Prez cross-video-days-english

Cross VideoDays
OpeningKeynote

Let’s size the online videomarket

An exploding market !
1bn consumers of online videos
14+hrsa month- people spent watching online videos
201 views per user in 2010
+71% views/pers of online videos
2010
40%
of the traffic
2014
57%
of the traffic
ComScore Nov 2010
60%
Video traffic in the world
X5
Share of the data mobile traffic used for video in 2011
35hrs of video uploaded/min
2bn views per day
700bn views per year
Source YouTube Dec 2010
Etude Cisco 2010

An exploding market !
Shares of traffic by uses
Online VideoStreams / Quarter
400 000 000
Broadcast networks
350 000 000
Webmedia Brands
VideoTraffic
51%
100%
300 000 000
Other
250 000 000
Telnet
NewsGroup
DNS
Email
200 000 000
Magazine publishers
P2P
Music labels
150 000 000
NewspaperPublishers
100 000 000
FTP
50 000 000
Radio Broadcasters
0
Web
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Q9
2010
2008
2009
0%
1995
2010
Source : Brightcove / TubeMogul Mai 2010
Source : Limelight Network 2010

Led by the European and American TV Channels
Audience Share by category & geographical zones
Brands
Broadcasters
Magazines
Newspapers
Online Media
4,19mn
100%
Others
3,36mn
75%
2,53mn
USA
50%
2,30mn
25%
1,26mn
EU
0,43mn
APAC
0%
Brands
Broadcasters
Magazines
Newspapers
Online Media
APAC
EU
USA
Others
Source : Brightcove Online Video & the Media Industry Q4 2010

An averageVideolength short but verymisleading !
2,48 l 2,36
1,22 l 1,24
1,57 l 2,01
1,52 l 1,30
US l EU
US l EU
US l EU
US l EU
Broadcasters
Magazines
Music
Newspaper
Source : Brightcove Online Video & the Media Industry Q4 2010

Increased by the «Connected TV » Phenomenom !
42,2%
of the TV
are really
connected
Connected TV devices worldwide trend
2014
2011
200M
Connected TV devices
Connected Blu-Ray Players
Connected Game Console
Connected Digital Video Players (Set Top Boxes)
18%
of the TV
100M
Are really connected
0M
2010
2010
2010
2010
2010
2010
Source : Parks Associates 2010

The connected TV more than a device, an ecosystem…
@

…whereeachscreen has itsown use…
Couchpotato
Couchpotato
Sitting
Standing up
Position
Personal
Private
Uses
Family
Personal + shared
Video
News
Game
Work
Sociabilisation
Entertainment
Sociabilisation
Work
Games
News
Entertainment
Sociabilisation
Goals
*****
****
****
**
Incoming data
*
**
****
*****
Outgoing data

…with a specific vocabulary !
Uses
Business
Fragmentation
Cord Cutting
Piratage
(P2P, Streaming)
Disintermediation
Format
Monetisation(PPV, Pub, SVOD, Hybrid)
unlinearisation
Pre-financing
Multitasking
Dual Screen
Audience tracking
Social TV
OTT
Real Time Bidding
Enrichment
Agregation/Curation
Models open/closed
Recommandation
DRM /Fingerprinting
Technology
Standardisation
OS / Framework
Android / iOS / Constructeur
Synchronisation
HTML 5 / Flash
CloudComputing
SDK
WebM/H264
Open Source

Cock-a-doodle-doo !

The IPTV Landscape in France
58 377 000 TV owners in France
2010
6,8 Millions IPTV
In France
(WorldWide Leader)
2012
7,8 Millions
59% of the TV will
be connectable
Main activities in France
(Src TNS Sofres 2010)
Satelite
17 359 000
(26%)
DTT
28 723 000
(43%)
Watching TV
3h39`(+7min)
ADSL
14 368 000
(21%)
Sleep
Cable
6 739 000
(10%)
Work
Srce : Mediametrie January 2010

The emerging second screen landscape
Penetration rate
36%
Means 20 880 000 people
Penetration rate
72%
means
17 400 000 households
Penetration rate
5%
Means 1 200 000
households

Withclearimpacts on consumers!

