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What is OTT and How is it Changing the Media Landscape?

What is OTT and How is it Changing the Media Landscape?

A presentation by Melissa Denham at the 4th Revolve Conference on November 13, 2018 in Charleston, South Carolina

Revolve Conference

November 13, 2018
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  1. |Connecting You With More Viewers

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  2. | How Audiences Connect With Content
    You could reach the masses by advertising
    alongside news on broadcast TV.
    People are consuming content across
    multiple digital devices and content sources.
    BEFORE – PUSH DELIVERY NOW – PULL DELIVERY
    In 2017, the number of pay TV viewers declined by -2.4%,
    whereas cord-cutter and cord-never viewership grew by 15.1%.
    Source: eMarketer, 2017

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  3. | Audiences are Fragmenting
    Digital is:
    ✔ The most popular medium
    ✔ The best targeting solution
    US Time Spent With Media
    2017 Breakdown
    Radio – 11.8%
    Pay TV – 33.6%
    Digital – 48.2%
    Mobile, Desktop, Connected Devices
    Print – 3.5% Other – 2.9%
    Source: eMarketer, 2017

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  4. |Cable Television Subscription Rates Are
    Decreasing
    Despite a top line +1.0% TV household growth rate, total homes
    with pay TV fell -3.1%, for a gap of -4.1%.
    Source: Pivotal Research Group analysis of Nielsen Data for U.S. cable networks. Median sub growth rate.

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  5. |
    SOURCE: emarketer October 2018

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  6. View Slide

  7. |What is OTT?
    The Traditional TV Experience is Evolving into the Connected OTT Experience.
    OTT content is consumed in a similar way to cable. The difference is that it is streamed
    over an internet connection.
    Over-The-Air
    In the Beginning
    Cable TV
    How it Has Been
    Connected Over-The-Top TV
    (OTT)
    What it Is Now
    The Viewer Has Control of How, What, Where, and When to Watch.
    Scheduled OTT Programming, like: On-Demand OTT Programming, like:

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  8. |OTT vs. CTV: What’s the Difference?
    CTV - Connected TV
    Also called ‘OTT Device’
    A television set that is connected to the
    Internet to facilitating the delivery of
    streaming video content via built-in
    capabilities, media streaming devices, gaming
    consoles, or Blu-ray players.
    Long-form video content delivered by a
    connected device over the internet, without
    requiring the viewer to have traditional cable
    or satellite services.
    OTT – Over The Top
    Also called ‘Streaming Video’
    These definitions are evolving and sometimes these terms are used interchangeably.

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  9. 152.7
    168.1
    181.5 188.1 191.6 194.4
    2016 2017 2018 2019 2020 2021
    47.1%
    51.5%
    55.1% 56.7% 57.3% 57.7%
    57.1%
    61.5%
    65.3% 66.9% 67.5% 67.9%
    |OTT User Adoption Skyrocketing
    U.S. Connected TV Users and Penetration, 2016-2021
    In millions, % of population and % of internet users
    Advertising on connected TV platforms is a growing opportunity for advertisers in the U.S.
    # of Connected TV Users
    % of Population
    % of Internet Users
    Source: eMarketer, 2017

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  10. |Access to Premium OTT inventory
    Major Exchanges
    Get Impressions on OTT Devices
    Including:
    Pair Your Ad With Premium Content
    Including:

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  11. ✔ 100% In-stream Video Placement (on desktop)
    ✔ Brand Safe
    Environments
    ✔ High Quality Display Placement ✔ All Non-skippable Video Ads
    ✔ Local Audiences on Premium Name Brand and Enthusiast Content
    ConnectedTV
    Mobile
    PC
    Tablet
    |Increase the Power of Your Offering
    + Add 90%+ of VIEWERS When You
    Add OTT/CTV Products

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  12. |Streaming Devices Attract Desirable
    Audiences in Charleston DMA
    Source: Nielsen National Panel, 12/15/2017, Household, Sum of pieces may vary slightly from total due to rounding Multimedia Devices includes the four main digital streaming device brands solely used to stream content.
    19.9% 44.1% 35.9%
    Under 35 Age 35-54 Age 55+
    Age
    32%
    More Likely to
    Have Children
    17%
    More Likely to Have
    a College Degree
    66%
    15%
    13%
    4% 2%
    White Hispanic Black
    Asian Other
    Race / Ethnicity Income
    22%
    48%
    30%
    43%
    56%
    22%
    Total US
    $100K+
    $40-100K
    < $40K

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  13. Viewers are increasingly choosing their TV services based on the program
    Original Content is driving viewers to OTT services such as Hulu, Netflix, HBO Now and others.
    According to emarketer, 52% of current Netflix subscribers said that original content influenced their decision to subscribe to the platform.
    In addition 79% said it was an important factor in their decision to remain with a subscriber.
    RESULT: These OTT service providers are spending billions on premium TV shows and series and traditional pay TV providers are struggling to
    compete. Mainly because they don’t have the freedom and flexibility to develop this type of programming.
    We expect more than half (51.7%) of the US population to view content on a subscription OTT service at least once per month. It equates to
    170.1 million people.
    |Why are Viewers using OTT Services?

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