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WEB I NA R M O D ER ATO RS

Exploring Opportunities for OTT Service Monetization

Beginning his global career path with Siemens in 2006, Robert joined Siemens Convergence Creators in 2013. Already in 2014 he became Head of Presales and shortly after, in 2015, Deputy Head of the entire unit. Robert holds a masters degree in executive management as well as a bachelors degree in international management with engineering.

Yuval is a recognized authority in IP video with more than 20 years of experience in multimedia technology implementation. Yuval holds a PhD. in Mathematics, a Master’s Degree in Computer Science, and multiple patents in multimedia and image processing technologies.

Chief Technical Officer, MVPD

ROBERT ALBRECHT

YUVAL F ISHER

Head of Presales Multimedia


Webinar Agenda

Underlying Business Model of OTT

Optimizing Monetization Beyond Traditional Approaches

How Our Technology Can Support Optimized Monetization

Subscription & Ad Insertion Revenue

Real World Predictive Analytics Example

Questions & Answers


Why We Know What We’re Talking About

Imagine’s Multiscreen Portfolio is the most extensive available in the industry

Siemens provided the most successful OTT service for kids in the German speaking market

Monetization-focused product design

Focused on consulting and supporting customers to success

Trusted by hundreds of customers in the media business around the world

Companies unite decades of engineering experience

A joint, complete, end-to-end OTT solution


Underlying Business Model of OTT



The Basics

How do you optimize your income flow?

• Better Content / Exclusivity • Extend Reach • Improve User Experience • Offer Premium Features • Improve Content Discovery • Understand Customers Better

Who is traditionally paying you for

these products?

Money for Access • AVOD • Free

Money for Content • SVOD • TVOD • Linear / DVR

Subscriptions

What are the products you sell?

Video Content

Consumer Access

Let’s start by taking a look at the basic business model and how to optimize your income…


Optimizing Monetization Beyond Traditional Approaches



EXTEND REACH IMPROVE

CUSTOMER EXPERIENCE

IMPROVE CONTENT

DISCOVERY

UNDERSTAND YOUR CUSTOMERS

BETTER

Delivering Increased Value to Consumers

Multi Regional Multi Language Multi Currency Multi Platform

Individual flexible and intuitive GUI enriched with premium features (such as DVR & CDL)

Comprehensive search engine

Recommendation notification and

promotions

Sophisticated reporting and analytics tools

Improved ad targeting


How Our Technology Can Support Optimized Monetization



A Perfect Partnership

IMAGINE COMPONENTS THAT SUPPORT MONETIZATION

• Complete Linear OTT and VOD

• Transcoding/Encoding/ Packaging Offering

• Best-in class Cloud DVR technology

• Scalable DAI for linear, live and on-demand multiscreen delivery

SIEMENS TECHNOLOGY SUPPORTING MONETIZATION

• Extremely Flexible Business Management System

• Real-Time Application Modifications and Product Bundling

• Analytics in Support of Marketing Campaigns


LINEAR TRANSCODER

LINEAR PACKAGER

Selenio™ Transcoder

Telurio™ Packager

KEY FEATURES FOR MONETIZATION Multi format & multi DRM Condition streams for ad insertion Detect and mark national ads Deliver to multiscreen & broadcast

SUBSCRIPTION & ADVERTISING

Offer your Linear Content as an OTT Service

Selenio™ VDE HTTP-to-UDP

DRM KEY SERVER


JIT PACKAGER RECORDER cDVR

MANAGER JIT

TRANSCODER JIT

PACKAGER Telurio™ Recorder

Telurio™ Rec. Mgr

SelenioNext™ JITT

Telurio™ JIT Packager

KEY FEATURES FOR MONETIZATION Rich, sticky multiscreen service Support for multiple service tiers Support replacement of stale ads

with fresh, relevant ads

Augment Monetization with Cloud DVR Functionality



TelurioEdge™ Origin Server

SelenioFlex™ Transcoder

Ad & VOD Assets STORAGE

Telurio™ JIT Packager

KEY FEATURES FOR MONETIZATION Multi format and multi DRM Preroll, interstitial, & postroll ads Support for multiple service tiers

Provide VOD to Monetize Available Assets



xG ADS™ Ad Decision

Landmark™ Ad Mgmt

xG POIS™ POIS

xG ADR™ Ad Router

xG AIM™ Ad Insertion

KEY FEATURES FOR MONETIZATION Addressable by zone or individual Support for client- and network-side reporting Support of routing ad requests to multiple ad decision services Span OTT and broadcast screens Optimization of revenue via ad decision router

Leverage Ad Insertion to further monetize OTT Services


Extend Your Reach

Supporting all the important platforms & apps of your target group. Calculate cost-benefit!

Multiple Payment Options Multi Regional Multi Currency Multi Language

Analytics of Content and Ads

Content Discovery Multiple

Business Models

Live

FlexFile

MIDDLEWARE


Improve User Experience

Optimize content presentation for different devices and adopt content offerings with high frequency. Manage this via middleware, not the apps.