Content is not just about the linearscheduleanymore
33 Million people know whatVOD is (86% of the internet users)
4,6 Million people use VOD (27% of the internet users)
90% VOD penetrationforecastedby 2015
75% of the VOD views in 2010 wereCinema and Premium Releases
64% of the french tv shows are available on catch up TV
Whichmeansaround15000 videosavailable
Do youwatch online programs (US internet usersJanuary 2011 lab42 Study)
- de 18
18-24 (34h)
25-34
35-44
45-54
55-64
+90%
In one year of DVR use
80%
79%
72%
51%
36%
31%
Means
68%
TV
Soit 19h

Consumers are multitasking !
French fiction TV fans are interested in additional content on internet, related to what they are watching
(which goes to 30 % for the 15-24)
59% of TV Viewers
Are «Multitaskers»
(means 2h30 during december2010)
Src : Nielsen january 2011
20%
Would you be interested by a more interactive TV
98%
Of Ipad Owners uses it regularly watching the TV
86%
Of smartphone
owners use it regularly watching
the TV
Src : Yahoo! 2010
Src : NY Times Aout 2010
Very interested
interested
A bit
Interested
not
Interested

2nd Screen : The hub for Social TV
Part de temps passé par type d’usage
Typicalactivitiesdone on the 2nd screenwhilewatching TV
33%
Using mobile apps
Browsing the internet
37%
40%
Social Networking
Textingwithfriends & family
56%
Source : Nielsen Q1 2011 (mobile ConnectedDevice Report)

The Social TV
Go every day on internet while watching the TV
During SuperBowlin 2010
37%
Use social networks such as Facebook or Twitter while watching the TV
169 million viewers
=
4000 tweets / sec
During the last seconds
44%
Have ever chatted about a TV content while watching it
37%
In 2011
1b posts
will be written via
About a TV show
Src : Deloitte
Have already shared a TV content via social networks
19%
Use social network to improve their TV experience
44%

And clear impacts on the value chain !

Internationalisation…

… Illegal downloads…
The 10 movies most illegally downloaded in 2010
= 92 480 000 downloads
= $400 Millions of shortfall
450 000 movies illegally downloaded
per day
in France
43,5% of the 11-15illegally downloaded movies and series(1/4 asked by their parents!)
76% of the pirates say they would have preferred watching their content through TV if they would have had the opportunity
MegaUpload
45 millions of U.V/ day
= 1% of the worldwide traffic
= more than Facebook
Source : Jumpwire Octobre 2010
Source : Source Sandvine fev 2010

… Audience fragmentation…
Maturity of the highbandwith
Historic love for video + confort of visualisation = growth of the demand
Internet streaming growth(low distribution costscompared to TV)
Worldwidcompetitioninscreasing
Multiplication of the online videodevices(Computers, Tablettes, Smartphone, TV)
Multiplication of the videooffers(Hertzien + Satellite + Cable-> Internet + Cable + Satellite + DTT + IPTV)
Audience Fragmentation
35%
30%
25%
TF1 (26%)
DTT
20%
FR2 (16,7%)
15%
FR3 (11,8%)
10%
M6 (10,8%)
5%
FR5 (3,1%)
Canal+ (3,1%)
Arte (1,7%)
0%
2010
2009
2008
2007
Source : Annual report of the CNC 2010

… leading to lowerinvestmentcapabilities…
Maturity of the highbandwith
Historic love for video + confort of visualisation = growth of the demand
Internet streaming growth(low distribution costscompared to TV)
Worldwidcompetitioninscreasing
Multiplication of the online videodevices(Computers, Tablettes, Smartphone, TV)
Multiplication of the videooffers(Hertzien + Satellite + Cable-> Internet + Cable + Satellite + DTT + IPTV)
Audience Fragmentation
35%
30%
25%
TF1 (26%)
20%
FR2 (16,7%)
15%
FR3 (11,8%)
10%
M6 (10,8%)
5%
FR5 (3,1%)
Canal+ (3,1%)
Arte (1,7%)
0%
2010
2009
2008
2007
Source : Annual report of the CNC 2010

… Shakingup the value chain
Hier
Aujourd'hui
Other public investment
(Regions, Departements, Cities….)
Europeanhelps
Europeanhelps
CNC
CNC
WorldWide distribution
French Channels
French Channels
Producers
Producers
Authors
Authors

Where TV channels are playing a leading role…
…for the incomes…
…and the executive production!
Foreign
incomes
8,4%
Editors &Distributors
77,8%(+54,61%)
Producers
33,3%
Mandats
17%
TV Channels
32,4%
Theatres
17,05%
(+25,03%)
Sofica
4,3%
Including 17% only for CanalPlus
DVD & VOD
5,14%
(+6,56%)
CNC Helps
Source : annual report of the CNC 2010
Source : Sénat – CNC Juin 2011 via @PLechevallier

So what are our challenges ?

