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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
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Exploring Opportunities for OTT Service Monetization
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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
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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
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Underlying Business Model of OTT
Exploring Opportunities for OTT Service Monetization
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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…
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Optimizing Monetization Beyond Traditional Approaches
Exploring Opportunities for OTT Service Monetization
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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
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How Our Technology Can Support Optimized Monetization
Exploring Opportunities for OTT Service Monetization
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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
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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
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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
SUBSCRIPTION & ADVERTISING
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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
SUBSCRIPTION & ADVERTISING
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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
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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
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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
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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
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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
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Monetization Through Enrichment
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Subscription & Ad Insertion Revenue
Exploring Opportunities for OTT Service Monetization
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Use Case Example
VIDEO SERVICE PROVIDER
250,000 Subscribers
Subscription & Ad Insertion for Linear, VOD, cDVR
Three Models: Conservative (EMEA), Medium (AMER), Optimistic
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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).
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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
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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
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Real World Predictive Analytics Example
Exploring Opportunities for OTT Service Monetization
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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).
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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
&
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Online Resources
All links valid at time of webinar / original publication.
www.smart-video-engine.com
OTT www.imaginecommunications.com
#SieConCre
http://www.imaginecommunications.com/solutions/
/multiscreen-delivery/cloudxtream-ott
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Exploring Opportunities for OTT Service Monetization
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Exploring Opportunities for OTT Service Monetization
www.smart-video-engine.com
www.imaginecommunications.com
ROBERT ALBRECHT
YUVAL F ISHER
Thank You for Attending
Today’s Webinar
Chief Technical Officer, MVPD Head of Presales Multimedia
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