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Prez cross-video-days-english


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This document is the support i have used while the introduction keynote i have done for the CrossVideoDays. This is a kind of state of art of the online video and connected TV ecosystem + some inputs and questions about the consequences on the video content value chain

Prez cross-video-days-english

  1. 1. Cross VideoDays<br />OpeningKeynote<br />
  2. 2. Let’s size the online videomarket<br />
  3. 3. An exploding market !<br />1bn consumers of online videos<br />14+hrsa month- people spent watching online videos<br />201 views per user in 2010<br />+71% views/pers of online videos <br />2010<br />40%<br />of the traffic<br />2014<br />57%<br />of the traffic<br />ComScore Nov 2010<br />60%<br />Video traffic in the world<br />X5<br />Share of the data mobile traffic used for video in 2011<br />35hrs of video uploaded/min<br />2bn views per day<br />700bn views per year<br />Source YouTube Dec 2010<br />Etude Cisco 2010<br />
  4. 4. An exploding market !<br />Shares of traffic by uses<br />Online VideoStreams / Quarter<br />400 000 000<br />Broadcast networks<br />350 000 000<br />Webmedia Brands<br />VideoTraffic<br />51%<br />100%<br />300 000 000<br />Other<br />250 000 000<br />Telnet<br />NewsGroup<br />DNS<br />Email<br />200 000 000<br />Magazine publishers<br />P2P<br />Music labels<br />150 000 000<br />NewspaperPublishers<br />100 000 000<br />FTP<br />50 000 000<br />Radio Broadcasters<br />0<br />Web<br />Q1<br />Q2<br />Q3<br />Q4<br />Q5<br />Q6<br />Q7<br />Q8<br />Q9<br />2010<br />2008<br />2009<br />0%<br />1995<br />2010<br />Source : Brightcove / TubeMogul Mai 2010<br />Source : Limelight Network 2010<br />
  5. 5. Led by the European and American TV Channels<br />Audience Share by category & geographical zones<br />Brands<br />Broadcasters<br />Magazines<br />Newspapers<br />Online Media<br />4,19mn<br />100%<br />Others<br />3,36mn<br />75%<br />2,53mn<br />USA<br />50%<br />2,30mn<br />25%<br />1,26mn<br />EU<br />0,43mn<br />APAC<br />0%<br />Brands<br />Broadcasters<br />Magazines<br />Newspapers<br />Online Media<br />APAC<br />EU<br />USA<br />Others<br />Source : Brightcove Online Video & the Media Industry Q4 2010<br />
  6. 6. An averageVideolength short but verymisleading !<br />2,48 l 2,36<br />1,22 l 1,24<br />1,57 l 2,01<br />1,52 l 1,30<br />US l EU<br />US l EU<br />US l EU<br />US l EU<br />Broadcasters<br />Magazines<br />Music<br />Newspaper<br />Source : Brightcove Online Video & the Media Industry Q4 2010<br />
  7. 7. Increased by the «Connected TV » Phenomenom !<br />42,2%<br />of the TV<br /> are really<br /> connected<br />Connected TV devices worldwide trend<br />2014<br />2011<br />200M<br />Connected TV devices<br />Connected Blu-Ray Players<br />Connected Game Console<br />Connected Digital Video Players (Set Top Boxes)<br />18%<br /> of the TV<br />100M<br />Are really connected<br />0M<br />2010<br />2010<br />2010<br />2010<br />2010<br />2010<br />Source : Parks Associates 2010<br />
  8. 8. The connected TV more than a device, an ecosystem…<br />@<br />
  9. 9. …whereeachscreen has itsown use…<br />Couchpotato<br />Couchpotato<br />Sitting<br />Standing up<br />Position<br />Personal<br />Private<br />Uses<br />Family<br />Personal + shared<br />Video<br />News<br />Game<br />Work<br />Sociabilisation<br />Entertainment<br />Sociabilisation<br />Work<br />Games<br />News<br />Entertainment<br />Sociabilisation<br />Goals<br />*****<br />****<br />****<br />**<br />Incoming data<br />*<br />**<br />****<br />*****<br />Outgoing data<br />
