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GLGi: Cable TV and Broadband Video Will Richmond.

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Presentation on theme: "GLGi: Cable TV and Broadband Video Will Richmond."— Presentation transcript:

1 GLGi: Cable TV and Broadband Video Will Richmond

2 Council Member Biography Will Richmond is President and Founder of Broadband Directions LLC, a leading market intelligence and consulting firm which specializes in broadband-delivered video. Many of the worlds largest media and technology companies subscribe to Broadband Video Focus, the firms market intelligence service. Mr. Richmond has worked in the broadband, cable TV, content, network infrastructure and software industries for over 15 years. During the mid-1990s he was the VP of Business Development at Continental Cablevision, then the 3rd largest cable TV operator in the U.S., where he was a co-founder of Continentals pioneering high-speed Internet service. Since 2003, Mr. Richmond has worked with many early-stage and established companies in the broadband video industry. He is an acknowledged thought-leader in this area and is frequently called on by industry executives, investors, journalists and others to provide his insights. Mr. Richmond is a graduate of Cornell University and Harvard Business School.

3 Topics How is broadband video changing the traditional video distribution value chain? What are the key players in various media segments currently doing with broadband video? What are the major trends and technologies impacting the market? Which business models are working and what are their challenges and opportunities?

4 About GLG Institute GLG Institute (GLGi SM ) is a professional organization focused on educating business and investment professionals through in-person meetings. It is designed to revolutionize the professional education market by putting the power of programming into the hands of the GLG community. GLGi hosts hundreds of Seminars worldwide each year. GLGi clients receive two seats to all Seminars in all Practice Areas. GLGis website enables clients to: Propose Seminar topics, agenda items and locations View and RSVP to scheduled and proposed Seminars Receive a daily briefing with new posts on your favorite tickers, subject areas and from trusted Council Members Share Seminar details with colleagues or friends

5 Gerson Lehrman Group Contacts John Arohnson Vice President, TMT Gerson Lehrman Group 850 Third Avenue, 9th Floor New York, NY Aaron Liberman Managing Director, Sales and Marketing Gerson Lehrman Group 850 Third Avenue, 9th Floor New York, NY Carly Pisarri Process Manager Gerson Lehrman Group 850 Third Avenue, 9th Floor New York, NY

6 IMPORTANT GLG INSTITUTE DISCLAIMER – By making contact with this/these Council Members and participating in this event, you specifically acknowledge, understand and agree that you must not seek out material non-public or confidential information from Council Members. You understand and agree that the information and material provided by Council Members is provided for your own insight and educational purposes and may not be redistributed or displayed in any form without the prior written consent of Gerson Lehrman Group. You agree to keep the material provided by Council Members for this event and the business information of Gerson Lehrman Group, including information about Council Members, confidential until such information becomes known to the public generally and except to the extent that disclosure may be required by law, regulation or legal process. You must respect any agreements they may have and understand the Council Members may be constrained by obligations or agreements in their ability to consult on certain topics and answer certain questions. Please note that Council Members do not provide investment advice, nor do they provide professional opinions. Council Members who are lawyers do not provide legal advice and no attorney- client relationship is established from their participation in this project. You acknowledge and agree that Gerson Lehrman Group does not screen and is not responsible for the content of materials produced by Council Members. You understand and agree that you will not hold Council Members or Gerson Lehrman Group liable for the accuracy or completeness of the information provided to you by the Council Members. You acknowledge and agree that Gerson Lehrman Group shall have no liability whatsoever arising from your attendance at the event or the actions or omissions of Council Members including, but not limited to claims by third parties relating to the actions or omissions of Council Members, and you agree to release Gerson Lehrman Group from any and all claims for lost profits and liabilities that result from your participation in this event or the information provided by Council Members, regardless of whether or not such liability arises is based in tort, contract, strict liability or otherwise. You acknowledge and agree that Gerson Lehrman Group shall not be liable for any incidental, consequential, punitive or special damages, or any other indirect damages, even if advised of the possibility of such damages arising from your attendance at the event or use of the information provided at this event.

7 © Copyright Broadband Directions LLC. All rights reserved. Page 7 Profiting from Broadband Videos Disruptive Impact GLG Presentation New York, N.Y. October 24, 2007 Will Richmond President Broadband Directions LLC © Copyright Broadband Directions LLC. All rights reserved.

