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January 23, 2017
Mark Contreras, CEO, Calkins Media
OTT Summit
Strategy Signals
Where are the eyeballs and dollars going?
Most Legacy Media Has Lost Time and
Dollars Spent...Internet & Mobile Have
Grown Both
Source: Source: Nielsen, Media Dynamics, comScore, ZenithOptimedia forecasts
eMarketer, The Diffusion Group
Time with OTT is projected to
be 2 hours and 42 minutes a
day per person by 2020.
OTT Consumption is Rapidly Growing,
While Traditional Media Sees Declines
0
5
10
15
20
25
30
35
40
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Newspapers Consumption per Day
(minutes)
TV
Newspapers
OTT
0:00
1:12
2:24
3:36
4:48
6:00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Average Media Consumption per Day
(HH:MM)
Mobile Desktop/laptop TV Radio Newspapers Magazines OTT
Media Consumption
AVERAGE DAILY CONSUMPTION (HH:MM)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
2017 v. 2008
% Change
Mobile 0:32 0:39 0:50 0:46 1:28 2:15 2:37 2:54 3:08 3:18 519%
Desktop/laptop 2:17 2:26 2:35 2:30 2:24 2:16 2:14 2:12 2:11 2:10 -5%
TV 4:14 4:27 4:24 4:34 4:38 4:31 4:22 4:11 4:03 3:58 -6%
Radio 1:42 1:38 1:36 1:34 1:32 1:30 1:28 1:27 1:25 1:24 -18%
Newspapers 0:38 0:33 0:30 0:28 0:24 0:20 0:18 0:17 0:16 0:15 -61%
Magazines 0:25 0:22 0:20 0:19 0:17 0:15 0:13 0:13 0:12 0:11 -56%
OTT 0:30 0:59 1:21 1:43 236%*
Source: Source: Nielsen, Media Dynamics, comScore, ZenithOptimedia forecasts
eMarketer, The Diffusion Group
The Audience
HAS Shifted
By 2020, there will be 97.7
million US connected TV
households, up from 88.7
million in 2016.
73.8
88.7
92.5
94.9 96.3 97.7
60.7%
72.5%
75.1% 76.6% 77.3% 77.9%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
0
20
40
60
80
100
120
2015 2016 2017 2018 2019 2020
Connected TV households % of total households
Note: Connected TVs are TV sets connected to the internet through built-in internet
capability or through another device such as a Blu-ray player, game console or set-
top box (e.g., Apple TV, Google Chromecast, Roku).
Source: eMarketer, Oct 2016
CONTENT
text, photo, video, audio
LEGACY NEO-LEGACY OTT SMART TV
GAME
CONSOLES
Audio
Cable TV Web/Tablet Roku Samsung X Box Alexa
Print Mobile Fire Vizio PlayStation Google Home
Apple LG WII
Sony
Opera
Calkins Media Content Distribution Strategy
Currently or soon to be
publishing on these platforms
Why Video? Why Now?
Video advertising spend is growing
Source: Borrell
$22.97
$32.62
$48.26
$69.50
$82.68
$98.58
$112.10
2011 2012 2013 2014 2015 2016 2018
VIDEO ADVERTISING (IN MILLIONS)
CALKINS MEDIA MARKETS
Source: webtrends, Nov 2016
Time Spent with OTT is SIGNIFICANT
95%
[CATEGORY
NAME]
[VALUE]
Hours
2%
[CATEGORY
NAME]
[VALUE]
Hours 3%
[CATEGORY
NAME]
[VALUE]
Hours
Total Time Spent Viewing Video by Platform
November 2016
2.1
1.8
OTT devices TV Set-top boxes
Average Number of Devices
in U.S. Households
Source: Leichtman Research Group
February-March 2016
Note: OTT devices include smart TVs and streaming media devices that connect a television
to the Internet. Set-top boxes are the boxes that pay TV companies rent out to subscribers.
