Top Banner
Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster) 20 th November 2014
21

Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

Jun 19, 2020

Download

Documents

dariahiddleston
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

Simplifying delivery to TV scale

audiences in the complex online

video market

Charlie Muirhead (CEO, Rightster)

20th November 2014

Page 2: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

2

Market Context

o All creators, from the biggest studios to the smallest bloggers to brands need video distribution

o If they can outsource to a highly specialised cloud-based service, as their trusted guide, they will

o Online video advertising spend is expected to surpass $17bn by 2017 in the US alone¹

Proposition

o 360° multi-platform network, which delivers and activates live and VOD audiences in a fully

configurable, self-reinforcing ecosystem of editorial and brand-funded content across a global

network of Creators & Rights Owners, Publishers & Platforms, Brands & Agencies

o Over £9m investment to date in technology platform

o New category: Rightcasting™ - right content, right audience, right place, right time, right price

Execution

o Scale is key determinant of success, and industry is consolidating

o 4 successful acquisitions to date: Preview Networks, Sportsyndicator, Viral Spiral and Base 79

o Only publicly listed company in this space

o Recently secured a position as the largest YouTube multi-channel network (MCN) outside of

North America² and the fourth largest YouTube MCN within the US³

Summary

Rightster is the No.1 MCN outside North America²

1. Jefferies: : The Future of Online Video Advertising (v2.0); A Focused Deep Dive on YouTube, 3 September 2014)

2. According to Comscore September 2014 results : Greatest number of unique viewers across US and Europe from an MCN headquartered outside of North America

3. According to Comscore September 2014 results (before de-duplication of unique users and excluding music MCNs)

Page 3: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

3

A High Growth and Valuable Market

Video advertising opportunity worth $17bn by 2017

GROWTH IN VIDEO ADVERTISING 33%

2014

2017

X2 AS FAST AS OVERALL DIGITAL ADS

$17b+ SIZE OF VIDEO ADVERTISING

OPPORTUNITY BY

2017 IN US ALONE

80% YOUTUBE

TRAFFIC

IS FROM

OUTSIDE

OF THE US

AUDIENCE IS KING: YOUTUBE IS A

$26 - 40b+ DIVISION FOR

Page 4: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

4

£250bn TV Market is Simple and Well Understood

Television used to be the only way to deliver Brand Friendly Scale

DISTRIBUTED LOCALLY

e.g. UK TV Broadcasters:

Limited number of channels

But brand friendly:

o Audience scale

o Mature market

o Easy to forecast

o Safe

COMMISSIONED CONTENT

e.g. Production Companies:

1. The references to Production Companies and UK TV Broadcasters above are given for illustrative purposes only to indicate participants in the TV

market. Not all of the above are Rightster partners or have any contractual or other relationship with Rightster

Limited number of

production companies

Page 5: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

NEW CONTENT TYPES

o Premium Rights:

o Original Programming:

o Branded Entertainment:

5

The New World of Online Video is Highly Complex

Key challenge is replicating TV scale audiences in this fragmented new world

GLOBAL DESTINATIONS

o Owned & Operated Sites:

o Platforms:

o Online Publishers:

YouTube the

biggest:

1M+ Creators

from 30+

countries

Thousands –

from huge

publishers to

mid-tier sites,

and small blogs

1. The references to Content Owners and Online Publishers & Platforms above are given for illustrative purposes only to indicate participants in the online video market. Not

all of the Content Owners and Online Publishers & Platforms above are Rightster partners or have any contractual or other relationship with Rightster

Page 6: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

6

Online Video is Hot…and MCNs are in High Demand

Significant valuations accruing to scale winners

May 13, 2014

May 25, 2014

April 2, 2014 Sep 22, 2014

May 15, 2014 March 27, 2014

MCN: A YouTube partner programme for companies managing multiple channels on YouTube

Page 7: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

7

April ’14 MCN Ranking (US Comscore)

COMSCORE RANK YOUTUBE MCN TOTAL UNIQUE VIEWERS (MM)

1ST Fullscreen 26

2ND ZEFR 25

3RD Maker Studios 24

4TH BroadbandTV 14

5TH JukinMedia 13

6TH T3Media 13

7TH Base79 12

8TH Defy Media 12

9TH CDS 11

10TH Machinima 10

11TH Rightster 10

12TH AwesomenessTV 9

Source: ComScore YouTube Partners Report April 2014

(excluding music MCNs)