8 Page 8 Legal Disclaimer All information contained in this document is proprietary to and copyrighted by Broadband Directions LLC, except as described below. You may not alter or remove any trademark, copyright or other notice from any copy of this document. Broadband Directions and the Broadband Directions logo are trademarks of Broadband Directions LLC. All other trademarks used in the document, including the logos of cable networks reproduced herein, are the property of their respective owners. All web site images and content of companies excerpted in this document are the copyrighted material of their respective owners. Neither Broadband Directions LLC nor any other party is responsible for any deficiencies in the accuracy, completeness or timeliness of any information contained in this document, or for any decision made using such information. In particular, information contained in this document was gathered over a specified period of time, and it is possible that such information has changed since it was collected and is out of date as of the publication of this document. The opinions contained in this document reflect the judgment of the author at the time of publication and are subject to change. This document is designed to provide general information on the subject matter covered. It is not intended to provide personalized advice or guidance. You are responsible for properly analyzing and verifying any information you intend to rely on.

9 © Copyright Broadband Directions LLC. All rights reserved. Page 9 Definitions Broadband-delivered video is: –Delivered through broadband IP connections (cable modem, DSL) –Served remotely from anywhere on the Internet to a users computer –Sometimes downloadable to portable devices (e.g. iPod, Zune) –Also called Internet TV, online video, broadband TV Broadband-delivered video is not: –IPTV, which uses set-top boxes and a walled-garden approach –Mobile TV or Wireless Video (e.g. VCast, MobiTV, others) –VOD served by a cable/satellite/telco set-top box –TiVo or DVR video

10 © Copyright Broadband Directions LLC. All rights reserved. Page 10 Key Questions To Address What changes are happening in the video distribution value chain? What are media companies doing with broadband video? Whats ahead?

11 © Copyright Broadband Directions LLC. All rights reserved. Page 11 $ $ $ $/other Traditional Video Distribution Value Chain Consumers Advertisers $ $ $ Source: Broadband Directions LLC Producers and Rights Holders Cable TV Networks Retail Distributors (cable TV or satellite) Broadcast TV Networks & Stations

12 © Copyright Broadband Directions LLC. All rights reserved. Page 12 Broadband-delivered video is the single most disruptive influence on the traditional video distribution value chain. WHY?

13 © Copyright Broadband Directions LLC. All rights reserved. Page 13 Broadband is an Open Video Delivery Platform Internet Cable modem or DSL Computer Television ? Broadband Network Portable Video Player (e.g iPod, Zune) ? Source: Broadband Directions LLC Video Servers (e.g. Yahoo, CNET, MLB ) Video Servers (e.g. YouTube, NYTimes, Budweiser)

14 © Copyright Broadband Directions LLC. All rights reserved. Page 14 3 Disruptions of Broadband Video 1. Established video providers can go direct-to-consumer –Cable bypass – 1 st time to get video directly to audience –New economics based on retail, not wholesale model 2. New broadband video distributors can establish value –Define new services that are aligned with consumer behaviors –Change basis of competition among market participants 3. New video-focused market entrants can emerge –Numerous types of companies enter video market –New broadband/online-centric economics

15 © Copyright Broadband Directions LLC. All rights reserved. Page 15 Broadband videos disruption is REAL not theoretical

16 © Copyright Broadband Directions LLC. All rights reserved. Page Broadband Enables Direct-to-Consumer Models Source: Broadband Directions LLC Consumers Advertisers $ $ $ $ Broadband access only $ $ Cable TV Networks Retail Distributors (cable TV or satellite) Producers and Rights Holders Broadcast TV Networks & Stations

17 © Copyright Broadband Directions LLC. All rights reserved. Page 17 Examples of Direct-to-Consumer Models NBC/News Corp Hulu Discovery Beyond E The Vine Lifetime Video Lounge CBS Innertube HGTV KitchenDesign TNT Dramavision Starz Vongo CourtTV Extra

18 © Copyright Broadband Directions LLC. All rights reserved. Page Broadband Enables New Video Distributors $ $ Source: Broadband Directions LLC Broadband Video Distributors $ $ Consumers Advertisers Broadband access only $ Retail Distributors (cable TV or satellite) Producers and Rights Holders Cable TV Networks Broadcast TV Networks & Stations

19 © Copyright Broadband Directions LLC. All rights reserved. Page 19 Examples of New Video Distributors Portals/Search AOL Yahoo MSN Google Apple iTunes Aggregators/Syndicators Joost Comcast Amazon Wal-Mart Brightcove UGC/Video sharing YouTube MySpace Revver Metacafe Veoh

20 © Copyright Broadband Directions LLC. All rights reserved. Page Broadband Enables New Video Providers Source: Broadband Directions LLC New Video Providers (startups, incumbent non- video media or marketers) Broadband access only $ Consumers Advertisers $ $ $ $ Broadband Video Distributors Retail Distributors (cable TV or satellite) Producers and Rights Holders Cable TV Networks Broadcast TV Networks & Stations

21 © Copyright Broadband Directions LLC. All rights reserved. Page 21 Examples of New Video Providers Niche providers JibJab Next New Networks Cycling.tv The Nine Barrio305 WGSN Print publishers WSJ NY Times Businessweek Better.tv Online publishers About.com iVillage CNET NASCAR Brand marketers Dove Smirnoff MGM Neiman Marcus Frito-Lay

