Collico Savio ITS conference Firenze 2013 VoD
Upcoming SlideShare
Loading in...5
×
 

Collico Savio ITS conference Firenze 2013 VoD

on

  • 730 views

A summary of my presentation in ITS conference.

A summary of my presentation in ITS conference.

Statistics

Views

Total Views
730
Views on SlideShare
584
Embed Views
146

Actions

Likes
0
Downloads
12
Comments
0

3 Embeds 146

http://blog.snark.com.ar 142
http://cloud.feedly.com 2
https://twitter.com 2

Accessibility

Categories

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

Collico Savio ITS conference Firenze 2013 VoD Collico Savio ITS conference Firenze 2013 VoD Presentation Transcript

  • VoD in LATAM: a business perspective Daniel Collico Savio – Snark Consulting 1 Copyright Snark Consulting
  • Introduction Questions How VOD players are setting prices in LATAM?  Any correlation with countries PPP?  Is there any pattern or strategy?  Guidelines Focus on VOD projects designed for mainstream.  No bundles, no AdVOD, no fidelization projects.  Always keep a balanced vision:  • What theory suggests • Practical Business Development approach 2 Copyright Snark Consulting
  • Theory vs Practice Design phase. Context, market, competitors… Deal with Content Owners Define main variables:  TVoD, SVoD, EST  Content quality  Devices  Territory  Some 10+ variables … Output: only a business plan 3 Copyright Snark Consulting View slide
  • The whole picture Protection Publishing IMS/ERP Content Owner Rights Content Pre-encryption Asset Aggregation Content Protection End User Bill Products Transaction Manager Customer Transactions Authorisations Encrypted Asset Ingestion Meta Data Reoirtubg Buys and Fees Asset Distribution Meta Data Content Mgnt System (CMS) VOD Server Encrypted Asset Encrypted Asset Propagation Products Trick modes STB Ingestion Applications Aggregation Billing Info Content owner VOD Catalogue Marketing Author Rights 4 Payment Copy rights Payment Licenses Payment VOD Assets End User Copyright Snark Consulting 4 View slide
  • iPTV vs OTT Issue OTT Rationale “My network, my customers” Total freedom. Linear TV Yes No Devices Set-top box = main device Multiscreen Service Defined with precision “Blur” + Best effort HD Yes No Billing Many payment methods Credit card BW 5 iPTV > 2M Adaptive bitrate Copyright Snark Consulting
  • STOF Model applied to Content business Value proposition: Price, TVoD, SVoD, VAS, Bundles, etc Service Design Hard aspects: Speed, QoS, Legacy system integration, User Interface, etc. Organisation Design Technology Design HHRR : No skilled personnel regarding Content Finance Design Economic issues: MGs and revenue share negotiations 6 “Business Model for IPTV Service: a dynamic framework” (Bouwman, Zhengjia, van der Duin and Limonard) - 2007 Copyright Snark Consulting
  • STOF dimensions and Content Dimension Examples S Service Content definition Market differentiation. Type of business. VAS integration Major Studios selection. Multiscreen. Is it SVOD, TVOD or both? Promotions? Bundles? T Technology Bandwidth QoS Integration with legacy systems, CRM or Analytics High BW enables better penetration and assures QoS. Profiles and processing costs. O Organization Content, legal and Mkt skills in the organization. Possible fixed-mobile convergence reg Content. Seek help from aggregator. Share same Studios with partners. F 7 Definition Finance Revenue share negotiation MGs negotiation Need of CPS model Copyright Snark Consulting
