Introduction
This report examines the impact of video content convergence across multiple screens on the Pay TV business. It looks at the impact of connected consumer devices and social media on the future Pay TV value chain, and what some of the main incumbents are already doing to catch the early waves of consumer engagement with multi-screen interactive services and 'TV everywhere' developments.
Features and benefits - Gain a thorough understanding of the future direction of the consumer-driven, converged ‘TV Everywhere’ / 2-screen landscape.
- Understand the emerging commercial models / opportunities for content publishers, broadcaster and TV operators.
- Understand how TV operators, broadcasters, platform owners, video aggregators and CE manufacturers are positioning and developing their OTT offerings.
- Gain an understanding of the issues around building a successful user experience in the hybrid TV model.
- Understand the issues of a personalized (addressable) advertising model, and its impact on the current ad industry media model.
Highlights
Users are not interested in device convergence; it is content convergence that counts. They are not aware of or interested in how their content is delivered and are increasingly looking for a unified experience that is location independent.
We are now entering the Internet era of TV whereby users can expect an increasingly on-demand and personal viewing experience, and multi-channel video consumption across multiple devices will have a profound effect on future content publishing and monetization.
Over-the-top TV effectively allows content owners to by-pass existing TV platforms and take their programming directly to the TV screen from the Internet, in effect becoming a media owner themselves, supported by an integrated companion screen strategy for personalization / engagement.
Your key questions answered - What are the significant trends influencing the development of the converged ‘TV Everywhere’ consumer market?
- How is this shaping the commercial future for Pay TV operators, TV broadcasters and new entrants pursuing a pure-play OTT TV engagement strategy?
- What are the current Pay TV operators planning to do about the OTT threat / opportunity?
- What content strategy is most likely to engage the consumer in the hybrid TV model? How do you build a differentiated and commercially viable service?
- What will be the likely impact of social media on interactive TV services in the future?
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- Executive Summary
- The Internet era of TV arrives
- Existing Pay TV services
- Towards a “better TV” experience
- Keith Johnson
- Disclaimer
- Introduction
- Background
- Scope of the report
- The Internet era of TV arrives
- Summary
- Introduction
- The rise of Internet video
- Viewing Internet video hits the mainstream but traditional viewing holds firm too
- Web-to-TV growth
- Connected TVs - towards mass market penetration
- OTT TV - quality of service
- OTT can lead Pay TV into the cloud to extend reach
- Connected devices and the OTT landscape
- Connected TV set to have a big impact on viewing behavior
- Issue of interoperability between various standards
- Red button ‘enhanced’ TV still thriving
- Content convergence takes center stage
- Multi-screen viewing experience and companion devices
- Sony and the push for a cloud-based multi-screen experience
- HBO and the developing battle to own the consumer
- Google TV and the user experience
- Need for compelling content will drive distribution co-operation
- Samsung and the ‘Smarter Life’
- Cord-cutting, cord-shaving and the consumer
- Pay TV incumbents have the ball and it’s theirs to lose
- Cord attachment not cord cutting in ‘Freeview’ markets
- Netflix and Hulu making cord-cutting waves but content will cost them more
- Cord ‘swapping’ more likely
- Some younger age groups only watch TV online
- Multi-screen content convergence
- Drivers of multi-screen content convergence
- Confusing the consumer is a big risk - user experience the top priority
- Multi-room services start to utilize other CE screens in the home
- Device control versus broadcaster control: Cablevision go with cloud-based “nDVR”
- RVU Alliance and Remote User Interface solutions
- Content discovery is a multi-screen experience for BSkyB
- Telenet in Belgium also has early success with its Yelo platform
- Impact on the Pay TV value chain
- Roadblocks for Connected TV services may delay full impact in the near term
- CE manufacturers lack of consumer marketing capability - a big barrier to market-making
- Retailers moving into video streaming: Tesco buys Blinkbox, Amazon buys LOVEFiLM
- Tesco deploy Trove hybrid technology across range of Freeview devices
- French broadcasters lay out key engagement principles for CE manufacturers
- Google and Apple and their “unique ability to scare broadcasters”
- Channel brands and program brands... and second wave OTT
- ITV to wean itself away from reliance on “hideously cyclical” 30 second ads
- Sky, YouView and BBC iPlayer frame the issues for aggregated catch-up TV on the TV
- Channel 4 distributed on YouTube
- Broadcaster ad-funded models are not sustainable in this new fragmented world
- New micropayment systems may help broadcasters
- Netflix moves into the premium TV business with original content
- Facebook and Warner Bros. stir things too
- Niche content publishers and brands can take full control of their OTT distribution
- Cable operators go on the front-foot
- Increasingly faster broadband speeds drive both cable and OTT models
- Potential for Pay TV content value chain disruption
- Content management issues facing Pay TV in multi-screen video delivery
- Aspera offers a new standard for moving large video files
- The CDN is a vital component of future hybrid networks
- Potential for migration of existing Pay TV services to OTT (CDN) delivery
- Changing world for set-top box manufacturers
- Common Interface Plus (CI+) allows TVs to bypass set-top boxes - a temporary solution?
- Social media infusion into online and TV
- Social media is viewed as entertainment, content needs to reflect this
- Social gaming
- Virtual goods are the most important revenue generator for social gaming
- Netflix working with Facebook on deeper online integration
- Integration of Facebook in the TV environment
- Social network driven search and recommendation - will it work on TV?
