Nab14 ca how ott is changing the value chain

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If pay-TV providers want to monetize content, eyeballs are moving to mobile screens.MSOs should speak to mobile operators to figure out how to get content on mobile devices in a way that operators can support it. There's a low barrier to entry.

Nab14 ca how ott is changing the value chain

  1. 1. © Core Analysis 2014 - Public 1
  2. 2. How OTT is Changing the Value Chain and Revenue Opportunities Patrick Lopez CEO Core Analysis Patrick.Lopez@coreanalysis.ca 2© Core Analysis 2014 - Public
  3. 3. Why are we here? © Core Analysis 2014 - Public 3 Ubiquitous fixed and mobile broadband •70% US households •100 million LTE subs US Large screen mobile devices •150 millions Smartphones (52% penetration) •35% adults own a tablet Connected TVs, sticks, consoles •500 millions connected devices OTT explosion
  4. 4. TV industry value chain in 2010 4 Content Production Studio 36% TV Channel 31% MSO 33% TV ($166Bn) TV advertising ($166Bn) Public ($34BN) Public Broadcast ($34BN) Pay TV ($192Bn) Content Revenue $30Bn $91Bn $139Bn $392Bn Source:DavidMercer,VP,PrincipalAnalyst,StrategyAnalytics,June2011 © Core Analysis 2014 - Public
  5. 5. OTT video value chain in 2013 5 Content Production Studio 60% TV Channel 40% MSO 0% Web TV advertising ($4.4Bn) Public Webcast ($2BN) Web retail & rental ($3Bn) Content Revenue $5.6Bn $9.4Bn © Core Analysis 2014 - Public
  6. 6. From value chain… To value circle Traditional TV value chain • Content is selected, managed and delivered by MSO OTT value circle • Consumers select where to source the content from and in which form © Core Analysis 2014 - Public 6 Studio TV Channel MSO Consumers Devices Studio TV Channel MSO Consumers Devices
  7. 7. Business models and strategies MSO • Vertical integration • Multiscreen • Social TV • Go OTT • Own the network OTT • Pay per view, rental, on- demand • Subscription VOD • Free to Air • Content exclusivity • Binge watching • Own the network © Core Analysis 2014 - Public 7
  8. 8. Networks and technology 8© Core Analysis 2014 - Public
  9. 9. Business models and strategies 9© Core Analysis 2014 - Public
  10. 10. Regulatory 10© Core Analysis 2014 - Public
  11. 11. Devices 11© Core Analysis 2014 - Public
  12. 12. Advertising in mobile © Core Analysis 2014 - Public 12
  13. 13. Advertising in mobile 13© Core Analysis 2014 - Public
  14. 14. OTT in mobile 14© Core Analysis 2014 - Public Telecoms.comIntelligenceIndustrySurvey2014
  15. 15. Conclusions • OTT is complementary to pay TV model and becomes a threat only if: – Pay TV fails to secure / produce attractive content – Pay TV fails to create the ecosystem for mobile monetization, notably advertising – Mobile ecosystem is ripe and operators are looking to partner – MSO / MNO partnership a more natural fit than MSO / OTT or MNO/OTT © Core Analysis 2014 - Public 15
  16. 16. Contacts 16© Core Analysis 2014 - Public

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