Visual unity Webinar – Defining ROI & TCO for Video Streaming
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Transcript of Visual unity Webinar – Defining ROI & TCO for Video Streaming
Defining ROI & TCO for Video Streaming
© Visual Unity Global a.s., 2014 | Confidential
By Gabriel Dusil Chief Marketing & Corporate Strategy Officer
Agenda
Huge market opportunity
Skilled & enthusiastic team
Satisfied & happy costumers
TECHNOLOGY PROCESS
PEOPLE
NEW REVENUE COST SAVINGS
FEATURES & BENEFITS
Video is used to attract new subscribers
• Maintain loyalty through Enhanced Features & User Experience (UX) • Large & relevant content libraries
justify subscription price
“ROI is a balance between Subscriber revenue
& Total Cost of Ownership”
Video is used to sell retail products
• Sell more product with Demos, Ads, Client Testimonials, Employee Generated Content (EGC) • Training Conferencing, Corporate
& CEO Announcements
“ROI is a balance between platform cost & new revenue
from vMarketing”
Enterprise • OVP Entertainment • OTT
ROI • Money
Increased Profit
“Focus on revenue opportunities that advance
the corporate strategy”
ROI • Time
“Focus on opportunities that improve efficiency
& competitive advantages”
Increased Revenue
Launching New Services
Streamline Workflow
Higher Client Satisfaction
Efficient Supply Chain
Hardware • Software
Purchase • Integrate • Operate
Service Level Agreement
Purchase • Integrate • Operate
Operations
Technical
Staffing
Build It Yourself Cloud Services
HW
Staff Digi+ze
Storage
HW SW
Management
SW
People Gateway
Legal
Services
Development
App
SW
Create Contribute Manage Deliver Consume
Ingest Live
Analog
Digital Transcode
Process
HW SW
Process
Dashboard
CRM
MA
M
HW HW
Rec
omm
end HW
SW
Protection
Payment
SW
CDN
HW
SW Maintain
Multiscreen
Maintenance SW
Process
Technology
Staff
Process
Legend
Cloud � OTT Service
Brand � Image � Credibility • How important is Trust
to your subscribers?
Disaster Recovery • Is content quickly
restorable?
Down Time • How fast can you
recover? � Backup Redundancy � Repairs
Security � Content at Rest & in Motion � Digital Rights Management � URL link protection � Authentication
• Legal Liabilities � How liable are you if content is lost or stolen? � Subscriber Agreements � Content Rights
Considerations � Understanding the Hidden Costs
Cloud ICT � Information Technology Communications
CRM
Storage
Gaming
Music
Messaging
Productivity
Social Networking
Cloud � Video Entertainment
Video Editing
Video Entertainment
Video Metadata Databases
Social Video Networking
Video Delivery
Video Hosting
Video Conferencing
Fear
Doubt
Consideration � Cloud Concerns
Reliability • Internet Bottlenecks • Upload vs. download • Single point-of-failure
• Latency • Up-time
Control • “Ownership”
• Disconnected from assets
Cost Allocation • Capital vs. Operating
Ego • “"eir goal is to Increase
their personal power & stature by amassing departments, info & head count”*
* Entrepreneur.com, “Is Your Managerial Ego Too Big?” by Joe Robinson, 11th April 2014, http://www.entrepreneur.com/author/joe-robinson
Getting your ROI from Video Streaming
© Visual Unity Global a.s., 2014 | Confidential
By Gabriel Dusil Chief Marketing & Corporate Strategy Officer
Reach � Regional
Audience � General
Features � Limited � EPG, red button, PiP, TV Guide
Reach � Global
Audience � Personal
Features � Interactive • Recommendations, Ratings,
Stats, Social, Interactive
Viewing � Passive
Experience � Lean-back � 100’s of Channels few useful
Experience � Lean-forward è back � Create Your Own Channel
Viewing � Active
Static � Living Room Portable � Multiscreen
Broadcast TV Over the TOP
Subscriber Advantages • Local Storage • Skip Ads
Subscriber Disadvatages • Content not portable • Expensive Service
Provider Advantages • App Control • „Locked“ Cients
Provider Disadvatages • Expensive STB
Subscriber Advantages • ∞ Storage ∞ Apps • Better Quality
Subscriber Disadvatages • Internet speed • Internet Reliability
Provider Advantages • 1:1 Relationship • Relevant Ads
Provider Disadvatages • “losing control of the subscriber”
Appliance � TV Cloud � Service
Cloud ROI – Monetizing the Long-Tail
Head -end
Pop
ular
ity �
Rev
enue
# o
f Ti
tles
Age of content
News Sports
Long-tail
Most Effective for Recommendation Engines
Ideal for OTT � Movies � TV � Stock footage
Ideal in Broadcast � Live Content � Sports � News
Most Effective for Advertising Cult-classic
Movies & TV Series
ROI � � Content Discovery
• Need Ask Google the right question
Requires a Proactive Subscriber to search for what they want • Collaborative Behavior
• User Ratings • Stats (eg. Plays) • Testimonials & Reviews • Likes or Dislikes • Buying & Viewing
Behavior
Subscriber Reacts to Recommended Content
Revenue Cost
32:1 ROI
-2
8
18
28
2012 2014 2016
billi
on
US$
Transaction Subscription Advertising Costs
Global OTT Forecast '11-'17
Informia – OTT Video Revenue Forecast AccuStream Research - Integrated Video Platforms
ROI � Case Study
HD = High Definition (1080p), SD = Standard Definition (576p)
A broadcaster wants to launch a new OTT service, using their own library of titles, and charge a nominal fee of $8/month for the service.
