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Marketing for Over the Top TV (OTT)
- 1. 1
- 2. “ 2 —HEADLINES EVERYWHERE! THE FUTURE OF TV IS HERE. CAN CABLE SURVIVE?
- 3. OVER THE TOP! App-based content (Netflix, Hulu, Amazon Prime, Sling, Sony Vue, Fubo, etc.) ALL in the same bucket for this discussion Appeals to VOD users, not supported by advertising revenue Only works with HSD connection or cellular data plan OTT?
- 4. Reselling Fubo Reselling DirecTV Now in non- video areas only Selling their own line-up via an app (MobiTV) WHO? 4
- 5. 5 5 1 • Amazon Prime, Netflix, etc. integrated into Set Top Box (STB) • 80% of cable subscribers also have one streaming service Pollfish survey 12/28/17
- 6. —THE KEY TOPIC TO EXPLORE 6
- 7. • Very low margins on actual OTT product – does it become a retention/sticky tool to keep the broadband customer? • By 2023, 56% of cable customers expect to drop their traditional video subscription. Pollfish survey, 12/28/17 2 7
- 8. 8 3 Pros • High cost programming becomes someone else’s issue • Need your broadband to make it work • Advanced features (VOD, Restart, Cloud DVR) you don’t have to invest in. Weighing the Options
- 9. 9 3 Cons • Inviting a competitor into your customer’s home • Billing of product goes to OTT provider, not you • Technical issues – who “takes the blame?” Weighing the Options
- 11. REMOVE SPORTS FROM YOUR LINEAR LINE-UP • 2019 = $8.50 • 2020 = $6.00 CUSTOMERS WHO WANT SPORTS ARE SOLD FUBO/SONYVUE
- 12. 12 Broadcast channels vary by DMA •Duluth (none) •Green Bay (NBC) •LaCrosse (none) •Madison (NBC) •Milwaukee (CBS, FOX, NBC) •Minneapolis (CBS, FOX) •Wausau (FOX) Very little coverage of Packers due to limited broadcast coverage in WI DMAs 4
- 13. 13 These popular channels: • Disney/ESPN (direct to consumer app launching 2018-2019) • Viacom • Discovery • AMC 4
- 14. 14 SONYVUE Broadcast channels vary by DMA •Duluth (none) •Green Bay (FOX, NBC) •LaCrosse (none) •Madison (none) •Milwaukee (ABC, CBS, NBC, MyNet) •Minneapolis (ABC, CBS, NBC, FOX, MyNet) •Wausau (CBS) Where no broadcast station is available, a Network OnDemand feed is usually provided. 5
- 15. 15 SONYVUE These popular channels: • Viacom • A&E Networks 5
- 16. “ 16 —BECOME HOME ENTERTAINMENT CONSULTANTS! HOW DO WE EVOLVE IN AN OTT WORLD?
- 17. In-home or in-office evaluation of a customer’s technology needs. Smart-home, managed Wi-Fi, etc. Help the customer choose best TV, phone, internet options. Become a reseller of smart-home devices – Roku, Alexa, Nest, etc. You are the technical resource in your communities – cement that reputation and promote it. 17
- 18. 18 THE CLASSIC MARKETING MIX—THE 4 P’S Tools/strategies used to create & offer your product or service. 1 2 3 4 (5) Reference : The basics you can find anywhere 5 Steps To Successful Storytelling Published on April 5, 2014 Featured in: Marketing & Advertising
- 19. 19 The traditional triple play customer used to be expected to stay 6 years. Allowed a $200-$300 acquisition cost. 4
- 20. THE NEW CHURN REALITY !
- 22. “ 22 POINTS BACK TO BROADBAND.
- 23. Make sure you’re clear— acquire the internet customer. Sharp Focus on Triple Play & Double Play Promo 23
- 24. 24 24 • Internet at home is price sensitive. • Know which customers can afford to buy them together. • Target Use Simple Demographics, CRM Promo
- 25. 25 SAVE TIME & MONEY Make use of ‘effective’ shared campaign materials from your telecom neighbors. Promo
- 26. THANK YOU ?
- 27. Neal Creative | click & Learn moreNeal Creative ©
Editor's Notes
- -We are here to share ideas on how to incorporate OTT into your product offerings -Jean works with video providers all over the country and has heard some interesting ideas -Chris works with coops and telcos on marketing and bringing those interesting ideas to your tool box of products
- You could find an article, a survey, or some research that says cable is dead, we even have some in this presentation. We’ve been hearing it for years and YET, we’re still here. But that doesn’t mean video consumption isn’t changing, it definitely is. In the life cycle of a business, cable has reached maturation. So, how do we evolve with the changing landscape?
- For this discussion, we’re lumping ALL content that you could consume without a cable subscription. That means a SVOD service like Netflix and Hulu, as well as an OTT service like Hulu Live, Sling, Sony Vue, etc. We’re talking about what we’re hearing is going to replace your video product. But is it?
- Consolidated VP Rob Koester: FuboTV delivers content that will supplement our video offerings Windstream: Was a Dishnet reseller in non-TV areas. Now switched to DirecTV traditional satellite as well as DirecTV Now as part of high speed broadband bundle C-Spire: “It’s not OTT!” – fixed wireless technology, no set top boxes, advanced features – Turner networks not allowing their channels to be part of this package.
- Comcast, TiVo, and Innovative working to add more and more apps to their STBs. Just like we used to look to add more networks, now we look to add more apps to our existing platform so customers can “one-stop shop”
- If 80% already are using a streaming service in addition to traditional video, how long before that number is 100%? And, how long before they can get all their most desirable content from a streaming service?
- Lower your expectations for revenue on reselling an OTT product. But, are your video revenue expectations already low? Many companies are reporting break-even video revenues. If you market a video product that is dependent on broadband, you are keeping your most desired customer. If you are thinking of exiting the video business, or lowering your offerings, reselling OTT could be part of that plan.
- -Someone else deals with the programmers and their high costs and restrictive obligations -The best way to use OTT is with high speed broadband – even if you aren’t a reseller of OTT, you should be marketing and promoting this now. -These services come with advanced services you’ve been debating or struggling to deploy.
- You are most likely conceding your video product to another video provider. If not right away, eventually could evolve into complete replacement. You lose the billing, but customers may expect your support of the product.
- When I was at Fox, nearly every provider asked to put FSN in a package so that only those who wanted it would have to pay for it. HERE’S THAT OPPORTUNITY!
- Let’s play this out: Sports channels X and Y cost about $10.00 in 2018. Remove that cost from your line-up and those who complain are sold the OTT service which includes X and Y. You could start reducing the cost of your video offering to the point it is competitive with the OTT and their Skinny Bundle options. Consider this also with other networks as their contracts expire.
- Fubo lacks live broadcast channels, especially in Wisconsin. So, your sports fan is still going to need your lifeline basic package or be able to get broadcast signals via an antenna.
- Fubo bills itself as the streaming service for sports fans, but is missing “The Worldwide Leader” in sports in ESPN networks. ESPN has announced it will have a direct to consumer app in spring 2018, but not clear if it will require authentication. Also missing Viacom, Discovery and AMC networks.
- Similar to Fubo, the Wisconsin broadcast station offering on SonyVue is quite limited. How long that stays the case will be interesting. Will SonyVue start negotiating with station groups?
- Notice something? Viacom also missing from SonyVue. Many cable companies dropped Viacom. Hearing Viacom and CBS may merge. Be sure to watch how this plays out.
- As technology is rapidly changing, customers will look to you to guide them through the changes. You provide the pipe that makes everything work in their home. Continue to be that resource and promote it in everything you do.