  • Main parameters in VoD design Parameter Constraint Uncertainty Initial critical mass Mkt Operator Size of operator Low SVOD subs Mkt Operator Advertising Budget High TVOD events Mkt Operator Advertising Budget, Medium virality estimation # Titles Studios Content roadmap Low # Devices NW Operator Technology Low Product mix Mkt Operator Technology Low Content cost Studios Content budget High QoS, HD avail 8 Source Tech Operator Technology Low Copyright Snark Consulting
  • A difficult conversation 9 Copyright Snark Consulting
  • “Big Telco” modelization Revs, Costs (USD) iPTV context • Both TVOD and SVOD • Sdet-top boxes • HD • MGs each quarter • Break-even in ≅≅ 20 months $ 1,000,000.00 $ 900,000.00 $ 800,000.00 $ 700,000.00 $ 600,000.00 $ 500,000.00 Costs $ 400,000.00 Revenues $ 300,000.00 $ 200,000.00 $ Avg Costs 100,000.00 $ 0.00 0 6 12 18 24 30 36 Months 10 Copyright Snark Consulting
  • New player modelization Revs, Costs (USD) OTT context • Only SVOD • 3 screens • Only SD • MGs dilluted per month • Break-even in 29 months $ 400,000.00 $ 300,000.00 $ 200,000.00 Avg Costs Costs $ 100,000.00 Revenues $ 0.00 0 6 12 18 24 30 36 Months 11 Copyright Snark Consulting
  • VOD price benchmark Country ARG ARG ARG ARG BRA BRA BRA BRA COL COL CHI CHI PER MEX MEX MEX MEX MEX MEX MEX LATAM LATAM LATAM LATAM LATAM 12 Service Operator (or owner) On Video Telefonica Arnet Play Telecom On Demand Cablevision Vesvi Grupo Vi-Da GVT GVT Now NET On Demand Sky Vivo Play Telefonica ClaroTV Claro VideoTienda UNE-EPM On Demand VTR Bazuka VTR Claro VOD Claro Clarovideo Claro Yuzu Maxcom Total Movie Total Play On Demand Cablevision Klic Cinépolis On Demand MegaCable Bajo Demanda Axtel Netflix Netflix iTunes Apple Prime Amazon Vudu Walmart Hulu Plus Providence TVOD $ local 18 18 20 10 9,9 9,9 9,9 6900 6000 2490 1990 12,8 49 TVOD Price USD 2,40 2,40 2,67 1,33 4,13 4,13 4,90 4,13 3,60 3,13 4,88 3,90 4,61 3,92 45 40 42 3,60 3,20 3,36 SVOD $ local 50 50 35 29,9 SVOD Price USD 6,67 6,67 4,67 3,99 14,9 6,21 19,9 9000 8,29 4,69 5 79 149 100 99 89 75 69 1,8 6,32 11,92 8,00 7,92 7,12 6,00 5,52 7,99 3,99 3,99 4,99 7,99 PPP USD 18,20 18,20 18,20 18,20 12 12 12 12 10,80 10,80 18,40 18,40 10,7 15,30 15,30 15,30 15,30 15,30 15,30 15,30 11,7 11,7 11,7 11,7 11,7 Copyright Snark Consulting
  • Rise and fall of Cuevana 13 Copyright Snark Consulting
  • TVoD price vs PPP correlation Vudu VTR Chile Zombies Cloud Klic México UNE Col Vesvi ARG 14 Copyright Snark Consulting
  • SVOD price vs PPP correlation Yuzu Mexico Zombies Cloud Netflix UNE Col Vesvi ARG Claro Perú 15 Copyright Snark Consulting
  • Yet another zombies film? 16 Copyright Snark Consulting
  • Twitter killed 2nd screens 17 Copyright Snark Consulting
  • Summary Mainstream will adopt VoD…  in the long run  if it is perceived as “convenient”    Price User experience Technical expertise End users “normal distribution” -if there is such a thing. Mainstream Followers 18 Early adopters Copyright Snark Consulting
  • Conclusions BPs are tricky. They demand a lot of expertise High uncertainty in Studios and market variables  Rising cost of content  No correlation between PPP and Prices Zombie strategy: most OTTs are following “big players”  Interesting :“zero VoD” strategy in some cases  Trends of VoD in LATAM Problems with broadband and piracy  “Content is King” (yes, it´s true this time!)  Twitter killed all 2nd screen developments  Analytics  VoD is not a golden mine, but it is the new mantra. Who is competitor? Netflix or… Google? 19 Copyright Snark Consulting
  • Thank you! Daniel Collico Savio - Snark Consulting dcollico@snark.com.ar - Twitter: kolyiken 20 Copyright Snark Consulting