the new face of television

1© 2013 DeanDonaldson.com | All Rights Reserved

@DeanDonaldson | http://NothingToHide.Us

THENEW

FACEOF

TELEVISION

A make-over orreconstruction ofan industry in motion.

@DeanDonaldson

http://NothingToHide.Us



8.7BnConnected devices in 2012

Source: Morgan Stanley / Cisco




(Average 10 devices per person on planet!)

Source: Morgan Stanley / Cisco

75BnConnected devices by 2020


Multifaceted



m

Adjective:

• Having many sides

• Having many different aspects or features

Progressive

Adaptive

Dynamic


Experiencing it Live






$4M


100%TV Ads in





@DeanDonaldson | http://NothingToHide.Ussource: Mashable, USATODAY

~48 million

social interactions




2015 Global Mobile TV

$264m




vs

5years ago?




5years from

now

?


Focus on “video”




11

OVER 3/4 OF GLOBAL CONSUMERS WATCH ONLINE VIDEO – WHETHER PCs, CONNECTED TVs OR MOBILE


© 2013 DeanDonaldson.com | All Rights Reserved


14Average 65 year old

Years watching videocontent during lifetime




whatever

whenever

wherever

c

8M13© 2013 DeanDonaldson.com | All Rights Reserved



14




TVE 2014



Largest hindrance to uptake of TV Everywhere

Content Rights


XXII Winter Olympics



Reduce Friction

Auto Verification capabilitiesRights acquisitions negotiations


Facing Facts



Progressive


18

TV




The new broadband population in certain countries prefer PCs over TVs for watching their video content.

19


“”



20

Video is everywhere



5 years10 years




Internet Traffic will be video by 2014

91%Connected TV

(It made up about 40% in 2012!!)




Global Shipments



900m

172mSource: IDC


Global Shipments



>1bnmobile devices in 2013 alonethat are video enabled

PC Shipments DOWN 13.9%!

Source: IDC


28%



smartphone owners now own a tablet




40%all Americans now own a tablet


50%Tablet users watch video content

25




Tablets overtake PC



TabletOtherConnected TVSmartPhonePC

Christmas 2013


watch & cook




Truly Portable TV

63%tablet video is

watched at home




Truly Portable TV






9%?!wiping?

swiping?What are you


old newmediatraditional

30




off onTV | PC

lean back | forwards




media32

mass




33




activeengagement

33




lean back?

34




lean forwards?

35






socialinteraction




History ofInnovation


Two Views, One TV






20153DTV


© 2012 Digital Generation Inc. All rights reserved. 45© 2013 DeanDonaldson.com | All Rights Reserved


do you ‘mind’?


46

Screens are Getting Bigger

4KUltra High Definition (UHD)



47

16xMore resolution than HDTV




SD

1080p HD

2160p 4K UHD

4320p 8K UHD

8.3 MegaPixels

33.2 MegaPixels

2.1 MegaPixels

TV Comparison Guide






AU

DIO

VIS

UA

L

1979 2001

2012 2006




AU

DIO

VIS

UA

L

2014


4K Public Debut




Most Hi-Tech World Cup






4K20Mbps streams to R&D


Most Hi-Def Event?



ULTRA


60 FPS

HIGH DEFINITION MULTIMEDIA INTERFACE

120p UHDTV replace PAL / NTSC




HVEC (High Efficiency Video Coding)



H.264 AVC

H.265 HEVC

MPEG 2

• MPEG 2 = TV vs H.264 = Online

• H.265 HEVC = ALL Digital (TV, PC & Mobile)

TV

Online

Digital

8K + 4G50% Bit Rate Saving Target

50% Bit Rate Saving Target


ULTRA FEBRUARY 2014

“TV or Live Stream?”Robin Wright – Best Actress in a Drama, Golden Globes




What is TV?

60




60




60

...continuous play@DeanDonaldson | http://NothingToHide.Us



Cloud content synced to device

Cast Away




Game Consoles DVD DVR Live TV

Consumption Shift of 1st Screen


@DeanDonaldson | http://NothingToHide.UsSource: Nielsen

Live TV on slow decline

DVR significantly increasing

Game Console streams overtaking DVD


21%bought a new TV in the last year

Leichtman Research Group





38% TVs in US homes are now ‘connected’

(either direct, via BluRay or Game Console)




US Smart vs Connected TV



Smart TV Connected TV

2018 58.2% Connected TV

24% Smart TV

2014 26.4%

12.1%2x

Source: 06/14 eMarketer


Evolution

content + apps + ads65© 2013 DeanDonaldson.com | All Rights Reserved



On your television.Apps.

smart67© 2013 DeanDonaldson.com | All Rights Reserved



Apps




Apps 2011 = 30%2015 = 90%




TV change is App-ening!



