Investing in video streaming services requires a solid understanding of the Return on Investment (ROI) for such a platform. In this presentation we breakdown the value proposition of Over the Top content (OTT) platforms, used to generate new revenue streams from entertainment assets. Understanding ROI, requires a breakdown of cost savings, new revenue streams, feature enhancements, and other intangible benefits. "is web seminar looks into various aspects of content management, delivery and consumption, and how cloud-based services such as OTT not only generates new revenue streams, but also opens new doors to monetize entertainment libraries.

1. Defining ROI & TCO
for Video Streaming
© Visual Unity Global a.s., 2014 | Confidential
By Gabriel Dusil
Chief Marketing & Corporate Strategy Officer

2. Agenda
TECHNOLOGY
PROCESS
PEOPLE
NEW REVENUE
COST SAVINGS
FEATURES & BENEFITS

3. Video is used to attract
new subscribers
• Maintain loyalty through Enhanced
Features & User Experience (UX)
• Large & relevant content libraries
justify subscription price
“ROI is a balance between
Subscriber revenue
& Total Cost of Ownership”
Video is used to sell retail
products
• Sell more product with Demos, Ads,
Client Testimonials, Employee
Generated Content (EGC)
• Training Conferencing, Corporate
& CEO Announcements
“ROI is a balance between
platform cost & new revenue
from vMarketing”
Enterprise • OVPEntertainment • OTT

4. ROI • Money
Increased Profit
“Focus on revenue
opportunities that advance
the corporate strategy”
ROI • Time
“Focus on opportunities
that improve efficiency
& competitive advantages”
Increased Revenue
Launching New Services
Streamline Workflow
Higher Client Satisfaction
Efficient Supply Chain

5. Hardware • Software
Purchase • Integrate • Operate
Service Level Agreement
Purchase • Integrate • Operate
Operations
Technical
Staffing
Build It Yourself Cloud Services

6.
HW
Staff
Digi+ze
Storage
HW
SW
Management
SW
People
Gateway
Legal
Services
Development
App
SW
Create Contribute Manage Deliver Consume
IngestLive
Analog
Digital Transcode
Process
HW
SW
Process
Dashboard
CRM
MAM
HW
HW
Recommend
HW
SW
Protection
Payment
SW
CDN
HW
SW
Maintain
Multiscreen
Maintenance
SW
Process
Technology
Staff
Process
Legend
Cloud Ÿ OTT Service

7. Brand Ÿ Image Ÿ Credibility
• How important is Trust
to your subscribers?
Disaster Recovery
• Is content quickly
restorable?
Down Time
• How fast can you
recover? Ÿ Backup
Redundancy Ÿ Repairs
Security
Ÿ Content at Rest & in Motion
Ÿ Digital Rights Management
Ÿ URL link protection
Ÿ Authentication
• Legal Liabilities
Ÿ How liable are you if
content is lost or stolen?
Ÿ Subscriber Agreements
Ÿ Content Rights
Considerations Ÿ Understanding the Hidden Costs

8. Cloud ICT Ÿ Information Technology Communications
CRM
Storage
Gaming
Music
Messaging
Productivity
Social Networking

9. Cloud Ÿ Video Entertainment
Video Editing
Video Entertainment
Video Metadata Databases
Social Video Networking
Video Delivery
Video Hosting
Video Conferencing

10. Fear
Doubt

11. Consideration Ÿ Cloud Concerns
Reliability
• Internet Bottlenecks
• Upload vs. download
• Single point-of-failure
• Latency • Up-time
Control
• “Ownership”
• Disconnected from
assets
Cost Allocation
• Capital vs. Operating
Ego
• “ eir goal is to Increase
their personal power
& stature by amassing
departments, info
& head count”*
* Entrepreneur.com, “Is Your Managerial Ego Too Big?” by Joe Robinson,
11th April 2014, http://www.entrepreneur.com/author/joe-robinson

12. Getting your ROI
from Video Streaming
© Visual Unity Global a.s., 2014 | Confidential
By Gabriel Dusil
Chief Marketing & Corporate Strategy Officer

15. Reach Ÿ Regional
Audience Ÿ General
Features Ÿ Limited
Ÿ EPG, red button, PiP, TV Guide
Reach Ÿ Global
Audience Ÿ Personal
Features Ÿ Interactive
• Recommendations, Ratings,
Stats, Social, Interactive
Viewing Ÿ Passive
Experience Ÿ Lean-back
Ÿ 100’s of Channels few useful
Experience Ÿ Lean-forward è back
Ÿ Create Your Own Channel
Viewing Ÿ Active
Static Ÿ Living Room Portable Ÿ Multiscreen
Broadcast TV Over the TOP

16. Subscriber Advantages
• Local Storage
• Skip Ads
Subscriber Disadvatages
• Content not portable
• Expensive Service
Provider Advantages
• App Control
• „Locked“ Cients
Provider Disadvatages
• Expensive STB
Subscriber Advantages
• ∞ Storage ∞ Apps
• Better Quality
Subscriber Disadvatages
• Internet speed
• Internet Reliability
Provider Advantages
• 1:1 Relationship
• Relevant Ads
Provider Disadvatages
• “losing control of the subscriber”
Appliance Ÿ TV Cloud Ÿ Service

