Here, there and everywhere -
Connected TV and public service
                 CEO Lauri Kivinen
           Finnish Broadcasting Company
Connected TV and Video Conference, Moscow 5.3.2013
• Finnish TV market
• Online viewing
• Future of Connected TV
Media business models

                      SUBSCRIPTION
                        SERVICES

    FREE TO      MUSIC         PAY-TV SERVICES
     AIR TV    STREAMING
                               WEB TV SERVICES

ADVERTISING      NEWSPAPERS
                 & MAGAZINES
SUPPORTED
 SERVICES
        SEARCH &                        PUBLIC
      AGGREGATION                       SERVICE
      SOCIAL MEDIA                       MEDIA
Finnish Broadcasting Company
•   3100 employees
•   Annual budget 450 million €
•   State owned public media
•   4 TV channels, 6 radio
    channels, Internet services
•   26 regional radio services
•   8 regional TV news broadcasts
•   99 % of Finns use Yle’s services
•   Daily reach more than 75 %
TV viewing shares by media company
     Finland: 5,4 million people and 2,5 million households

       Other commercial 13 %


                                                            Yle 42 %


      Nelonen Media
      15 %




   MTV Media 30 %



Average daily TV viewing time in Finland: 3 hours 3 minutes
Web TV adds 1,5% to TV watching
                                                 Source: TV Peoplemeter, Finnpanel Oy, 2012
INPUT 2014 in Finland!

• International Public Television Screening
  Event and Conference
• The world’s biggest event for public
  broadcasting companies in Helsinki 12-15
  May 2014
                               Welcome !
Roles of Connected TV

1. Catch up and Catalogue viewing
    • Personal Video Recording
    • Catch-up and On-demand
      services, Web TV

2. Enriching linear TV watching
   • Second window, Second screen
   • Chat, Polls,Quizzes,Voting
   • Social TV
Majority of TV viewing is linear

           Scheduled TV                                 Catalogue content




Linear TV Broadcast       TV catch-up                Web TV on demand
91 %                      7%                         2%




                                 Source: Tv-meter/Finnpanel and comScore - Yle Media Unit
Majority of TV viewing is linear

              Scheduled TV                                 Catalogue content




Linear TV Broadcast          TV catch-up                Web TV on demand
91 %                         7%                         2%

News, Current affairs,                                  Movies, Drama,
Sports, Events, Other                                   Series, Children
scheduled content
                                    Source: Tv-meter/Finnpanel and comScore - Yle Media Unit
Majority of TV viewing is linear
                                   CONNECTED TV
              Scheduled TV                                 Catalogue content




Linear TV Broadcast          TV catch-up                Web TV on demand
91 %                         7%                         2%

News, Current affairs,                                  Movies, Drama,
Sports, Events, Other                                   Series, Children
scheduled content
                                    Source: Tv-meter/Finnpanel and comScore - Yle Media Unit
Yle Areena is the most valued
online media brand in Finland

• Finland’s leading
  catch up service
• Radio channels
  simulcast
• TV simulcast coming
TV & Web TV



            Areena
           catch up
  PVR        6%
catch up
  7%




 TV rerun
  29 %               TV
                  premiere
                    58 %
                             Uusi päivä, youth drama series:
                             non-linear viewing 13%

                                          Source: Tv-meter (Finnpanel -Yle VP), comScore
Challenges of the Connected world in TV
             Rights management
     Fragmentation of platforms and devices
           Battles in the value chain
Online rights challenge

  Audiences expect      Content rights are
   to access content:   being sold

  • Everywhere          • On a territorial basis
                        • Within time windows
  • Any time
                        • Limited to specific
  • On any device       distribution channels
Diversification  fragmentation No
        single winning platform
Devices capable for video viewing
100%


90%
                                                                  Smartphones

80%       By 2020: Most web-connected devices
                    will be personal
70%
                                                                  Tablets
60%


50%
                                                                  PC-households
40%


30%
                                                                  Game consoles etc.
20%                                                               connected to Internet

10%

                                                                  Connected TV´s,
 0%                                                               connected to Internet
   2012   2013   2014   2015   2016   2017   2018   2019   2020


                                                                      Source: Industry estimate
Connected TV value chain

  Content       Services
                           Delivery      Platform       Boxes      TV Sets
 production    packaging



Internet services,         Telecom operators               Device
games and social                                           manufacturers
media                      TV distributors

Video on demand            Other ecosystems
(broadcasters and web      (operating systems, walled
TV services)               gardens etc.)
Audience behaviour
• Second screen, social media
• Games & the big screen
• Simplicity
Audience behaviour
• Second screen, social media
• Games & the big screen
• Simplicity
Thank You

