Investing in video streaming services requires a solid understanding of
the Return on Investment (ROI) for such a platform. In this presentation
we breakdown the value proposition of Over the Top content (OTT)
platforms, used to generate new revenue streams from entertainment
assets. Understanding ROI, requires a breakdown of cost savings, new
revenue streams, feature enhancements, and other intangible benefits.
"is web seminar looks into various aspects of content management,
delivery and consumption, and how cloud-based services such as OTT
not only generates new revenue streams, but also opens new doors to
monetize entertainment libraries.
3. Video is used to attract
new subscribers
• Maintain loyalty through Enhanced
Features & User Experience (UX)
• Large & relevant content libraries
justify subscription price
“ROI is a balance between
Subscriber revenue
& Total Cost of Ownership”
Video is used to sell retail
products
• Sell more product with Demos, Ads,
Client Testimonials, Employee
Generated Content (EGC)
• Training Conferencing, Corporate
& CEO Announcements
“ROI is a balance between
platform cost & new revenue
from vMarketing”
Enterprise • OVPEntertainment • OTT
4. ROI • Money
Increased Profit
“Focus on revenue
opportunities that advance
the corporate strategy”
ROI • Time
“Focus on opportunities
that improve efficiency
& competitive advantages”
Increased Revenue
Launching New Services
Streamline Workflow
Higher Client Satisfaction
Efficient Supply Chain
7. Brand Ÿ Image Ÿ Credibility
• How important is Trust
to your subscribers?
Disaster Recovery
• Is content quickly
restorable?
Down Time
• How fast can you
recover? Ÿ Backup
Redundancy Ÿ Repairs
Security
Ÿ Content at Rest & in Motion
Ÿ Digital Rights Management
Ÿ URL link protection
Ÿ Authentication
• Legal Liabilities
Ÿ How liable are you if
content is lost or stolen?
Ÿ Subscriber Agreements
Ÿ Content Rights
Considerations Ÿ Understanding the Hidden Costs
8. Cloud ICT Ÿ Information Technology Communications
CRM
Storage
Gaming
Music
Messaging
Productivity
Social Networking
9. Cloud Ÿ Video Entertainment
Video Editing
Video Entertainment
Video Metadata Databases
Social Video Networking
Video Delivery
Video Hosting
Video Conferencing
11. Consideration Ÿ Cloud Concerns
Reliability
• Internet Bottlenecks
• Upload vs. download
• Single point-of-failure
• Latency • Up-time
Control
• “Ownership”
• Disconnected from
assets
Cost Allocation
• Capital vs. Operating
Ego
• “ eir goal is to Increase
their personal power
& stature by amassing
departments, info
& head count”*
* Entrepreneur.com, “Is Your Managerial Ego Too Big?” by Joe Robinson,
11th April 2014, http://www.entrepreneur.com/author/joe-robinson
15. Reach Ÿ Regional
Audience Ÿ General
Features Ÿ Limited
Ÿ EPG, red button, PiP, TV Guide
Reach Ÿ Global
Audience Ÿ Personal
Features Ÿ Interactive
• Recommendations, Ratings,
Stats, Social, Interactive
Viewing Ÿ Passive
Experience Ÿ Lean-back
Ÿ 100’s of Channels few useful
Experience Ÿ Lean-forward è back
Ÿ Create Your Own Channel
Viewing Ÿ Active
Static Ÿ Living Room Portable Ÿ Multiscreen
Broadcast TV Over the TOP
16. Subscriber Advantages
• Local Storage
• Skip Ads
Subscriber Disadvatages
• Content not portable
• Expensive Service
Provider Advantages
• App Control
• „Locked“ Cients
Provider Disadvatages
• Expensive STB
Subscriber Advantages
• ∞ Storage ∞ Apps
• Better Quality
Subscriber Disadvatages
• Internet speed
• Internet Reliability
Provider Advantages
• 1:1 Relationship
• Relevant Ads
Provider Disadvatages
• “losing control of the subscriber”
Appliance Ÿ TV Cloud Ÿ Service
17. Cloud ROI – Monetizing the Long-Tail
Head
-end
PopularityŸRevenue
#ofTitles
Ageofcontent
News
Sports
Long-tail
MostEffectivefor
RecommendationEngines
IdealforOTTŸ MoviesŸTV
Ÿ Stockfootage
IdealinBroadcast Ÿ Live
ContentŸ SportsŸ News
MostEffective
forAdvertising Cult-classic
Movies &
TV Series
18. ROI Ÿ Ÿ Content Discovery
• Need Ask Google the
right question
Requires a
Proactive
Subscriber to search
for what they want • Collaborative Behavior
• User Ratings
• Stats (eg. Plays)
• Testimonials & Reviews
• Likes or Dislikes
• Buying & Viewing
Behavior
Subscriber Reacts to
Recommended
Content
19. Revenue Cost
32:1
ROI-2
8
18
28
2012 2014 2016
billionUS$
Transaction
Subscription
Advertising
Costs
Global OTT Forecast '11-'17
Informia – OTT Video Revenue Forecast
AccuStream Research - Integrated Video Platforms
20. ROI Ÿ Case Study
HD = High Definition (1080p), SD = Standard Definition (576p)
A broadcaster wants to launch a new OTT service, using their own library
of titles, and charge a nominal fee of $8/month for the service.
