Ovp space and opportunity kit

OVP Space and Opportunity

JOSEPH OLIVER | October 2011

[email protected]

> OVP Market Overview

Digital Media Services Framework

HomeMobile

Hotspots

SMB

M&E industryM&E industry

Richmediaflow

OVP Platform

OVP Player

Communications, Retail and Enterprise industriesCommunications, Retail

and Enterprise industriesEnd-usersEnd-users

management, workflow and delivery

Music

TV and RadioBroadcasting

Film Studios

Publishing

Wireless

Internet Telcos

Cable Satellite

Cinema

Viewer experienceContent analytics and

Monetization

Roll-up of infrastructure, content, and applications that enable new end user media services

Media retailers

General retailers

Media Services

…

Advertising Content,

Data, Applications

Enterprise

The OVP Market is Evolving, with Convergence Only a Starting PointThe OVP Market is Evolving, with Convergence Only a Starting Point

• Blurring the lines for service providers, content creators and device makers

• Need to make applications and content available to customer anytime, anywhere

• Blurring the lines for service providers, content creators and device makers

• Need to make applications and content available to customer anytime, anywhere

• Highly fragmented market to be unified either by consolidation or partnerships

• Integration of siloed systems in a workflow

• Highly fragmented market to be unified either by consolidation or partnerships

• Integration of siloed systems in a workflow

• Asia Pacific growing rapidly• Still evolving in terms of adoption of next generation services and products and hence present a growing opportunity

• Asia Pacific growing rapidly• Still evolving in terms of adoption of next generation services and products and hence present a growing opportunity

• Services present great revenue potential• System Integration is emerging as a key driver in the market

• Services present great revenue potential• System Integration is emerging as a key driver in the market

Market TrendsConvergence

Consolidation& Partnerships

Increasing role of Professional Services

Peak activity between now and 2012

Peak activity 2011 to 2012

Peak activity 2011 to 2015

Emerging Markets

Mar

ket

Driv

ers

Short-term Long Term

Apple iOS CE strategy fuels market surge in

media capable devices

Increased adoption of mobile video

worldwide is driving the demand for

specialized solutions touching all 3

screens

Increasing broadband

penetration and bandwidth utilization

fuels explosion of digital video access

and in turn has created demand for specialized solutions

Supply & demand growth drivers for digital video deliverySupply & demand growth drivers for digital video delivery

Increased web based consumer video services driving

consumption trends

IPTV take-off pushes demand for broader

solutions offering

OVP Market – Market Segmentation (World), 2010

Source: Frost & Sullivan analysis.

MEASUREMENT NAME MEASUREMENT TREND

Market Stage (Nascent, Growth, Mature) Nascent —

Market Revenues (2010) $212.3 M ▲

Market Size at End of Forecast Period (2015) $364.2 M ▲

Average Price (per month) $2,000 ▲

Base Year Market Growth Rate 10.0% ▲

5 Year Forecast Market Growth Rate (CAGR) 11.4% —

Customer Price Sensitivity (scale of 1 to 10, Low to High) 6 ●●

Degree of Technical Change (scale of 1 to 10, Low to High) 7 ▲

Market Concentration (% of base year market controlled by top three

competitors)

50.4% ▼

OVP Market – Worldwide Market - 2010

TRENDDecreasing Stable Increasing

▼ ●● ▲Market Overview

Total Online Video Platforms Market: World, 2010


OVP Market - Revenue Forecast by Region (World), 2010 - 2015

Year North America & Latin America

($ Million)

Europe($ Million)

Asia-Pacific($ Million)

Total($ Million)

2010 169.8 31.8 10.6 212.3

2011 182.2 37.4 14.0 233.5

2012 199.6 41.5 18.1 259.2

2013 219.7 49.8 23.4 292.9

2014 242.8 55.8 29.5 328.1

2015 262.2 65.5 36.4 364.2

CAGR 9.1% 15.5% 28.0% 11.4%


Key: NALA – North America & Latin America; EMEA – Europe, The Middle East, & Africa; APAC – Asia Pacific

Note: All figures are rounded; the base year is 2010.

OVP Market - Competitive Environment (World), 2010

OVP Market: Competitive Structure, 2010(World)

Number of Companies in the Market 30 with revenues greater than $1M USD

Competitive FactorsCost, performance, schedule, support, technology, reliability, contractor relationships, customer relationships

Key End-user GroupsMedia & entertainment companies, video publishers, content syndicators, enterprise customers

Major Market ParticipantsBrightcove, Ooyala, thePlatform, Kaltura, KIT digital, Limelight Networks.

