CASBAA 2015 - Video Moves Revenue

VIDEO MOVES REVENUE
EXECUTIVE MEDIA LUNCHEON
27 October 2015
Brought to you by Brightcove
In Partnership with Akamai

WELCOME ADDRESS
Andy Feinberg, President, International

AGENDA
©2015 Brightcove Inc.5 |
1340 – 1405 Monetising Video
Ben Morrell, Senior Technical Consultant Media, Brightcove
1405 – 1430 OTT Delivery with Quality and Scale
David Habben, Chief Media Strategist, Akamai
1430 – 1455 Fireside with Scripps Networks Interactive
Derek Chang, Managing Director, Asia-Pacific Operations, Scripps
Tomer Azenkot, General, Manager, Asia, Brightcove
1500 – 1600 Networking Tea and Snacks

SPECIAL THANKS

MONETISING VIDEO
Ben Morrell, Senior Technical Consultant for Media, Asia, Brightcove

•  Media Publishers – The Ecosystem
•  Service Proliferation Trends
•  Video Monetisation Models – Live Examples
•  Monetisation Trends & Challenges
•  Pitfalls to Monetising Video
•  The Monetisation 3-point Checklist

Non Linear TV: Explosion of Services
10 |
Broadcasters Pay TV OTT from Broadcasters
& Pay TV
FTA on HbbTV
Sports Licensees
Online Channel
DTC model)
Content Programmers Content Aggregators
©2015 Brightcove Inc..

Types of TV/Video Consumption of Mobile Phones (‘000)
Source from comScore: MobiLens 3 month Average January 2015
Shift in Viewing
35,157
54,056
36,967
44,225
73,255
41,515
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
Paid TV / Video
Web-based Videos
Live / On-demand TV
22% Paid TV/Video
15% Web-based Video
12% Live On-Demand TV
2015
2014

Shift in Viewing
44% 50%
58%
15%
17%
17%
41%
33%
24%
Q1 2014 Q3 2014 Q1 2015
PC
Mobile
OTT
Source from Hulu Internet 2015: The Shift to the Living Room Continues

Shift in Viewing

Services models:
•  Standalone entertainment (HBO Go)
•  Live and sports centric content (NFL Now)
•  MVPDs providing alternative to linear TV
•  Streaming players (Apple TV)
Threats:
•  Cannibalism of linear TV (??
Opportunities
•  Market Education
•  Combat piracy and torrent sites
•  Seamless user access to content
Service Proliferation Trends

The Netflix Effect
Live in 50
countries
69 mn
subscribers =
avg $8.99
MRR per sub
$1.34bn
revenue
(July2015)
Launch in
200
countries
by end
2016
Australian ISPs see surge in broadband
traffic, 50% traffic from Netflix
17 |

Market cap grew from $6.5B to $27B (~60 CAGR) from January 2013 to 2015; ~69M paying global
subscribers (38M U.S)
Generated ~$1.5bn in revenue in 2015; 9m in paid subscribers as of April 2015
Fastest-growing OTT service – in first year signed up 1M paying subscribers representing $120M in
revenue (run rate)
Projected revenues to hit $1B by end of 2016; recently closed deal to power HBO’s OTT platform
Initial launch leverage existing ~90M Amazon Prime subscribers; will launch decoupled ad-supported
subscription service in 2015
~45.3M monthly users with valuation between $500-950M
Over 800K shows / 350k movies purchased per day; 2015 estimated revenue at $1.5bn on iTunes
videos
Show Me The Money

Monetising Live Sports: Direct to Viewer

AVOD across multi-devices and platforms:
Network Ten enables a seamless viewing experience
“We are dedicated to providing
high quality entertainment
anywhere, anytime. Thanks to
Brightcove Once, delivering ad-
supported content on platforms
like Apple TV and Sony Bravia is
a simple process.”
Rebekah Horne, Chief Digital Officer, Network Ten

