Calkins-OTT
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This document summarizes key points from a presentation on shifting media consumption trends and strategies for media companies. It notes that most legacy media like newspapers and TV have seen declines in time spent and dollars as internet and mobile usage has grown. OTT consumption via devices like Roku is rapidly increasing and projected to be over 2 hours per day on average by 2020. By 2017, the number of US connected TV households surpassed cable households. The presentation recommends two big ideas for media companies: 1) Transforming print-centered newsrooms into video-driven ones using existing resources, and 2) Creating an OTT linear streaming channel at a local TV station to generate new audience and revenue. Metrics shown include large growth in video plays and watch
![Source: webtrends, Nov 2016
Time Spent with OTT is SIGNIFICANT
95%
[CATEGORY
NAME]
[VALUE]
Hours
2%
[CATEGORY
NAME]
[VALUE]
Hours 3%
[CATEGORY
NAME]
[VALUE]
Hours
Total Time Spent Viewing Video by Platform
November 2016](https://image.slidesharecdn.com/13fadee7-3c6c-4293-aa2b-7827dc85c4e1-170215003345/85/Calkins-OTT-9-320.jpg)
![Source: Webtrends, November 2016
Mobile
12%
Desktop
9%
OTT
79%
Share of Total Plays
[CATEGORY
NAME]
[PERCENTAG
E]
(3M, 40S)
[CATEGORY
NAME]
[PERCENTAGE]
( 11M, 1S)
[CATEGORY
NAME]
[PERCENTAG
E]
(1H, 37M)
Share of Total Time
(with avg. view time per session)
Linear Drives Engagement](https://image.slidesharecdn.com/13fadee7-3c6c-4293-aa2b-7827dc85c4e1-170215003345/85/Calkins-OTT-26-320.jpg)
Calkins-OTT
- 1. January 23, 2017 Mark Contreras, CEO, Calkins Media OTT Summit
- 2. Strategy Signals Where are the eyeballs and dollars going?
- 3. Most Legacy Media Has Lost Time and Dollars Spent...Internet & Mobile Have Grown Both
- 4. Source: Source: Nielsen, Media Dynamics, comScore, ZenithOptimedia forecasts eMarketer, The Diffusion Group Time with OTT is projected to be 2 hours and 42 minutes a day per person by 2020. OTT Consumption is Rapidly Growing, While Traditional Media Sees Declines 0 5 10 15 20 25 30 35 40 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Newspapers Consumption per Day (minutes) TV Newspapers OTT 0:00 1:12 2:24 3:36 4:48 6:00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average Media Consumption per Day (HH:MM) Mobile Desktop/laptop TV Radio Newspapers Magazines OTT
- 5. Media Consumption AVERAGE DAILY CONSUMPTION (HH:MM) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 v. 2008 % Change Mobile 0:32 0:39 0:50 0:46 1:28 2:15 2:37 2:54 3:08 3:18 519% Desktop/laptop 2:17 2:26 2:35 2:30 2:24 2:16 2:14 2:12 2:11 2:10 -5% TV 4:14 4:27 4:24 4:34 4:38 4:31 4:22 4:11 4:03 3:58 -6% Radio 1:42 1:38 1:36 1:34 1:32 1:30 1:28 1:27 1:25 1:24 -18% Newspapers 0:38 0:33 0:30 0:28 0:24 0:20 0:18 0:17 0:16 0:15 -61% Magazines 0:25 0:22 0:20 0:19 0:17 0:15 0:13 0:13 0:12 0:11 -56% OTT 0:30 0:59 1:21 1:43 236%* Source: Source: Nielsen, Media Dynamics, comScore, ZenithOptimedia forecasts eMarketer, The Diffusion Group
- 6. The Audience HAS Shifted By 2020, there will be 97.7 million US connected TV households, up from 88.7 million in 2016. 73.8 88.7 92.5 94.9 96.3 97.7 60.7% 72.5% 75.1% 76.6% 77.3% 77.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 0 20 40 60 80 100 120 2015 2016 2017 2018 2019 2020 Connected TV households % of total households Note: Connected TVs are TV sets connected to the internet through built-in internet capability or through another device such as a Blu-ray player, game console or set- top box (e.g., Apple TV, Google Chromecast, Roku). Source: eMarketer, Oct 2016
- 7. CONTENT text, photo, video, audio LEGACY NEO-LEGACY OTT SMART TV GAME CONSOLES Audio Cable TV Web/Tablet Roku Samsung X Box Alexa Print Mobile Fire Vizio PlayStation Google Home Apple LG WII Sony Opera Calkins Media Content Distribution Strategy Currently or soon to be publishing on these platforms
- 8. Why Video? Why Now? Video advertising spend is growing Source: Borrell $22.97 $32.62 $48.26 $69.50 $82.68 $98.58 $112.10 2011 2012 2013 2014 2015 2016 2018 VIDEO ADVERTISING (IN MILLIONS) CALKINS MEDIA MARKETS
- 9. Source: webtrends, Nov 2016 Time Spent with OTT is SIGNIFICANT 95% [CATEGORY NAME] [VALUE] Hours 2% [CATEGORY NAME] [VALUE] Hours 3% [CATEGORY NAME] [VALUE] Hours Total Time Spent Viewing Video by Platform November 2016
- 10. 2.1 1.8 OTT devices TV Set-top boxes Average Number of Devices in U.S. Households Source: Leichtman Research Group February-March 2016 Note: OTT devices include smart TVs and streaming media devices that connect a television to the Internet. Set-top boxes are the boxes that pay TV companies rent out to subscribers. Among all U.S. households, the mean number of streaming-capable devices is 2.1 per household, compared to 1.8 pay TV set-top boxes. OTT Devices Outnumber Cable Boxes
- 11. 56.5 57.2 57.6 56.2 55.1 54.8 54.5 53.9 53.2 52.4 18.0 21.7 27.0 41.2 56.0 73.8 88.7 92.5 94.9 96.3 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cable and Connected Households (in millions) Cable TV households Connected TV households Streaming Households Surpass the Number of US Cable Households Source: eMarketer, Oct 2016 Note: Cable TV: households with a subscription to cable TV service Connected TV: households with at least one connected TV set, where at least one person of any age uses the internet through a connected TV at least once per month
- 12. Among Households in the Calkins Media Markets Source: Scarborough, 2016; Simmons, Spring 2016 Streaming Has Caught Up to Cable in the Calkins Media Markets as Well 202,531 446,379 726,776 Cable Company #2 Cable Company #1 Uses a Streaming Service
- 13. Content Strategy
- 14. BIG IDEA 1 To take a print-centered newsroom and transform it into a video-driven newsroom using existing people and dollars.
