Assessing The Current State Of The OTT and VoD Industry In Africa

This document is offered compliments of BSP Media Group. www.bspmediagroup.com

All rights reserved.

http://www.bspmediagroup.com

http://www.bspmediagroup.com

.

Assessing the

OTT/VOD

Landscape in Africa

Spiwe Chireka

PublicVine Special Liaison, Africa

TMT Industry Consultant

Assessing the OTT/VOD Landscape in Africa

2

OTT Television & Video-on-Demand Summit Africa , MAY 2015

3

Why are we here????

• Declining Voice and SMS Revenues

• OTT Communications services now established

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

Broadband Connections (Sub-Saharan Africa), 2009-2018

Fixed Broadband Mobile Broadband BFWA

0

50 000 000

100 000 000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Smartphone Connections (Sub-Saharan Africa), 2009-2018

0

50 000 000

100 000 000

150 000 000

200 000 000

250 000 000

300 000 000

3G and 4G Connections (Sub Saharan Africa), 2009-2018

3G 4G

• New competition • Lower costs of

delivery • Attractive

economic outlook for Africa

• Alternatives to monetise content

Source fo: IDC, Analysys Mason, Qina Research (Pty)Ltd.

4

The market is on its way to increased use of OTT services……including video…

Factor Current Status Outlook

Technology/

Availability

Services/

Content

Devices

Cost/

Affordability

Connectivity and OTT platforms on

the rise ~100 OTT platforms related to Africa,

~15 operators launching/looking to

launch VoD platforms

Smart devices on the rise

User adoption and acceptance of OTT

Connectivity: high costs ; poor

quality

The need to protect customers of pay-

TV, free-to-air TV, telcos

Cannibalisation of existing distribution

models

Cost of developing platforms

Payment platforms

Monetising content

Current revenue-sharing models ‘not

fair’Good Average Poor

5

Where are we at the moment?

Content

Owners

Intermediaries

/Resellers

Networks/

Channels

Broadcasters

Pay TV

Providers

Telc

o

OTT Platforms

Where are we at the moment??? Cont…

6

Content Providers

Network Providers

Aggregators

Download Live On Demand

Free Ad-Supported Pay-per-view Subscription

7

Network Operators could potentially change the game…and decide where in the value chain they wish to play…

Millions of paying

customers

Ability to bundle

Cash Large networks

Customer relationships

Distribution networks

Operators in Africa have assets that no other

OTT competitor could only dream of …..So what is the problem….?

“ I want a piece of the pie so I will demand as much as I can from the OTT players….”

“My revenue is under pressure so how can I spend so much on something out of my comfort zone”

“Do I have the skills to do this…?”

“Does my business model support this”?

“Is my market and network ready for this…”

Strategy Options:

Focus on the network Create Competing services Partner with

OTTs Target the niche Become an aggregator Continue as ‘a pipe’

8

Content owners can further monetise their content ….alternative distribution

channels….• Traditional broadcasters not likely to be

impacted by OTT in markets with limited

broadband development

• In markets with sound broadband, OTT is

a viable threat

• The threat of convergence is real…and

OTT partnerships video is at the centre

of it

• OTT market can self regulate unlike

broadcast and other competing markets

• Low barrier entry for smaller players

• Platform for thriving national industries

such as Nollywood to the rest of the

continent and the world

• Cannibalisation of existing distribution

models

• Need to protect pay-tv, broadcasters,

satellite TV customers

Several driving content owners’ and aggregators involvement in

OTT

Customer

Content Owner

Content Aggregator

Network Operator

Device Manufactures

Content Owner

Content Aggregator

Content Owner

Content Aggregator

9

Aggregators have the advantage over traditional players…

OTT Market self regulates while

competition carries heavy

regulatory burdens making them less agile

OTT players are producing original

content – but what about

international content?

Can the large number of players

be creating a bubble?

Survival in a market dominated

by Multi-Choice and potential

entry of the likes of Netflix?

Access to new markets e.g. Nollywood in Francophone countries and France itself

Streaming vs. downloading? Protecting the content owner from piracy vs. Circumventing

poor broadband?

Poor connections, counterfeiting and

copyright issues are being solved

Myriad, fast evolving models to keep them ahead of the traditional

players

Favourable Risky

Currently dominate the

market and likely to remain ahead

for some time

10

1. OTT and especially OTT video is here to stay

2. Currently dominated by Aggregators but Telcos and Broadcasters/content owners are

playing catch up

3. The battleground for OTT services is between four key players: content owners, telco

companies, aggregators/pure play OTT video providers and content

owners/broadcasters

4. Any one of them can be a winner but that depends on their ability to address:

• Convenience, Community and Complexity of delivering content to the end users

5. Select the right model

• Defend, cooperate or compete

Where to from here?

11

About PublicVine

“Mall In The Cloud”—Social Video Marketplace

If Netflix is a store that sells videos, and YouTube is a free-video mall, PublicVine is a “mall in the cloud”— a marketplace—where vendors come to do business and consumers come to enjoy video & audio content,

and where both can make money!

12

Maximize Revenue (203 Countries)

13

.

PublicVine is the online and mobile social video marketplace where content vendors

can maximize revenue from their video and audio content, enabling them to connect,

transact, and get paid—anytime, anywhere, any device.

1. Tap into your social network: Invite your social networks to rent or buy your

video and audio content, incentivizing them to help you expand your

revenue with PublicVine’s social apps such as PVcall and PVchat.

2. More revenue: Up to 79% of content revenue, up to 79% of ad revenue, 20%

of social apps revenue.

3. Over 203 countries: Rent out and sell your video and audio content to over

3 billion smart device users.

4. Retain 100% ownership & no downloading: Maintain full control and

ownership of your streaming video and audio content. Don’t get pirated!

