"Value of On Demand Business Models" Tony Kelly The proliferation of connected TV devices, from game consoles to Smart TVs and streamer devices, means Pay TV operators have the chance to extend their reach to existing subscribers, making the service available on different TVs cost-effectively. With more connected devices and better broadband and CDN technologies, and more interest than ever in turning free-to-air homes into light Pay TV users, we could see the emergence of new OTT delivery and business models in the next few years, including 'offnet', 'Pay TV-Lite' and even OTT-only for the Pay TV market. In all cases the platform operator needs to present its service within an app on the connected device and guarantee that it is secure. During this Forum, a group of industry experts debated The Operator as an App topic.

1. The Value of
On Demand Business
Models
Tony Kelly
EVP, Key Corporate Strategic Relations
Vubiquity #multinetwork #TVConnect

2. Growth in the Marketplace
Growth in On Demand and Connected households is
exploding in every region across the globe
In the next few years:
• Global On Demand Homes currently at 442m homes with
growth to 741m by 2018
• Global Connected Audience of 747m households and 1.9 Billion
mobile subs by end of 2013.
• By 2018, Global Broadband Homes is forecast to increase by
34%, to over 900 Million Homes
• OTT Revenues increase by 32% to $32 Billion in 2017
#multinetwork #TVConnect

3. Market Growth • On Demand Homes are forecast to
increase by just under 70% with
Broadband Homes & Revenue are both
forecast to increase by over 30% in the
next five years
• In 5 years, internet connected devices
will exceed 5b with Mobile/Tablets making
up nearly half the marketplace
• In 2012, Tablet usage has more than
doubled driven by an increase in
ownership and also the usage of tablets
to watch TV shows and Movies
#multinetwork #TVConnect

4. On Demand is Now Part of the
Mainstream
• A strong content line-up enables
VOD to achieve viewing levels
comparable to top linear
channels.
• With the right content mix On
Demand content appeals to a
wide audience and demographic.
• Catch Up Viewing, if it includes
the right channel line-up, has the
potential to take a significant
share of views.
#multinetwork #TVConnect

5. Theatrical Content Licensing
Windows
Content windows are set from a title’s initial Cinema or TV
premier and cover the life span of the title
#multinetwork #TVConnect

6. Extending the On Demand Offering
Extending the On Demand Mix
Brand & Reach
Position
Choice
Extension of the & Product
brand and content Convenience
Potential
– linking through to Consistency & Control
Multiscreen Promotion
Simplicity across
opportunities Price
the UIs
#multinetwork #TVConnect

7. More Connected Devices
#multinetwork #TVConnect

8. Content is King as Connected
Audiences Grow
• With a strong and targeted content mix VOD
can achieve viewing levels comparable to major
linear channels.
• As connected audiences & multi-platform
viewing increases, operators need to extend
their product and brand to retain and strengthen
their position in the market.
Global connected audience of 747 million households
and 1.9 billion mobile subs by the end of 2013
#multinetwork #TVConnect

9. Our Strategy
Any Content Provider Any Service Provider
DATA, MARKETING, ANALYTICS DATA, MARKETING, ANALYTICS
Platform
Any Network Any Device Any Business Model
Transactional
Subscription
Sell-Through
Ad-Supported
Enabling the transformation from broadcast to personalized, On Demand consumption of Any Video on Any Network via Any Device
#multinetwork #TVConnect

10. Thank You
tony.kelly@vubiquity.co.uk
www.vubiquity.com #multinetwork #TVConnect