AVOD revolutionised Free to Air TV:
HbbTV goes live in Australia and New Zealand
"We selected Brightcove, along
with our broadcast partners, in
order to ensure our viewers have a
consistent experience across all
platforms. Two of our key goals
with FreeviewPlus were to deliver
an engaging experience and an
easy-to-use platform, and
Brightcove’s video solutions are
the essential foundation.”
Tom Cotter, Chief Information and Product Officer,
Mediaworks

TVOD:
Cricket Australia Live & VOD
©2015 Brightcove Inc..23 |

SVOD:
Unlimited Streaming of Videos Across Multi-Devices and
Multi-Platforms

SVOD:
Flexible Bundles to Suit Every Consumers’ Needs

Flexi SVOD:
Garage Entertainment Streams Action Sports
Videos with Flexible Pricing Packages

©2015 Brightcove Inc.
Online Channels

Monetising Trends &
Challenges

Trend: The Shift in Digital Video Ad Spend
$2.65
$3.54
$4.52
$5.32 $5.78 $6.23 $6.64$0.24
$0.66
$1.44
$2.45
$3.67
$4.88
$6.07
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2012 2013 2014 2015 2016 2017 2018
Digital Video Ad Spending by Channel, ‘12-’18 in billions
Desktop Mobile
Source from IAB, PwC, eMarketer, June 2014

Ad Yield: Video advertising fill rates increased across the board
PUBLISHERS BROADCASTERS
77% à 92% 64% à 67%
56% à 88% 57% à 70%
55% à 89% 54% à 74%
Source: 2014 SNL Kagan, “Media Trends, Actionable Metrics, Benchmarks & Projections for Major Media Sectors, 2014 Edition

Internet video publishers
capture only a fraction of
the best possible ad
monetisation revenue
(Actual Monetisation)

Internet Video Publishers Capture Only a Fraction of the Best
Possible Ad Monetisation Revenue
Example Challenges
•  No ad delivery solution for LIVE streams
•  No single ad network has enough inventory
•  Ad network has no SDK for Windows 8 app
•  10-15 % ads are lost due to download
performance issues
•  10-30 % ads are blocked by ad blockers
Ad performance loss is caused by hard technical challenges of delivering video
ads to multiple devices & apps in a complex Internet ecosystem
32 |

Common Pitfalls to Monetising Video
•  Overcomplicating subscription offerings
•  Delivering a bad user experience
•  Lack of consistency of service across devices
•  Inability to identify the high value genre
•  Losing revenue from ad blockers

The Rise of Ad Blockers: A win for consumers? No.

41% of web users are equipped with ad-blockers
Source: The rise of Ad Blocking Report, from Adobe & PageFair, 2015
Global Ad Blocking Growth
Blocking ads continues to build on the strong growth rates seen during 2013
and 2014.
The findings:
•  Globally, usage of ad blockers grew by 41% YoY (Q2 2014 – Q2 2015)
•  As of June 2015, there were 198 million monthly active users for the major
browser extensions that block ads

Checklist for Monetising Video

1st point - Audience
Build The
Audience
Create Content
Niches &
Personalisation
Extension of
Existing Services
Business Model
Flexibility

2nd point - Engagement
Devices & OS –
Native or Mobile
Web
User Experience Create Engagement/
Discovery – Social Media

CONTENT
ON THE GO

3rd point - Revenue
Paywall Flexibility,
Dynamic Business
Model Ad Servers &
Standards
Strategy around Ad
Blockers

Strategy Around Ad Blockers
Ad optimisation technology that allows publishers to:
Maximise Ad
Delivery
Streamline
Viewing
Experiences
Increase
Revenue Across
Desktop &
Mobile
Combine SSAI
with Player
Management
Service

To Wrap Up…
You focus on your business,
while we make sense of the
ever evolving dynamic market
with best-in-class solutions.
With new devices
every week, we enable
devices reach and
counter ad blocking.
We are a technology
provider with the
expertise and flexibility
to scale with you.

MONETISING VIDEO
Ben Morrell, Senior Technical Consultant for Media, Asia, Brightcove
THANK YOU!

CASBAA 2015 - Video Moves Revenue

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