Rightster was previously in 11th position

Page 8: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

8

Goal: Unified 360°

Proposition

o Scale

o Premium Advertising

o Independent

o Software Innovation

o Global

o Talent Expertise

o Brand Expertise

o Off YouTube Network

o YouTube Expertise

o Data

Rightster Roll Up To Hit Scale

Goal is to become the number 1 player worldwide

o Iconic Social / Viral

Rights

o Brand / Agency

Relationships

o 1000+ YT Partners

o Established Media Sales

Team

o Technology Platform

o Off YouTube Network

360°

Proposition to

Brands

Page 9: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

9

September ‘14 MCN Ranking – (US Comscore)

Rightster is now the 4th largest MCN in the US¹

COMSCORE RANK YOUTUBE MCN TOTAL UNIQUE VIEWERS (MM)

1ST Disney/Maker Studios 40.8

2ND Fullscreen 36.5

3RD Machinima 25.0

4TH Rightster (Post Acquisition) 20.2¹

5TH ZEFR 19.8

6TH BroadbandTV 17.9

8TH The Orchard 16.9

9TH Collective 14.3

10TH Zoomin.TV 13.8

11TH any.TV 12.8

12TH QuizGroup 11.5

1. According to Comscore September 2014 results (before de-duplication of unique users and excluding music MCNs

Page 10: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

10

The Largest YT MCN outside of North America¹

Greater scale & expertise improves Rightster service offering

1.2B+ AVERAGE

MONTHLY VIEWS

1,950+ 3,400+ YOUTUBE

CHANNELS

CONTENT

PARTNERS

1. According to Comscore September 2014 results : Greatest number of

unique viewers across US and Europe from an MCN headquartered outside of

North America

Page 11: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

Growth in Video Views/Month1

11

Rightster has Proven its Ability to Execute

Key Milestones

oMay-11: Founded . Released 1st generation

platform and Streamed Royal Wedding in

partnership with ITN

oAug-11: Further masthead clients added:

SNTV and British Fashion Council

oFeb-13: AFL leave Perform and partners with

Rightster for subscription service

oMay-14: 850+ content owners, 7,500+

publishers, 100s of advertisers, blue chip

global clientbase

o Jul –14: announced £42m equity raise2 and

acquisitions

1. Internal Data

2. Before Placing Expenses

223% growth in average monthly video views from H1 ‘14 to Q3’ 14

Ave

rag

e M

on

thly

Vid

eo

Vie

w

(milli

on

s)

0

200

400

600

800

1000

1200

1400

H2 2012 H1 2013 H2 2013 H1 2014 Q3 2014

123m

161m

250m

371m

+55%

1.2bn

+223%

+48%

+31%

Page 12: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

Q3 Trade Update

1.2bn + average monthly video views

1.2bn | 211% Average monthly video

views (increase on Q2 2014)

53m | 430% Subscribers across our

YouTube network (uplift on June 2014)

113m | 102% Unique users (increase on Q2 2014)

#1 YouTube MCN

outside North

America

(and the 4th largest

within the US)

Confident Rightster will see over

150% growth year on year (from year ending 31

December 2013 to year

ending 31 December

2014)

Recent noteworthy partnerships

include Turkish Airlines for a global YouTube campaign and

Arts Council England (worth £1.8 million over 3.5 years)

12

Page 13: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

13

How Big is the Market?

Online video advertising spend expected to surpass $17B+ by 2017 in US alone

$17B+ ONLINE VIDEO ADVERTISING SPEND IS

EXPECTED TO SURPASS

BY 2017 in US alone

DEMAND FOR ONLINE VIDEO IS

GROWING FAST – ACCOUNTS FOR

OVER

1/2 OF MOBILE TRAFFIC TODAY AND LIKELY ½

OF THE GLOBAL INTERNET BY 2016

DIGITAL IS DRIVING

AN EXTRAORDINARY

PERIOD OF GROWTH

TOTAL MEDIA

CONSUMPTION IS UP

25%

DIGITAL VIDEO ESTIMATED

TO BE WORTH

$33B BY 2020 in US alone

Page 14: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

14

Example: Rightster Simplifies Video Distribution

Rightster simplifies for content producers, publishers, and brands

Content Owner Needs; e.g.

o Distribution

o Monetisation

o Data & insights

Publisher Needs; e.g.