  10. 10. …with a specific vocabulary !<br />Uses<br />Business<br />Fragmentation<br />Cord Cutting<br />Piratage<br />(P2P, Streaming)<br />Disintermediation<br />Format<br />Monetisation(PPV, Pub, SVOD, Hybrid)<br />unlinearisation<br />Pre-financing<br />Multitasking<br />Dual Screen<br />Audience tracking<br />Social TV<br />OTT<br />Real Time Bidding<br />Enrichment<br />Agregation/Curation<br />Models open/closed<br />Recommandation<br />DRM /Fingerprinting<br />Technology<br />Standardisation<br />OS / Framework<br />Android / iOS / Constructeur<br />Synchronisation<br />HTML 5 / Flash<br />CloudComputing<br />SDK<br />WebM/H264<br />Open Source<br />
  11. 11. Cock-a-doodle-doo !<br />
  12. 12. The IPTV Landscape in France<br />58 377 000 TV owners in France<br />2010<br />6,8 Millions IPTV<br />In France<br />(WorldWide Leader)<br />2012<br />7,8 Millions<br />59% of the TV will<br />be connectable<br />Main activities in France<br />(Src TNS Sofres 2010) <br />Satelite<br />17 359 000<br />(26%)<br />DTT<br />28 723 000<br />(43%)<br />Watching TV<br />3h39`(+7min)<br />ADSL<br />14 368 000<br />(21%)<br />Sleep<br />Cable<br />6 739 000<br />(10%)<br />Work<br />Srce : Mediametrie January 2010<br />
  13. 13. The emerging second screen landscape<br />Penetration rate<br />36%<br />Means 20 880 000 people<br />Penetration rate<br />72%<br /> means<br /> 17 400 000 households<br />Penetration rate<br />5%<br />Means 1 200 000<br />households<br />
  14. 14. Withclearimpacts on consumers!<br />
  15. 15. Content is not just about the linearscheduleanymore<br />33 Million people know whatVOD is (86% of the internet users)<br />4,6 Million people use VOD (27% of the internet users)<br />90% VOD penetrationforecastedby 2015<br />75% of the VOD views in 2010 wereCinema and Premium Releases<br />64% of the french tv shows are available on catch up TV<br />Whichmeansaround15000 videosavailable<br />Do youwatch online programs (US internet usersJanuary 2011 lab42 Study)<br />- de 18<br />18-24 (34h)<br />25-34<br />35-44<br />45-54<br />55-64<br />+90%<br />In one year of DVR use<br />80%<br />79%<br />72%<br />51%<br />36%<br />31%<br />Means<br />68% <br />TV<br />Soit 19h<br />
  16. 16. Consumers are multitasking !<br />French fiction TV fans are interested in additional content on internet, related to what they are watching<br />(which goes to 30 % for the 15-24)<br />59% of TV Viewers<br />Are «Multitaskers»<br />(means 2h30 during december2010)<br />Src : Nielsen january 2011<br />20%<br />Would you be interested by a more interactive TV<br />98%<br />Of Ipad Owners uses it regularly watching the TV<br />86%<br />Of smartphone<br />owners use it regularly watching<br />the TV<br />Src : Yahoo! 2010<br />Src : NY Times Aout 2010<br />Very interested<br />interested<br />A bit<br />Interested<br />not<br />Interested<br />
  17. 17. 2nd Screen : The hub for Social TV<br />Part de temps passé par type d’usage<br />Typicalactivitiesdone on the 2nd screenwhilewatching TV<br />33%<br />Using mobile apps<br />Browsing the internet<br />37%<br />40%<br />Social Networking<br />Textingwithfriends & family<br />56%<br />Source : Nielsen Q1 2011 (mobile ConnectedDevice Report)<br />
  18. 18. The Social TV<br />Go every day on internet while watching the TV<br />During SuperBowlin 2010<br />37%<br />Use social networks such as Facebook or Twitter while watching the TV <br />169 million viewers<br />=<br />4000 tweets / sec<br />During the last seconds<br />44%<br />Have ever chatted about a TV content while watching it<br />37%<br />In 2011<br />1b posts<br />will be written via <br />About a TV show<br />Src : Deloitte<br />Have already shared a TV content via social networks<br />19%<br />Use social network to improve their TV experience<br />44%<br />
  19. 19. And clear impacts on the value chain !<br />
  20. 20. Internationalisation…<br />