“It’s not just part of the show. It is the show.

It is not a second-screen experience. It is the

experience.”


TV is a geography. A place. A function.

It is not just a box in the corner of the room.




Face Forward



Adaptive




“The television industry … pretty much undermines innovation in

the sector. The only way this is going to change is if you start from

scratch, tear up the box, redesign, and get it to the consumer in a

way that they want to buy it.”

Steve Jobs, All Things Digital Conference, July 2010




Per year, cable channels theaverage US home receives: 130




Per year, cable channels theaverage US home watches: 18




of available channels arenever actually watched...86%

Channel Surfing is

DEAD!


D

per month for huge waste =consumers are ‘cord-cutting’£75




5:09Average EU Consumer




Average Digital Native 18-24

3:300:49 web | 0:20 mobile‘cord-shavers’ vs ‘cord-nevers’




Modern Family Viewing

ABC Q4 2011

• 95% watch DVR content within 3 days to keep in sync

• Online viewing is 3x due to missed not free content




Leichtman Research Group / Deloitte

10%now watch video online weekly




Leichtman Research Group / Deloitte

9% cut their cable subscription




Free-to-view

International TV Org, 2010

Over-The-Top (OTT) The delivery of video, via the internet, directly to user(s) connected devices.

ADVERTISING IS THE ONLY ANSWER




MOBILE

OPERATOR

NETWORKS

1

2

D I R E C T




MOBILE

OPERATOR

NETWORKS

1

2

D I R E C T

Cost Speed

Complexity

Flexibility ALWAYS ON




MOBILE

OPERATOR

NETWORKS

1

2

D I R E C T

TRUE Rich MediaExperience

Data Plans80© 2013 DeanDonaldson.com | All Rights Reserved



2Mbs




100MbsDownload a HD movie in under 5 mins!!




1

2

W E B T V

O N L I N E V I D E O

IPTV / TVE

LINEAR BROADCAST MANAGED NETWORK

Terrestrial / Cable

Satellite / Internet




1

2

Closed Controlled Proprietary

Content PREMIUM

W E B T V


IPTV / TVE


Terrestrial / Cable





1

2

W E B T V


IPTV / TVE


Terrestrial / Cable


Disruptive

Original Programming

$M’s

Unbundle

TVE




1

2

Exceed Existing

Deals

Distribution Rights

Money Upfront




1

2

Exceed Existing

Deals

Distribution Rights

Money UpfrontSolid User Base

Own InfrastructureQuad-play Deals




1

2

Exceed Existing

Deals

Distribution Rights

Money UpfrontSolid User Base

Own InfrastructureQuad-play Deals

LOCK via OS

iTV




Cloud-based TV Service







Can Sony’s Virtual Cable Servicesucceed where Intel failed?

END!!





Can Sony’s Virtual Cable Servicesucceed where Intel failed?


Everyone wants to do Everything

Creation Aggregation Distribution Consumption

Rights Holders Content Creators

Rights Dealers Program Packagers

Network Operators Access Providers

Device Manufacturers End Users




STREAMING ON A DEVICE NEAR YOU

Co-financing High Profile Shows




SThe S-Curve of Inventory

Direct Buy

UpfrontPrivate Marketplace, RON

Exchange / Network Buy

Short Form Long Form

Non

-Pre

miu

m

Pr

emiu

m Shortage (Inventory) Surplus

$$$$$$$$$$




2014: TVE to add $10Bn pa Advertising

NA revenues (content owners)

SUBSCRIPTION

$85Bn

ADVERTISING

$80Bn

SUBSCRIPTION

$1.7Bn

ADVERTISING

$10Bn

SUBSCRIPTION

$??