22 © Copyright Broadband Directions LLC. All rights reserved. Page 22 $ $ $ $/other Subscribers Advertisers $ $ $ Producers and Rights Holders Cable TV Networks Retail Distributors (cable TV or satellite) Broadcast TV Networks & Stations Current Video Distribution Value Chain

23 © Copyright Broadband Directions LLC. All rights reserved. Page 23 Future Video Distribution Value Chain? Source: Broadband Directions LLC All Video Providers Advertisers $ $ $ $ Broadband Video Distributors Consumers $

24 © Copyright Broadband Directions LLC. All rights reserved. Page 24 What changes are happening in the video distribution value chain? What are media companies doing with broadband video? Whats ahead?

25 © Copyright Broadband Directions LLC. All rights reserved. Page 25 Top 75 Cable TV Networks and Broadband Video

26 © Copyright Broadband Directions LLC. All rights reserved. Page 26 Top 75 Cable TV Networks Embrace Broadband Video

27 © Copyright Broadband Directions LLC. All rights reserved. Page 27 Advertising Model Dominates for Top 75

28 © Copyright Broadband Directions LLC. All rights reserved. Page 28 Broadband Becoming More TV-Like

29 © Copyright Broadband Directions LLC. All rights reserved. Page 29 Top 40 U.S. Newspapers and Broadband Video

30 © Copyright Broadband Directions LLC. All rights reserved. Page 30 Top 40 Newspapers Embrace Broadband Video Source: Broadband Directions LLC

31 © Copyright Broadband Directions LLC. All rights reserved. Page 31 Sources of Newspapers Video Source: Broadband Directions LLC

32 © Copyright Broadband Directions LLC. All rights reserved. Page 32 But Ads Not Yet Widely Implemented Source: Broadband Directions LLC

33 © Copyright Broadband Directions LLC. All rights reserved. Page 33 Top 40 U.S. Magazines and Broadband Video

34 © Copyright Broadband Directions LLC. All rights reserved. Page 34 Top 40 U.S. Magazines

35 © Copyright Broadband Directions LLC. All rights reserved. Page 35 Top 40 U.S. Magazines

36 © Copyright Broadband Directions LLC. All rights reserved. Page 36 Top Broadcasters and Broadband Video

37 © Copyright Broadband Directions LLC. All rights reserved. Page 37 Broadband Video and the Broadcast TV Industry 1. Broadcast networks fully embrace broadband –Full streaming of episodes –Paid download models remain –Hybrids emerging (e.g. NBC Direct) –Syndication (Hulu, CBS IAN, ABC/AOL) 2. Local affiliates move video online –Streaming news clips and shows mainly –Viewers get on demand, online access 3. New aggregators and syndicators break down geographic boundaries –Companies emerging to syndicate local video –Voxant, Clip Syndicate (Syndicaster), TitanCast, etc. –Ad-based models

38 © Copyright Broadband Directions LLC. All rights reserved. Page 38 Local Stations Offering Broadband Video Source: Broadband Directions LLC

39 © Copyright Broadband Directions LLC. All rights reserved. Page 39 Ad Support is Prevalent Source: Broadband Directions LLC

40 © Copyright Broadband Directions LLC. All rights reserved. Page 40 What changes are happening in the video distribution value chain? What are media companies doing with broadband video? Whats ahead?

41 © Copyright Broadband Directions LLC. All rights reserved. Page 41 Other Key Broadband Trends To Watch Convergence devices rolling out –Bridge PC/broadband and TV worlds –AppleTV, Microsoft Media Extenders, Xbox, Sansa TakeTV, etc. Improved ad targeting –Technologies to do video, audio, meta-data recognition –AdWords style business models Independently-produced video –Proliferation of independently-produced video, mainly ad-supported –Continued audience fragmentation Advertisers/Marketers embrace broadband –Lots of new direct campaigns using video –Reduce costs, increased tracking Peer-to-Peer (P2P) –Potentially alleviates bandwidth congestion –Lots of funding (Joost, Veoh, BitTorrent, etc.)

42 © Copyright Broadband Directions LLC. All rights reserved. Page 42 Conclusions Broadband most significant disruptive influence on video distribution value chain All players are re-thinking their business approaches Market is very dynamic – agility is key to success Broadcasters need to move forward aggressively

43 © Copyright Broadband Directions LLC. All rights reserved. For ongoing commentary, visit: Broadband video news and analysis….

44 © Copyright Broadband Directions LLC. All rights reserved. Page 44 Thank You Will Richmond President Broadband Directions LLC © Copyright Broadband Directions LLC. All rights reserved.


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