The document discusses the challenges broadcasters face in scaling operations to serve multiplatform audiences. With siloed systems for each platform, it is difficult to measure performance across platforms and control costs. The document proposes a centralized broadcast management system that can integrate rights, scheduling, sales and analytics across linear TV and on-demand platforms. This would allow broadcasters to maximize revenue potential, maintain business agility, and reduce operational costs when serving audiences on multiple screens.
2. Contents
I. Introduction 3
II. The Challenges of Scaling to Multiplatform Operations 4
Broadcasting the Oscars : A Use Case
®
4
III. Meeting the New Demands of Multiplatform Programming 6
Centralizing rights management 5
Redefining scheduling 6
IV. Extending Sales and Traffic for Multiplatform Services 8
The sales product: complete flexibility for inventory combinations 8
Virtual inventory replication: audience addressability in campaigns 10
V. Business Analytics: Understanding Asset P&L 11
VI. Centralizing Business Workflows 12
VII. Conclusion 13
Broadcast Business Management in a Multiplatform Era 2
3. I. Introduction
Perhaps no market trend is having more impact on media companies than the drive to deliver
video content on a broad array of non-linear platforms. Today’s consumers are demanding
their programs on more devices, and with a greater degree of scheduling flexibility, than ever
before. Resulting offerings such as video on demand (VOD), time-shift TV, catch-up TV, “TV
everywhere,” and Internet TV are re-writing the rules for broadcast business management.
Today broadcasters must find new ways to engage their audiences and attract advertisers across
multiple media outlets that span multiple viewing screens in and out of the home. They must “Broadcasters are
also demonstrate their ability to reach not only mass audiences but highly targeted and relevant challenged to achieve
ones. a level of integration
that will yield
The IT systems that make such media operations possible are increasingly complex as service
maximum revenue
adoption expands and content libraries grow. Broadcasters are therefore challenged to achieve
a level of integration that will yield maximum revenue potential across all outlets, provide the potential across all
needed business agility to compete and adapt to a changing landscape, and keep operational outlets...”
costs under control.
In this paper, we will describe an innovative model for a broadcast business management system
that addresses the challenges of multiplatform operations.
3 Broadcast Business Management in a Multiplatform Era
4. II. The Challenges of Scaling to
Multiplatform Operations
Introducing multiplatform services into a broadcast operation that has been traditionally
focused on linear broadcasting is a complex proposition. Many media companies approach
this opportunity by creating new divisions to address the delivery of emerging services, each
with its own infrastructure, internal business processes, and success metrics. With such a
“siloed” operation, the company has no easy means of measuring across-the-board business
performance and efficiently ensuring regulatory compliance, while redundant processes and “With such a ‘siloed‘
resources drive up operational costs and create more operational delays. All of this is taking operation, the
place at a time when competitive and economic pressures have never been greater, forcing company has no easy
companies to operate as efficiently as possible with minimal staff. means of measuring
across-the-board
Broadcasting the Oscars®: A Use Case business performance
and efficiently
To bring home the challenges of multiplatform operations, consider the hypothetical scenario ensuring regulatory
of a major network that has secured the rights to broadcast all programming for the Academy compliance, while
Awards (Oscars®). The network’s programming lineup includes pre-ceremony features, the redundant processes
Red Carpet program and awards ceremony, and after-show features such as red carpet/ and resources drive
fashion summaries and coverage of parties. Figure 1 shows the entire programming grid, with
up operational costs
a breakdown of programs that will be delivered over multiple linear channels as well as the
and create more
network’s website, VOD service, and mobile service.
operational delays.”
