Traditional Broadcaster in Transformation International Bar Association IBA Annual Conference Vienna 2015, 6 th October 2015 Session “On demand and streaming content vs broadcasting - the next great disruption?” Janne Holopainen, Media Regulation Manager, Yle - Finnish Broadcasting Company [email protected]
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Traditional Broadcaster in TransformationInternational Bar Association IBA
Annual Conference Vienna 2015, 6th October 2015Session “On demand and streaming content vs broadcasting
Overview of video content value chainin broadcasting
Content production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
Customer management & invoicing
User device & consumption
5.10.2015
End-user
To earn:
audience attention and time spending (ad-funded and publicly funded media content)
To earn:
usage fees (pay-tv & other chargeable media content)
Business goals of video content providers,incl. Traditional Broadcasters:
Janne Holopainen 4
The position of Traditional Broadcaster in the value chain
Content production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
Customer management & invoicing
User device & consumption
IN BROADCASTING NETWORKSTraditional Broadcaster Broadcaster
/Network op.Pay-tv-operator TV- & STB-
manufacturers
5.10.2015
End-user
Janne Holopainen 5
The position of Traditional Broadcaster in the value chain
Content production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
Customer management & invoicing
User device & consumption
IN BROADCASTING NETWORKSTraditional Broadcaster Broadcaster
/Network op.Pay-tv-operator TV- & STB-
manufacturers
Scarce resource=> bottle-
neck
Gatekeeperposition
5.10.2015
End-user
Monopolistic during analogue TV period,
until Cable-TV, Direct To Home Satellite-TV & Digital Terrestrial TV,
- currently still oligopolistic
Janne Holopainen 6
Video delivery networks vs. Video offering / consumption concepts
Offering / consumption concepts
Linear i.e. program scheduled
Video on demand, VOD
Delivery networks
Broadcastingnetworks
Broadbandnetworks
5.10.2015
Janne Holopainen 7
Video delivery networks vs. Video offering / consumption concepts
Offering / consumption concepts
Linear i.e. program scheduled
Video on demand, VOD
Delivery networks
Broadcastingnetworks
Linear tv-channels
Broadbandnetworks
5.10.2015
Janne Holopainen 8
Video delivery networks vs. Video offering / consumption concepts
Offering / consumption concepts
Linear i.e. program scheduled
Video on demand, VOD
Delivery networks
Broadcastingnetworks
Linear tv-channels
Broadbandnetworks
5.10.2015
Janne Holopainen 9
Video delivery networks vs. Video offering / consumption concepts
Offering / consumption concepts
Linear i.e. program scheduled
Video on demand, VOD
Delivery networks
Broadcastingnetworks
Linear tv-channels
VHSPVR i.e. DVR
Broadbandnetworks
5.10.2015
Janne Holopainen 10
Video delivery networks vs. Video offering / consumption concepts
Offering / consumption concepts
Linear i.e. program scheduled
Video on demand, VOD
Delivery networks
Broadcastingnetworks
Linear tv-channels
VHSPVR i.e. DVR
Broadbandnetworks
Network-PVR
Catch-up of linear tv-channels
VOD-catalogues
Personal video playlists
5.10.2015
Janne Holopainen 11
Video delivery networks vs. Video offering / consumption concepts
Offering / consumption concepts
Linear i.e. program scheduled
Video on demand, VOD
Delivery networks
Broadcastingnetworks
Linear tv-channels
VHSPVR i.e. DVR
Broadbandnetworks
Streaming of broadcasting tv-channels
Streaming of single events
”Internet only” tv-channels
Network-PVR
Catch-up of linear tv-channels
VOD-catalogues
Personal video playlists
5.10.2015
Janne Holopainen
Ongoing changes in video consumption habits
1) The speed of the change from linear video consumption to VOD is difficult to estimate exactly
• Direction of change is clear, speed of change may vary in future• New discontinuation phenomena are possible
• Earlier: Impact of smartphones and tablets on av-media consumption,In future perhaps virtual glasses & augmented reality?
2) Demand for linear video channels will continue• Total viewing minutes of linear tv-channels will decrease,
but peak viewing will remain high• Cultural & commercial importance of live events, incl. sports
• Number of linear tv-channels will decrease• Advertising revenues from linear tv-channels vs. VOD-content?• Consumer willingness to pay for linear pay-tv channels vs. VOD-
content?