- 15. Newsroom People Training & Development Drew Berry & Associates, LLC 300 E. Lombard St. Suite 840 Baltimore, MD 21202 410-814-7555 [email protected] Drew Berry A two-time Emmy Award-winning President of Drew Berry & Associates, LLC, which is a media consulting agency Berry has more than 25 years of experience in the television news industry in numerous markets including New York City, Philadelphia, Dallas, Atlanta and New Orleans. He won his Emmys in his role as news director for CBS in Philadelphia Berry's experience includes teaching and practicing journalism as well as major involvement on various boards and committees
- 16. Nuts and Bolts iPhones for newsroom staff HD cameras Editing stations Portable lights Microphones Tripods In-house studio Tricaster editing station Consultant for shows Consultant for news video In-house development of journalists Journalists trained to date; 100+
- 17. Show Development James Andrew Miller Award-winning journalist who has worked in politics, media, and entertainment in a career spanning more than 30 years Executive VP of Original Programming for USA Network Producer with CBS News and Senior Executive Producer of both Anderson Cooper 360 & Paula Zahn Now Author of the recently released NYT best selling book Powerhouse, The Untold Story of Hollywood’s Creative Artists Agency, Those Guys Have All the Fun, Inside the World of ESPN, and Live From New York, An Uncensored History of Saturday Night Live, His first book, RUNNING IN PLACE: Inside the Senate, was also a bestseller.
- 18. 64 Hours of Video Published in October Source: Limelight Analytics 393 396 398 415 620 613 526 437 539 649 688 13.0 14.3 14.5 15.7 32.1 25.9 24.3 23.0 26.0 30.4 64.3 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 0 100 200 300 400 500 600 700 800 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 HoursofVideoContent #VideosPublished Videos Published Hours of Content
- 19. Calkins Print Video Plays Across All Devices Source: Webtrends 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Total Video Plays Calkins Print Properties
- 20. Calkins OTT Apps Distribution platforms for digital video streamed to your TV via the internet Roku Amazon FireTV Apple TV
- 21. Calkins Philly: Comcast & Verizon VOD Partnership Distribution is for entire Philadelphia DMA
- 22. BIG IDEA 2 Creating an OTT linear stream at a local broadcast TV station to generate additional audience and revenue using existing resources.
- 23. VOD/Video on Demand Math Example • 100,000 monthly video views • $25/CPM, 100% sold out • Monthly Revenue - $2,500, Annualized Revenue - $30,000 Business Models: VOD vs Linear Math
- 24. Linear TV Math Example: Based on 40 content minutes/20 (30 sec) ad minutes per hour Ad Units/ Hour Ad Units/ Day Ad Units/ Year Revenue/ Year @$1/Spot 40 960 350,400 $350,400 @$5/Spot 40 960 350,400 $1,752,000 Business Model: VOD vs Linear Math
- 25. Trend of Roku, Amazon Fire and Apple TV Cumulative Downloads at One Local TV Station Source: webtrends, iTunes, Amazon Developer, Roku Developer 0 50,000 100,000 150,000 200,000 250,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 TOTALVIEWTIME(HOURS) DOWNLOADS DOWNLOADS AND TOTAL VIEW TIME DOWNLOADS TOTAL TIME Linear Channel Soft Launched 10/15 Linear Channel Hard Launch Jan
- 26. Source: Webtrends, November 2016 Mobile 12% Desktop 9% OTT 79% Share of Total Plays [CATEGORY NAME] [PERCENTAG E] (3M, 40S) [CATEGORY NAME] [PERCENTAGE] ( 11M, 1S) [CATEGORY NAME] [PERCENTAG E] (1H, 37M) Share of Total Time (with avg. view time per session) Linear Drives Engagement
- 27. Source: Webtrends, November, 2016 0 500 1,000 1,500 2,000 2,500 3,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 12:00AM 1:00AM 2:00AM 3:00AM 4:00AM 5:00AM 6:00AM 7:00AM 8:00AM 9:00AM 10:00AM 11:00AM 12:00PM 1:00PM 2:00PM 3:00PM 4:00PM 5:00PM 6:00PM 7:00PM 8:00PM 9:00PM 10:00PM 11:00PM WebsitePlays OTTPlays LIVE STREAM PLAYS BY HOUR OTT Live Stream Plays Website Live Stream Plays TV is the NEW TV AM PM
- 28. Good News • Gateway to cable carriage, low power OTA, virtual MVPDs • Legacy TV sales reps can sell it • Preserves legacy TV pricing model Bad News • Traditional TV syndicators don’t have rules yet • It’s hard and requires a lot of planning • There is a hard cost (bandwidth) associated with delivery that scales quickly Linear OTT Facts
- 29. Questions?