Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

CASBAA 2015 - Video Moves Revenue

24,680 views

Published on

Video Moves Revenue, Executive Media Luncheon at CASBAA 2015.

Published in: Technology
  • Login to see the comments

CASBAA 2015 - Video Moves Revenue

  1. 1. VIDEO MOVES REVENUE EXECUTIVE MEDIA LUNCHEON 27 October 2015 Brought to you by Brightcove In Partnership with Akamai
  2. 2. WELCOME ADDRESS Andy Feinberg, President, International
  3. 3. AGENDA ©2015 Brightcove Inc.5 | 1340 – 1405 Monetising Video Ben Morrell, Senior Technical Consultant Media, Brightcove 1405 – 1430 OTT Delivery with Quality and Scale David Habben, Chief Media Strategist, Akamai 1430 – 1455 Fireside with Scripps Networks Interactive Derek Chang, Managing Director, Asia-Pacific Operations, Scripps Tomer Azenkot, General, Manager, Asia, Brightcove 1500 – 1600 Networking Tea and Snacks
  4. 4. SPECIAL THANKS ©2015 Brightcove Inc.6 |
  5. 5. MONETISING VIDEO Ben Morrell, Senior Technical Consultant for Media, Asia, Brightcove
  6. 6. •  Media Publishers – The Ecosystem •  Service Proliferation Trends •  Video Monetisation Models – Live Examples •  Monetisation Trends & Challenges •  Pitfalls to Monetising Video •  The Monetisation 3-point Checklist ©2015 Brightcove Inc.8 |
  7. 7. Media Publisher Ecosystem
  8. 8. Non Linear TV: Explosion of Services 10 | Broadcasters Pay TV OTT from Broadcasters & Pay TV FTA on HbbTV Sports Licensees Online Channel DTC model) Content Programmers Content Aggregators ©2015 Brightcove Inc..
  9. 9. ©2015 Brightcove Inc.11 |11 | ©2015 Brightcove Inc..
  10. 10. Types of TV/Video Consumption of Mobile Phones (‘000) Source from comScore: MobiLens 3 month Average January 2015 Shift in Viewing ©2015 Brightcove Inc.12 | 35,157 54,056 36,967 44,225 73,255 41,515 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Paid TV / Video Web-based Videos Live / On-demand TV 22% Paid TV/Video 15% Web-based Video 12% Live On-Demand TV 2015 2014
  11. 11. ©2015 Brightcove Inc.13 | Shift in Viewing 44% 50% 58% 15% 17% 17% 41% 33% 24% Q1 2014 Q3 2014 Q1 2015 PC Mobile OTT Source from Hulu Internet 2015: The Shift to the Living Room Continues
  12. 12. ©2015 Brightcove Inc.14 | Shift in Viewing
  13. 13. Service Proliferation Trends
  14. 14. Services models: •  Standalone entertainment (HBO Go) •  Live and sports centric content (NFL Now) •  MVPDs providing alternative to linear TV •  Streaming players (Apple TV) Threats: •  Cannibalism of linear TV (?? Opportunities •  Market Education •  Combat piracy and torrent sites •  Seamless user access to content Service Proliferation Trends ©2015 Brightcove Inc.16 |
  15. 15. The Netflix Effect ©2015 Brightcove Inc.. Live in 50 countries 69 mn subscribers = avg $8.99 MRR per sub $1.34bn revenue (July2015) Launch in 200 countries by end 2016 Australian ISPs see surge in broadband traffic, 50% traffic from Netflix 17 |
  16. 16. Market cap grew from $6.5B to $27B (~60 CAGR) from January 2013 to 2015; ~69M paying global subscribers (38M U.S) Generated ~$1.5bn in revenue in 2015; 9m in paid subscribers as of April 2015 Fastest-growing OTT service – in first year signed up 1M paying subscribers representing $120M in revenue (run rate) Projected revenues to hit $1B by end of 2016; recently closed deal to power HBO’s OTT platform Initial launch leverage existing ~90M Amazon Prime subscribers; will launch decoupled ad-supported subscription service in 2015 ~45.3M monthly users with valuation between $500-950M Over 800K shows / 350k movies purchased per day; 2015 estimated revenue at $1.5bn on iTunes videos Show Me The Money ©2015 Brightcove Inc.18 |
  17. 17. Monetisation Models
  18. 18. Monetising Live Sports: Direct to Viewer ©2015 Brightcove Inc.20 |
  19. 19. AVOD across multi-devices and platforms: Network Ten enables a seamless viewing experience “We are dedicated to providing high quality entertainment anywhere, anytime. Thanks to Brightcove Once, delivering ad- supported content on platforms like Apple TV and Sony Bravia is a simple process.” Rebekah Horne, Chief Digital Officer, Network Ten ©2015 Brightcove Inc.21 |