Weeks Prior Day of Broadcast Following Days
• Expert Winners Predictions
• Repeat: Oscars Ceremony
• Oscar Fashion Review • Red Carpet
• The Best After Show Parties
• Countdown to the Academy • Oscars Ceremony
• Red Carpet Fashion Summary
Awards
Multi-Channel
• Expert Winners Predictions
• Clips: Last Year’s Best Moments • Clips: ‘Best-of’ Speeches
• Photo Gallery: Last Year’s • Photo Gallery
Ceremony • Clips: ‘Best-of’ Red Carpet
Website • Clips: Nominated Movie Trailers
• Package : Best Movies of the Millenium
• Package: Best • Catch-up: Oscars Ceremony
• Package: Best Movies of the
Movies of the • Catch up: Red Carpet
Millenium
Millenium • Catch up: The Best After Show Parties
VOD • Catch up: Red Carpet Fashion Summary
• Voting Competition
• Clips: Last Year’s Best Moments • Clips: ‘Best-of’ Speeches
• Photo Gallery: Last Year’s • Photo Gallery
Ceremony
Mobile
Figure 1 – A Sample Multiplatform Programming Grid for the Oscars
Broadcast Business Management in a Multiplatform Era 4
5. In such a complex live programming scenario, any number of unforeseen events might wreak
havoc on a siloed broadcasting organization, creating ripple effects that can disrupt the entire
broadcast and affect revenues. Suppose, for instance, that the Oscars ceremony broadcast runs
late (not a far-fetched notion!) – so late that it overruns its programming slot and causes the
network’s pre-planned highlights show to be pushed to a later hour. If the show is delayed by
too much, the network might be in danger of reneging on advertising contracts that specified
its airing at a certain time, in order to reach a particular demographic. Likewise, a segment for
the website on the “Best of the Red Carpet” cannot be posted until later and so forth; thus
delivery of content to all platforms is affected by the single programming delay.
“...any number
Suppose the network discovers that it has failed to obtain the clip rights for a particular movie
of unforeseen
actor who was interviewed for the Red Carpet show or a public figure who appeared in the
events might
feature on after-show parties as an attendee. Maybe the rights only apply to the initial airing of
the show and not repeat airings – or maybe they only apply to the linear broadcast and not the wreak havoc on a
other platforms. Or, perhaps an actress describes her dress made by a certain designer in the siloed broadcasting
Red Carpet show that is sponsored by another designer – a direct violation of the sponsorship organization, creating
agreement. ripple effects that
can disrupt the entire
Time is of the essence in order for the network to adapt to these scheduling, rights, and broadcast and
sponsorship changes in ways that won’t significantly affect revenues. Yet, in a standalone, siloed
affect revenues.”
operation, each of the changes and their metadata must be input multiple times into different
scheduling systems and then synchronized, resulting in costly delays, inefficiencies, and potential
for error. In a worst case scenario, the network might be forced to pull some programming
altogether – resulting in broken commitments to advertisers, loss of revenues, and money
wasted on program acquisition or production costs. And in the end, once all of the programs
have aired, the network has no effective means of comparing total costs to revenue in order to
gauge overall return on investment (ROI) and guide business decisions for next year’s broadcast.
5 Broadcast Business Management in a Multiplatform Era
6. III. Meeting the New Demands of
Multiplatform Programming
Centralizing rights management
Rights management becomes significantly more complex in a multiplatform environment –
requiring a fine balance between revenue maximization and compliance with contractual and
regulatory obligations. As shown in Figure 2, to be effective a centralized rights management “Centralized rights
platform should provide services for managing the complete asset lifecycle from production management places
and acquisition through distribution of content, with tools for contract and deal management, the broadcaster in
program finance, and distribution licensing. With these tools, media companies can record
control of contract
consumption, usage, and distribution rights for any type of content -- from movies and
television series to footage and clips – plus associated assets. Likewise, the system provides a negotiations, with
central point for querying rights availability against any type of acquired, or produced content, the ability to quickly
allowing a broadcaster to fully exploit all licensed or owned rights on any platform, either by evaluate which
broadcasting that content or by licensing it to third parties. package of rights for
a program will be the
As content distributors become more aware of the revenue potential for their programming to most cost-effective
be played out on multiple services, they are negotiating contracts that are many degrees more
and yield maximum
complicated – compounding the difficulty of rights management across multiple platforms.
profits.”
Returning to our Oscars example, the network might have negotiated one price for the
main ceremony to be broadcast over the linear service, and another price for the “catch-up”
broadcast on the VOD service.
Flexible condition processing becomes an essential component of a business system in supporting
this complex environment. Rules, exclusions and workflows can easily be created in the business
system to process and enforce these conditions. The system can adapt to the ever changing nature
of these contracts without the need for additional development or system redesign.