- Advertising spend
- US advertising spend not (yet) following online video consumption
- Growth in online video and mobile advertising
- Branded content ‘engagement’ adds pressure to traditional advertising thinking
- New pay models evolve for newspaper publishers
- Apple enables iPad subscriptions
- Existing Pay TV services
- Summary
- Introduction
- Pay TV revenues flat-lining in Western Europe
- Content owners and original (premium) content
- Entertainment companies still vulnerable to disruptive force of OTT
- Importance of watermarking for ‘early-window’ VOD
- Netflix creates OTT dilemma for Showtime, Starz and others
- Time Warner Cable and Cablevision go OTT with TV channels direct to iPad
- “Oscar Backstage Pass” Companion App debuts
- Meta-data creation / management can unlock new value: CBSSports and MLB.com
- Live sports content and ‘cable lite’ bundles
- Regulator intervenes in UK Pay TV market, takes on Sky re. premium content
- The Kokott Ruling: challenging the lucrative rights model in the EU
- Premium formats
- CE giants push 3D products
- 3D TV channels set to increase in Europe, but original content lacking
- 3D TVs forecast to reach 91 million global shipments in 2014
- Format war in 3D glasses will only further stall the consumer market
- 360 degree video
- BSkyB
- BSkyB “build your own” Pay TV bundles, pay-per-view and other pricing
- Sky launches Sky Mobile TV app for iPad
- BSkyB product bundling will be further stimulated by hybrid VOD service
- Sky Atlantic / HBO premium content deal
- Sky will strategically cover multiple platforms
- “Multiplatform future is paid content”
- Virgin Media
- Backwards-facing EPG for ‘missed TV’ will drive TV consumption
- Integration with TiVo
- Virgin embraces OTT by going ‘through the middle’ with managed OTT
- ComCast Xfinity TV
- Re-launched with 2-screen companion app
- Comcast (and Time Warner) partners with Samsung
- Verizon FiOS TV
- iPad app does not support streaming, even in the home
- FiOS add options to personalize service bundles
- Liberty Global UPC Horizon: “wonder box”
- User can move content around the home
- Prisa TV Digital+ a la carta
- TF1
- TF1 have developed 5 apps for Samsung Smart TV, but not VOD (yet)
- TF1 launches social media VOD trial with Facebook
- Orange
- Challenge of service rationalization across multiple access networks and screens
- ONO
- Apple TV
- Apple AirPlay: wireless streaming in the home
- Apple partners with Netflix
- Apple TV adds live streaming apps
- Apple launches iCloud
- Hulu Plus
- Netflix
- Netflix is a destination
- LOVEFiLM / Amazon
- Amazon observes that customers will pay extra to stream a movie immediately
- Towards a “better TV” experience
- Summary
- Introduction
- Content discovery in OTT TV: moving beyond the Internet search experience brought to the TV
- NDS create a content marketplace for OTT channel EPG integration
- Multi-room and in-home multi-screen
- Content discovery and the user experience
- Content discovery and metadata take center stage
- TalkTalk trial Technicolor MediaNavi
- Rovi Media Cloud
- The EPG and content discovery
- Search, recommendation and ‘enabled’ serendipity
- The ‘shoppable’ EPG and contextual commerce
- TV apps and the evolving hybrid TV experience
- Suggested discovery and recommendation
- Companion devices open the 2-screen engagement door
- Personalized, real-time, synchronized TV viewing on the companion screen
- Channel 4 drives participation levels and formats
- PlayToTV for Germany’s Next Top Model
- Junaio mobile ‘augmented reality’ browser driving participative TV in Germany
- Aurasma ‘augmented reality’ app links up with Super 8 movie
- Screach real-time engagement ‘experiences’ target interactive TV
- Screentoo powered with real-time metadata from Snell broadcast automation system
- Digital fingerprinting
- iPad pushes 2-screen with audio triggering
- Socially augmented TV
- Couch Crew in Germany develop advanced social TV app
- zeebox augmented TV
- NDS Hoovu
- Yahoo! moves into TV sharing with IntoNow
- Content convergence
- Multi-source strategies are essential to TV curation
- Real-time, 2-screen content engagement will transform ‘transmedia storytelling’
- Brands as media - Red Bull in pole position on OTT
- Content commoditization and the growing opportunity for OTT niche and local content
- The future of TV advertising
- Yahoo! “joining the dots” with multi-platform ‘smart’ ads, in context and interactive
- Microsoft unveil NUads ad platform for Kinect
- BlackArrow creates a unified multi-platform approach to ad management
- AAMP, CEE MEE, BARB and the urgent need for ad measurement systems
- Addressable advertising will create niche advertising opportunities
- Sky AdSmart to extend to Sky+
- YuMe Relevance Engine’s ‘content awareness capability’
- Apple iAds drive improved engagement and ‘tap through’, but take up is slow
- SkyLife and Kudelski JV to deploy advanced advertising solutions in Korea
- Addressable advertising will challenge brands and their agencies
- Ad agencies need to re-engage with TV reality or get OTT’d themselves
- If data is the new oil, applied data skills and affinity for the technology will differentiate
- Freedom to innovate will challenge the old ad model
- OTT technology funnel for intelligent content and ad creation - the personal media moment
- New type of ‘agency’, new type of client…
- Appendix
- Glossary / Abbreviations
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