o Content sourcing

o Monetisation

o Data & insights

Advertisers

Video In

Video

Out

Fragmented

Audience Online

Sites

Rightster’s

Self-Service Software

Data

o Data correlated

across clients

o Forecasting

Page 15: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

15

Example: SNTV Select Rightster 360 Over In-House

Integration Fragmented

audience

Content producer Online sites

Dynamic ad-insertion “By working with Rightster,

we’ve built a service that

delivers on our clients’ editorial

and technical needs, while also

allowing us to expand our

potential sales targets.” Martin Kay –

SNTV Managing Director

360 distribution over

Rightster network for a

% share of revenue DATA

The benefits Rightster provided:

o Quick time to market - with no upfront cost charged by Rightster

o Unlocked extra new revenue streams vs. an in-house integration of

individual solutions

o Increased publisher client base

sntv.com

Rightster delivers clients’ editorial and technical needs

Page 16: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

AFL TV

Live & VoD

30% YonY sub growth

3 year extension after 2013

season

16

One Platform Supports Multiple Commercial Models

Paid 360 Distribution

with guaranteed 100k Live and

VOD views Delivered across

180 Publishers

Yoga sub-network on YouTube

1m+ views/month

250k+ subscribers

$10bn industry

Rightster has built a technology asset that can serve many different clients

e.g.

Australian Football League

e.g.

Digital Yoga Network

e.g. Michael Kors

New York Fashion Week

PREMIUM RIGHTS

ORIGINAL PROGRAMMING

BRAND FUNDED

Page 17: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

o 360° Content Distribution

Rightster distributes to and monetises on all three types of

destination site:

• Platforms (e.g. YouTube);

• Direct to Owned-and-Operated Sites (e.g. ITN.co.uk)

• Network of Pre-Connected Online Publishers (e.g. Guardian)

o Multiple Revenue Models and Centralised Reporting

Supports ad-funding, licensing, B2C subscriptions, bookmaker

distribution, paid placement and other models on each

destination. Previously siloed data collated to one dashboard for

revenue reporting and business insight

o Ability to deliver TV-Scale audiences online

By collecting and comparing audience data across many clients,

Rightster’s pioneering Engage service is designed to allow

content owners and brands to reach targeted, engaged

audiences at TV-scale

17

More than an MCN – The Multi-Platform Network (MPN)

Page 18: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

18

£9m+ TECH PLATFORM

o 65+ people in R&D team

(Product and Engineering)

o Service orientated cloud-based

architecture for greater scalability

o Centralised video rights

management and flexible

revenue models

o Automated distribution and

monetisation of live & VoD

o Automated 360 data collection,

reporting and audience

forecasting

9,450 STRONG NETWORK

o 1,950+ content partners and

7,500+ publishers, 100s of

brands & agencies

o Strong network effect

o Multiple genres provides an

audience network with breadth,

depth & diversity

o Global team of partner managers

across news, fashion, sport, film,

music, entertainment, brands

o Partner teams constantly

matching video to the publishers

and platforms

DIGITAL TEAM & TOOLS

o Data, insight and intelligent

automation

o Specialist teams offering range

of optional advanced services

including:

• Audience development on

YouTube, Facebook, Twitter,

etc.

• Direct advertising &

sponsorship sales

• Enhanced support for

enterprise clients

• Content Marketing

• 24/7 support

Three Pillars of Rightster’s MPN

Highly leveraged operating model with significant barriers to entry

Software Innovation Pre-Connected Network Data & Advanced Services

Page 19: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

19

What’s next: 2GA Platform

Designed to minimise cost of sale and delivery

o The Company’s second generation

software platform (2GA) is on track

to roll out in Q4 2014, and

substantial development work has

been conducted by Rightster’s

engineering team .

o The 2GA platform will bring many

additional benefits to our clients,

generate further efficiencies to

Rightster’s operations and deliver

new revenue streams.

Page 20: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

20

o Unprecedented Disruption - £250bn TV market facing challenges as audiences move online

o New Broadcasters Emerging - YouTube MCNs are hot but only part of the puzzle

o Key challenge - replicating TV-scale audiences in complex online market

o Rightster 360° MPN - More than an MCN, Rightster distributes to and monetises on all three types

of destination site:

• Platforms (e.g. YouTube);

• Direct to Owned-and-Operated Sites (e.g. ITN.co.uk)

• Network of Pre-Connected Online Publishers (e.g. Mail Online)

o M&A Offers Immediate Scale - Two transformative deals have immediately provided the

necessary scale and support our ability to achieve market leadership in online video

• Network now has over 1,950 Content Owners and over 7,500 Publishers

• 1.2 billion average monthly video views

• 113 million unique users and over 53 million subscribers on our YT network

o Goal: To become the number 1 player worldwide

Summary

Goal: To become the No.1 player worldwide

Page 21: Simplifying delivery to TV scale audiences in the complex online …€¦ · Simplifying delivery to TV scale audiences in the complex online video market Charlie Muirhead (CEO, Rightster)

21