Centralized rights management places the broadcaster in control of contract negotiations, with
the ability to quickly evaluate which package of rights for a program will be the most cost-
effective and yield maximum profits. Using the previous example, the broadcaster can weigh
the cost of airing the Oscars on a linear channel against its advertising revenue potential, and
then balance the higher costs of the rights to play the show to the Web site against its potential
to attract an even wider audience. The system enables broadcasters to select and manage
cost amortization rules for each platform in order to accurately reflect the cost distribution of
acquired assets against the full breadth of supported services.
Contractual and regulatory management is enabling compelling new opportunities for
Finally, centralized rights Rights compliant
content rights multiplatform services
Broadcast
Acquisitions
Programs
On-Demand
Commissions
Trailers Centralized
Footage Rights
Stills Web
Productions
Management
Graphics
Music
System
Mobile
Licenses
Retail
System APIs
Media Asset
Management
Rights aware
Scheduling programming
systems
Enterprise Resource
Planning
Figure 2 – Centralized Rights Management Services
Broadcast Business Management in a Multiplatform Era 6
7. multiplatform broadcasters to monetize content and services in ways that were not possible in
the traditional broadcast environment. With centralized rights management, the broadcaster
can fine-tune sub-licensing agreements to extend beyond program distribution and cover
individual components such as audio translations; e.g. a program that has been translated into
Chinese can be licensed to every Chinese broadcaster that chooses to purchase it. As always,
the system tracks content rights and warns of violations, such as whether the program has been
licensed exclusively to a broadcaster in Hong Kong and therefore can’t be sold to another Hong
Kong customer.
Redefining scheduling “Users can explore
various scheduling
By definition, the deployment of content across a broad range of linear and non-linear platform scenarios, track
services requires new thinking about scheduling. Whereas broadcasters were previously
schedule costs, and
only concerned with programs, times, and channels when dealing with multiple linear
schedules, they must now also consider placement of content on VOD services -- which adds
manage content
considerations such as platforms, availability windows, asset packaging and delivery, content inventory utilization
discovery, and offer management to the scheduling mix. across the entire
multichannel
With a robust and integrated broadcast management system that provides a central metadata and on-demand
repository and a set of scheduling tools for each service, a broadcaster can dramatically enhance operation, from a
the consistency and efficiency of its multiplatform programming. The expertise of its existing single centralized
scheduling team can be leveraged to extend operations to non-linear services. Users can explore
scheduling function.”
various scheduling scenarios, track schedule costs, and manage content inventory utilization
across the entire multi-channel and on-demand operation, from a single centralized scheduling
function. Referring back to the programming grid in Figure 2, the broadcast management
system provides a comprehensive view into the entire programming strategy prior to, during,
and after the Oscars ceremony broadcast, enabling the broadcaster to maintain program
consistencies and synergies between all platform services. The system’s “schedule awareness”
tracks when and where a program was originally scheduled and alerts the scheduler when the
content has been moved to a different slot, giving the scheduler ample opportunity to make
sure the promotions for the original airing have been removed and replaced with new content.
When VOD and other non-linear services are added to the mix, they add new layers of
scheduling complexity. To truly add value, a business management system should be able to
handle scheduling functions that are unique to VOD, such as asset packaging. In this instance,
the broadcaster has the opportunity to package a series of titles together – for example, a
package of movies featuring the Best Actress nominees for the Oscars – making them available
as a single, searchable offer. The system should enable easy scheduling for content discovery;
i.e. scheduling a promotion for another movie that will be available the following month for
a viewer that is watching a certain title. Also, the system should provide scheduling tools for
offer management, enabling the scheduler to make a specific title available in as many program
classifications and packages as possible. For instance, a single VOD movie is made available on
multiple menus such as New Releases, Classics, Children’s Titles, Genre (e.g. Fantasy) - and can
be offered individually and/or as part of a “Best Movies from the Director” bundle.
The broadcast management system should take into account changes that take place in the
linear service and how they might impact the non-linear side, for instance, catch-up broadcasts
on VOD. For a live event such as the Oscars, rights purchased for the linear event might be
separate from the rights for the VOD catch-up. The broadcast management system automates
the rules dictating the time window for the non-linear schedule as a function of the linear
schedule; e.g. the catch-up of the Oscars Red Carpet show can only be made available for five
hours after the completion of the live show and only for a period of three days. The system
keeps both schedules synchronized in the event of a change in the live event.
