National Docent Symposium 2013, Reaching Out: Innovation & Diversity Panel
Panel Iii Video Symposium
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Transcript of Panel Iii Video Symposium
Jefferies & Company, Inc.
Jefferies 3rd Annual Internet Conference
February 28, 2007
CONFIDENTIAL DRAFT
Member, SIPC
Panel III: Video Symposium
Panelists
Doug StevensonFounder and CEO
Panelists arerepresentative of themany facets of the videoopportunity
Media Technology Internet TV Large corporate and
SMEs Ad Networks
Keith RichmanFounder and CEO
David LiuManaging Director
Internet & Digital Media Group
Lou KernerCFO
Gus WarrenVP, Strategic Partnerships
1
Sector Snapshot
2
The Future of Video Entertainment?
3
What is the Video Market Opportunity?
118116115113111
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40
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160
2005 2006 2007 2008 2009
89108
123137 149
0
50
100
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200
2005 2006 2007 2008 2009
(1) Source: Wallstreet Research, 2005. Includes paid-subscription and free (over-the-air) television households.(2) Source: eMarketer, November 2006. Online video viewer defined as an individual ages 3+ who downloads or streams video (content or advertising) at least once a month.(3) Source: FCC, Kagan Media Research, Company Reports, WPP Annual Report.(4) Source: eMarketer, November 2006.
US Television Households, 2005-2009E1
(millions)US Online Video Viewers, 2005-2009E2
(millions)
1.4% CAGR13.6% CAGR
US Television Advertising Revenue, 2005-2009E3 US Online Video Advertising Revenue, 2005-2009E4
($ millions)($ billions)
66 72 7582 87
0
20
40
60
80
100
2005 2006 2007 2008 2009
2000
1300
775410
2250
500
1000
1500
2000
2500
2005 2006 2007 2008 2009
8.5% CAGR
72.7% CAGR
4
49% 47%
33%
26%21% 20%
11%9%
News Clips Music Videos Movie Trailers TV Shows User Generated Videos Movies Sports Clips Other
How Do We Find Video Today? What Do We Watch?
100%
53%
35%30% 28%
23% 23%17% 15%13% 16%
9% 11% 8% 9% 8% 5% 4%
33%30%20% 22% 23%
18% 16%11% 10%
From search engineresults
Recommendationsfrom friends
From a portal TV or moviepreviews/trailers
Directly from onlinevideo sites
From a link in an e-mailnewsletter
From ad on TV, radio,or print
From print article From a blog
Video Searchers
Video Users
Online Users
(1) Source: Jupiter Research, November 2006.(2) Source: InsightExpress for Advertising.com, January 2007.
From Search Engine Results
Recommendations From Friends
From a Portal
TV or Movie Previews/Tra
ilers
Directly From Online Video Sites
From a Link in an E-mail Newsletter
From Ads on TV, Radio,
Or Print
From Print Article
From a Blog
Methods Of Online Video Discovery1
Video Content Viewed Online2
News Clips Music Videos
Movie Trailers
TV Shows User Generated
Videos
Movies Sports Clips Other
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Who are the Online Video Media Players?
(1) comScore Media Metrix, February 2007.
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5
10
15
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25
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35
40
45
50
55
Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06
Google Network
MySpace
Yahoo Network
Time Warner Network
Viacom Network
MSN Network
Disney Online
Lycos
ESPN
IMEEM
Total Unique Video Streamers – July 2006 to December 20061
(millions)
6
Meet the Panelists
7
Dave’s Top Ten
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Dave’s Top Ten
6. Agree or disagree? “Content is king!” “Content should be free!” “User Generated Content is trash!”
7. Mobile. Opportunity or money pit?
8. What will be the advertising unit for video?
9. Video can be viewed free with ads (network, online), subscription (cable, satellite), and a la carte (pay-per-view). What’s the best model?
10. What will limit growth in online video? Bandwidth? Devices? Content? Distribution? Search and Discovery Tools?
1920s
1950s
1940s
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Dave’s Top Ten (Cont.)
1980s
2000s
Beyond?
1. If you could LONG or SHORT any stock to exploit Video 2.0 what would it be?
2. If you could start ANY Internet based business in 2007 what would it be?
3. Who loses the most if you gain? Network TV? Radio? Cable? Newspapers? No one!?
4. What is your biggest competitive threat? What are the big Internet companies doing? Worried?
5. Overpaid or underpaid? Sony buying Grouper for $65 million? News Corp buying MySpace for $0.6 billion? Google buying Youtube for $1.7 billion?
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Appendix
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2003 2004 2005 2006 2007
Online Video – Hot or Not?
(1) Source: Accustream iMedia Research.
Online Video Has Tremendous MassAppeal Overwhelming abundance of online video content While YouTube and MySpace Video have accumulated massive collections, they only encompass a portion of what is available Every Website either has or is considering video offering
Total Video Streams Served1
46.7% CAGR
(billions)
12
What is Tomorrow’s Advertising Unit?
Video Site Monetization Strategies
“Pre/post-roll” / In-Stream Ads – 15-30 sec video ads inserted before or after video “In-Page” / Rich Media Ads – Ads with video/audio or interactivity which run on any site Sponsorship – Superimposed logos, integrated content, branded channels or media
players Promotions – Unique contests such as user-generated commercials
(1) Source: JupiterResearch Internet Advertising Model, July 2006.
1.3 1.9 2.0 2.1 2.3 2.5 2.92.5 2.1 2.0 1.9 1.7 1.6 1.50.9 1.4 1.8 2.2 2.6 3.0
3.60.8
1.01.3
0.60.50.40.3
0.0
2.0
4.0
6.0
8.0
10.0
2005 2006 2007 2008 2009 2010 2011
Text Ads Static Image Rich Media (excluding video) Video
US Online Display Advertising Spending, 2005 to 20111
($ billions)
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What are the Major Media Companies Doing?
Rapid Growth of Online Video Demonstrates Major Shift in Viewing Behavior
– Rise of UGC (aka User Generated Content)
– On-Demand Entertainment: work isn’t just for sleeping anymore!
Traditional Media Companies Trying to Use Online in Cost-Effective / Profitable Manner
– Pressuring free video-sharing sites to remove copyrighted material
– Launched branded sites allowing access to proprietary content
– iTunes and Wal-Mart.com Pay-Per-Download currently seen by major networks as safe online bet
“The Children Are Our Future”
– Despite tensions between old and new media, online sites access to the younger demo has necessitated partnerships and M&A
Partnerships
Google / YouTube ($1,650MM) Sony / Grouper ($65MM) Viacom / Atom ($200MM) Viacom / iFilm ($49MM) AOL / Truveo ($50MM)
Investments
Limelight Networks ($130MM) BrightCove ($60MM) Heavy ($20MM) CinemaNow ($20MM) MetaCafe ($15MM)
M&A
YouTube: NBC, CBS, Warner Joost: Viacom Akimbo: AT&T Veoh: Time Warner Blinkx: AOL, Dow Jones
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