Mihai Crasneanu, CEO - huawei.com Hollywood... · EDITORIAL & MARKETING SERVICES CONTENT ACQUISITION & MANAGEMENT . Most Pirated Shows Worldwide in 2014 0 50,000 100,000 150,000 ...

Is There Hope For Carrier-Operated VOD Services?

Mihai Crasneanu, CEO

A Global VOD Content Service Provider

Buenos Aires

Hong Kong

Kuaka Lumpur

Dubai

Miami

Mexico

Londo

n Paris

Barcelona

Grey Juice Lab Turnkey Solution

SERVICE DEFINITION

PROCESSING

&

DELIVERY

EDITORIAL & MARKETING

SERVICES

CONTENT ACQUISITION &

MANAGEMENT

Most Pirated Shows Worldwide in 2014

0

50,000

100,000

150,000

200,000

250,000

300,000

Game of Thrones - HBO

Breaking Bad - AMC

The Big Bang Theory - CBS

Orange is the New Black -

Netflix

True Detective - HBO

House of Cards - Netflix

Masters of Sex - SHO

Modern Family - ABC

Fargo - FX Homeland - SHO Mad Men - AMC Scandal - ABC The Normal Heart - HBO

Downton Abbey - PBS

The Good Wife - CBS

Da

ily U

niq

ue

Pe

ers

Poll Reveals Generational Gap in Media Preferences

58

75 80

89 92

72

63

47 43

6

42 39

27

16

6

13

28

16

32

21

Pay-TV Video streaming Music Streaming Newspaper

（Print or digital）

14-25 26-31 32-48 49-67 68+

How TV Watching Has Evolved Over The Past 8 Years

21%

7% 3%

69%

19%

13%

15%

53%

21%

22%

12%

45%

21%

22%

12%

45%

On demand

Plus 7 Days

Same Day

Live

31% 47% 55% 68%

Dexter S4

(2009)

Homeland S1

(2011)

Homeland S3

(2013)

Dexter S1

(2006)

Global SVOD Players’ Strategy: Like HBO 15 years ago, but Better

❶ ✰

❷ ✰✰

❸

✰✰✰ Non-Exclusive

Licensed Content

Exclusive

Licensed Content Original Content

0

50

100

150

200

250

300

350

400

2011 Q2-2014 Q1-2015

Ho

urs

of

Ori

gin

al C

on

ten

t

Original Content Available Hours viewed / day / sub

Original Content boosts SVOD Consumption

2 hours / day / subscriber

± Top 3 US TV Channel

Percentage of peak period downstream traffic in USA (fixed lines)

34.9%

25.1%

14%

8.6%

3% 2.8%

2.8%

2.7%

2.1%

1.4%

2.6%

Sept 2014 (Sandvine)

The most-watched Netflix originals

TV Comparison

David Letterman Finale

13.76m

Big Bang Theory

7.50m

Mad Men Finale

4.65m

4.38m 2.99m 2.66m 0.98m

10.7% 7.3% 6.5% 2.4%

Daredevil Unbreakable

Kimmy Schmidt

House of Cards

season 3

Bloodine

% of sample

viewing

Estimated

audience(millions)

2014

USD 1.7bn content spend

(expected for 2015)


(expected for 2015)

A new Original Show

every 2.5 Weeks


(expected for 2015)

Netflix Spends on Content more than BBC or Sky (excluding Sports)

4

3.5

3

2.5

2

1.5

1

0.5

0 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014

HBO Discovery ITV BBC Pro7Sat1

Group

Sky UK Netflix Amazon

Original and acquired Sport

Contenr spend by provider($bn)

Netflix in 2030

Subscribers

Revenues

Content Budget

Netflix Projections for 2030

800mi

$100bi

$50bi

“Broadcast TV will be extinct by 2030” Reed Hastings, Netflix CEO. Nov 2014

In UK

Exclusively on

Market Share in Germany

TOP 10

VoD-Anbieter

Watchever 2.3%

Videoload 3.1%

Unitymedia 4.4%

Amazon Instant

Video 5.7%

Amazon prime

Instant Video

33.2%

Sonstige

12.1%

Netflix

8.0%

Google Play

10.8% Maxdome

11.3%

iTunes

11.3%

8 years in the Market

6 Months in the market

Deutsche Telekom VOD

(10 years)

Market Superiority

Content:

Smart Decisions

Massive Investments

Exceptional

Execution with

Absolute Focus

Superlative Platform

Remarkable User

Experience

Superior Product

Billing Systems

Strong Customer Relationship

Massive Marketing Power

Brand Awareness

QoS

Carrier X

No Focus

Mediocre

Execution

Corporate

Inefficiencies

Platform:

limited, aging, no

constant evolution

Content:

Little know-how

Resistance to

invest

Poor User

Experience

Mediocre Go-To-

Market strategy

Poor

Product

Market

Looser

Carrier X Partners Managed Service

Content

Professionals

with VOD

Expertise

Original

Productions

Billing QoS

Customer

Relationship

Brand Awareness

Bundling Power

Platform:

State of the Art

Constant

evolution

Superior Product

Market Winner

Dedicated team of

experts with focus on

Efficient Execution

Immune to Carrier

Inefficiencies

Superior User

Experience, constantly

improved

Efficient Marketing

Execution

Thank you Mihai Crasneanu

CEO

[email protected]

Chairil Anwar

Sales Director, APAC (KL)

[email protected]

Diane Powers

Sales Director, APAC (HK)

[email protected]

Mihai Crasneanu, CEO - huawei.com Hollywood... · EDITORIAL & MARKETING SERVICES CONTENT ACQUISITION & MANAGEMENT . Most Pirated Shows Worldwide in 2014 0 50,000 100,000 150,000 ...

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