Among all U.S. households, the mean
number of streaming-capable devices is
2.1 per household, compared to 1.8 pay
TV set-top boxes.
OTT Devices Outnumber Cable Boxes
56.5 57.2 57.6 56.2 55.1 54.8 54.5 53.9 53.2 52.4
18.0
21.7
27.0
41.2
56.0
73.8
88.7
92.5 94.9 96.3
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Cable and Connected Households
(in millions)
Cable TV households Connected TV households
Streaming Households Surpass the
Number of US Cable Households
Source: eMarketer, Oct 2016
Note: Cable TV: households with a subscription to cable TV service
Connected TV: households with at least one connected TV set, where at least one person of any age uses the internet through a connected TV at least once per month
Among Households in the Calkins Media Markets
Source: Scarborough, 2016; Simmons, Spring 2016
Streaming Has Caught Up to Cable
in the Calkins Media Markets as Well
202,531
446,379
726,776
Cable Company #2
Cable Company #1
Uses a Streaming Service
Content Strategy
BIG IDEA 1
To take a print-centered
newsroom and transform it into
a video-driven newsroom using
existing people and dollars.
Newsroom People
Training & Development
Drew Berry & Associates, LLC
300 E. Lombard St.
Suite 840
Baltimore, MD 21202
410-814-7555
drew@drewberryassociates.com
Drew Berry
A two-time Emmy Award-winning President of Drew Berry
& Associates, LLC, which is a media consulting agency
Berry has more than 25 years of experience in the
television news industry in numerous markets including
New York City, Philadelphia, Dallas, Atlanta and New
Orleans. He won his Emmys in his role as news director
for CBS in Philadelphia
Berry's experience includes teaching and practicing
journalism as well as major involvement on various boards
and committees
Nuts and Bolts
 iPhones for newsroom staff
 HD cameras
 Editing stations
 Portable lights
 Microphones
 Tripods
 In-house studio
 Tricaster editing station
 Consultant for shows
 Consultant for news video
 In-house development of journalists
 Journalists trained to date; 100+
Show Development
James Andrew Miller
Award-winning journalist who has worked in politics, media, and
entertainment in a career spanning more than 30 years
Executive VP of Original Programming for USA Network
Producer with CBS News and Senior Executive Producer
of both Anderson Cooper 360 & Paula Zahn Now
Author of the recently released NYT best selling book Powerhouse, The
Untold Story of Hollywood’s Creative Artists Agency, Those Guys Have
All the Fun, Inside the World of ESPN, and Live From New York, An
Uncensored History of Saturday Night Live, His first book, RUNNING IN
PLACE: Inside the Senate, was also a bestseller.
64 Hours of Video Published in October
Source: Limelight Analytics
393 396 398
415
620 613
526
437
539
649
688
13.0 14.3 14.5 15.7
32.1
25.9
24.3 23.0
26.0
30.4
64.3
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
0
100
200
300
400
500
600
700
800
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16
HoursofVideoContent
#VideosPublished
Videos Published Hours of Content
Calkins Print Video Plays Across All Devices
Source: Webtrends
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Total Video Plays
Calkins Print Properties
Calkins OTT Apps
Distribution platforms for digital video streamed to your TV via the
internet
Roku Amazon FireTV Apple TV
Calkins Philly: Comcast & Verizon VOD
Partnership
Distribution is for entire Philadelphia DMA
BIG IDEA 2
Creating an OTT linear stream at a
local broadcast TV station to
generate additional audience and
revenue using existing resources.