  21. 21. … Illegal downloads…<br />The 10 movies most illegally downloaded in 2010<br />= 92 480 000 downloads<br />= $400 Millions of shortfall<br />450 000 movies illegally downloaded<br />per day<br />in France <br />43,5% of the 11-15illegally downloaded movies and series(1/4 asked by their parents!)<br />76% of the pirates say they would have preferred watching their content through TV if they would have had the opportunity<br />MegaUpload<br />45 millions of U.V/ day<br />= 1% of the worldwide traffic <br />= more than Facebook<br />Source : Jumpwire Octobre 2010<br />Source : Source Sandvine fev 2010<br />
  22. 22. … Audience fragmentation…<br />Maturity of the highbandwith<br />Historic love for video + confort of visualisation = growth of the demand<br />Internet streaming growth(low distribution costscompared to TV)<br />Worldwidcompetitioninscreasing<br />Multiplication of the online videodevices(Computers, Tablettes, Smartphone, TV)<br />Multiplication of the videooffers(Hertzien + Satellite + Cable-> Internet + Cable + Satellite + DTT + IPTV)<br />Audience Fragmentation<br />35%<br />30%<br />25%<br />TF1 (26%)<br />DTT<br />20%<br />FR2 (16,7%)<br />15%<br />FR3 (11,8%)<br />10%<br />M6 (10,8%)<br />5%<br />FR5 (3,1%)<br />Canal+ (3,1%)<br />Arte (1,7%)<br />0%<br />2010<br />2009<br />2008<br />2007<br />Source : Annual report of the CNC 2010<br />
  23. 23. … leading to lowerinvestmentcapabilities…<br />Maturity of the highbandwith<br />Historic love for video + confort of visualisation = growth of the demand<br />Internet streaming growth(low distribution costscompared to TV)<br />Worldwidcompetitioninscreasing<br />Multiplication of the online videodevices(Computers, Tablettes, Smartphone, TV)<br />Multiplication of the videooffers(Hertzien + Satellite + Cable-> Internet + Cable + Satellite + DTT + IPTV)<br />Audience Fragmentation<br />35%<br />30%<br />25%<br />TF1 (26%)<br />20%<br />FR2 (16,7%)<br />15%<br />FR3 (11,8%)<br />10%<br />M6 (10,8%)<br />5%<br />FR5 (3,1%)<br />Canal+ (3,1%)<br />Arte (1,7%)<br />0%<br />2010<br />2009<br />2008<br />2007<br />Source : Annual report of the CNC 2010<br />
  24. 24. … Shakingup the value chain<br />Hier<br />Aujourd'hui<br />Other public investment<br />(Regions, Departements, Cities….)<br />Other public investment<br />(Regions, Departements, Cities….)<br />Europeanhelps<br />Europeanhelps<br />CNC<br />CNC<br />WorldWide distribution<br />WorldWide distribution<br />French Channels<br />French Channels<br />Producers<br />Producers<br />Authors<br />Authors<br />
  25. 25. Where TV channels are playing a leading role…<br />…for the incomes…<br />…and the executive production!<br />Foreign<br />incomes<br />8,4%<br />Editors &Distributors<br />77,8%(+54,61%)<br />Producers<br />33,3%<br />Mandats<br />17%<br />TV Channels<br />32,4%<br />Theatres<br />17,05%<br />(+25,03%)<br />Sofica<br />4,3%<br />Including 17% only for CanalPlus<br />DVD & VOD<br />5,14%<br />(+6,56%)<br />CNC Helps<br />Source : annual report of the CNC 2010<br />Source : Sénat – CNC Juin 2011 via @PLechevallier<br />
  26. 26. So what are our challenges ?<br />
  27. 27. Let’sbecreative in monetisationstrategies<br />VOD Platform<br />Consumer electronics<br />Europeanhelps<br />CNC<br />FAI<br />Editeurs mobiles<br />Other public investment<br />(Regions, Departements, Cities….)<br />Lisencing<br />Sponsoring<br />WorldWide distribution<br />Brand Content<br />Product Placement<br />Independent Video Ad Platforms<br />(for ex : real time biddingplatforms)<br />French Channels<br />Monetisation<br />Syndication<br />Disintermediation<br />
  28. 28. How to adapt to world wide competition?<br />Latine America<br />2,3%<br />2006 > 2009 = -15% on exportations<br />Today100M€ in exportations<br />Which means10% of all incomes<br />Middele Orient<br />4,6%<br />Protect or attack ?<br />HBBTV or HTML5<br />Get a critical size(Hulu, Netflix, YouView, what about France ?)<br />Focus on the local content or International ?(some rumors speak about arrival of american studio in south of France)<br />Localformat or exportable<br />Mainstream or Segmenting ?<br />And what about the « Media Chronology» ?S.Jobs: “You’ll Be Able To Watch A First Run Movie Before It Hits Theaters”(2 june2010)<br />Africa<br />2,1%<br />APAC<br />8,6%<br />North America<br />9,50%<br />Western Europe<br />62%<br />Central Europe<br />10,50%<br />
