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

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 • This large client base gives a perspective that I’d like to pass on to you 3

9/21/2015 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 4

9/21/2015 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 5

9/21/2015 Interesting OTT Video Stats 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 6

9/21/2015 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 7

9/21/2015 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 8

9/21/2015 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 9

9/21/2015 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 10

9/21/2015 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 11

9/21/2015 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 12

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9/21/2015 Device Overview Google Nexus Player • $99 • Plays Sling TV, Netflix, Hulu Plus, and Google Play • Remote and voice search • 8 GB internal storage 16

9/21/2015 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 17

9/21/2015 Device Overview Apple TV • $69 • Plays Sling TV, Netflix, iTunes, HBO GO, and ESPN • Remote control • Most owned – Digitalsmiths 2014 18

9/21/2015 Could setup be any easier… 19

9/21/2015 Device Overview HDMI Sticks HDMI (High-Definition Multimedia Interface) • Offered by Roku, Google and Amazon • Less expensive ($35 ‐ $50) • Fewer features • Highly mobile 20

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9/21/2015 Device Overview Other devices • Smart TVs • Game consoles (Play Station, Wii, Xbox,etc.) • Tablets • Lap tops • Smart Phones 22

9/21/2015 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 23

9/21/2015 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 24

9/21/2015 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 25

9/21/2015 A closer look at Sling TV 26

9/21/2015 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 27

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9/21/2015 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 31

9/21/2015 Options for addressing OTT 32

9/21/2015 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 33

9/21/2015 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 34

9/21/2015 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 35

9/21/2015 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 36

9/21/2015 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 37

9/21/2015 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 38

9/21/2015 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 39

9/21/2015 Your Turn! Opportunity, threat or something else? 40

9/21/2015 Questions? 41

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