VOD/Video on Demand Math Example
• 100,000 monthly video views
• $25/CPM, 100% sold out
• Monthly Revenue - $2,500, Annualized Revenue - $30,000
Business Models: VOD vs Linear Math
Linear TV Math Example:
Based on 40 content minutes/20 (30 sec) ad minutes per hour
Ad Units/
Hour
Ad Units/
Day
Ad Units/
Year
Revenue/
Year
@$1/Spot 40 960 350,400 $350,400
@$5/Spot 40 960 350,400 $1,752,000
Business Model: VOD vs Linear Math
Trend of Roku, Amazon Fire and Apple TV
Cumulative Downloads at One Local TV Station
Source: webtrends, iTunes, Amazon Developer, Roku Developer
0
50,000
100,000
150,000
200,000
250,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16
TOTALVIEWTIME(HOURS)
DOWNLOADS
DOWNLOADS AND TOTAL VIEW TIME
DOWNLOADS TOTAL TIME
Linear Channel
Soft Launched 10/15
Linear Channel
Hard Launch Jan
Source: Webtrends, November 2016
Mobile
12%
Desktop
9%
OTT
79%
Share of Total Plays
[CATEGORY
NAME]
[PERCENTAG
E]
(3M, 40S)
[CATEGORY
NAME]
[PERCENTAGE]
( 11M, 1S)
[CATEGORY
NAME]
[PERCENTAG
E]
(1H, 37M)
Share of Total Time
(with avg. view time per session)
Linear Drives Engagement
Source: Webtrends, November, 2016
0
500
1,000
1,500
2,000
2,500
3,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
12:00AM
1:00AM
2:00AM
3:00AM
4:00AM
5:00AM
6:00AM
7:00AM
8:00AM
9:00AM
10:00AM
11:00AM
12:00PM
1:00PM
2:00PM
3:00PM
4:00PM
5:00PM
6:00PM
7:00PM
8:00PM
9:00PM
10:00PM
11:00PM
WebsitePlays
OTTPlays
LIVE STREAM PLAYS BY HOUR
OTT Live Stream Plays Website Live Stream Plays
TV is the NEW TV
AM PM
Good News
• Gateway to cable carriage, low power OTA, virtual MVPDs
• Legacy TV sales reps can sell it
• Preserves legacy TV pricing model
Bad News
• Traditional TV syndicators don’t have rules yet
• It’s hard and requires a lot of planning
• There is a hard cost (bandwidth) associated with delivery that scales quickly
Linear OTT Facts
Questions?

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Calkins-OTT

  • 1. January 23, 2017 Mark Contreras, CEO, Calkins Media OTT Summit
  • 2. Strategy Signals Where are the eyeballs and dollars going?
  • 3. Most Legacy Media Has Lost Time and Dollars Spent...Internet & Mobile Have Grown Both
  • 4. Source: Source: Nielsen, Media Dynamics, comScore, ZenithOptimedia forecasts eMarketer, The Diffusion Group Time with OTT is projected to be 2 hours and 42 minutes a day per person by 2020. OTT Consumption is Rapidly Growing, While Traditional Media Sees Declines 0 5 10 15 20 25 30 35 40 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Newspapers Consumption per Day (minutes) TV Newspapers OTT 0:00 1:12 2:24 3:36 4:48 6:00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average Media Consumption per Day (HH:MM) Mobile Desktop/laptop TV Radio Newspapers Magazines OTT
  • 5. Media Consumption AVERAGE DAILY CONSUMPTION (HH:MM) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 v. 2008 % Change Mobile 0:32 0:39 0:50 0:46 1:28 2:15 2:37 2:54 3:08 3:18 519% Desktop/laptop 2:17 2:26 2:35 2:30 2:24 2:16 2:14 2:12 2:11 2:10 -5% TV 4:14 4:27 4:24 4:34 4:38 4:31 4:22 4:11 4:03 3:58 -6% Radio 1:42 1:38 1:36 1:34 1:32 1:30 1:28 1:27 1:25 1:24 -18% Newspapers 0:38 0:33 0:30 0:28 0:24 0:20 0:18 0:17 0:16 0:15 -61% Magazines 0:25 0:22 0:20 0:19 0:17 0:15 0:13 0:13 0:12 0:11 -56% OTT 0:30 0:59 1:21 1:43 236%* Source: Source: Nielsen, Media Dynamics, comScore, ZenithOptimedia forecasts eMarketer, The Diffusion Group
  • 6. The Audience HAS Shifted By 2020, there will be 97.7 million US connected TV households, up from 88.7 million in 2016. 73.8 88.7 92.5 94.9 96.3 97.7 60.7% 72.5% 75.1% 76.6% 77.3% 77.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 0 20 40 60 80 100 120 2015 2016 2017 2018 2019 2020 Connected TV households % of total households Note: Connected TVs are TV sets connected to the internet through built-in internet capability or through another device such as a Blu-ray player, game console or set- top box (e.g., Apple TV, Google Chromecast, Roku). Source: eMarketer, Oct 2016
