ING Bank hosted a Media Day for its clients in May 2011. David Grover, Head of Media Finance at ING, moderated a breakout session where trends in TV distribution were discussed. The focus was on getting peoples\' option on if current TV distribution models will continue to drive TV business models, or if new emerging players will change the landscape.

1. Piping Hot!
How relevant is the disintermediation debate
Breakout session moderator:
David Grover, Head of Structured Finance Media, ING
17 May 2011

2. What is going on in the living room?
Now
“The Internet and mobile
telephony is reshaping the
way people watch TV”
In the Future?
Source: www.designbynotion.com
“TV providers are still – and
will remain for some time –
the financial bulwark of the
Pay-TV industry”
Source: Philips
Wholesale Banking

3. “The killer application for Television turns out to be…..
Television!” Richard Lindsay-Davies, Digital TV Group
• Though internet consumption is rising, consumers of all ages are also spending more time watching TV
• The traditional TV viewing experience is still largely „linear‟
Consumers are spending an increasingly larger …and more so than they think!
amount of time in front of their TVs …
Television Actual
Self-reported
Radio
Online Video
0 100 200 300 400 500 600
Minutes per day (2008)
Source: Nielsen
...with internet TV perhaps not yet being the hype it
seems to be?
8,00 6,8 6,8
6,0 6,4 6,3
5,8
6,00 5,0
4,4
Minutes
3,9
4,00
2,00
0,00
Source: Eurodata TV Worldwide Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
Average daily tim e w atching online video Q1 '08- Q1 '10 (US)
Source: Nielsen
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4. “The greater diversity of distribution channels available to content
providers could threaten the traditional TV business models”
• Slowly but surely, content creators are gaining a greater diversity and choice of distribution channels…
Source: Credit Suisse
• The open internet can be used as a distribution channel in the place of TV (e.g. GoogleTV, AppleTV, called “OTT”, or over-the-
top video), disintermediation between content and consumer in the value chain
• Internet TV aggregators (e.g.: ITV, Netflix, YouTube) propose to provide flexibility in accessing content (when, how and where)
versus the traditional “linear” TV experience, as well as to make it more interactive
• However, bandwidth and consumer habit inertia are still constraints….
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5. “The linear TV viewing experience is dead… Increasingly
people are going to watch content when and where they want.”
Source: het niewe tv kijken
Source: TNO
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6. “Pay-TV can easily adapt to evolving technology
and viewing habits”
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7. “That device has changed television” Eric Kessler, HBO
Source: www.designbynotion.com
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