Market Share of Top 6 Competitors 66.9%

Other Notable Market ParticipantsOrigin Digital, Ramp, Livestream, Twistage, Sorenson Media, Unicorn Media, Castfire, VMIX, Flumotion, Qbrick, VBrick

Distribution StructureDirect sales, partner and reseller channels, systems integrators, OEMs

Notable Acquisitions and Mergers Limelight Networks acquired Delve Networks in August 2010


OVP Market - Drivers and Restraints WW, 2010 – 2015 M

arke

t Driv

ers

Mar

ket R

estr

aint

s

1-2 years 3-4 years 5 yearsMarket demand for OVP – effective and streamlined services

Growth of ad spend online drives uptake

Potential absorption of OVP into larger technologies, eliminating the need for a stand-alone OVP solution

Growth in end-user connected devices and demand

Market size may be limited due to costs vs. revenue potential

Volume of available content and video consumption

Confusion about the OVP value proposition

Impact: High Medium Low

Smart Grid Market: Key Market Drivers and Restraints (World), 2011-2015

Expansion into enterprise drives growth

Unclear product, service, and vendor differentiation

Potential short product life due to replacement technologies

OVP Market Dynamics Iceberg

Over 100 competitors

TOP 5 Business View

Highly fragmented marketplace

Pricing challenges & erosion

Consolidation on horizon

Vendor Ecosystem Customer Perspective

Customer Perspective

Ease of use“Build Vs buy” still a strong debate

Strong API roadmap

Best analytics/monetization

Similar product stack

As the consolidation waters recede, “services at the ends” will separate and define OVP leaders

5 competitors with equally compelling offerings

Difficulty in differentiating vendors

Confusion surrounding OVP Value

Still a lack of video standards

ROI still difficult to define for many

How to Differentiate

consulting support

Customer growth

Customer solutions

Value at the ends

Services at the ends will separate and define the leaders in the OVP space during the coming consolidation period and will fortify pricing.

Customer experience should be seamless and become a trusted partnership over time.

• Front end: Professional Services• Integration: Video Platform• Back end: Customer Success (Support)

Customer integration

Value ecosystem

Needs to be a seamless practice focused on enablement and support

“Value-at-the-ends” leverage zone

Quick Case Study:

Geek Squad 2010 Revenue: $3bnBest Buy Total 2010 Revenue: $8bn

Cost Mitigation & ROI

Product Differentiation

Customer Satisfaction &

Loyalty

37% Services Value to Business

= $ REV + Margin

• Creates new recurring revenue and margin streams• Increases customer satisfaction• Enables launch of new differentiating products and services

OVP Market – Competitive Landscape Analysis, 2010

The base year is 2010. Source: Frost & Sullivan analysis. The base year is 2010. Source: Frost & Sullivan analysis.

Ooyala Brightcove Kaltura ThePlatform Limelight

Professional ServicesProfessional Services

• Content Migration• Custom Development• Basic Consultation• Optimization Services• Product Training

New Services Opportunity

Apples-to-Apples Comparison of Top 5 OVP’s



Common

Differ

• Workflow Analysis• Systems Integration• Advanced Training• Open Source Strategy



• Origin Services• CDN Strategy• Mgd Infrastructure• Solutions Integration• Live Events

• Workflow Analysis• Feasibility Studies• System Architecture

• Content Strategy• Systems Integration• Advanced Training

* Production Services * Creative Services * Marketing Services

• Change Mgmnt• Business Continuity• Live Events

• API Strategy• Deep Analytics

• API Strategy• Pro A/V workflows

* Managed Partners

> Broadcast & Cable Opportunity

Ericsson Consumer Stats (June 2011)75% of EMEA are watching content, of which:

• 93% watching broadcast• 70% time-shifting• 50% using internet• 50% looking to connect computer to TV• 37% looking to connect touch devices to TV

Key Drivers in B&C Environment

Industry Migration

Industry Drivers

Business Implications

Implications Requirement

Module-based Business Opportunity

• Away from tape to digital formats• From traditional distribution to 3 screen delivery

• Broadband adoption is now maturing rapidly• Technology Advances across systems and devices• Consumer Demand for multiple screen content

• New revenue opportunities• Increased business process efficiency• Cost saving opportunities