  • 7. CONTENT text, photo, video, audio LEGACY NEO-LEGACY OTT SMART TV GAME CONSOLES Audio Cable TV Web/Tablet Roku Samsung X Box Alexa Print Mobile Fire Vizio PlayStation Google Home Apple LG WII Sony Opera Calkins Media Content Distribution Strategy Currently or soon to be publishing on these platforms
  • 8. Why Video? Why Now? Video advertising spend is growing Source: Borrell $22.97 $32.62 $48.26 $69.50 $82.68 $98.58 $112.10 2011 2012 2013 2014 2015 2016 2018 VIDEO ADVERTISING (IN MILLIONS) CALKINS MEDIA MARKETS
  • 9. Source: webtrends, Nov 2016 Time Spent with OTT is SIGNIFICANT 95% [CATEGORY NAME] [VALUE] Hours 2% [CATEGORY NAME] [VALUE] Hours 3% [CATEGORY NAME] [VALUE] Hours Total Time Spent Viewing Video by Platform November 2016
  • 10. 2.1 1.8 OTT devices TV Set-top boxes Average Number of Devices in U.S. Households Source: Leichtman Research Group February-March 2016 Note: OTT devices include smart TVs and streaming media devices that connect a television to the Internet. Set-top boxes are the boxes that pay TV companies rent out to subscribers. Among all U.S. households, the mean number of streaming-capable devices is 2.1 per household, compared to 1.8 pay TV set-top boxes. OTT Devices Outnumber Cable Boxes
  • 11. 56.5 57.2 57.6 56.2 55.1 54.8 54.5 53.9 53.2 52.4 18.0 21.7 27.0 41.2 56.0 73.8 88.7 92.5 94.9 96.3 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cable and Connected Households (in millions) Cable TV households Connected TV households Streaming Households Surpass the Number of US Cable Households Source: eMarketer, Oct 2016 Note: Cable TV: households with a subscription to cable TV service Connected TV: households with at least one connected TV set, where at least one person of any age uses the internet through a connected TV at least once per month
  • 12. Among Households in the Calkins Media Markets Source: Scarborough, 2016; Simmons, Spring 2016 Streaming Has Caught Up to Cable in the Calkins Media Markets as Well 202,531 446,379 726,776 Cable Company #2 Cable Company #1 Uses a Streaming Service
  • 14. BIG IDEA 1 To take a print-centered newsroom and transform it into a video-driven newsroom using existing people and dollars.
  • 15. Newsroom People Training & Development Drew Berry & Associates, LLC 300 E. Lombard St. Suite 840 Baltimore, MD 21202 410-814-7555 drew@drewberryassociates.com Drew Berry A two-time Emmy Award-winning President of Drew Berry & Associates, LLC, which is a media consulting agency Berry has more than 25 years of experience in the television news industry in numerous markets including New York City, Philadelphia, Dallas, Atlanta and New Orleans. He won his Emmys in his role as news director for CBS in Philadelphia Berry's experience includes teaching and practicing journalism as well as major involvement on various boards and committees
  • 16. Nuts and Bolts  iPhones for newsroom staff  HD cameras  Editing stations  Portable lights  Microphones  Tripods  In-house studio  Tricaster editing station  Consultant for shows  Consultant for news video  In-house development of journalists  Journalists trained to date; 100+
  • 17. Show Development James Andrew Miller Award-winning journalist who has worked in politics, media, and entertainment in a career spanning more than 30 years Executive VP of Original Programming for USA Network Producer with CBS News and Senior Executive Producer of both Anderson Cooper 360 & Paula Zahn Now Author of the recently released NYT best selling book Powerhouse, The Untold Story of Hollywood’s Creative Artists Agency, Those Guys Have All the Fun, Inside the World of ESPN, and Live From New York, An Uncensored History of Saturday Night Live, His first book, RUNNING IN PLACE: Inside the Senate, was also a bestseller.