7 Broadcast Business Management in a Multiplatform Era
8. IV. Extending Sales and Traffic for
Multiplatform Services
The sales product: complete flexibility for inventory
combinations
To accommodate multiplatform operations, broadcasters need an inventory management “Robust broadcast
system that is capable of handling a wide variety of inventory types. Whereas inventory
management systems
management has traditionally meant dealing with a broad variety of 30-second spot derivatives,
media companies are now selling inventory across linear channels, VOD, the Internet, cinema, create inventory
other out of home outlets, and print media – and they need to be able to combine these for collections called
the maximum benefit of their advertisers or agency customers. As shown in Figure 3, robust ‘sales products‘
broadcast management systems provide this flexibility by creating inventory collections called that reflect the
“sales products” that reflect the characteristics of each platform and media type. Rates and characteristics of each
viewing predictions are applied and aggregated to sales products which can be sold consistently platform and media
with a common aggregated view for measurement and unified billing.
type in an integrated
campaign.”
Sales Product Integration Layer
Network TV VOD Service Web Service
M T W T F S S Week 1 Week 2 Week 3 Week 4
Oscar Repeat Best Picture 2009
Live
Countdown Ceremony Ceremony
Catch-up: The Oscars
Fashion
review
Catch-up: Red Carpet
Fashion
Summary
Ratings, Spots Downloads, Viewings Impressions, Clicks
Ad Inventory Variety Programming Ad Inventory Grouping
Figure 3 – Sales Product Inventory Collections
Figure 4 describes a sample ad campaign that might be built around our fictitious network’s
programming grid for the Oscars. Within the sales product layer of the business management
system, the traffic manager is able to define not only the type of ads for each service
(e.g. commercial spots for linear as well as pre- and post-rolls for VOD, website banners, and
in-stream ads on mobile devices), but also metrics for determining audience reach targets
(e.g. 6.5 rating target for linear, five million clicks on the website, or 10,000 downloads on the
VOD or mobile services).
Broadcast Business Management in a Multiplatform Era 8
9. Use Case: Advertiser Specific Campaign
* Audience targets
25 rating points for people 18-29 on linear
350,000 clicks on website
50,000 VOD downloads
200,000 mobile downloads
* Exclusivity terms
Exclusive sponsorship on ceremony billboards
Shared sponsorship on repeat events
* Multiplatform promotions
40 tagged linear promotions
Website banners and skyscrapers
Product placement in “Best of” commissioned events
* Commercial spots
20 Bookends
150 linear spots
10 Squeeze back promo spots
Pre and post-roll on VOD service
In-Stream spots on website video clips
Opening and closing billboards
Figure 4 - A Sample Advertiser-Specific Oscars Campaign
In a nutshell, the sales product concept is a mechanism that focuses on the sales opportunity
for one or more blocks of programming regardless of how it will be scheduled. With linear
television, for instance, the network can sell the live Red Carpet show, Oscar ceremony, and
fashion summary shows as a sales product, with a guarantee that the audience will be delivered
for each spot the advertiser buys. The system offers the flexibility for the broadcaster to apply a
different pricing structure based on an estimate of the audience for each show. In many ways,
the sales product is even more effective for VOD than for linear television, due to the differences
in methods for estimating audiences. For instance, the broadcaster can sell the aforementioned
Best Actress-featured movie package on the VOD schedule, with rates applied based on
estimates of how many viewers will watch each title in each time period. Unlike linear TV, which
bases audience estimates on statistical group samples provided by research systems like Nielsen,
a VOD offering can be forecast much more precisely based on actual numbers of viewers who
have downloaded a particular title in the past.
The inventory management system should provide the flexibility for broadcasters to offer
combined campaigns that distribute programming across different platforms with different
rates based on audience, spot rates or other metrics - but all managed within a single campaign
with the convenience of a single invoice to the advertising customer. Also, the system should
provide the flexibility to overlay secondary events in the schedule, such as sponsorships, product
placements, and logos, together with spots.