• Assets now need to be consolidated and centralized to manage interaction and transaction• Migration to cloud based services requires guidance• “Build Vs Buy” question still being asked by customer

• Enables OVP to scale service as customer needs scale• Enables OVPa to meet differing solutions requirements• Consulting will grow to develop and support offerings• Will future proof OVP, while enabling expansion into new vertical opportunities as they develop and mature

Traditional Delivery

Emerging Delivery

Broadcasters Cable Satellite

Ecosystem Segmentation

BIG 4 Networks Nationwide Affiliates

PEGReligiousSpanish

IPTV OTT Mobile

• Over 1300+ stations• 327M TV sets in US• 115M TV Homes• $35.2b rev in 2010• $10b ad rev in 2010

• 84 cable operators• 565 cable channels• 80,000 schools• *128m cable homes• $93.7b rev in 2010

• 6 key operators• most channels• 100’s WW channels• 38m satellite homes• $20b rev in 2010

USA TV Market Size and Scope

• 20 core broadcasters• 45% US Households • Univision, Telemundo

• Public access• Education access• Government access

•Opportunity likely found via Education access

Top Line Data Points• 327m TVs in US

• 116m TV homes• 210 DMA’s in USA• 48 DMA’s in Canada

Sizable opportunity for OVP Player in the USA alone :

• 4 Network Broadcasters• 20 Core Nationwides’• 118 Affiliate Groups• 84 Cable Operators• 75 Top PEG’s (DMA >25)• 50 Top Religious Broadcasters• 20 Top Spanish Broadcasters• 1300 TV Stations• 565 Cable Channels

• 20 Nationwides •Top 100 DMA’s• 50% US Households• PBS, CW, ION

• Air in all DMA’s• O&O map in top 10• FCC 39% DMA Cap• ABC, NBC, CBS, Fox

• Air in all DMA’s outside O&O• 61% US Households• 118 private groups• Belo, Hurst, Sinclair• Cox, Tribune, Gannet

• 50 core broadcasters• Top 5 Avg 40 affiliates• 30% US Households

• Verizon FIOS•ATT U-verse• Ericsson (Tandberg)

• Netflix• Hulu• Vudu

• MobiTV• Apple

Broadcast & Cable Business Drivers

MonetizationRequirements

Emer

ging

Del

iver

yRe

quire

men

t Cost Pressures

Limited Resources

Unit A Unit B

Unit C Unit D

Unit E

Unit A Unit B

Unit D

Unit E

Unit CBusiness Groups

Cloud Based Collaboration

Distribution & Syndication Consistency

BusinessUnits

Partners

News Wires

Licensee Territory

Player

OVP

OVP

Top commercial drivers for global broadcasters8,000+ broadcast professionals in 100+ countries participated in the 2011 BBS, making it the largest ever and most comprehensive market study of the broadcast industry.

• The top commercial driver identified was multi platform content delivery• The second commercial driver identified was the need for file based operations / workflows

Broadcast & Cable Overview

Service Opportunity – Major Market B&C

Service Opportunity – Small Market B&C

• Top 30 DMA’s• Competitive need to deliver to 3 screens now• Market size likely justify spend

• 1M (DMA 30) to 7.5M (DMA1) TV homes• Likely does not require onsite work:

• Plugin can be installed/tested remotely• Training can be managed remotely

• Real-time analytics useful for assignment desk• Enables focus on daily content strategy• Useful for programming testing• More data value for local advertising sale

• DMA 25 to 100• Value in CMS / workflow capabilities

• Needs MOS integration• Container (active x plugin) in rundown

• Estimated 5 - 10 days onsite for integration and training – depending on requirements

Streaming opportunity for DMA 1 Station (very rough estimates – DATA NOT QUALIFIED)

• DMA reaches 7.5M TV Households• Avg station receives 2% viewer participation online = 150K online viewers a day• Avg viewer watches 3-5 stories = 450K to 750K streams day (Source: ABC News, DMA #6)• Top 3 stories Avg 300% greater viewing = 1.35M streams per day• DMA 1 station delivers approx 1.8M – 2.1M streams per day• DMA 1 station delivers approx 54M – 63M streams per month• DMA1 market (4 Broadcasters) total estimated at 216M a month / 2.5b p.a.

