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5 TV INDUSTRY MYTHS… BUSTED Hendrik Haandrikman

5 TV and Video Industry Myths... Busted

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5 TV INDUSTRYMYTHS…BUSTED

Hendrik Haandrikman

MYTH #1CORD CUTTING IS RAMPANT

THE MAJORITY OF CORDLESS CONSUMERS ARE ACTUALLY

CORD-NEVERS1

THE MAJORITY OF CORDLESS CONSUMERS ARE ACTUALLY

CORD-NEVERS1

1 Consumers that never had a cable, satellite or fiber optic TV service

CORD-NEVERS HAVE MULTIPLE REASONS FOR NEVER HAVING A CORD

CORD-NEVERS ARE MOSTLY MILLENIALS, WHO ARE

UNLIKELY TO EVER SWITCH TO A CORD

AS THIS PART OF THE POPULATION MATURES, THE PERCENTAGE OF CORDLESS CONSUMERS WILL RISE. NOT BECAUSE THEY’RE CUTTING THE CORD. BUT

BECAUSE THEY NEVER HAD ONE IN THE FIRST PLACE.

MYTH #2DIGITAL ADS ARE KILLING TV ADVERTISING

YOU’VE PROBABLY SEEN THIS GRAPH:

YOU’VE PROBABLY SEEN THIS GRAPH:

IT’S TRUE.

IT’S TRUE.

DIGITAL ADS WILL MAKE UP A BIGGER SHARE OF TOTAL AD SPEND.

IT’S TRUE.

DIGITAL ADS WILL MAKE UP A BIGGER SHARE OF TOTAL AD SPEND.

BUT AT THE SAME TIME, TV AD SPEND IS INCREASING AS WELL:

IN TIME,DIGITAL- AND TV AD SPEND WILL CONVERGE.

TARGETED TV ADS THROUGH IPTV, OTT AND OTHER DIGITAL FORMATS WILL GIVE THE TV ADVERTISEMENT SPACE A HUGE BOOST. TELEVISION IS STILL A UNIQUELY ENGAGING MEDIUM AND TV ADS ARE HERE TO STAY. FOR NOW.

MYTH #3CONTENT IS KING

IT WOULD TAKE YOU MORE THAN 10 YEARS NON-STOP WATCHING TO GO THROUGH ALL VIDEO CONTENT ON HULU.

DOING THE SAME ON NETFLIX

WOULD TAKE EVEN LONGER.

THERE’S MORE ORIGINAL TV CONTENT RELEASED EVERY YEAR

BUT YOUR DAY STILL HAS ONLY

24 HOURS

THE WAY TO DIFFERENTIATE YOUR VIDEO SERVICE

ISN’T MORE CONTENT

SURFACE THE RIGHT CONTENT, FOR THE RIGHT PERSON, AT THE RIGHT TIME AND YOUR CATALOGUE COULD BE (MUCH) SMALLER AND STILL BE (MUCH) MORE EFFECTIVE THAN THE COMPETITION.

THE ANSWER IS CONTENT RECOMMENDATION

THE ANSWER IS CONTENT RECOMMENDATION,PRESENTATION

THE ANSWER IS CONTENT RECOMMENDATION,PRESENTATION,USER INTERFACE

THE ANSWER IS CONTENT RECOMMENDATION,PRESENTATION,USER INTERFACE AND SEARCH.

DON’T JUMP ON THE “ORIGINAL CONTENT” BANDWAGON

BUT THINK ABOUT UNLOCKING THE UNTAPPED POTENTIAL OF YOUR EXISTING CONTENT LIBRARY, INCLUDING LINEAR TV

MYTH #4YOU NEED TO ADOPT 4K AND HDR

ACTUALLY, YOU DO NEED TO SUPPORT 4K AND HDR…

ACTUALLY, YOU DO NEED TO SUPPORT 4K AND HDR…

BUT WHAT THEN?

8K?

VIRTUAL REALITY?

HOLOGRAMS?

THE FUTURE FORMATS OF TV AND VIDEO ARE UNCERTAIN

ALL YOU CAN DO, IS

ADOPT A FORMAT-AGNOSTIC VIEW OF THE FUTURE

GO IPTV

GO IPTVGO CLOUD

GO IPTVGO CLOUDGO SCALABLE

GO IPTVGO CLOUDGO SCALABLEGO ADAPTABLE

DON’T BUILD YOUR VIDEO DELIVERY PIPELINE FOR ONE SPECIFIC FORMAT

DON’T BUILD YOUR VIDEO DELIVERY PIPELINE FOR ONE SPECIFIC FORMAT

BUILD IT TO SUPPORT FORMATS YOU CAN’T EVEN IMAGINE YET

MYTH #5VIDEO ISN’T A REVENU DRIVER

“MULTISCREEN ISN’T ABOUT MAKING MONEY YET.”

“MULTISCREEN ISN’T ABOUT MAKING MONEY YET.”

“OUR OTT EXTENSION DOESN’T NEED TO GENERATE REVENUE.”

“MULTISCREEN ISN’T ABOUT MAKING MONEY YET.”

“OUR OTT EXTENSION DOESN’T NEED TO GENERATE REVENUE.”

“WE NEED PLAYBACK-TV. THE ROI DOESN’T MATTER.”

“MULTISCREEN ISN’T ABOUT MAKING MONEY YET.”

“OUR OTT EXTENSION DOESN’T NEED TO GENERATE REVENUE.”

“WE NEED PLAYBACK-TV. THE ROI DOESN’T MATTER.”

“MY SUBS EXPECT TV, BUT ARE UNWILLING TO PAY FOR IT.”

RETENTION“OUR OTT EXTENSION DOESN’T NEED TO GENERATE REVENUE.”

“WE NEED PLAYBACK-TV. THE ROI DOESN’T MATTER.”

“MY SUBS EXPECT TV, BUT ARE UNWILLING TO PAY FOR IT.”

RETENTIONRETENTION“WE NEED PLAYBACK-TV. THE ROI DOESN’T MATTER.”

“MY SUBS EXPECT TV, BUT ARE UNWILLING TO PAY FOR IT.”

RETENTIONRETENTIONRETENTION“MY SUBS EXPECT TV, BUT ARE UNWILLING TO PAY FOR IT.”

RETENTIONRETENTIONRETENTIONRETENTION

IN A CUT-THROAT TV BUSINESS,

THE STICKINESS OF YOUR SERVICE IS KEY TO MONETIZATION

OVER 75% OF CABLE- AND TELCO SUBSCRIBERS POINT TO QUALITY OF TV AND VIDEO SERVICES AS A MAJOR FACTOR IN THEIR DECISSION TO STICK WITH A SUBSCRIPTION

A QUALITY VIDEO SERVICES

CAN BE MONETIZED DIRECTLY

AND WILL ALWAYS INCREASE RETENTION FOR YOUR TELCO OR CABLE SERVICE.

HIGHER RETENTION=HIGHER LTV=MORE REVENU FOR YOU

ABOUT DIVITEL

TV AND VIDEO DELIVERYTECHNOLOGY,SERVICES ANDCONSULTANCY

WWW.DIVITEL.COM

ABOUTHENDRIK HAANDRIKMAN

Growth marketeer,Technology Strategistand Data geek @Divitel [email protected]