Visual unity Webinar – Defining ROI & TCO for Video Streaming

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Defining ROI & TCO for Video Streaming © Visual Unity Global a.s., 2014 | Confidential By Gabriel Dusil Chief Marketing & Corporate Strategy Ocer

description

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.

Transcript of Visual unity Webinar – Defining ROI & TCO for Video Streaming

Page 1: 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

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Agenda

Huge market opportunity

Skilled & enthusiastic team

Satisfied & happy costumers

TECHNOLOGY PROCESS

PEOPLE

NEW REVENUE COST SAVINGS

FEATURES & BENEFITS

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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

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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

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Hardware • Software

Purchase • Integrate • Operate

Service Level Agreement

Purchase • Integrate • Operate

Operations

Technical

Staffing

Build It Yourself Cloud Services

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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

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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

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Cloud ICT � Information Technology Communications

CRM

Storage

Gaming

Music

Messaging

Productivity

Social Networking

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Cloud � Video Entertainment

Video Editing

Video Entertainment

Video Metadata Databases

Social Video Networking

Video Delivery

Video Hosting

Video Conferencing

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Fear

Doubt

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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

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Getting your ROI from Video Streaming

© Visual Unity Global a.s., 2014 | Confidential

By Gabriel Dusil Chief Marketing & Corporate Strategy Officer

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Convinced?

Adopt a Hybrid Strategy… Keep critical processes

in-premise & “cloud” the rest

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•  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

Page 30: Visual unity Webinar – Defining ROI & TCO for 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