Provider Profile
Content 2,000 HD Movies
4,000 SD Movies Subscribers 10,000 In 2 Years Subscription 8 US$/month
Subscriber Profile
Expected Usage per month
8 HD 12 SD
100k
50k
0k
50k
100k
150k
200k
250k
2 6 10 14 18 22
k US$
Month
OTT � ROI � Profit
ROI � Case Study � Revenue vs. Costs
24 month profit • 243K US$
Assumptions turn to Metrics • Subscriber
growth • Content Usage
Cross Over
OTT ROI 6–12 months
ROI � Case Study � Revenue vs. Costs
ROI Parameters • Monetization
Model � S/T/A VoD • Content Sources � Shows � Live � Archive • Library Size � # HD � # SD � 4K • Usage � # of Views
per subscriber • Subscriber Growth � Monthly � Attrition
Year 1 1.5:1
Year 2 2.8:1
Year 3 3.3:1
Considerations � Growth • Variable Usage � Int‘l expansion • New Features � Enhanced Personalization
Considerations � Content • External � Premium � User Generated
Considerations � Efficiency • Evolving Features & Functionality • Improved Compression Encoding • Scaling reduces cost per subscriber
How is content being used? • Which Content has been played the most,
and for how long? • Is my video the right length for my
viewers? • Is my content engaging to my subscribers? • When were users watching my content
throughout the day? • Where [geographically] is my content being
consumed?
Considerations � Answering Important Questions
Usage
Behavior
Marketing
Sales
How clients use my content? • How long are subscribers engaged on my
service? • Average viewing, drop off, & abandonment? • Correlation between play time, buffer time,
bandwidth, geo, seek time, reloading time? • How is video quality affecting viewing? • How are people finding my content?
– Search, Social media, or Syndicated domains?
Considerations � Answering Important Questions
Usage
Behavior
Marketing
Sales
How effective is Marketing? • How easy is it to find my content? • What is my view # by country, region, DMA? • # new visitors compared to returning
visitors? • How is viewing affected between search vs.
recommendations? • Which words or phrases are being use to
find my content?
Considerations � Answering Important Questions
Usage
Behavior
Marketing
Sales
DMA = Designated Market Area
How much Money am I making? • Is my distribution strategy on the right
track? • How often is my content shared? • Which partners are most successful?
– And which multiscreen devices are being used?
• Are distribution outlets referring traffic back to my site?
– How much of my traffic originates from syndicated domains?
Considerations � Answering Important Questions
Usage
Behavior
Marketing
Sales
Convinced?
Adopt a Hybrid Strategy… Keep critical processes
in-premise & “cloud” the rest
• Check out my blog “Digital Video for a Digital Generation": www.dusil.com
• Investing in video streaming services requires a solid understanding of
the Return on Investment (ROI) for such a platform. In this presentation we breakdown the value proposition of Over the Top content (OTT) platforms, used to generate new revenue streams from entertainment assets. Understanding ROI, requires a breakdown of cost savings, new revenue streams, feature enhancements, and other intangible benefits. "is web seminar looks into various aspects of content management, delivery and consumption, and how cloud-based services such as OTT not only generates new revenue streams, but also opens new doors to monetize entertainment libraries.
Synopsis – Getting your Return on Investment from Video Streaming
• Fear Uncertainty Doubt, 2nd Screen, Broadcast, Connected TV, Digital Rights, Digital Video, DRM, Gabriel Dusil, Internet Video, Linear Broadcast, Linear TV, Multi + screen, Multiscreen, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Search + Discovery, second screen, Smart TV, Social TV, Television, TV Everywhere, Video Streaming, Visual Unity Global, Return On Investment, ROI, Total Cost of Ownership, TCO
Tags – Getting your Return on Investment from Video Streaming