Cloud services will make ‘video everywhere’ a reality. EPG and content discovery will move to the second screen. Longtail metadata creation and curation will become a brand necessity. Linear TV will not die - it will become social, participative and curated… Second screen engagement will drive curated experiences and new monetisation models.

1. The Second Screen – Social TV, Play-along TV,
Companion TV and Transmedia in Europe
Richard Kastelein
Managing Director – Agora Media Innovation Ltd. London, UK
UK President – Connected TV Marketing Association (CTVMA)
Publisher – www.appmarket.tv
Columnist – Association of International Broadcasting
Magazine, The Channel.
February 2012 – Hilversum, Netherlands
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

2. CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

3. Discover today’s “Game Changers” - the latest technology driven
products/services with the power to transform consumer behaviour
and the potential to disrupt the TV business as we know it today.
Print media was hit hard and the Music Industry has faced huge
disruption in the past few years.
Is TV next?
Many pundits think so - and here's a chance to meet some of the
companies that might just democratize the living room entertainment
experience.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

4. The Storm is a‟ Coming
Shotsberger (2000) reported that though it Radio took 38 years to
reach 50 million listeners. TV took 13 years to reach 50 million
viewers.
The Internet took four Years, iPod took three years…Facebook added
100 million users in less than 9 months and iPhone applications hit
1 billion in 9 months. How long before 100 million Tablets and
Smart Phones appear in front of 100 million Smart TVs? Not as
long as you think…. 2013 most likely.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

5. The future of TV…the next 5
+ years
Cloud services will make „video everywhere‟ a reality.
“The second screen will
act as a universal
remote control - in the
home and out…”
EPG and content discovery will move to the second screen.
Longtail metadata creation and curation will become a brand
necessity.
Linear TV will not die - it will become social, participative and
curated…
Second screen engagement will drive curated experiences and new
monetisation models.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012
© 2011 Agora Media Innovation Ltd

6. A connected world with TV
Everywhere and new gatekeepers
in the living room.
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HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

7. Technology Technology
disrupted every disrupted every
facet of the music facet of the print
business, challeng media
ing old models business, challengi
and creating new ng old models and
ones. creating new ones.
•News and print media discovery and consumption has
rapidly shifted from print newspapers and magazines to
•Music discovery rapidly shifted from MTV/radio to the the internet and especially social media.
internet, iTunes and especially social media.
•Traditional publishers have tried to adopt pay structure to the
•Artists adopted direct-to-fan models and cutting out the Internet with limited success.
middleman altering the value chain.
•A growing population creating content via blogs and social
•A growing population is consuming music via streaming media competing with the traditional value chain.
rather than “owning” it.
•As print newspaper and magazine, professional journalists
•As record sales decline, ticket sales have been growing. Live and have shifted to PR and professional photographers are doing
Merchandising are the new oil in the industry. more weddings.
•Labels are trying to diversify their revenue away from recorded •Traditional print publishers are trying to diversify their revenue
music, while promoters and managers are expanding into label-like away from print and moving to video and multiplatform to
models. compete with TV.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

8. Do you think the TV Industry will not be
disrupted … or let‟s say Democratised?
Of course it will. And the stakes are huge. The
intersection of the web and linear broadcast TV is
fundamentally going to change the way TV is found
and consumed.
For fifty years, nothing much has changed. Brands buy TV time via
agencies. Broadcasters and Pay TV incumbents collect billions. Content
producers create. There‟s been no direct route between creatives and
fans in TV.
But that‟s about to change… And technology is going to drive it.
Consumers want more. Scarcity will die.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

9. What does this mean for Third Party
Developers Migrating from the Web?
• Changes in gatekeeper roles of the living room TV mean
a new world of open SDK‟s and API‟s via CE
manufacturers such as
Samsung, Panasonic, LG, Philips, Sharp, Microsoft, Sony
and more.
• New sources of funding from Venture Capitalists looking
towards disruption of the TV industry and seeing the
global TV Ad spend of 200 Billion dollars as up for grabs.
• TV App standards and infrastructure very similar to
Apple and Google frameworks – and about 80 per cent
HTML-based code.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