Let’sbecreative in monetisationstrategies
VOD Platform
Consumer electronics
Europeanhelps
CNC
FAI
Editeurs mobiles
Lisencing
Sponsoring
Brand Content
Product Placement
Independent Video Ad Platforms
(for ex : real time biddingplatforms)
French Channels
Monetisation
Syndication
Disintermediation

How to adapt to world wide competition?
Latine America
2,3%
2006 > 2009 = -15% on exportations
Today100M€ in exportations
Which means10% of all incomes
Middele Orient
4,6%
Protect or attack ?
HBBTV or HTML5
Get a critical size(Hulu, Netflix, YouView, what about France ?)
Focus on the local content or International ?(some rumors speak about arrival of american studio in south of France)
Localformat or exportable
Mainstream or Segmenting ?
And what about the « Media Chronology» ?S.Jobs: “You’ll Be Able To Watch A First Run Movie Before It Hits Theaters”(2 june2010)
Africa
2,1%
APAC
8,6%
North America
9,50%
Western Europe
62%
Central Europe
10,50%

Help on standardisation!
What about OS standards ? « Open » or « Closed »…
…and what about web standards !
Languages
Normes
+
Natively supported video format
+
Ogg Theora H264 VP8 WebM
Internet explorer
Mozilla Firefox
Google Chrome
Safari
Opera
NO
9.0
Depends
3.5
NO
4.0
3.0
NO
6.0
NO
3.1
Depends
10.5
NO
10.6

Anticipating the new needs and uses
Funding
Develop new funding tools
Branding / Co Branding
Product Placement
Transversal Advertising Platform
Content syndication
New type of Executive Production Companies
Creation
Embrace/Invent new creation format
Transmedia
Brand Content
Branded Content
Distribution
Develop some new distribution services
Critical size
Editorial strategy
Production involvment
Services Cloud / Historic / Paiement / price policy / TV everywhere
Embrace social marketing issues
Develop new recommendation tools(in 2014, the European EPG market has been estimated to 555M$)

Find the best « business models »
Advantages
Threatens
Samples
Pay Per View
A simple and efficient business model
Paradigm : 75% of the producers/editors love this model but 82% of the 15/25 in France says they won’t pay for digital cultural goods
Only in France there are already more than 50 VOD platforms of this type
A very fast growing business model
A model led by Netflix or Spotify (for music) but which demonstrates some weaknesses (number of subscription / user and peromptions of the rights)
Apple, Netflix, Amazon,
Subscription (SVOD)
A quite expected business model matching to internet spirit but also to the internet advertising market growth
Require a clear development of the advertising pressure + inscrease the ad prices (regarding their efficiency vs TV) + develop additional advertising inventory (Product Linking, brand content ) + optimize the data to get value from efficiency.
Increase of added value
Advertising
YouTube, Dailymotion, Vimeo, and catch-up TV platforms, YouView
Mix
A business model quite welcomed by the user
Hulu, MySkreen, Viewster
Need a strong visibility, many skills and a quite critical size. Places will be limited and will be usually trusted by OTT companies)
Others ?(crowdfunding, open donation…)

Dillema: Regulated or Unregulated!
Should we protect the existing models and frames or find and promote some new ones ?
But do we already have some really new models ?
In any case, miracle solutions do not exist ! Only bringing together of solutions will be successful !
Legals
Do we have to try to implement the same regulation for TV on Internet actors or the opposite ?
Sacem / Hadopi
CSA
Taxes
To preserve a fair competition, we need international tax harmonisation to avoid foreign companies avoidinglocal tax commitments
French “Google” Tax just has been cancelled

As a conclusion
« with every change in technology that affects consumer behavior, we always overestimate the impact in the short term, but then underestimate the full impact over the long term… »
Louis Gordon Crovitz, Former Editor of the Wall Street Journal

Romain DROSNE
CEO Plinkerswww.plinkers.tv
www.twitter.com/plinkers

Prez cross-video-days-english

by PLINKERS VideoSync Marketing Solutions on Jun 17, 2011

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