OTT Content & Company Analysis

OTT Content & Company Analysis

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  OVER THE TOPCONTENT & COMPANY OVERVIEW
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  TERRESTRIAL TV SATELLITETV CABLE TV Over-the-air (OTA) Direct-broadcast satellite Radio Frequency (RF) TV ? Over-the-top (OTT) + + Linearchannels Linearchannels Linear channels Movies & Games TV series PRODUCT DIFFERENTIATION
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  OTT VS IPTV OTTIPTV CONTENT DELIVERY: Uses open internet Uses dedicated network QUALITY: Not guaranteed Guaranteed EXAMPLES:  YouTube  Netflix  Hulu  AT&T  PrismTV CONTENT CATALOG: Widely used for freemium and economical VOD delivery models Used primarily for premium content and real time content delivery like broadcasting TV CATEGORY: Complementary service Parallel service KEY CALLENGES:  Low quality and price  Non premium content and no live broadcast  Unicast model  High quality and price  Competition from cable or DTH industry  Bandwidth and infrastructure KEY BENEFITS: Flexibility of content consumption across devices Quality of service and quality of experience
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  VIDEO CONTENT DELIVERYMARKET
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  OVER THE TOP COMPANYOVERVIEW
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  ‟03 Games PRODUCTHISTORY BLOCKBUSTEROVERVIEW 1985 20141997 2007 NETPROFITCONTENT „85 Started ‟85 Physical video rental „93 Acquisition by Viacom ($8.4 billion) (in000,000) ‟03 GameRush Store ‟90 Global expansion ‟10 Bankruptcy issue ‟85  Movies  Games Started The Golden Age Physical Video Rental Industry *Total 21 countries by 2008 ‟04 Online rental ‟04 Blockbuster Total Access Physical games rental „03 DVD-by-mail Era Started Online Streaming Era ‟11 Acquisition by Dish Network ($320 m) ‟08 Watch Movie Online Online streaming ‟08 Video-on-demand „13 Blockbuster on Demand „13 ‟04 Blockbuster Total Access:  Movies  Games ‟08 Movie Online „01 $(238.8) „02 $(1,621.1) „03 $(978.7) ‟04 $(1,248.8) ‟05 $(588.1) ‟07 $(103.8) ‟06 $54.7 „00 $(81.1) Off: Blockbuster Total Access„13 ‟10 $(623.0)
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  PRODUCTHISTORY NETFLIX OVERVIEW 199720142002 2012 FIGURESCONTENT „97 Started ‟99 Online monthly subsription ‟97 Online pay-per-rental „02 IPO (5.5 million shares; $15/share) ‟00 Personalized movie recommendation „02 0.8 „03 1.4 (in000,000) „05 4.2 „06 6.3 „07 7.5 ‟07 Video-on-demand The Golden Age DVD-by-mail Rental Started „08 9.4 „09 12.3 „10 20.0 „12 30.0 „13 40.0 Online Streaming Era ‟08 Streaming: Other device ‟07 Video-on-demand ‟10 Online streaming Global expansion ‟10 ‟08 Xbox 360, PS3, Wii, Blu-ray disc players, TV, set-top boxes, Apple product „00 Off: Online pay-per-rental ‟13 Original TV series ‟13 TV series: House of Cards +88% +74% +76% +60% +51% +18% +26% +31% +63% +50% +75% 2007  TV series: (SD & HD)  Film: (SD & HD)  Miniseries: (SD & HD)  Specials: Documentary and Stand-up comedy  Games: Online rental Region + Adjectives + Noun Genre + Based On... + Set In... + From the... + About... + For Age X to Y Netflix micro-genres formula: *Total 41 countries by 2013 Winners: Members: Net Income: ‟11 Launch: Qwikster ‟11 Online games rental „12 $17 „13 $112 „06 $49 „07 $67 „08 $83 „11 $226 „09 $116 „10 $161 „05 $42 „04 $21 „04 2.6
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  PRODUCTHISTORY HULU OVERVIEW 200720142009 FIGURESCONTENT „07 Joint Venture (in000,000) Online Streaming Era 2011  Comcast  21st Century Fox  The Walt Disney Company ‟07 NBCUniversal:  TV shows  Movies  Adv. campaign ‟10 Hulu Plus „10 Online streaming: Full runs TV shows ‟10  TV shows  Movies  Revolutionary ad-supported „09 Music Partnership „09  Music video  Concert ‟09 Partnership with:  EMI  Warner Music ‟12 Original TV program „12 Total: 7 original TV program „09 ±$108 „10 ±$260 „11 ±$420 „12 ±$700 „13 ±$1,000 „11 1.5 „12 3.2 „13 5.3 „08 ±$25 „11 Global expansion: Hulu Japan „14 Sells off: Hulu Japan „10 0.29 Members: Revenue:
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  SUMMARY ANALYSIS BLOCKBUSTER NETFLIXHULU HISTORY 1985 - Now 1997 - Now 2007 - Now PRODUCT  Physical video rental  Physical games rental  DVD-by-mail  Online streaming  Video-on-demand  DVD-by-mail  Video-on-demand  Online streaming  Online games rental  Online streaming FREE PRODUCT No No Yes PAID PRODUCT Yes Yes Yes CONTENT  Movies  Games  Movies  TV series  Games  Stand-up comedy  TV series  Movies  Music video  Ads CONTENT FOCUS Movies Movies TV show GLOBAL EXPANSION Yes Yes No ORIGINAL PROGRAM No Yes Yes SUBSCRIBERS ± 0.8 million (Online rental) in 2007 ± 40 million (Online streaming) in 2013 ± 5.3 million (Online streaming) in 2013 SUBCRIBER PRICE (2013) $2.99-$3.99 per-title; $10.99 VOD purchases $7.99 $7.99 REVENUE (2013) N/A N/A ± $1 billion NET INCOME (2013) N/A ± $112 million N/A NET PROFIT (2013) ± $(623.0) N/A N/A
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  RECOMMENDATION: “MOVIE INTHE BOX” via Satellite  Montly subscription (Max. 5 movies/month)  If a customer wants to get a new movie, they have to return the old movie first  No time limit to returns the movies Choose movie Return movie Search… K VISION micro-genres search
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  MICRO-GENRE SEARCH RECOMMENDATION Netflix had an absurdly large number of genres, an order of magnitude or two more than I had thought,  It was organized in a way that I didn't understand, and  There was no way I could go through all those genres by hand. "We're gonna tag how much romance is in a movie. We're not gonna tell you how much romance is in it, but we're gonna recommend it." “The vexing conclusion is that when human and machine intelligences combine, some things happen that we cannot understand.”
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  THE END