Andrey Kolodyuk - How Smart TV/OTT changes the scape of VOD market


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Andrey Kolodyuk - How Smart TV/OTT changes the scape of VOD market

  1. 1. How will theappearance of Smart TV/OTT platformsinfluencethe VOD market<br />Andrey Kolodyuk<br />Founder ofDivan.TV<br />September 15, 2011<br />«Television as abusiness»<br />WithinKiev Media Week<br />
  2. 2. Definitions<br />According toWikipedia: <br />Smart TV (rus. Умное телевидение), or Connected TV - is a newtrendinintegration of Internet intoup-to-date TV sets and settopboxes, as well asintechnologicalsymbiosisbetweencomputers andTV sets / set topboxes, earlier named as "Connected TV", (do not confuse with Internet TV and Web TV). Newdevicessupporting Smart TV are primarytargeted tosupport ofentertainingmediainInternet, Internet-television, over the top content - OTT (by means ofsuchtechnology the content isdelivered toanyuser ofInternetdirectlythrough HTTP protocol), data-flowmedia-contentby request (engl. on-demand streaming media) andin a less degree - tosupporttraditionalmedia devices such as TV setsandreceivers ofgeneration before us. The concept Smart TV has appearedsimilarly to the concept Smart Phone, which, in its turn, has appeareddue tointegration of Internet, widgets andprogramapplicationsinup-to-datemobiletelephones.<br />
  3. 3. Companies and operators<br />GoogleTV <br />SonyInternet TV <br />Apple TV <br />Roku<br />BBC Iplayer<br /> Netflix<br /> Skitter<br /> Daily Media<br />YouViewи т.п.<br />Copyright © 2011 DIVAN.TV. Allrightsreserved.<br />
  4. 4. Mutualinterestof market<br />9 mlninUkraine (35mlninRussia.) have anaccess tocableandsatellitechannels.<br />ExistingIPTVproductsare limited bysmallnumber ofservicesandusers (total 1% of users in Ukraineand 2% - in Russia). <br />Average annualincrease offee television subscriber baseinworldin 2009-2014 is evaluatedwithin 4,7%. <br />researchesfromMultimediaResearchGroupconsider thatcontent sales volume inworldby means of OTT will count more than 11 billiondollarsin 2012. <br />InRussia,the sales volume ofSmart TV in 2014 will exceed 7 million, in Ukraine – 1 mln<br />
  5. 5. Abroad: <br />More that 5 mlnof Ukrainians (to 8-10 mlnof Russians) liveorareonlong-term earnings abroad.<br />Theirbasicneeds: <br />1) Possibilityto obtaininformationin theirnativelanguageand<br /> watchdomestic, includingurban, localTV.<br />2) To havepermanentconnection withrelatives, to hear and see them more frequently ideally; <br />3) To transferfundswithoutlosses of5% andmorefortransferring; <br />Copyright © 2011 DIVAN.TV. Allrightsreserved.<br />
  6. 6. Forecast<br />In 2016 video services ОТТ (over-the-top) will generate $16.4 billion. <br />VOD servicesfromoperators offee TVwill bring $14.7 billion.<br />In 20165.9 billion of views are forecasted on VOD service.<br /><br />
  7. 7. Historically: <br /><ul><li>There is no legalVoD in the country.
  8. 8. There areoperators working onNVOD.</li></ul>Actually, no cableoperatorin Ukrainehas rights withmajors. <br />By reason of: <br />- highentry cost (DRM, warranties);<br /><ul><li>impossibility ofoperator client base accounting by majors;
  9. 9. competitionwithillegalcontenton the part ofhomenetworks (Internetproviders). </li></li></ul><li>SupplyanddemandatVoD<br />Partiallythe demandis satisfied by: <br />- DVD purchase<br /><ul><li>visiting ofcinemas (in 2010 - 15 mln ofviewersbeginning from</li></ul> 30.11.2009 to 28.11 2010 $ 77.03 mln), <br /><ul><li> undisciplinedleasemarket (toUAN 20) </li></ul>Not all consumersloadcontent ininternet as only 10.7% of Ukrainianinternet-providersprefer to watch video on computer screen, but not on TV screen. Those who make loadings do itbecause of hopelessandabsent of alternative. <br />
  10. 10. Copyright © 2011 DIVAN.TV. Allrights arereserved.<br />
  11. 11. Menu consisting of 10 main services is presented to users in their TV sets<br />Copyright © 2011 DIVAN.TV. Allrights arereserved.<br />Collection offilmsandmusic, radioandkaraoke, VoD.<br />TVandinternetchannels, programsandadvertisementsinelectronicprogramguide.<br />Gamesandeducationalprograms.<br />Telephony, video communication, SMS, chatandcomments.<br />Electroniccommerce (order ofproducts, toures, books, discs, ticketsand so on).<br />Interactivepaymentsystems.<br />Socialnetworks, sitesandcommunity.<br />Youtube, Picasa, Twitter, Vkontakte.<br />OTT information (newsline, weather, work and so on).<br />Targetadvertisement(individualized, interactive).<br />
  12. 12. Mainservices ofDivan.TV – ТВ channels, VoD andothercontent<br />Presenting ofnichechannelsand special interests channels onTV<br />VoD – receiving ofexclusiverightstolocalcontent<br />Co-branding ofcontent production<br />Revenue sharing withcontentproviders<br />Increasing ofARPU from userat the expanse ofapplication ofallDivan.TV services<br />Forming ofinternalcommunity – TV users’ environment. <br />Copyright © 2011 DIVAN.TV. Allrightsreserved.<br />Strategy of 1 mln. TV users in 2014 <br />
  13. 13. OTT offer forpossessors of rights<br /><ul><li>pay per view model implementation.
  14. 14. revenue sharing.
  15. 15. controlin contentrealtime.
  16. 16. possibility ofright possessors revenue increasing by means of</li></ul>access providingtoallitsfilm base<br /><ul><li>Social TV
  17. 17. obtaining ofloyalclientin the name ofTV user.</li></li></ul><li>Tank you for your attention! <br />AndreyKolodyuk, founder ofDivan.TV <br /><br /><br />E-mail:<br /><br />Blog:<br />Linkedin:<br />Tel.: 044 599 59 31 <br />Copyright © 2011 DIVAN.TV. Allrightsreserved.<br />