Focus on intuitive usability and adopt the design to the target group. Manage the app appearance via middleware.

Live

FlexFile

MIDDLEWARE


Improve Content Discovery

Use promotion features to market appealing offer bundles and discounts.

Good recommendations and a powerful search are state-of-the-art. Offer new releases via notifications (SMS, Email, Native Push Notifications, inApp Notifications).

Live

FlexFile

MIDDLEWARE


Understand Your Customer

Use tailored and detailed reporting and react with specific content bundles and content presentation.

Use sophisticated analytics tools to understand your customers demands.

Live

FlexFile

MIDDLEWARE


Monetization Through Enrichment

http://www.google.at/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwijnL7EiqvQAhXB2SwKHaTGBEQQjRwIBw&url=http://www.istockphoto.com/de/portfolio/ihorzigor&bvm=bv.138493631,d.bGg&psig=AFQjCNFDi6FH_y0H1YnuVmLesoe5ZjxgZQ&ust=1479310289561851


Subscription & Ad Insertion Revenue



Use Case Example

VIDEO SERVICE PROVIDER

250,000 Subscribers

Subscription & Ad Insertion for Linear, VOD, cDVR

Three Models: Conservative (EMEA), Medium (AMER), Optimistic


Assumptions

CPM (cost per 1000 Impressions)1 $10-$30

cDVR Concurrency2 1%-6% averaged over the day

D4 Ad Opportunities per Hour3 24

C3 Ad Opportunities per Hour 4

Number of Hours Viewed per Day4 10

Percentage of D4 Assets5 25%

Average AVOD Usage6 10% per day

AVOD Ad opportunities per hour7 6

Number of AVOD hours viewed per day 2

Average Live Concurrency8 5% - 15%

Ad opportunities per hour9 4

Number of hours viewed per day10 12

Linear / SVOD Subscription Values $0, $5, $10

cDVR Subscription Values $5, $12, $20

Service Uptake cDVR = 60%, SVOD = 50%, Linear = 100%

1. CPMs can be much higher, especially as targeting improves. 2. Peak cDVR concurrency can hit 20%, but average concurrency

over the day is much lower. 3. After C3 (72 hours), all ads can be replaced, but before,

they count towards the original live campaign. 4. This is a conservative estimate of the average number of

total hours that are viewed at the average cDVR concurrency (not the average viewed per viewer).

5. About 75% of all assets are viewed during the C3 window (72 hours). These are what’s left.

6. Peak AVOD concurrency can hit 20%, but average concurrency over the day is lower.

7. AVOD can’t support the same ad avails as recorded TV. 8. STB peak live concurrency is 50-60%,

but multiscreen is typically less. 9. Out of the typical 12 minutes per hour of advertising, about 2

minutes is shared with VSPs, leading to 4 avails. 10. This is a conservative estimate of the average number of total

hours that are viewed at the average live concurrency (not the average hours viewed per viewer).


Subscription Example Returns

Uptake % Monthly Subscription

Annual Revenue

Linear

SVOD

cDVR

Value Add Services

100%

50%

60%

10%

$ 5

$ 8

$ 12

$ 30

$ 15M

$ 12M

$ 21.6M

$ 9M

$ 57.6M

Annual ARPU

$ 60

$ 48

$ 86

$ 36

$ 230


Models of Annual Revenue per Service

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

Linear DAI cDVR DAI Subscription cDVR

Subscription Linear / SVOD

AVOD

AN

NU

AL

TOTA

L R

EVEN

UE

AN

NU

AL

AR

PU

Annual Revenue

Conservative Model

Medium Model

Optimistic Model


Real World Predictive Analytics Example



Real Life Example

COMMENTS

• Analysis of average subscription duration.

• Observation of specific user behavior shortly before termination of subscription.

• Deduction of predictive churn behavior.

• Special offering in case this pattern is observed with specific customers (promotions).


Be Outstanding!

OTT IS A COMMODITY DELIVERING VIDEO CONTENT TO A DISTRIBUTED AUDIENCE

VIA FREE INTERNET TECHNOLOGY IS AN ENABLER

LESS A COST DRIVER

UNIQUE OTT SERVICE DELIVERY WHERE MONETIZATION IS AT THE CORE OF OUR

PRODUCT VISION

&


Online Resources

All links valid at time of webinar / original publication.

www.smart-video-engine.com

OTT www.imaginecommunications.com

#SieConCre

[email protected]

http://www.imaginecommunications.com/solutions/

/multiscreen-delivery/cloudxtream-ott



www.smart-video-engine.com

[email protected]

www.imaginecommunications.com

ROBERT ALBRECHT

YUVAL F ISHER

Thank You for Attending

Today’s Webinar

Chief Technical Officer, MVPD Head of Presales Multimedia

[email protected]

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