Stream opportunity DMA 30 Example – 35M a month / 408M p.a:

• DMA reaches 1M TV households• Avg station receives 2% viewer participation online = 20,000 online viewers a day• Avg viewer watches 3-5 stories online per session = 60 – 100,000 streams per day• Top 3 stories Avg 300% greater viewing = 180,000 streams per day• DMA 30 station delivers approx. 280,000 stream per day• DMA 30 station delivers an approximate 8.5m streams per month• DMA 30 across total (4 major broadcasters) is approx. 35M streams a month / 408 Million p.a.

Affiliate Broadcaster Stream Estimates - Top 30 DMA

‘Top 30 DMA opportunity in the 10’s to 100’s of billions in streams per annum.’

Dat

a M

odel

Use

r, M

edia

, seq

uenc

e, s

yste

m

Broadcast & Cable – Case Methodology“from broadcast to cloudcast”

Infrastructure

MediaflowMetadataflow

ScopeBusiness needs

Workflow

IA

P

Broadcast Ops

The context and the business goal:-Organization structure, - Accountability- business process (Type of content, destination and sources)-Business like cycle phases

Operational guide and end-user settings-Who does what and how?-User configurations-What are the media/content rules?-What are user and group?

Media and meta continuum- What are Applications- What CODEC and Wrapper, Pivotal CODEC?- interface needs?- Technical processes- ………

Software and network architecture- Technology, Protocol,…- Interface specification- IT Backup and resilience strategy- ………

Transport and physical layer- Evaluation of technology infrastructure- IP plan- ………

Specifications

Deliv

ery

Framework Structured Consulting & SI Practice

Validationprocess

workflow Operationalcommitments

> Verticals of Opportunity Outside The M&E Space

Live Events – Overlapping Value

Tactical Value

Live Event

Event Planning

Event Production

• Differentiator• Deeper enablement• Wider footprint

• Maps across all customers

• Enhances offerings• More end-to-end

CustomUX /UI

Onsite Engineering

Support

Driver for future offering in retail captive audience

delivery

Strategic ValueStrategic Value

TransmissionManagement

MarketingServices

Live Platform Support

Outsource Partner Internally Managed

Sporting

MusicAwards

Cultural

Conferences

Corporate

Seminar

PoliticalOVP

Corporate

New Product Opportunity

“Video Presenter”

Internal solutions

Website / Branding Corp Comms

TrainingEvents / Seminars

PartnersGEO UnitsCustomers Resellers

Services Opportunity:• WFA• CMS Consolidation• Business Logic / Process• System Integration• Content Origination• Production services• Creative Development• Training

• Front end: Video & PowerPoint /Keynote presentation tool

• Think “video” WebEx• Back end: compiler

• Collaboration• Iteration history• Review /approve• Private screening room

OVP Platform

> Sales Approach / Considerations

Synopsis on customer landscape: Today the internet is seeing tremendous growth of consumers who are searching for entertainment, this growth is generating the boom of content offering destinations that have an increasing need for community architectural tools, commerce solutions and rich media platform integration.

Criteria: Sales teams should ascertain the following when engaging customers• What type of traffic (Volume/Demographic) does the customer have?

• What type of Media solution does the client currently have?

• What type of funding does the client have?

• What is the core offering of the company?

• What can we do to help create a more complete service/commerce offering?

• Are they examining the value of analytics and monetization

• Have they spoken to any other company regarding a OVP solution? If so who?

Customer Criteria

An OVP’s services offerings should be positioned externally to inform and engage customers surrounding the “best-of-breed” Video Platform and full service, end-to-end, turn-key solutions enablement practice.

• Enables customers to create unique media solutions• Platform and solution flexibility, so as needs change, so does the solution• Leveraging our expertise in profitable content-to-market delivery• Complete modular and scalable, full service solution• Allows a customer to focus upon their core competencies• To co-develop and manage a uniquely branded Channel offering • To empower a customer with streaming video analytics and monetization

Customer Positioning

Approach to Professional Services Selling

• Address, define and understand the pain-points of the customer• Examine how the customer has already attempted to answer these

pain-points• Can the solution be scaled• Has a budget been approved• Develop a relationship with the customer that is built upon trust

Engage:

Win:• Demonstrate business case – how does this bring efficiencies while

reducing CapEx & OpEx• Reference existing client success’• Build a solutions strategy that enables workflow and enhances

productivity• Focus on the business OVP vendor can do Well and respond to

Quickly

THANK YOU!

For more information contact:Joseph Oliver

(O) 650.520.2959(M) 310.420.2265

[email protected]

Documents

Ovp space and opportunity kit