OTT EXECUTIVE SUMMITYou Decide - Top OTT Trends in 2015

Jim Turner - ModeratorSVP, Market Development and CRONet2TV

Chris WaltersCEOEncompass Digital Media

Martijn van HorssenCEO24i Media

Matt SmithChief EvangelistAnvato

James NormanCEOPilotly

OTT Penetration Growing

UPDATE:• 56% US HH have TV connected to the Internet (44% in 2013, 24% in 2010)

• 29% have multiple devices connected (17% in 2010)Leichtman Research Group: Emerging Video Services IX, May 2015

Viewing is shifting• 29% of adults watch video

via the Internet at least weekly (17% in 2013, 5% in 2010)

• 85% of Netflix viewers watch on a TV

• 52% of HH have an SVOD subscription

Leichtman Research Group: Emerging Video Services IX, May 2015

“Pay-tv” is becoming “Broadband Services”

Ad Money is moving

2015 2018$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$59.9$47.5

$8.4 $31.5

+15.6%

+275%

-20.7%

Ad Revenue in billions

OTT TV

Legacy TV

Source: The Diffusion Group, 2015

$68.3

$79.0

Many more shows being produced

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Subscribers are sharing passwords

Netflix

Top Trends - CandidatesConsumer Behavior

Monetization

Content

Technology

Regulation

A. Cord cutting

B. Login sharing by SVOD users

C. Ad dollars shifting to digital seeking targetable audiences

D. Measurement of OTT viewing for advertisers

E. Explosive growth of scripted programs – and the associated costs

F. Low cost, high volume content production from “non-TV” sources

G. Operators getting into OTT services

H. Programmers getting into OTT services

I. Personalization of content, data driven content

J. Penetration of smart tvs and streaming media boxes growing rapidly

K. Penetration of 4K sets growing and 4K content available on OTT services

L. New streaming media boxes – new features, lower prices

M. Higher speed broadband proliferation

N. Operating and distribution expenses

O. WiFi seamless hotspot deployments by operators

P. Net Neutrality issues

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