BEP View of TV


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Convergence leads to increased competiton for traditional broadcast TV as all content now migrated to connected TV-sets. Broadcasters need strong umbrella brands and monetize more self-produced content in a 3screen environment.

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BEP View of TV

  1. 1. Brands and Content Production Adding value in a changing TV landscape Madrid, Fall 2009
  2. 2. Agenda – key message. <ul><li>Advances in technology changed the way we consume audio-visual content dramatically. Conversion manifests itself in content form and distribution. </li></ul><ul><li>Multiple devices are now capable of reproducing audio-visual content and therefore take away the broadcasts monopoly over distribution. </li></ul><ul><li>This trend benefits other players that produce content but did not historically distribute audio-visual content. The TV-screen becomes a more open and equal playing field. </li></ul><ul><li>In order to continue to flourish in the new environment, broadcast TV has to engage in the development of strong umbrella brands that accompany consumers in their digital life. </li></ul><ul><li>The production of proprietary content becomes paramount as it allows for monetization across all platforms. </li></ul>
  3. 3. Technology changed everything 0101010101010101010101011101101010101 0 0011010101010101011010110101010101101011 CONVERGENCE 0101010101010101010101010100001011001010101010001111001010101010101010101010 Manage scarcity Manage abundance Scheduling / Programming Broadcasting / Distribution <ul><li>Media content broke out of its container. </li></ul><ul><li>Power over distribution is lost. </li></ul><ul><li>Content converges and is now displayed </li></ul><ul><li>on multiple screens. </li></ul><ul><li>Ubiquity of content, universally accessible. </li></ul><ul><li>Consumers increasingly in control. </li></ul>
  4. 4. Convergence leads to a new kind of competition <ul><li>Multimedia ad-market is a green field for many potential players. </li></ul><ul><li>Connected world allows aggregation of large audiences to many other </li></ul><ul><li>competitors. </li></ul><ul><li>Anyone suffering from declining physical ( media ) sales, will try to </li></ul><ul><li>plant a flag in this area. </li></ul><ul><li>Any digital content that can be displayed in audio visual form will </li></ul><ul><li>f ind its way to the big screen. </li></ul><ul><li>And with it advertising. </li></ul><ul><li>The spot is no longer property of broadcast TV. </li></ul>Content convergence Distribution convergence
  5. 5. shelf-space for audio-visual content increases <ul><li>Position your content brand as a unique value proposition to a </li></ul><ul><li>specific target group. </li></ul><ul><li>The content topic itself become less a differentiating factor. </li></ul><ul><li>Your brand has to have a meaning beyond broadcast TV. </li></ul><ul><li>The brand has to be relevant for your audiences entire digital life. </li></ul>TV TV TV TV Cable / PayTV TV TV TV
  6. 6. Content owners will capture the big screen. <ul><li>Attention is increasingly important. Content exists in abundance. </li></ul><ul><li>Good content will get attention, which in turn can be monetized. </li></ul><ul><li>Advertising works best in a audio visual context. TV = crowded space. </li></ul><ul><li>Print and other media will try to get into the audio-visual space. </li></ul><ul><li>News, Sports and other themes covered by big non- TV brands will </li></ul><ul><li>soon make their TV appearance. </li></ul><ul><li>Advertising works better in a audio-visual environment. </li></ul>
  7. 7. ...from print media. <ul><li>According to research from Brightcove video platform, </li></ul><ul><li>online newspapers grow rapidly into video content (US data). </li></ul><ul><ul><li>+1500% in uploads (08 vs. 07) </li></ul></ul><ul><ul><li>+ 365% in reader streams (08 vs. 07) </li></ul></ul><ul><li>The New York Times works on a 3-4 screen information experience. </li></ul><ul><li>News are important to broadcast stations. </li></ul>
  8. 8. ...from the music industry <ul><li>Music streaming service soon on TV sets as an application. </li></ul><ul><li>Ability to show audio and video ads. </li></ul><ul><li>High rating among 16-34y old males in Sweden and rest of Europe </li></ul><ul><li>Future MTV on demand? Live Events per stream. </li></ul><ul><li>Content sells less, experience more. </li></ul>
  9. 9. platforms and aggregators. <ul><li>TV was yesterday, the new name is “the big screen device” </li></ul><ul><li>Network cable vs. aerial cable. </li></ul><ul><li>Content platforms emerge around devices. </li></ul><ul><li>Wi-Fi is next and will take away some usability barriers. </li></ul>Broadcast / Cable