  20. 20. AVOD revolutionised Free to Air TV: HbbTV goes live in Australia and New Zealand "We selected Brightcove, along with our broadcast partners, in order to ensure our viewers have a consistent experience across all platforms. Two of our key goals with FreeviewPlus were to deliver an engaging experience and an easy-to-use platform, and Brightcove’s video solutions are the essential foundation.” Tom Cotter, Chief Information and Product Officer, Mediaworks ©2015 Brightcove Inc.22 |
  21. 21. TVOD: Cricket Australia Live & VOD ©2015 Brightcove Inc..23 |
  22. 22. SVOD: Unlimited Streaming of Videos Across Multi-Devices and Multi-Platforms ©2015 Brightcove Inc..24 |
  23. 23. SVOD: Flexible Bundles to Suit Every Consumers’ Needs ©2015 Brightcove Inc..25 |
  24. 24. Flexi SVOD: Garage Entertainment Streams Action Sports Videos with Flexible Pricing Packages ©2015 Brightcove Inc..26 |
  25. 25. ©2015 Brightcove Inc. Online Channels ©2015 Brightcove Inc..27 |
  26. 26. Monetising Trends & Challenges
  27. 27. Trend: The Shift in Digital Video Ad Spend ©2015 Brightcove Inc..29 | $2.65 $3.54 $4.52 $5.32 $5.78 $6.23 $6.64$0.24 $0.66 $1.44 $2.45 $3.67 $4.88 $6.07 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 2012 2013 2014 2015 2016 2017 2018 Digital Video Ad Spending by Channel, ‘12-’18 in billions Desktop Mobile Source from IAB, PwC, eMarketer, June 2014
  28. 28. Ad Yield: Video advertising fill rates increased across the board ©2015 Brightcove Inc..30 | PUBLISHERS BROADCASTERS 77% à 92% 64% à 67% 56% à 88% 57% à 70% 55% à 89% 54% à 74% Source: 2014 SNL Kagan, “Media Trends, Actionable Metrics, Benchmarks & Projections for Major Media Sectors, 2014 Edition
  29. 29. Internet video publishers capture only a fraction of the best possible ad monetisation revenue (Actual Monetisation) ©2015 Brightcove Inc..31 |
  30. 30. Internet Video Publishers Capture Only a Fraction of the Best Possible Ad Monetisation Revenue ©2015 Brightcove Inc.. Example Challenges •  No ad delivery solution for LIVE streams •  No single ad network has enough inventory •  Ad network has no SDK for Windows 8 app •  10-15 % ads are lost due to download performance issues •  10-30 % ads are blocked by ad blockers Ad performance loss is caused by hard technical challenges of delivering video ads to multiple devices & apps in a complex Internet ecosystem 32 |
  31. 31. Common Pitfalls
  32. 32. Common Pitfalls to Monetising Video ©2015 Brightcove Inc..34 | •  Overcomplicating subscription offerings •  Delivering a bad user experience •  Lack of consistency of service across devices •  Inability to identify the high value genre •  Losing revenue from ad blockers
  33. 33. The Rise of Ad Blockers: A win for consumers? No. ©2015 Brightcove Inc..35 |
  34. 34. 41% of web users are equipped with ad-blockers Source: The rise of Ad Blocking Report, from Adobe & PageFair, 2015 Global Ad Blocking Growth Blocking ads continues to build on the strong growth rates seen during 2013 and 2014. The findings: •  Globally, usage of ad blockers grew by 41% YoY (Q2 2014 – Q2 2015) •  As of June 2015, there were 198 million monthly active users for the major browser extensions that block ads ©2015 Brightcove Inc..36 |
  35. 35. Checklist for Monetising Video
  36. 36. Simplifying the Complexity Behind Monetising Video 38 | ©2015 Brightcove Inc.. AUDIENCES ENGAGEMENT REVENUE
  37. 37. 1st point - Audience Build The Audience Create Content Niches & Personalisation Extension of Existing Services Business Model Flexibility ©2015 Brightcove Inc..39 |
  38. 38. 2nd point - Engagement Devices & OS – Native or Mobile Web User Experience Create Engagement/ Discovery – Social Media ©2015 Brightcove Inc..40 |
  39. 39. CONTENT ON THE GO ©2015 Brightcove Inc..41 |
  40. 40. 3rd point - Revenue Paywall Flexibility, Dynamic Business Model Ad Servers & Standards Strategy around Ad Blockers ©2015 Brightcove Inc..42 |
  41. 41. Strategy Around Ad Blockers Ad optimisation technology that allows publishers to: Maximise Ad Delivery Streamline Viewing Experiences Increase Revenue Across Desktop & Mobile Combine SSAI with Player Management Service ©2015 Brightcove Inc..43 |
  42. 42. To Wrap Up… You focus on your business, while we make sense of the ever evolving dynamic market with best-in-class solutions. ©2015 Brightcove Inc..44 | With new devices every week, we enable devices reach and counter ad blocking. We are a technology provider with the expertise and flexibility to scale with you.
  43. 43. MONETISING VIDEO Ben Morrell, Senior Technical Consultant for Media, Asia, Brightcove THANK YOU!

×