Trace Galloway- Vindicia

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    How Innovative Brands Are Succeeding with OTT

    Trace Galloway VP, Solutions Engineering, Vindicia

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    Agenda: The OTT Global WaveOTT Monetization ModelsMaximizing Revenue and Lifetime Value Three Critical Steps to OTT SuccessOffer Personalization Is Key The Concept of Frictionlessness Data-driven DecisionsWhat Are Innovative Brands Doing?

    How Innovative Brands Are Succeeding with OTT

    Trace Galloway VP, Solutions Engineering

    Vindicia

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    Worldwide disruptive wave

    Anywhere, anytime, any screen

    Global leaders disrupting the market

    $20+ billion next year

    Transforming the landscape for: MVPDs Content owners and publishers Broadcasters and networks

    Riding the Global OTT Wave

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    Today 1.6 billion people worldwide actively watch online video on a variety of devices Represents over 20% of the

    planets population

    An estimated 900 million access TV programming and movies online today Will swell to over 1.3 billion video

    viewers by 2019

    OTT Global Growth

    Source: Parks Associates

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    OTT Service Provider Checklist

    Compelling content licensed and available

    Network/application infrastructure

    User experience/flows

    Monetization strategy to maximize revenue

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    OTT as a feature

    Advertising-supported OTT

    Pay-per-view OTT

    OTT subscriptions / recurring revenue

    Hybrid OTT models

    OTT Monetization Models

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    OTT as a Feature TV Everywhere brings

    OTT to subscribers at no additional charge

    Turns OTT into a feature of MVPD distribution model, but fails to monetize OTT delivery

    May stem flow of departing customers, but a feature is not a product

    Not a long-term solution

    Selecting the Right OTT Monetization Model

    Ad-supported OTTOTT available without sign-in

    or credentials

    Ads are notoriously slow to load and play, and offer a poor user experience

    May work for occasional users, but may drive away consumers who want more

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    Pay-per-View OTT

    Charge for each unit consumed

    Effective when content is based on special events, such as sports or concerts

    Makes high customer acquisition costs inevitable

    Selecting the Right OTT Monetization Model

    OTT Subscriptions and Recurring Revenue

    Successful OTT players such as Netflix, Hulu Plus, Amazon, DIRECTV, Vimeo, Foxtel Presto, Telstra, and Media Prima

    Consumers willing to try subscription and other recurring revenue-based delivery models

    Hybrid OTT Monetization Models

    Subscription video on demand (SVOD)

    Credit-based consumption

    Freemium subscriptions with ads for nonpaying users

    Other hybrid models

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    Predictable revenue streams

    Less upfront commitment for consumers

    Price and promotion flexibility

    Long-term relationships

    Control over user experience

    Benefits of Subscription and Recurring Revenue Models

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    Maximizing Revenue and Lifetime Value

    ACLV = ((Avg. Mo. Revenue Avg. Mo. Costs) x Average Customer Lifetime) Acquisition Cost

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    Three Critical Steps to OTT Success

    1. ACQUIRE 3. EXPAND2. RETAIN

    Billing, packaging, price, promotion, bundling, couponing and offer management all have dramatic but different effects throughout the customer lifecycle

    Convert More Sales Expand User RevenueReduce Customer Churn

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    Simplifying the GUI Reducing clicks to buy Third-party pages Mobile apps

    Payment methods not just more, but the right ones Offline payments Mobile payments

    Resale/wholesale models Service providers (mobile, broadband, video)

    Promotions/coupons Stacking

    Loyalty Virtual currency and credits

    Acquiring OTT Subscribers

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    Geographic, demographic, sociographic

    Hybrid models SVOD, TVOD, freemium

    Price, offer, payment flexibility

    Social interaction, gamification and loyalty programs

    Real-time scale and security

    Integration of linear and OTT bundles

    Offer Personalization Is Key

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    Remove barriers between OTT service and consumer

    Simplify sign-up, purchase experience

    Easy in / easy out

    No commitments

    Trust the product/service

    Frictionlessness

    Reducing the Barriers to Service Adoption

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    Data-driven DecisionsBusiness Insight and Intelligence

    Key metrics and business operationsConsumer behavior

    Views / plays / replays

    QOS

    Subscriber worthiness

    Content profitability

    Cohort analysis

    Retention

    Active vs. passive churn

    Socioeconomic data

    Acquisition cost analysis

    Chargebacks

    Churn management

    Peer rankings

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    Prepare to Iterate to Drive Market Acceptance

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    What Are Innovative Brands Doing?

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    OTT monetization models vary dramatically by demographics and sociographics

    Core tenets of successful monetization Customer lifecycle:

    Acquire, Retain, Expand Frictionless commerce Offer personalization drives

    acquisition and retention

    Nothing is sacred Data-driven decisions Iteration is critical to success

    Key Takeaways

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    What are you doing to capitalize on OTT and the

    subscription-based economy?

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    Questions?Thank You

    www.vindica.com