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

Transcript

1. |Connecting You With More Viewers
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
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
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.
5. | SOURCE: emarketer October 2018
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:
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.
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
10. |Access to Premium OTT inventory Major Exchanges Get Impressions on OTT Devices Including: Pair Your Ad With Premium Content Including:
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
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
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?