Provider Profile
Content 2,000 HD Movies
4,000 SD Movies
Subscribers 10,000 In 2 Years
Subscription 8 US$/month
Subscriber Profile
Expected Usage
per month
8 HD
12 SD
21. 100k
50k
0k
50k
100k
150k
200k
250k
2
6
10
14
18
22
k US$
Month
OTT Ÿ ROI Ÿ Profit
ROI Ÿ Case Study Ÿ Revenue vs. Costs
24 month
profit
• 243K US$
Assumptions
turn to Metrics
• Subscriber
growth
• Content Usage
Cross
Over
OTT ROI
6–12 months
22. ROI Ÿ Case Study Ÿ Revenue vs. Costs
ROI Parameters
• Monetization
Model Ÿ S/T/A VoD
• Content Sources
Ÿ Shows Ÿ Live
Ÿ Archive
• Library Size Ÿ # HD
Ÿ # SD Ÿ 4K
• Usage Ÿ # of Views
per subscriber
• Subscriber Growth
Ÿ Monthly Ÿ
Attrition
Year 1
1.5:1
Year 2
2.8:1
Year 3
3.3:1
Considerations Ÿ Growth
• Variable Usage Ÿ Int‘l expansion
• New Features Ÿ Enhanced Personalization
Considerations Ÿ Content
• External Ÿ Premium Ÿ User Generated
Considerations Ÿ Efficiency
• Evolving Features & Functionality
• Improved Compression Encoding
• Scaling reduces cost per subscriber
23. How is content being used?
• Which Content has been played the most,
and for how long?
• Is my video the right length for my
viewers?
• Is my content engaging to my subscribers?
• When were users watching my content
throughout the day?
• Where [geographically] is my content being
consumed?
Considerations Ÿ Answering Important Questions
Usage
Behavior
Marketing
Sales
24. How clients use my content?
• How long are subscribers engaged on my
service?
• Average viewing, drop off, & abandonment?
• Correlation between play time, buffer time,
bandwidth, geo, seek time, reloading time?
• How is video quality affecting viewing?
• How are people finding my content?
– Search, Social media, or Syndicated domains?
Considerations Ÿ Answering Important Questions
Usage
Behavior
Marketing
Sales
25. How effective is Marketing?
• How easy is it to find my content?
• What is my view # by country, region, DMA?
• # new visitors compared to returning
visitors?
• How is viewing affected between search vs.
recommendations?
• Which words or phrases are being use to
find my content?
Considerations Ÿ Answering Important Questions
Usage
Behavior
Marketing
Sales
DMA = Designated Market Area
26. How much Money am I making?
• Is my distribution strategy on the right
track?
• How often is my content shared?
• Which partners are most successful?
– And which multiscreen devices are being used?
• Are distribution outlets referring traffic back
to my site?
– How much of my traffic originates from syndicated
domains?
Considerations Ÿ Answering Important Questions
Usage
Behavior
Marketing
Sales
29. • Check out my blog “Digital Video for a Digital Generation": www.dusil.com
• Investing in video streaming services requires a solid understanding of
the Return on Investment (ROI) for such a platform. In this presentation
we breakdown the value proposition of Over the Top content (OTT)
platforms, used to generate new revenue streams from entertainment
assets. Understanding ROI, requires a breakdown of cost savings, new
revenue streams, feature enhancements, and other intangible benefits.
is web seminar looks into various aspects of content management,
delivery and consumption, and how cloud-based services such as OTT
not only generates new revenue streams, but also opens new doors to
monetize entertainment libraries.
Synopsis – Getting your Return on Investment from Video Streaming
30. • Fear Uncertainty Doubt, 2nd Screen, Broadcast, Connected TV, Digital Rights,
Digital Video, DRM, Gabriel Dusil, Internet Video, Linear Broadcast, Linear TV,
Multi + screen, Multiscreen, Online Video Platform, OTT, Over the Top Content,
OVP, Recommendation Engine, Search + Discovery, second screen, Smart TV,
Social TV, Television, TV Everywhere, Video Streaming, Visual Unity Global,
Return On Investment, ROI, Total Cost of Ownership, TCO
Tags – Getting your Return on Investment from Video Streaming