10. What does this mean for
Independent content producers?
• Changes in gatekeeper roles of the living room TV with
more competition via the Internet. More routes to
viewers.
•New possibilities in forming direct relationships with
brands and agencies, who are looking for alternatives to
the 30 second spot via branded content.
•New devices such as the iPad provide
similar, rich, viewing experiences to consumers both
watching streaming video and second screen applications.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

11. What does this mean for Brands and
Agencies?
• Brands are more likely to go direct to consumer with
branded content – Red Bull has an inventory of 1000
episodes of content which is sells at MIPTV and MIPCOM.
• The 30 second spot is dead. Agencies will have to do
more than just toss propaganda at a broadcaster and
hedge on unquantifiable data from Nielson and BARB.
• Second Screen behavior on the rise will acerbate the
tradition 30-second spot structure as more people move
to multiplatform and engage on second screens during
commercials.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

12. What does this mean for
Broadcasters and Pay TV?
• Broadcasters currently own the relationship with the
brands and they need to work to keep it.
• Broadcasters need to own the second screen. But they
are not moving fast enough to do so. Their 200 billion in
global ad spend is up for grabs. Who wants it?
• They need to operate with more agility and cross
department. Silos don‟t work in a multiplatform
engagement world.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

13. Currently: What is happening
We believe that the new value chain emerging in TV, will share much in common with the retail
value chain.
Customers
Content Production Customers Infrastructure Customers
Engagement Creation Monetisation Monetisation Remote Control
e.g. Endemol, Red Bull Data Capture Data Capture Device affinity
CE Mr. C
Creators Retailers Distributors Potato
Devices
Content Purchasing
Advertising
Commerce
Its currently a market being played out…
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

14. Creators Retailers Distributors CE Devices
 Maintaining traditional economics – rights, release windows
 Exploring new incremental revenue streams
 Exploring opportunities to go direct to consumer
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

15. Creators Retailers Distributors CE Devices
 Broadcasters are being turned into Retailers
 Broadcasters traditional revenue streams are threatened
 Retailing is becoming an open market
 Video on Demand will be differentiated on price & brand
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

16. Creators Retailers Distributors CE Devices
 Analogue being switched off
 DTT development
 Satellite – Set top box and standalone
 Telecoms – IPTV and OTT, Hybrid
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

17. Creators Retailers Distributors CE Devices
 Multiple Connected device brands
 Smart and Connected TV
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

18. Connected Devices
Microsoft Sony Nintendo Apple TV Connected Blu-ray Disk
Xbox 360 Playstation3 Wii TV Player
Games Games Console Game Console Media Internet Disk Player
Console Streamer Connected Set with Internet
Connection
44.6m 41.6m 75m 250,000 since 10m shipped 5m shipped
Worldwide Worldwide Worldwide re-launch Europe Europe
Sourced from Decipher www.decipher.co.uk
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

19. Discover today’s “Game Changers” - the latest technology driven
products/services with the power to transform consumer behaviour
and the potential to disrupt the TV business as we know it today.
Print media was hit hard and the Music Industry has faced huge
disruption in the past few years.
Is TV next?
Many pundits think so - and here's a chance to meet some of the
companies that might just democratize the living room entertainment
experience.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

20. The Reports
- 50 per cent of Tablet Owners View Both Feature-Length Movies and TV Shows on the Device
- Report: Huge Gaps in Multiplatform TV Delivery Capability by US Broadcasters
- Four in Five UK kids watch TV On Demand - BBC and CBBC iPlayers
- Study: 80 per cent of UK Teens Use Second Screen to Communicate with Friends when Watching Television
- Ericsson study shows On-Demand as next TV service and tablets as remote
- Almost Half of All British Using Social Media While Watching TV
- Study: 30 Percent of All US Households Already Have TV Connected to Internet
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

21. The Timeline
2011: Connected Devices will account for 70 percent of CE Device Market Value 2011
2013: TV Applications and Widgets Market Worth over €1 Billion Euro by 2013
2014: Web-to-TV Video Content Revenue will grow by 750% to $17 billion by 2014
2014: Report: Global Connected TV Shipments to Grow 58% Annually Through 2014
2014: 47 million European Households will have Connected TV by 2014
2014: Installed “Smart TV” to Reach Over 230 Million by 2014, Says In-Stat
2015: Report: Half Billion Connected devices sold by 2015
2015: Report: Ads in Apps - €8.5 billion market by 2015
2016: Participation TV To Generate $2.9 Billion By 2016
2017: Report: Global Market for IPTV to Reach $81.2 Billion by 2017
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