9 Broadcast Business Management in a Multiplatform Era
10. Virtual inventory replication: audience
addressability in campaigns
Media companies are looking to further maximize inventory value by augmenting mass-
market campaigns with personalized advertising that connects with specific audiences.
Business management systems should enable sales and traffic departments to offer advanced,
addressable targeting packages as options for both linear and non-linear services, with modeling
tools for optimizing projected revenues based on targeting inventory allocation choices.
“A single campaign
As shown in Figure 5, virtual inventory replication offers an evolutionary path to campaign for a specific auto
addressability in linear advertising. It enables sales departments to create an unlimited number
manufacturer might
of virtual replicates of the inventory and associate each copy to specific audience targets.
Through proper integration with the ad delivery infrastructure in service provider networks, the contain ads for
virtual channel is played for its targeted audience. This approach offers complete control to the minivans targeted
sales and traffic department to turn targeting on and off and to offer advanced packages while to families with
keeping focus on wastage and revenue performance. children, with
different ads for
For non-linear services, both virtual inventory replication and just in time ad placement decisions sportier models
would be advantageous. In fact, the demographic information that can be obtained from
targeting young
the set-top boxes of IPTV subscribers or viewers who download on-demand services enables
adults... the same
extremely precise targeting. For instance, with an IPTV service, household data linked to the STB
might indicate that the subscriber travels internationally, making the viewer a good candidate ad space can be sold
for an airline ad promoting discounts for international travel (of course, it goes without saying multiple times...”
that the system would need to provide strong controls to ensure that the data is collected
anonymously to protect viewers’ privacy). A single campaign for a specific auto manufacturer
might contain ads for minivans targeted to families with children, with different ads for sportier
models targeting young adults. Thus, the same ad space can be sold multiple times depending
on the number of niche markets to be targeted. As with linear advertising, the system provides
tools for modeling different combinations of personalized vs. mass market advertising to ensure
maximum revenue potential, i.e. how many times a particular campaign can be virtualized and
still enable it to be profitable. Since non-linear programming by definition is watched at the
viewer’s discretion as opposed to broadcast at a specific time, the business management system
can also determine whether time-sensitive ads will be appropriate for different services;
e.g. whether the airline’s discount offer has an expiration date.
Default Men 24-39 Women 24-39
Frequent Travellers
Program part Program part Program part
Ad-1 Men 24-39,
Ad-1 Men 24-39 Frequent Travellers Ad-1 Women 24-39
Ad-2 Men 24-39,
Ad-1 Household Frequent Travellers Ad-2 Women 24-39
Ad-1 Women 24-39 Ad-1 Household Ad-1 Household
Ad-3 Men 24-39,
Ad-2 Household Frequent Travellers Ad-3 Women 24-39
Program part Program part Program part
Figure 5 – Virtual Inventory Replication
Broadcast Business Management in a Multiplatform Era 10
11. V. Business Analytics: Understanding
Asset P&L
Centralized tools for business analytics are critical in a multiplatform broadcasting enterprise,
offering the ability to measure business performance of each service, as well as the performance
of various assets across all the platforms on which they are delivered. Only business systems that
understand the language of each platform and offer a centralized repository for the metadata of
all assets can provide effective business analytics.
“Only business
Multiplatform reporting and analysis tools offer the broadcaster powerful means of tracking systems that
costs against revenues to determine the profitability of a program or set of programs, feeding understand the
valuable metrics into the next program planning round. Going back to the Oscars example, the language of each
network can determine how to allocate all live and pre-recorded programs among the linear
platform and offer
channels, Web streaming, and VOD services in accordance with the rights that were originally
a centralized
purchased.
repository for the
In addition to acquisition, the network must factor in any additional items that contribute metadata of all assets
to the overall cost of the asset – for instance, addition of closed captions, down-converting can provide effective
HD content for an SD service, or the production and transcoding costs of re-formatting the business analytics.”
material for multiple Web sites or for producing a synopsis for the VOD service. These costs
are all balanced against total revenue potential including ad sales and any sub-licensing
agreements to determine what combination of delivery mechanisms will yield the most profit.