  • 18. 64 Hours of Video Published in October Source: Limelight Analytics 393 396 398 415 620 613 526 437 539 649 688 13.0 14.3 14.5 15.7 32.1 25.9 24.3 23.0 26.0 30.4 64.3 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 0 100 200 300 400 500 600 700 800 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 HoursofVideoContent #VideosPublished Videos Published Hours of Content
  • 19. Calkins Print Video Plays Across All Devices Source: Webtrends 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Total Video Plays Calkins Print Properties
  • 20. Calkins OTT Apps Distribution platforms for digital video streamed to your TV via the internet Roku Amazon FireTV Apple TV
  • 21. Calkins Philly: Comcast & Verizon VOD Partnership Distribution is for entire Philadelphia DMA
  • 22. BIG IDEA 2 Creating an OTT linear stream at a local broadcast TV station to generate additional audience and revenue using existing resources.
  • 23. VOD/Video on Demand Math Example • 100,000 monthly video views • $25/CPM, 100% sold out • Monthly Revenue - $2,500, Annualized Revenue - $30,000 Business Models: VOD vs Linear Math
  • 24. Linear TV Math Example: Based on 40 content minutes/20 (30 sec) ad minutes per hour Ad Units/ Hour Ad Units/ Day Ad Units/ Year Revenue/ Year @$1/Spot 40 960 350,400 $350,400 @$5/Spot 40 960 350,400 $1,752,000 Business Model: VOD vs Linear Math
  • 25. Trend of Roku, Amazon Fire and Apple TV Cumulative Downloads at One Local TV Station Source: webtrends, iTunes, Amazon Developer, Roku Developer 0 50,000 100,000 150,000 200,000 250,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 TOTALVIEWTIME(HOURS) DOWNLOADS DOWNLOADS AND TOTAL VIEW TIME DOWNLOADS TOTAL TIME Linear Channel Soft Launched 10/15 Linear Channel Hard Launch Jan
  • 26. Source: Webtrends, November 2016 Mobile 12% Desktop 9% OTT 79% Share of Total Plays [CATEGORY NAME] [PERCENTAG E] (3M, 40S) [CATEGORY NAME] [PERCENTAGE] ( 11M, 1S) [CATEGORY NAME] [PERCENTAG E] (1H, 37M) Share of Total Time (with avg. view time per session) Linear Drives Engagement
  • 27. Source: Webtrends, November, 2016 0 500 1,000 1,500 2,000 2,500 3,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 12:00AM 1:00AM 2:00AM 3:00AM 4:00AM 5:00AM 6:00AM 7:00AM 8:00AM 9:00AM 10:00AM 11:00AM 12:00PM 1:00PM 2:00PM 3:00PM 4:00PM 5:00PM 6:00PM 7:00PM 8:00PM 9:00PM 10:00PM 11:00PM WebsitePlays OTTPlays LIVE STREAM PLAYS BY HOUR OTT Live Stream Plays Website Live Stream Plays TV is the NEW TV AM PM
  • 28. Good News • Gateway to cable carriage, low power OTA, virtual MVPDs • Legacy TV sales reps can sell it • Preserves legacy TV pricing model Bad News • Traditional TV syndicators don’t have rules yet • It’s hard and requires a lot of planning • There is a hard cost (bandwidth) associated with delivery that scales quickly Linear OTT Facts