22. SECOND SCREEN ENGAGEMENT
There is certainly crossover
in all these different areas.
And I think the winner, the
one who wins the second
screen - whether that be
an incumbent or a
disrupter - will weave a
tapestry from all of them.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

23. Seventy percent of tablet owners and 68 percent of smartphone
owners said they use their devices while watching television.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

24. PLAY-ALONG TV
2 screen synchronicity – Million Pound Drop, Intuition, The Voice
Well done to the Million Pound Drop for winning the Digital Creativity awards at BAFTA, an
award that incorporated all aspects of social media, interactivity, multi-media and audience
participation.
As the show is broadcast live, viewers are encouraged to
play along online at the same time with statistics on their
performance appearing on screen during the broadcast
and being read out.
Online players receive no prize money. Hundreds of
thousands of people play on a second screen during the
live show.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

25. PLAY-ALONG TV
2 screen synchronicity – Million Pound Drop, Intuition, The Voice
intuïtie („Intuition‟ in English) was a groundbreaking Dutch daytime gameshow in which the viewers
are the contestants. Viewers can play for free using their laptop or smartphone. The show tested
viewers‟ gut instincts with picture-based questions on people and places.
Everyone who took part in the show won prize vouchers; the number of
vouchers won was determined by the audience‟s average score. Intuïtie was
developed by Freemantle‟s Screenpop and uses Ex Machina‟s PlayToTV
platform.
http://vimeo.com/30311600
Two-screen TV show described as 'a game-changing idea'
Purpose
To create a shared experience for viewers with a two-
screen, real-time TV game that tests the intuition of the
audience.
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012

26. +
THANK YOU!
We inspire, create and deliver convergent strategies
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27. +
What We Do
We inspire, create and deliver convergent strategies
CONNECTED TV AND CONSUMERS –
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28. Production Companies
Broadcasters and Telco and Broadcasters
Goodchild is a multi-award
Johnson specialises in television winning independent '360'
Social and Community Product Development and showrunner and digital strategist
Delivery. Johnson's unique for TV, web, mobile and IPTV.
+
Kastelein's roots in experience helping He is a leading light in the UK's
innovative, interactive date back productise, design and deliver media industry - implementing
to his work at Interactive Chat UK's Lovefilm to Connected TV. the world's first factual
Systems in 2007 -. He founded He is a leading multi-platform interactive TV programme:
Appmarket.tv – a leading portal analyst and contractor where 'Walking With Beasts' which
for Connected TV, TV Apps, Multi- Web meets TV and has worked won him a BAFTA - he then
Who We Are
platform, Social TV and with the likes of BSkyB, BBC, HiT went on to set up BBC Factual's
Transmedia in early 2010. He Entertainment and ESPN. iTV unit. More recently he
was Winner of the 2010 Deloitte Johnson, a speaker on the headed up all of BBC Children's
Tech., Media & Telcom (TMT) international TV circuit. interactive services.
Predictions for Entrepreneurs in
and recently a Finalist at IBC's Paul Johnson | Partner Marc Goodchild| Partner
ConnectedWorld.TV Personality
of the Year Hamacher heads up the
Johnson is an expert in brand
publishing side of Agora Media
engagement planning & multi-
Group and is both Editor-in-Chief
Richard Kastelein | Partner screen consumer interactivity, inc
of Appmarket.tv site and PR
2-screen /OTT TV - strategy to
Director. A Broadcast Journalist
execution - Formerly he was the
and Field Producer at the BBC,
Business Director, Branded
she was also a former Writer and
Content at Ogilvy &
Producer at the BBC World
Mather, Commercial Director at
Service News, Discovery
Edward Cavendish, Brand &
Channel, a Television
Advertising Director - EMEA at
Producer/Director at Mentorn,
We inspire, create and deliver convergent strategies Motorola and Global Brand
and Travel Channel International.
Director at Allied - Lyons.
She was IPC writer of the year in
1990.
Keith Johnson| Partner Adriana Hamacher| Partner
Brands and Agencies Publishing
CONNECTED TV AND CONSUMERS –
HILVERSUM, NETHERLANDS – FEBRUARY 7, 2012