                 CEO Lauri Kivinen
           Finnish Broadcasting Company
Connected TV and Video Conference, Moscow 5.3.2013

4 yle lauri kivinen

  • 1.
    Here, there andeverywhere - Connected TV and public service CEO Lauri Kivinen Finnish Broadcasting Company Connected TV and Video Conference, Moscow 5.3.2013
  • 2.
    • Finnish TVmarket • Online viewing • Future of Connected TV
  • 3.
    Media business models SUBSCRIPTION SERVICES FREE TO MUSIC PAY-TV SERVICES AIR TV STREAMING WEB TV SERVICES ADVERTISING NEWSPAPERS & MAGAZINES SUPPORTED SERVICES SEARCH & PUBLIC AGGREGATION SERVICE SOCIAL MEDIA MEDIA
  • 4.
    Finnish Broadcasting Company • 3100 employees • Annual budget 450 million € • State owned public media • 4 TV channels, 6 radio channels, Internet services • 26 regional radio services • 8 regional TV news broadcasts • 99 % of Finns use Yle’s services • Daily reach more than 75 %
  • 5.
    TV viewing sharesby media company Finland: 5,4 million people and 2,5 million households Other commercial 13 % Yle 42 % Nelonen Media 15 % MTV Media 30 % Average daily TV viewing time in Finland: 3 hours 3 minutes Web TV adds 1,5% to TV watching Source: TV Peoplemeter, Finnpanel Oy, 2012
  • 6.
    INPUT 2014 inFinland! • International Public Television Screening Event and Conference • The world’s biggest event for public broadcasting companies in Helsinki 12-15 May 2014 Welcome !
  • 7.
    Roles of ConnectedTV 1. Catch up and Catalogue viewing • Personal Video Recording • Catch-up and On-demand services, Web TV 2. Enriching linear TV watching • Second window, Second screen • Chat, Polls,Quizzes,Voting • Social TV
  • 8.
    Majority of TVviewing is linear Scheduled TV Catalogue content Linear TV Broadcast TV catch-up Web TV on demand 91 % 7% 2% Source: Tv-meter/Finnpanel and comScore - Yle Media Unit
  • 9.
    Majority of TVviewing is linear Scheduled TV Catalogue content Linear TV Broadcast TV catch-up Web TV on demand 91 % 7% 2% News, Current affairs, Movies, Drama, Sports, Events, Other Series, Children scheduled content Source: Tv-meter/Finnpanel and comScore - Yle Media Unit
  • 10.
    Majority of TVviewing is linear CONNECTED TV Scheduled TV Catalogue content Linear TV Broadcast TV catch-up Web TV on demand 91 % 7% 2% News, Current affairs, Movies, Drama, Sports, Events, Other Series, Children scheduled content Source: Tv-meter/Finnpanel and comScore - Yle Media Unit
  • 11.
    Yle Areena isthe most valued online media brand in Finland • Finland’s leading catch up service • Radio channels simulcast • TV simulcast coming
  • 12.
    TV & WebTV Areena catch up PVR 6% catch up 7% TV rerun 29 % TV premiere 58 % Uusi päivä, youth drama series: non-linear viewing 13% Source: Tv-meter (Finnpanel -Yle VP), comScore
  • 13.
    Challenges of theConnected world in TV Rights management Fragmentation of platforms and devices Battles in the value chain
  • 14.
    Online rights challenge Audiences expect Content rights are to access content: being sold • Everywhere • On a territorial basis • Within time windows • Any time • Limited to specific • On any device distribution channels
  • 15.
    Diversification  fragmentationNo single winning platform
  • 16.
    Devices capable forvideo viewing 100% 90% Smartphones 80% By 2020: Most web-connected devices will be personal 70% Tablets 60% 50% PC-households 40% 30% Game consoles etc. 20% connected to Internet 10% Connected TV´s, 0% connected to Internet 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Industry estimate
  • 17.
    Connected TV valuechain Content Services Delivery Platform Boxes TV Sets production packaging Internet services, Telecom operators Device games and social manufacturers media TV distributors Video on demand Other ecosystems (broadcasters and web (operating systems, walled TV services) gardens etc.)
  • 18.
    Audience behaviour • Secondscreen, social media • Games & the big screen • Simplicity
  • 19.
    Audience behaviour • Secondscreen, social media • Games & the big screen • Simplicity
  • 20.
    Thank You CEO Lauri Kivinen Finnish Broadcasting Company Connected TV and Video Conference, Moscow 5.3.2013