ADVERTISING

$3.1Bn

Traditional TV TVE Online Video




TV Advertising TV Subscription TVE MultiChannel

11.3

107.4

Effect of TV Everywhere (TVE) in US $BN

140

1/3

5.3

95.5

10480

85

• TV advertising will grow by $12BN annually

Needham

• Subscription rises 3-5% pa + additional 1-3% via TVE

54%

46%

48.5%

51.5%




85% Interested in Ad Opportunities


Connected TV




Face Off



Dynamic


the revolutionwill not be televised

92




the revolutionwill not be televised

92

...it will be social




2.7hrs socializing per day

x2 we spend eating

93






It took 50 years for TV to build the audience social media has in five

“”


95






4.75 Bn Items Shared Daily

1.26 Bn Active users

15.8% Time Online


TV x Twitter




TV x Twitter


@DeanDonaldson | http://NothingToHide.Us Mapping the TV Genome


Quality Engagement&

98




touchpoints 80%99

Saw product on TV

Searched online

Read reviews

Visited shop

Ordered on mobile




TV combined with online's targeting and measurement capabilities.

100

r@DeanDonaldson | http://NothingToHide.Us



audience measurement

) ) )€$£

accurate

102




The Programmatic



Bottom-Feeder


Allergy Across America




Right Place



Los Angeles, CASacramento, CA

San Fran/OaklandSeattle/TacomaCleveland, OH

Salt Lake City, UTSan Diego, CAPhoenix/Tucson

Denver, COMiami/Ft Lauderdale

Houston, TXNew York

Boston, MAPortland, ORChicago, ILAtlanta, GAOrlando, FL

Dallas/Ft WorthBaltimore/WashingtonMinneapolis/St Paul

Buffalo/RochesterAlbany, NY

Tampa/St PetersburgCharlotte, NCPittsburgh, PA

Philadelphia, PAIndianapolis, IN

South CarolinaColumbus, OH

Grand Rapids, MIRoanoke, VADetroit, MI

West Tex/New MexOmaha, NE

Raleigh/GreensboroNew England

St. Louis, MONashville, TN

Kansas City, KSCincinnati/DaytonRichmond/Norfolk

New Orleans/MobileMilwaukee, WI

ToledoPeoria/Springfield

Hartford/SpringfieldLouisville, KY

Jacksonville, FLKnoxville

Birmingham/MontgomHarrisburg/Scranton

Cost-Ineffective Markets

Cost-Effective Markets


Right Time



Allergy Season Local Media Fixed Local Media Programmatic National Media

Average Spring Season

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Late Spring Season

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Early Spring Season

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30


Right Ad



Upfront

Programmatic

National vs Local


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=8WctvlPb2ghUCM&tbnid=IQp5jtv-1o9U9M:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.hinttech.com%2Fwhat-we-do%2Fproducts-partners%2Fadobe-digital-publishing-suite%2F&ei=cE5EU5HcA9LjsATYl4H4DA&bvm=bv.64367178,d.ZGU&psig=AFQjCNH-iFH1yZ_SLS8O1hOEd53Nm9xHuw&ust=1397071814806528

Modern Family Viewing

88% use SmartPhone or Tablet whilst watching TV

DAILY

108




Dual Screen Activities What are Tablet and SmartPhone Users doing whilst watching TV?

109



25% Consumers go online after seeing TV ad

110




111

280M

Second Screen

TV Apps downloaded in 2012



X-RaySecond Screen Content Sync




content recognition

automatic ACR

113




FingerPrinting: Header additional to file - can be altered if want

WaterMarking: Ingested within the file - can’t be removed later

Content

AA

ID ContentID

AA-01 AA-02 AA-03 AA-04BB

BB-01 BB-02

00:00 00:04 00:09 00:16 00:22 00:30 00:32 00:44

New Ad New Ad

Update Ad Update Ad Update Ad Update Ad Update Ad Update

TIMELINE

Honda McDonalds

Character 1 Character 2 Character 3 Character 4 Happy Meal Big Mac

ACR in Practice

116




2-way Comms

AudioVisualWiFi

BlueTooth

NFC

?117




App

+ 150k

+ 100k

+ 150k

+ 250k

+ 50k

+ 50k

+ 50k

+ 50k

+ 150k

1M+

€$£

128




Interact

HD Ad

Retarget

5% off

Retarget

10% off

Purchase

129




130




Sales Lift Doubles

131

x2Multiscreen video vs pure TV spots

Laurent Faracci, Reckitt Benckiser’s General Manager for Marketing

Wall Street Journal




Le Fin




Thanks. Your turn@DeanDonaldson




the new face of television

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