"For the last 20-years, digital has disrupted print. For the next 20, it will disrupt TV." - Business Insider
An exploration of the impact of digital media on traditional media and it's continued future impact on television by Business Insider.com
3. DIGITAL MEDIA CONSUMPTION IS GROWING,
EVERYTHING ELSE IS SHRINKING
US Consumer Media Consumption Share
Source: eMarketer
43.2%
40.9%
14.0%
6.6% 5.8%
35.2%
12.0%
2.9% 3.3%
TV Radio Print Other
2011 2012 2013 2014 2015
Desktop/laptop
Digital
30.0%
Mobile
4. IT’S A GENERATIONAL SHIFT
Top 5 Media Mentions Among All Adults, 2016
Source: Ofcom
0 20 40 60 80 100
All adults
Aged 16-24
Aged 25-34
Aged 35-44
Aged 45-54
Aged 55-64
Aged 65-74
Aged 75+
Use a smartphone
Go online on a
computer/laptop/netbook
/tablet
Watch TV
Read
newspapers/magazines
Listen to the radio
5. $0
$20
$40
$60
$80
$100
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
DIGITAL ADS GROWING, ALL ELSE FLAT
US Advertising Revenue
Source: ZenithOptimedia, BI Intelligence Estimates
Billions ($)
Digital
TV
Radio
Print
Outdoor
7. IN 1H 2016, GOOGLE AND FACEBOOK GREW,
EVERYONE ELSE SHRANK
US Digital Ad Revenue, Billions ($)
$27.5
$14.2
$3.4
$9.9
$32.8
$17.4
$5.7
$9.7
US Digital Ad Revenue Google Facebook Everyone Else
1H 2015 1H 2016
+19%
+23%
+68%
-2%
Source: IAB, Facebook, Google, Digital Content Next
9. For the last 20 years, digital has
disrupted print. For the next 20, it
will disrupt TV.
10. TRADITIONAL TV HAS PASSED ITS PEAK
Households With Pay TV Vs. Subscription OTT, % Of US Homes
Source: Nielsen, Leichtman Research Group
86%
82%
41%
53%
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16
Pay-TV Subscription OTT
11. TRADITIONAL TV VIEWERSHIP IS FALLING
Average Time Spent Per Day Watching Traditional TV, HH:MM
Source: Nielsen
4:43
4:19
4:11
4:09
Q2 2013 Q2 2014 Q2 2015 Q2 2016
16. YOUTUBE NOW BIGGER THAN CBS
Modern Digital Ad Revenue Vs. Traditional TV Revenue
Source: Company Reports, UBS
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions ($)
CBS Ad Revenue
YouTube Ad Revenue
AMC Networks
17. NETFLIX SAW MORE HOURS PER MONTH THAN
ANY OTHER TV NETWORK
Total Hours Of Viewing, Per Month, Per Network
Matthew Ball, MEDIA REDEF
18. We can watch what we want to,
when we want to —
anywhere, on any screen.
MODERN TV NETWORKS ARE JUST BETTER
25. 3. Traditional TV networks will go through
~decades of consolidation and pain.
26. THERE ARE TOO MANY LEGACY NETWORKS
Channels Receivable And Watched, Per US TV Household
Source: Nielsen
151.4
168.5
179.1
189.1
197.4
208 205.9
17.8 17.5 17.8 17.5 20.9 19.9 19.8
2010 2011 2012 2013 2014 2015 2016
Avg. TV Channels Received Avg. TV Channels Watched
27. THERE AREN’T ENOUGH (GREAT) SHOWS
Average Original TV Series Each Year Vs. Survival Rate
Source: Matthew Ball, MEDIA REDEF
28. EVEN TRADITIONAL STRONGHOLDS LIKE SPORTS
ARE STARTING TO SEE DECLINES
Households With ESPN, Millions
Source: Nielsen, WSJ
NFL Football Ratings
Through first 4 weeks, 2015 vs. 2016
96.17
94.4
92.94
90.99
89.01 88.78
Jul'14 Feb'15 Jul'15 Feb'16 Jul'16 Aug'16
Lost 7.4M
households in 2
years
NBC Sunday Night Football: -13%
Fox Sunday: -3%
CBS Sunday: -3%
CBS Thursday Night: -15%
ESPN Monday Night: -17%
29. FORTUNATELY, TV IS AWASH IN MONEY
US Revenue, Billions ($)
Source: Media Partners Asia, 2016
Pay TV
Subscriptions,
145.6
TV Advertising,
72.3
2017E 217.9 B
Total
32. NOT SMARTWATCHES OR GLASSES — THESE
AREN’T MEDIA CONSUMPTION DEVICES
Why Apple Watch Owners Wouldn’t Buy Another Apple Watch
Source: Fluent
34%
31%
16%
12%
4%
3%
Too expensive
Not useful
Ugly
Waiting for a better version
Features duplicated by smartphone
Requires smartphone
33. VR/AR HAS POTENTIAL, BUT IT’S STILL
TOO EARLY…
Global VR Headset Shipments Forecast, Millions
Source: BI Intelligence Estimates
0.7
8.2
12.0
17.3
24.4
33.0
42.6
55.1
2015 2016 2017 2018 2019 2020 2021 2022
We are here
34. THE NEXT BIG THING: SOCIAL VIDEO
4
5
6
8
10
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
4
6
8
10
12
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
6.0 6.3 6.5
7.0
8.0
Q2'14 Q3'14 Q4'14 Q2'15 Q4'15
Daily Video Views, By Platform, Billions
+200%
+150%
+33%
Source: Facebook, Snapchat, KPCB, Bloomberg, Activate, BI Intelligence Estimates
35. THIS IS A NEW KIND OF STORY
• “Thumb stopper”
• Sound optional
• Intimate and conversational
• (Often) square or vertical
• Shareable
42. THE RAINBOW BAGEL
“We got slammed like you
couldn’t believe. I haven’t
slept in weeks. It’s been crazy
since Christmas, but Business
Insider really put us over the
top.”
-Francine LaBarbara, Marketing
Coordinator, The Bagel Shop
43. TUBING IN THE HAWAIIAN WILDERNESS
• 30+ million views
• “I don’t know how it happened
but WOW”
• Phone’s ringing off the hook
and reservations booked