Furthermore, the broadcaster will have a record of the program’s performance that will help
make informed decisions about future Oscar broadcasts, for instance, how well the post-
ceremony commissioned programs performed in a Spanish-language market and whether the
performance justified the cost of generating Spanish subtitles.
In addition to financial analysis, multiplatform broadcasters need tools for measuring
performance against a set of specific targets, also known as key performance indicators (KPIs).
These include factors such as the percent of content required to have closed captions, the
percent that is required to be broadcast in high definition, or requirements for programs to have
subtitles when broadcast on international channels. Business analytics tools should indicate
how well all programming meets KPIs across all platforms and territories, and also measure such
non-monetary factors as production time to deliver content to a Web site, affecting operational
efficiency.
11 Broadcast Business Management in a Multiplatform Era
12. VI. Centralizing Business Workflows
Whereas unified rights management, scheduling, sales and traffic management, and business
analytics set the stage for a smooth transition to multiplatform operations, the glue that
will hold everything together is an integrated and centralized mechanism for coordinating
workflow. Such a system will create new levels of efficiency by facilitating a smooth exchange of
information between departments, precisely synchronizing their activities while optimizing the
allocation of resources (e.g. ad inventory, content rights).
“Centralized
Prepare and
Transcode
Distribute business workflow
Media
Media management
will create new
Plan Promo
Campaign Produce levels of efficiency
Across all Promotions by facilitating a
Platforms
smooth exchange of
Schedule
Package
Schedule information between
Define Establish Promos Release Reconcile
Package Rights • TV Schedule
• Web Offers TV, Web, Mobile
Schedules and Bill departments,
• Mobile Clips
precisely
Negotiate synchronizing
Rights
Clearances if their activities
Necessary while optimizing
Schedule
the allocation of
Sell Package Book Campaigns
• TV Spots
resources.”
(Sponsorship) Campaigns • Web Spots
• Mobile Spots
Sell Package
(Multi
Platform
Campaigns)
Media Programming Advertising
Figure 6 – Integrating Workflows in a Multiplatform Operation
Figure 6 illustrates how a broadcast management system might integrate all phases of a
multiplatform programming and advertising campaign’s development from initial definition
through to final reconciliation and billing, taking into account every aspect of the workflow
including sales, media preparation, rights negotiations, and scheduling.
Managing change is one area in which centralized workflow adds great value. Take the
example of the Oscars, scheduled for live broadcast on the linear service and then scheduled
for later catch-up on VOD. If the linear program runs over its allotted time slot, the system will
automatically notify the scheduler on the VOD service that a change has occurred. A centralized
workflow engine can communicate the impact of schedule changes, media failures (e.g.
content that fails a QC check), or contract approvals. At any stage in the process, anyone in the
operation can access the system to determine the rights of the program for a given platform,
when the program has been scheduled by platform, and the content’s status in the workflow
(e.g. whether it has passed through ingest, transcoding and quality control steps and is ready
for transmission). In the event of a content failure for a program due to go out tomorrow on
the linear service and the next day on the VOD service, the workflow can immediately notify the
schedulers of the issue so that they can re-arrange the schedule.
Centralized workflow can also play an important role in maximizing revenue for a piece
of content. For instance, based on the rights profile for a new acquisition, the system can
automatically trigger an indication to the content sales department that the distribution rights
allow opportunities for sublicensing, DVD sales, or other means of monetizing the content.
Broadcast Business Management in a Multiplatform Era 12
14. About Pilat Media
Pilat Media Global plc [AIM: PGB] develops, markets, and
supports business management software solutions for content
and service providers in the media industry. Designed with
the direct involvement of top-tier broadcasters, Pilat Media’s
systems improve business performance, accelerate time to
market, and enable diversification and growth of content
programming, advertising sales, traffic, and media operations
for multiplatform linear and on-demand services. More than 50
blue-chip media companies around the world use Pilat Media
solutions, including CBS, FOX, CTV, Virgin Media, Discovery,
SABC, Chellomedia, the BBC, Media General, Sky Italia, ESPN
Star Sports, Network Ten, TVNZ, Southern Cross, and Foxtel.
These and other deployments represent the management of
billions of dollars in advertising revenue and programming that
reaches hundreds of millions of viewers.
www.pilatmedia.com