the market past $20 billion by 2015.  Subscription revenue will decline as a percentage (ABI Research) #multinetwork #communicasia
  • 8. CHINA: Prices for US Content (Price / hr) Traditional Media:  Doc/Reality (FTA): $1-5K; (MCTV): $1-5K  Drama (FTA): $2-5K; (MCTV): $1.5-10K  TV movies (FTA): $1-3K; (MCTV): $1-4K  Movies (FTA): $4-20k+; (MCTV): $4-10K+  DVD: $1-10K (Piracy rampant) • Data: TBI / Lightning International ; industry insiders With 500m Online Users… Online Video:  First-run movies: Up to $500k  TV Series: Up to $30k  US TV stars: hugely popular from online in China #multinetwork #communicasia
  • 9. Asian Telcos Losing SMS Revenue to IM: Why?  Cost - Instant messages are cheaper than SMS  Devices - Increasing smartphone penetration  Data - Availability of unlimited data on flexible daily/weekly/monthly mobile internet plans  Usability - Richer texting experience offered by IMs (group chats, profile pictures, status messages, voice messages, etc) Same reasons for growth of Online Video  Plus… What you want, when you want it  Less Censorship  Online Video platforms increasingly professional #multinetwork #communicasia
  • 10. #multinetwork #communicasia Thank You