5. Nothing to lose: No registration fee. No NDAs. No exclusivity. No loyalty

contracts.

Systems

14

.

PublicVine believes in giving video & audio content vendors everything they need to

maximize the revenue from their content.

Our systems help vendors to connect with their consumers, transact and get paid:

1. The Social Invite system allows vendors to invite their social networks to

their channel to rent/buy video or audio content.

2. The Viral Revenue Share system incentivizes people in the vendor’s consumer

base to invite others to come to their channel and rent or buy content.

3. Finally, the Social Apps system keeps consumers engaged and interacting

with other consumers on the platform while viewing, listening or shopping

for product.

Social Invite SystemMARKETING THE CONTENT

Social

Invite

System

Ariana GrandeGlobal Pop Star

PublicVine allows Content Vendors like Ariana

to market directly to fans in their social networks.

Buy my live version of Love Me Harder on PublicVine.com

15

This

might be

video or

audio!

Fans

Viral Revenue Share System 1.0MARKETING THE CONTENT WITH VIRAL ECONOMICS

And PublicVine allows Ariana’s fans in her social network

to market to their social networks (and so on).

When they do, they can make MONEY!

Ariana GrandeGlobal Pop Star

16

This video is awesome! Check it out!

Social

Invite

System

Viral EconomicsFans

Buy my live version of Love Me Harder on PublicVine.com

Social

Invite

System

Ariana Grande

Ariana Sets Price Per Rent: $1.50

79% $1.185

PublicVine

(No) Vendor Invite

Commission

20%

0%

$0.30

$0.000

BASE Cost (BC) 1% $0.015

0% $0.000

A VIDEO VENDOR’S EARNING POTENTIAL ON PUBLICVINE

Viral Revenue Share System 1.1

17

Assumptions:

Ariana’s Social

Network52.6 Million

Network

Conversion Rate10%

Rentals/Fan 1

Ariana Grande 100% $1.185

Ariana’s Revenue Share

Ariana’s Revenue $6,243,876

Ariana’s Potential Revenue

+ADDED

REVENUE

10% of transaction

revenue generated by content vendors Ariana

invites to PublicVine (for 1st year vendor is

on PublicVine).

Up to 79% of

advertising generated on Ariana’s

channel.

20% of apps

revenue generated on Ariana’s

channel.

10% of revenue

generated by each vendor’s content

that is aggregated on Ariana’s channel (in

perpetuity).

ADDED REVENUE

+ + +

(NO) Video/Audio Invite

Commission (per transaction)Ariana Grande


69% $1.035

PublicVine

Vendor Invite Commission

20%

10%

$0.300

$0.150


Video View Invite

Commission0% $0.000

VIDEO VENDORS ON PUBLICVINE


18

Ariana Grande

*BA.S.E. (Bandwidth, Storage,

Encoding) Cost is fixed and therefore

does not change when vendor changes

price. It instead constitutes a smaller

percentage of the higher price.

If you were invited to PublicVine, and you register through that invitation, you will pay a 10% Vendor Invite Commission to the inviter on each transaction for the first year. Before you accept an invitation to register, ask yourself how much you value the inviter.

• Will she add marketing value through her social networks?

• Will she add production value as a collaborator?

• Doess he provide emotional value as a friend, family member or colleague?

• Do you simply value the introduction to PublicVine?

• Something else?

Ariana Grande


59% $.885

PublicVine

Vendor Invite Commission

20%

10%

$0.300

$0.150


Video View Invite

Commission10% $0.150

VIDEO VENDORS ON PUBLICVINE


19

Ariana Grande

*BA.S.E. (Bandwidth, Storage,

Encoding) Cost is fixed and therefore

does not change when vendor changes

price. It instead constitutes a smaller

percentage of the higher price.

If a consumer invites someone to come view your video, and they transact with you, you pay the inviter a 10% Video View Invite Commission for helping you make the transaction.

Ariana Grande

APPS REVENUE

Call, Text, Chat & Email

Vendors and consumers can engage each other and

invite their social networks to view videos or listen

to audio content.

JAMSOUND

20

PVcall allows

viners to

makes calls

inside and

outside the

platform in

203 countries.

Social Apps System 1.0

Users can call, text, chat, and email directly from the platform.

Vendors can

make 20% of

the revenue

generated

through the

use of Social

Apps on their

channel.

Apps Revenue

21

APPS REVENUE

Social Apps System 1.1

PVcontest lets vendors create

contests to drive consumer

traffic to their channel(s)

while letting consumers upload

video or audio and make

money from their content!

22

1. Transparency. Fairness. Safety. We don’t get paid unless vendors get paid. Vendors set

their own prices for video rental and sales. PublicVine enables a transparent viral revenue

sharing between vendors and consumers involved in making the transaction happen.

2. PublicVine allows both vendors and consumers to get paid.

3. PublicVine allows vendors to make money from both video AND audio content and permits

one vendor to register multiple channels and set up multiple stores.

4. PublicVine allows apps to be played at the same time content is being consumed. Vendors

can also get a share of apps revenues.

5. PublicVine does not allow content downloading. This helps reduce piracy.

6. PublicVine does not require loyalty contracts or NDAs.

7. PublicVine will not compete with vendors by creating its own original programs.

What Makes PublicVine Different?

Create Your Channel

23

Create 1 or 1,000!It’s quick, easy and costs nothing to do!

24

Thank you!

25

PublicVine

1340 Cypress Mill Road

Florence, Alabama 35630

Spiwe Chireka

Special Liaison (Africa) &

TMT Industry Consultant

M: +2776 054 0896

E: [email protected] /

[email protected]

Skype: schireka

www.publicvine.com

Contact Us

mailto:[email protected]