17. Cloud ROI – Monetizing the Long-Tail
Head
-end
PopularityŸRevenue
#ofTitles
Ageofcontent
News
Sports
Long-tail
MostEffectivefor
RecommendationEngines
IdealforOTTŸ MoviesŸTV
Ÿ Stockfootage
IdealinBroadcast Ÿ Live
ContentŸ SportsŸ News
MostEffective
forAdvertising Cult-classic
Movies &
TV Series

18. ROI Ÿ Ÿ Content Discovery
• Need Ask Google the
right question
Requires a
Proactive
Subscriber to search
for what they want • Collaborative Behavior
• User Ratings
• Stats (eg. Plays)
• Testimonials & Reviews
• Likes or Dislikes
• Buying & Viewing
Behavior
Subscriber Reacts to
Recommended
Content

19. Revenue Cost
32:1
ROI-2
8
18
28
2012 2014 2016
billionUS$
Transaction
Subscription
Advertising
Costs
Global OTT Forecast '11-'17
Informia – OTT Video Revenue Forecast
AccuStream Research - Integrated Video Platforms

20. ROI Ÿ Case Study
HD = High Definition (1080p), SD = Standard Definition (576p)
A broadcaster wants to launch a new OTT service, using their own library
of titles, and charge a nominal fee of $8/month for the service.
Provider Profile
Content 2,000 HD Movies
4,000 SD Movies
Subscribers 10,000 In 2 Years
Subscription 8 US$/month
Subscriber Profile
Expected Usage
per month
8 HD
12 SD

21. 100k
50k
0k
50k
100k
150k
200k
250k
2
6
10
14
18
22
k US$
Month
OTT Ÿ ROI Ÿ Profit
ROI Ÿ Case Study Ÿ Revenue vs. Costs
24 month
profit
• 243K US$
Assumptions
turn to Metrics
• Subscriber
growth
• Content Usage
Cross
Over
OTT ROI
6–12 months

22. ROI Ÿ Case Study Ÿ Revenue vs. Costs
ROI Parameters
• Monetization
Model Ÿ S/T/A VoD
• Content Sources
Ÿ Shows Ÿ Live
Ÿ Archive
• Library Size Ÿ # HD
Ÿ # SD Ÿ 4K
• Usage Ÿ # of Views
per subscriber
• Subscriber Growth
Ÿ Monthly Ÿ
Attrition
Year 1
1.5:1
Year 2
2.8:1
Year 3
3.3:1
Considerations Ÿ Growth
• Variable Usage Ÿ Int‘l expansion
• New Features Ÿ Enhanced Personalization
Considerations Ÿ Content
• External Ÿ Premium Ÿ User Generated
Considerations Ÿ Efficiency
• Evolving Features & Functionality
• Improved Compression Encoding
• Scaling reduces cost per subscriber

23. How is content being used?
• Which Content has been played the most,
and for how long?
• Is my video the right length for my
viewers?
• Is my content engaging to my subscribers?
• When were users watching my content
throughout the day?
• Where [geographically] is my content being
consumed?
Considerations Ÿ Answering Important Questions
Usage
Behavior
Marketing
Sales

24. How clients use my content?
• How long are subscribers engaged on my
service?
• Average viewing, drop off, & abandonment?
• Correlation between play time, buffer time,
bandwidth, geo, seek time, reloading time?
• How is video quality affecting viewing?
• How are people finding my content?
– Search, Social media, or Syndicated domains?
Considerations Ÿ Answering Important Questions
Usage
Behavior
Marketing
Sales

25. How effective is Marketing?
• How easy is it to find my content?
• What is my view # by country, region, DMA?
• # new visitors compared to returning
visitors?
• How is viewing affected between search vs.
recommendations?
• Which words or phrases are being use to
find my content?
Considerations Ÿ Answering Important Questions
Usage
Behavior
Marketing
Sales
DMA = Designated Market Area

26. How much Money am I making?
• Is my distribution strategy on the right
track?
• How often is my content shared?
• Which partners are most successful?
– And which multiscreen devices are being used?
• Are distribution outlets referring traffic back
to my site?
– How much of my traffic originates from syndicated
domains?
Considerations Ÿ Answering Important Questions
Usage
Behavior
Marketing
Sales

27. Convinced?
Adopt a Hybrid Strategy…
Keep critical processes
in-premise & “cloud” the rest

29. • Check out my blog “Digital Video for a Digital Generation": www.dusil.com
• Investing in video streaming services requires a solid understanding of
the Return on Investment (ROI) for such a platform. In this presentation
we breakdown the value proposition of Over the Top content (OTT)
platforms, used to generate new revenue streams from entertainment
assets. Understanding ROI, requires a breakdown of cost savings, new
revenue streams, feature enhancements, and other intangible benefits.
is web seminar looks into various aspects of content management,
delivery and consumption, and how cloud-based services such as OTT
not only generates new revenue streams, but also opens new doors to
monetize entertainment libraries.
Synopsis – Getting your Return on Investment from Video Streaming

30. • Fear Uncertainty Doubt, 2nd Screen, Broadcast, Connected TV, Digital Rights,
Digital Video, DRM, Gabriel Dusil, Internet Video, Linear Broadcast, Linear TV,
Multi + screen, Multiscreen, Online Video Platform, OTT, Over the Top Content,
OVP, Recommendation Engine, Search + Discovery, second screen, Smart TV,
Social TV, Television, TV Everywhere, Video Streaming, Visual Unity Global,
Return On Investment, ROI, Total Cost of Ownership, TCO
Tags – Getting your Return on Investment from Video Streaming