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Marketing for Over the Top TV (OTT)

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As the cable TV world evolves rapidly, it's hard to know who know who the winners and losers will be. Currently, broadcasters, programmers, and cable providers are jockying for the right role in this new ecosystem.

Is OTT a companion or threat, and how do different demographics see these offerings.

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Marketing for Over the Top TV (OTT)

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  2. 2. “ 2 —HEADLINES EVERYWHERE! THE FUTURE OF TV IS HERE. CAN CABLE SURVIVE?
  3. 3. OVER THE TOP! App-based content (Netflix, Hulu, Amazon Prime, Sling, Sony Vue, Fubo, etc.) ALL in the same bucket for this discussion Appeals to VOD users, not supported by advertising revenue Only works with HSD connection or cellular data plan OTT?
  4. 4. Reselling Fubo Reselling DirecTV Now in non- video areas only Selling their own line-up via an app (MobiTV) WHO? 4
  5. 5. 5 5 1 • Amazon Prime, Netflix, etc. integrated into Set Top Box (STB) • 80% of cable subscribers also have one streaming service Pollfish survey 12/28/17
  6. 6. —THE KEY TOPIC TO EXPLORE 6
  7. 7. • Very low margins on actual OTT product – does it become a retention/sticky tool to keep the broadband customer? • By 2023, 56% of cable customers expect to drop their traditional video subscription. Pollfish survey, 12/28/17 2 7
  8. 8. 8 3 Pros • High cost programming becomes someone else’s issue • Need your broadband to make it work • Advanced features (VOD, Restart, Cloud DVR) you don’t have to invest in. Weighing the Options
  9. 9. 9 3 Cons • Inviting a competitor into your customer’s home • Billing of product goes to OTT provider, not you • Technical issues – who “takes the blame?” Weighing the Options
  10. 10. YOUR SPORTS PACKAGE DREAM? 10
  11. 11. REMOVE SPORTS FROM YOUR LINEAR LINE-UP • 2019 = $8.50 • 2020 = $6.00 CUSTOMERS WHO WANT SPORTS ARE SOLD FUBO/SONYVUE
  12. 12. 12 Broadcast channels vary by DMA •Duluth (none) •Green Bay (NBC) •LaCrosse (none) •Madison (NBC) •Milwaukee (CBS, FOX, NBC) •Minneapolis (CBS, FOX) •Wausau (FOX) Very little coverage of Packers due to limited broadcast coverage in WI DMAs 4
  13. 13. 13 These popular channels: • Disney/ESPN (direct to consumer app launching 2018-2019) • Viacom • Discovery • AMC 4
  14. 14. 14 SONYVUE Broadcast channels vary by DMA •Duluth (none) •Green Bay (FOX, NBC) •LaCrosse (none) •Madison (none) •Milwaukee (ABC, CBS, NBC, MyNet) •Minneapolis (ABC, CBS, NBC, FOX, MyNet) •Wausau (CBS) Where no broadcast station is available, a Network OnDemand feed is usually provided. 5
  15. 15. 15 SONYVUE These popular channels: • Viacom • A&E Networks 5
  16. 16. “ 16 —BECOME HOME ENTERTAINMENT CONSULTANTS! HOW DO WE EVOLVE IN AN OTT WORLD?
  17. 17. In-home or in-office evaluation of a customer’s technology needs. Smart-home, managed Wi-Fi, etc. Help the customer choose best TV, phone, internet options. Become a reseller of smart-home devices – Roku, Alexa, Nest, etc. You are the technical resource in your communities – cement that reputation and promote it. 17
  18. 18. 18 THE CLASSIC MARKETING MIX—THE 4 P’S Tools/strategies used to create & offer your product or service. 1 2 3 4 (5) Reference : The basics you can find anywhere 5 Steps To Successful Storytelling Published on April 5, 2014 Featured in: Marketing & Advertising
  19. 19. 19 The traditional triple play customer used to be expected to stay 6 years. Allowed a $200-$300 acquisition cost. 4
  20. 20. THE NEW CHURN REALITY !
  21. 21. LESS ACQUISITION SPEND. CHURN
  22. 22. “ 22 POINTS BACK TO BROADBAND.
  23. 23. Make sure you’re clear— acquire the internet customer. Sharp Focus on Triple Play & Double Play Promo 23
  24. 24. 24 24 • Internet at home is price sensitive. • Know which customers can afford to buy them together. • Target Use Simple Demographics, CRM Promo
  25. 25. 25 SAVE TIME & MONEY Make use of ‘effective’ shared campaign materials from your telecom neighbors. Promo
  26. 26. THANK YOU ?
  27. 27. Neal Creative | click & Learn moreNeal Creative ©

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