3) Video usage behaviour will further polarize while older generations will remain with linear tv-channels and younger generations will mostly shift to VOD-viewing
5.10.2015 12
Janne Holopainen 135.10.2015
15% 19%
Janne Holopainen 14
The position of Traditional Broadcaster in the value chain
Content production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
Customer management & invoicing
User device & consumption
IN BROADCASTING NETWORKSTraditional Broadcaster Broadcaster
/Network op.Pay-tv-operator TV- & STB-
manufacturers
Scarce resource=> bottle-
neck
Gatekeeperposition
IN BROADBAND NETWORKSContent production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
User-interface & personalization
User device & consumption
5.10.2015
End-user
Janne Holopainen 15
Traditional Broadcaster transforming to Video content provider
Content production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
Customer management & invoicing
User device & consumption
IN BROADCASTING NETWORKSTraditional Broadcaster Broadcaster
/Network op.Pay-tv-operator TV- & STB-
manufacturers
Scarce resource=> bottle-
neck
Gatekeeperposition
IN BROADBAND NETWORKSContent production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
User-interface & personalization
User device & consumption
Traditional Broadcaster transforming to Media content provider
Broadband network
operators
Media content provider
Devicemanufacturers
5.10.2015
End-user
Janne Holopainen 16
Traditional Broadcaster transforming to Video content provider
Content production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
Customer management & invoicing
User device & consumption
IN BROADCASTING NETWORKSTraditional Broadcaster Broadcaster
/Network op.Pay-tv-operator TV- & STB-
manufacturers
Scarce resource=> bottle-
neck
Gatekeeperposition
IN BROADBAND NETWORKSContent production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
User-interface & personalization
User device & consumption
Traditional Broadcaster transforming to Media content provider
Broadband network
operators
Video content provider
Devicemanufacturers
Several other video providers
5.10.2015
End-user
Fierce competition on audience attention
Source of user
behaviour data
Janne Holopainen 17
Overview of video content value chain - currently
Content production
Content financing & commissioning
Content aggregation & publishing
Delivery networks
Customer management & invoicing
User device & consumption
5.10.2015
End-user
To earn:
audience attention and time spending (ad-funded and publicly funded media content)
To earn:
usage fees (pay-tv & other chargeable media content)
Business goals of video content providers,incl. Traditional Broadcasters:
In present-day video content market also several other players are striving for same audience attention and usage fees, incl. - broadband network operators, - ”general use” video platforms (YouTube, Facebook etc.)- marketers of consumer products (e.g. Red Bull)
Janne Holopainen 18
Estimated reach of Yle broadcasting TV-channels and pursued reach of Yle on-line services
2017 2020 20232014
1 m
2 m
3 m
4 m
Yle daily tv-reach3.5 - 4 m
5.10.2015
Janne Holopainen 19
Estimated reach of Yle broadcasting TV-channels and pursued reach of Yle on-line services
2017 2020 20232014
1 m
2 m
3 m
4 m
Estimated daily reach of Yle broadcasting TV-channels
Yle daily tv-reach3.5 - 4 m
5.10.2015
Janne Holopainen 20
Estimated reach of Yle broadcasting TV-channels and pursued reach of Yle on-line services
2017 2020 20232014
1 m
2 m
3 m
4 m
Pursued daily reach of
Yle on-line services
Estimated daily reach of Yle broadcasting TV-channels
Yle daily tv-reach3.5 - 4 m
5.10.2015
Janne Holopainen
Traditional Broadcaster transforming to Video content provider
Yle goal: To maintain its relevance for entire Finnish audience despite the changes in media consumption
Þ Focus of Yle media publishing is shifting to internet• An intensive migration to a “web & mobile first” publishing ongoing
Þ Most important goal in the field of media delivery:• Secure sufficient broadband networks capacity to enable video delivery to
entire nationwide audience simultaneously• Both in fixed and mobile broadband networks
Þ Shift from a broadcaster to a video content provider has also a lot of other impacts on Yle • content creation & acquisition and • aggregation & publishing.