Here, there and everywhere -

Connected TV and public service

CEO Lauri Kivinen

Finnish Broadcasting Company

Connected TV and Video Conference, Moscow 5.3.2013

• Finnish TV market

• Online viewing

• Future of Connected TV

Media business models

ADVERTISING

SUPPORTED

SERVICES

PUBLIC

SERVICE

MEDIA

SUBSCRIPTION

SERVICES

FREE TO

AIR TV

NEWSPAPERS

& MAGAZINES

WEB TV SERVICES

PAY-TV SERVICESMUSIC

STREAMING

SEARCH &

AGGREGATION

SOCIAL MEDIA

Finnish Broadcasting Company

• 3100 employees

• Annual budget 450 million €

• State owned public media

• 4 TV channels, 6 radio

channels, Internet services

• 26 regional radio services

• 8 regional TV news broadcasts

• 99 % of Finns use Yle’s services

• Daily reach more than 75 %

TV viewing shares by media companyFinland: 5,4 million people and 2,5 million households

Yle 42 %

MTV Media 30 %

Nelonen Media

15 %

Other commercial 13 %

Source: TV Peoplemeter, Finnpanel Oy, 2012

Average daily TV viewing time in Finland: 3 hours 3 minutes

Web TV adds 1,5% to TV watching

INPUT 2014 in Finland!

• International Public Television Screening

Event and Conference

• The world’s biggest event for public

broadcasting companies in Helsinki 12-15

May 2014

Welcome !

Roles of Connected TV

1. Catch up and Catalogue viewing

• Personal Video Recording

• Catch-up and On-demand

services, Web TV

2. Enriching linear TV watching

• Second window, Second screen

• Chat, Polls,Quizzes,Voting

• Social TV

Majority of TV viewing is linear

Linear TV Broadcast

91 %

TV catch-up

7 %

Web TV on demand

2 %

Scheduled TV Catalogue content

Source: Tv-meter/Finnpanel and comScore - Yle Media Unit

Majority of TV viewing is linear

Source: Tv-meter/Finnpanel and comScore - Yle Media Unit

Linear TV Broadcast

91 %

News, Current affairs,

Sports, Events, Other

scheduled content

TV catch-up

7 %

Web TV on demand

2 %

Movies, Drama,

Series, Children

Scheduled TV Catalogue content

Majority of TV viewing is linear

Linear TV Broadcast

91 %

News, Current affairs,

Sports, Events, Other

scheduled content

TV catch-up

7 %

Web TV on demand

2 %

Movies, Drama,

Series, Children

Scheduled TV Catalogue content

Source: Tv-meter/Finnpanel and comScore - Yle Media Unit

CONNECTED TV

Yle Areena is the most valued

online media brand in Finland

• Finland’s leading

catch up service

• Radio channels

simulcast

• TV simulcast coming

TVpremiere

58 %

TV rerun29 %

PVR catch up

7 %

Areena catch up

6 %

Source: Tv-meter (Finnpanel -Yle VP), comScore

Uusi päivä, youth drama series:

non-linear viewing 13%

TV & Web TV

Challenges of the Connected world in TV

Rights management

Fragmentation of platforms and devices

Battles in the value chain

Online rights challenge

Audiences expect

to access content:

• Everywhere

• Any time

• On any device

Content rights are

being sold

• On a territorial basis

• Within time windows

• Limited to specific

distribution channels

Diversification fragmentation No

single winning platform

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016 2017 2018 2019 2020

Smartphones

Tablets

PC-households

Game consoles etc. connected to Internet

Connected TV´s, connected to Internet

By 2020: Most web-connected devices

will be personal

Source: Industry estimate

Devices capable for video viewing

Telecom operators

TV distributors

Other ecosystems

(operating systems, walled

gardens etc.)

Internet services,

games and social

media

Video on demand

(broadcasters and web

TV services)

Device

manufacturers

Content production

Services packaging

Delivery Platform Boxes TV Sets

Connected TV value chain

Audience behaviour

• Second screen, social media

• Games & the big screen

• Simplicity

Audience behaviour

• Second screen, social media

• Games & the big screen

• Simplicity

Thank You

CEO Lauri Kivinen

Finnish Broadcasting Company

Connected TV and Video Conference, Moscow 5.3.2013