  29. 29. Help on standardisation!<br />What about OS standards ? « Open » or « Closed »…<br />…and what about web standards !<br />Languages<br />Normes<br />+<br />Natively supported video format<br />+<br />Ogg Theora H264 VP8 WebM<br />Internet explorer<br />Mozilla Firefox<br />Google Chrome<br />Safari<br />Opera<br />NO<br />9.0<br />Depends<br />3.5<br />NO<br />4.0<br />3.0<br />NO<br />6.0<br />NO<br />3.1<br />Depends<br />10.5<br />NO<br />10.6<br />
  30. 30. Anticipating the new needs and uses<br />Funding<br />Develop new funding tools<br /><ul><li>Branding / Co Branding
  31. 31. Product Placement
  32. 32. Transversal Advertising Platform
  33. 33. Content syndication
  34. 34. New type of Executive Production Companies</li></ul>Creation <br />Embrace/Invent new creation format<br /><ul><li>Transmedia
  35. 35. Brand Content
  36. 36. Branded Content</li></ul>Distribution<br />Develop some new distribution services<br /><ul><li>Critical size
  37. 37. Editorial strategy
  38. 38. Production involvment
  39. 39. Services Cloud / Historic / Paiement / price policy / TV everywhere
  40. 40. Embrace social marketing issues
  41. 41. Develop new recommendation tools(in 2014, the European EPG market has been estimated to 555M$)</li></li></ul><li>Find the best « business models »<br />Advantages<br />Threatens<br />Samples<br />Pay Per View <br />A simple and efficient business model<br />Paradigm : 75% of the producers/editors love this model but 82% of the 15/25 in France says they won’t pay for digital cultural goods <br />Only in France there are already more than 50 VOD platforms of this type<br />A very fast growing business model<br />A model led by Netflix or Spotify (for music) but which demonstrates some weaknesses (number of subscription / user and peromptions of the rights)<br />Apple, Netflix, Amazon, <br />Subscription (SVOD)<br />A quite expected business model matching to internet spirit but also to the internet advertising market growth<br />Require a clear development of the advertising pressure + inscrease the ad prices (regarding their efficiency vs TV) + develop additional advertising inventory (Product Linking, brand content ) + optimize the data to get value from efficiency.<br />Increase of added value<br />Advertising<br />YouTube, Dailymotion, Vimeo, and catch-up TV platforms, YouView<br />Mix<br />A business model quite welcomed by the user<br />Hulu, MySkreen, Viewster<br />Need a strong visibility, many skills and a quite critical size. Places will be limited and will be usually trusted by OTT companies)<br />Others ?(crowdfunding, open donation…)<br />
  42. 42. Dillema: Regulated or Unregulated!<br />Should we protect the existing models and frames or find and promote some new ones ?<br />But do we already have some really new models ?<br />In any case, miracle solutions do not exist ! Only bringing together of solutions will be successful !<br />Legals<br />Do we have to try to implement the same regulation for TV on Internet actors or the opposite ?<br />Sacem / Hadopi<br />CSA<br />Taxes<br />To preserve a fair competition, we need international tax harmonisation to avoid foreign companies avoidinglocal tax commitments<br />French “Google” Tax just has been cancelled<br />
  43. 43. As a conclusion<br />« with every change in technology that affects consumer behavior, we always overestimate the impact in the short term, but then underestimate the full impact over the long term… »<br />Louis Gordon Crovitz, Former Editor of the Wall Street Journal<br />
  44. 44. Romain DROSNE<br />CEO<br /><br />