  10. 10. ...from consumer electronics <ul><li>Device manufacturers gain power over distribution. </li></ul><ul><li>Run for home screen presence has started. </li></ul><ul><li>Remember Google page ranks? </li></ul><ul><li>Revenue share a new reality? </li></ul>
  11. 11. The 3/4 screen model mastered. <ul><li>Business of selling hardware vs. business of selling content. </li></ul><ul><li>If this model becomes successful, content is the oil in the gearbox. </li></ul><ul><li>Ultimate user experience. </li></ul><ul><li>How valuable is your content brand? </li></ul>Content / Brand
  12. 12. ...from game consoles. <ul><li>Nintendo DS and Sony PSP are multimedia devices. </li></ul><ul><li>Reproducing games, music, video and books. </li></ul><ul><li>Roughly 200m units shipped worldwide. </li></ul><ul><li>Mobile TV as download or stream? </li></ul><ul><li>Wireless access to content. </li></ul>
  13. 13. ...from hardware manufacturers. <ul><li>It’s a question on how good the remote will be. </li></ul><ul><li>The rest is easy to figure out. </li></ul><ul><li>Without content, these devices are worth half. </li></ul>27inch LED /16:9
  14. 14. And of course the smartphone front. <ul><li>Computer in the palm of your hand. </li></ul><ul><li>Application model very successful. </li></ul><ul><li>Dependence on platform owners approval of content. </li></ul>
  15. 15. A st r ong umbrella brand becomes indispensable. Aggregation Platform Hardware Platform <ul><li>It is unclear which model will succeed. (aggregation or hardware model) </li></ul><ul><li>In any case, your brand needs to be a door to your content. </li></ul><ul><li>How many meaningful doors can you implement? </li></ul><ul><li>Every door opens a new door. </li></ul>Target audience Limited space available
  16. 16. Channel orientation becomes important. <ul><li>Importance of client orientation in new competitive landscape. </li></ul><ul><li>News, Sports, Children soon face huge competition from non TV. </li></ul><ul><li>A client focus such as young adults, mature females etc. fulfill </li></ul><ul><li>aggregation functions and bundle content that can be exploited in a </li></ul><ul><li>cross-media and cross-platform world. </li></ul><ul><li>Young Adults </li></ul><ul><li>Females </li></ul>Children Sports News Fiction Politics Music Household DTT channels Target Orientation Client Product Spain
  17. 17. In the new world clients matter, not topics. <ul><li>Client centric = multimedia thinking. </li></ul><ul><li>Product centric = TV broadcast thinking. </li></ul><ul><li>Example of Sport </li></ul>Sports Males 16-36 Sports within new brand (not exclusive) Open to any theme . Flexible Orientation Competition Product Client
  18. 18. Invest in new value added activities <ul><li>Own productions allow you to take advantage of the whole </li></ul><ul><li>audio-visual spectrum. </li></ul><ul><li>Create content that is associated with your umbrella brand. </li></ul><ul><li>Data is key. Understand your audience across platforms. </li></ul><ul><li>Think of new possibilities. Blogs, Events, Merchandising </li></ul><ul><li>Your new promise to advertisers is your audience knowledge. </li></ul>Data aggregation / CRM High value added Low value added Own Production Branding / Platform management Content sourcing Programming / Scheduling Broadcast / Distribution IP / Rights Orientation / Filter Knowledge / Data
  19. 19. The brand at the core, some ideas for revenue New channel brand (male oriented) Blog ads subs Catch - up free premium Events tickets syndication Mobile premium free ads
  20. 20. The nutshell <ul><li>In a connected world of digital content, distribution alone is </li></ul><ul><li>not a business model anymore. </li></ul><ul><li>Content is now digital and displayed on screens, which allows </li></ul><ul><li>any content producer to embed video based advertising. </li></ul><ul><li>Broadcast TV has no authority over our TV-sets anymore. </li></ul><ul><li>Hardware connected or aggregation based platforms distribute </li></ul><ul><li>content to a series of devices. </li></ul><ul><li>St r ong umbrella brands with a given association to content </li></ul><ul><li>offer c ontext and orientation to consumers. They are needed </li></ul><ul><li>because space on “home screen storefronts” is limited and </li></ul><ul><li>attention from your audience hard to get. </li></ul><ul><li>The middleman function (distribution of content you don’t </li></ul><ul><li>own) work less for broadcast TV, hence own production becomes </li></ul><ul><li>more important. </li></ul><ul><li>THANK YOU! </li></ul>