A New Realm of Television: Netflix, YouTube, Amazon, Oh My!
Post on 17-Jul-2015
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Provide recommendations on how cable TV networks can
safely hedge against the digital disruption of the Pay TV
model by focusing on: Content, Distribution, Advertising &
Collaboration.
Objective
Before Kellogg, I worked in Interactive Marketing at TBS & TNT, where I developed interactive programming experiences – online, mobile & social – for shows like Conan,
Men At Work, and Tyler Perry’s For Better or Worse. My job was to build products, experiences and campaigns to engage fans and build fan loyalty from week to week.
This led to my current research, trying to understand how legacy media companies can tackle the new television space.
From Content to
Social.
20 Industry InterviewsFrom Disney to Microsoft. From Marketing to Digital Distribution.
From Cynopsis to Deadline.
From Mintel to Nielsen.
Over 25Panels
From Aereo to Yahoo.
Pay TV Ecosystem Is Not Failing…Yet
Pay TV in slow decline; growth in Streaming Video On Demand (SVOD)
Pay TV Revenue SVOD Revenue
Cord-cutters account for 6.5% of US households only $7.5M of the Pay TV industry
There is a small, but growing, threat looming on the horizon
TV Content Costs Are Skyrocketing
Yet, YouTube producers have found an efficient & effective process
Per Minute
$200 Per Minute
Pilot Costs Production Costs
Print$60k Per Minute
$6MAverage cost of
TV Pilot
Pilots down 5% this Upfront Season & Fox declared Pilot season dead
The current TV Development & Production model bleeds money
Is there a way to better leverage technology to repair this?
TV Ad Business Losing the War
Media companies now need to compete against the Tech Giants
Entire TV
Ad Revnue
$78 Bn
The One-on-One Experience
Millennials expect multifaceted, personal experiences they can feel and influence
Building an Immersive, Socialized Experience
PewDiePie (25M subscribers, 265M monthly views)
TobyGames (6M subscribers, 38M monthly views)
Leverage partnerships with digital
natives
Start by identifying content producers
with an electric hold over their audience
The Live Event Experience
MTV Video Music Awards 2013
Building an Immersive, Socialized Experience
• Ranking as the biggest VMA day in history!
• Their performance = 306K tweets/minute
• Miley Cyrus’s album jumped to #5 on the iTunes chart
• Robin Thicke saw a 306% increase in sales
Millennials want experiences that cross live, digital and social simultaneously
Build brand-defining tentpole events
Live Events and the social layers it
produces are the “new” content
It’s a premium experience unmatched by
standard TV content
Building an Incubator for Content
Build out a digital platform to serve as an incubator for innovative content and innovative content forms.
Create a digital platform that’s more than a home for TV Everywhere
Use this platform to grow cheaper talent, test innovative content, expand the digital
audience
Start with partners who have credibility and awareness
Leverage your own brand identity and network assets to drive additional awareness
Leverage viewing data to make smarter development decisions across digital &
linear
SVOD Drives Revenue & Exposure
But, TV syndication commands more revenue
Syndication vs. SVOD Revenue
Draws the most money in syndicationMake significantly less money in syndication
Easier to air run of schedule. Each episode lives on
its ownDo well on platforms where you can catch-up and
watch from start to finish
Serialized Dramas Sitcoms
$200-250M
Approx. $200k per episode$500k per episode $1.4M per episode
Syndication or SVOD How do you determine?
Native Advertising Solutions: Branded Content
Brands are stepping to YouTube for innovative ad solutions
“Brands go after YouTube networks because it’s a highly targeted audience – high reach & little waste.”
Provide more opportunities for advertisers &
influencers to collaborate for authentic, engaging
content
Need a varied programming mix – one-on-one
programming – that allows for these opportunities
Leverage digital platforms to provide sharp
measurement of audience for advertisers
Tech-Driven Advertising Solutions: Hulu’s Latest Products
Media companies need to steal share back from digital players
Digital Ad Products need to engage more and target more effectively
In-Stream Purchase Unit can target the right
audience & purchase without leaving Hulu
Cross Platform Interactive Ads an interactive
experience on all platforms, serves an experience
specific to their device
Hulu 360 Ad mobile-focused ad, to deliver a
ground-breaking mobile experience
Growing Tech Expertise
Media companies now need to compete against the tech giants
Invest in or acquire the expertise to build better Ad products & better measurement
Look into acquiring or poaching talent from
ad tech companies. Don’t just go for content
producers
Like AOL, build a dual strategy focusing on
content & ad solutions of the future
Building A Unilateral Agenda: TV Everywhere
Networks need to work together to ensure success
Only 6% of Pay TV subscribers use a TV Everywhere (TVE) app & there are still networks without an app
Increase the brand awareness & convenience of offerings using both network & Pay
TV resources
Standardize offerings. Every network and TV provider needs to offer a TVE solution
with a guaranteed level of quality
Building A Unilateral Agenda: Data & Measurement
Networks need to work together to ensure success
Addressable ads have arrived. But, to be most effective partnership is necessary
Addressable Ads presents an opportunity for
operators to partner with networks to increase ad
value
NBCU+ powered Comcast could model the success
of a true partnership
Networks need the data from cable boxes and
operators need the ad inventory
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