OTT Video Opportunity, threat or something else? 1 9/21/2015 Rick - - PDF document

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OTT Video Opportunity, threat or something else? 1 9/21/2015 Rick - - PDF document

Mar 02, 2023 276 likes •707 views

9/21/2015 OTT Video Opportunity, threat or something else? 1 9/21/2015 Rick Paulsen Client Relations Manager 2 9/21/2015 A little background info MACC is a BSS/OSS provider based in Blair, Nebraska with a nation wide client base

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OTT Video

Opportunity, threat or something else?

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Rick Paulsen

Client Relations Manager

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A little background info

  • MACC is a BSS/OSS provider based in Blair,

Nebraska with a nation‐wide client base

  • This large client base gives a perspective that

I’d like to pass on to you

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What you’ll learn today

  • Current OTT statistics
  • Overview of OTT
  • List of common OTT devices
  • Overview of OTT content providers
  • A closer look at Sling
  • Options for addressing OTT
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Interesting OTT Video Stats

Number of people using a connected TV

  • 113 million
  • 36% of the U.S. Population
  • 87% of households have cable or satellite TV

service

– eMarketer, 2015 and Experian Marketing Services, 2014

“Cord cutter” households

  • 7.6 million – a 44% growth over four years

– Experian Marketing Services, 2014

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Total percentage of homes with an OTT device

  • 34% – Digitalsmiths 2014

Would recommend the service to a friend?

  • 54% of OTT customers
  • 39% of traditional pay TV

– Ericsson’s TV and Media Report, 2014

Interesting OTT Video Stats

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So what is OTT Video?

Over‐the‐top content (OTT) describes broadband delivery of video and audio without a multiple system operator being involved in the control or distribution of the content itself.

Wikipedia.org

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So what is OTT Video?

A less formal definition

  • A method of viewing video content over an Internet

connection – may be live or on‐demand

  • There are many devices and content sources
  • Can be a competitive or complimentary service

compared to traditional cable companies – look at ESPN3

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So what is OTT Video?

Strengths

  • It may be cheaper than traditional cable
  • On‐demand ability
  • Huge variety of programming
  • Mobility
  • Can be HD without HD pricing
  • Wide variety of programming for the cost
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So what is OTT Video?

Weaknesses

  • Need a strong Internet connection
  • Need a device or smart TV
  • May require a little technical ability
  • More cumbersome than traditional TV
  • The technology isn’t perfect – think buffering
  • As in all things – you get what you pay for
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So what is OTT Video?

Complimentary

  • WatchTVEverywhere ‐ ESPN3, HBO GO, etc.

Competition (at least for CATV providers)

  • Netflix
  • Amazon Prime
  • Hulu
  • Sling TV and more
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Device Overview

Roku Boxes

  • $45‐$90
  • Plays Sling TV, Netflix, Hulu Plus,

Amazon, and HBO Go

  • Remote control or phone app
  • 2000+ Channels to choose

Kim Komando, 2015

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Device Overview

Google Nexus Player

  • $99
  • Plays Sling TV, Netflix, Hulu Plus,

and Google Play

  • Remote and voice search
  • 8 GB internal storage
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Device Overview

Amazon Fire TV

  • $100
  • Plays Sling TV, Netflix, Hulu Plus,

and Watch ESPN

  • Remote and voice commands
  • 8 GB internal storage plus a

USB port

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Device Overview

Apple TV

  • $69
  • Plays Sling TV, Netflix, iTunes,

HBO GO, and ESPN

  • Remote control
  • Most owned – Digitalsmiths 2014
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Could setup be any easier…

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Device Overview

HDMI Sticks HDMI (High-Definition Multimedia Interface)

  • Offered by Roku, Google and Amazon
  • Less expensive ($35‐$50)
  • Fewer features
  • Highly mobile
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Device Overview

Other devices

  • Smart TVs
  • Game consoles (Play Station, Wii, Xbox,etc.)
  • Tablets
  • Lap tops
  • Smart Phones
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So what’s on?

Just about everything!

  • Netflix – Movies, TV shows and original content
  • Amazon – Movies, TV shows and original content
  • Hulu Plus – TV Shows and Movies
  • ESPN – ESPN3 and Watch ESPN Apps
  • HBO GO – Best movies and programs from HBO
  • Local Channels – CBS All‐Access
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What isn’t on??

A few deal‐breakers for some

  • Live, local off‐air stations – CBS may be an exception
  • Many up‐to‐the‐minute network programs
  • Some live sports – especially pro teams
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About the bandwidth…

OTT requires fast, uncapped bandwidth

  • Netflix recommends 5 Mbps minimum for HD
  • Apple TV suggests 8 Mbps for HD content
  • Roku asks for 9 Mbps for HD content
  • This is per stream…you may have more in each

household

Info courtesy of each company’s website

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A closer look at Sling TV

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A closer look at Sling TV

Sling seems close to “real” TV

  • A Dish product
  • Live broadcasts
  • ESPN, ESPN 2, ESPN U and SEC Network
  • Other big channels are available – CNN, AMC, & TNT
  • Only $20 and no contract
  • Possible subscriber “cap” from content providers

Info courtesy of the company’s website and cNet

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A closer look at Sling TV

Selling points against Sling TV

  • Channels are limited
  • Only one device at a time
  • Reliability – outage during Final Four
  • Limited ability to pause, rewind, or fast forward
  • No Big 10 Network or Fox Sports
  • Limited support options

Info courtesy of the company’s website, Ad Age, and cNet

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Options for addressing OTT

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If you see OTT as a threat…

There are selling points against cord cutting

  • Local off air stations are harder to get
  • Local content is likely unavailable
  • Customers may need to boost their Internet speed*
  • No one solution has all the channels of traditional

cable TV

  • Lack of support
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If you see OTT as an opportunity

You can leverage OTT to your advantage

  • Sell OTT devices or use them in promotions
  • Some OTT services are complimentary – ESPN3
  • Offer video services outside of your footprint without

the expense of video

  • Chance for YOU to upsell faster internet speeds

for an improved OTT experience

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If you see OTT as an opportunity

You’re going to sell lots of Internet

  • OTT and connectivity are the future – plan for it
  • Educate customers and make sure they have the right

Internet plans

  • Integrate OTT related questions into your selling

process

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What Can I Do with 300 GB of data?

  • Listen to over 11,000 hours of 64 Kbps music streaming
  • Watch over 1,000 hours of “good quality” streaming video
  • Stream two long HD movies a day every day for a month
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Internet Connection Speed Recommendations

Below are the Internet download speed recommendations per stream for playing movies and TV shows through Netflix.

  • 3.0 Megabits per second - Recommended for SD quality
  • 5.0 Megabits per second - Recommended for HD quality
  • 25 Megabits per second - Recommended for Ultra HD quality
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If you see OTT as an opportunity

What others have done…

  • Offer Free Roku with a short contract
  • Have used Roku devices to gain a foothold

in CLEC areas

  • Heavily promote those complimentary services –

Watch TV Everywhere

  • Become a content provider
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If you see OTT as an opportunity

Become a content provider

  • You can create a Roku Channel
  • The local content you currently have can be used
  • Local sports, events, and advertisements
  • More advanced options are available with off‐air

capabilities

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Your Turn!

Opportunity, threat or something else?

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Questions?

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