Tech Tour Allan McLennan Chief Executive, PADEM Media Group - - PowerPoint PPT Presentation

1

TechTour

Allan McLennan

Chief Executive, PADEM Media Group

allanmc@pademgroup.com

Sports in Real Time…The Vision and opportunity

PADEM Group Q3, 2018

Allan McLennan, Chief Executive Global Market Technologist M&E, IP/OTT/Video/AI/Data allanmc@pademgroup.com 415‐383‐8397

Pioneering sports broadcasters are looking for next‐ generation TV over IP to transform their businesses and game that will allow new services and programming previously not possible directly to their viewers. Thanks to the flexibility of both the market and Cutting‐ Edge today, LIVE and synchronized programming over IP that is driven with data distribution/intelligence, multichannel offerings, cloud‐based LIVE linear TV, LIVE VOD and ultra‐high definition are now all on the table.

Critical Questions

Is TV Dead? No! Explosion of LIVE IP Sports Millennial/Generational Active Syncro Viewing LIVE Now! Social / Stats Integration Multi-Screening Shift in “Balance of Power” New expansive LIVE OTT

Technology Evolution LIVE, Synchronized Streaming Move to the Cloud New Sports Strategies Business Model Transformation

Who are you, really? What battle are you fighting? What is your primary offering?

Business issues Questions that are key

Recent study….

• TV & OTT Convergence: Platform – agnostic

model – moving to Post-OTT all DTC

• Digital Transformation: Products, services,

production and engagement

• Content piracy remains significant threat.

• LIVE online Video Traffic is Skyrocketing
• Traditional TV still holds 78% of viewing dropping from 96% just five years ago.
• A torrid growth rate for OTT/IP video will continue for the foreseeable future with the growth
• f new connected devices, new refined OTT services, combined offerings (data, IP & mobile)

and advertising which are all connected through and managed by network of “clouds.”

• IP Video traffic – already staggering in size and interest – is estimated to grow another 26%

reaching 37,660 petabytes per month this year (2018). Ie. A petabyte is one million gigabytes. (Cisco Visual Networking Index)

• By the end of this year, 2018, online video will account for close to 90% of all consumer IP
• traffic. (Cisco Visual Networking Index)
• Mobile data traffic will grow 10-fold over the next two and half years (Ericsson Traffic and Market

reports)

Bottom line….what’s happening?

• Globally, current sports TV offerings have the potential to grow their programming value

due to DTC offerings over IP, but run the potential of having their offerings stagnate and not capture full return if not done right

• Carriers/broadcaster’s are being hit with a double-whammy due to both a reduction in

their legacy businesses and now network build outs.

• There is a major need to launch sports franchises their own services to try to recoup and

gain revenues.

• They must leverage their strengths as an operator and content creator to established

their brand creating new streams of revenue.

• This will drive three trends and behavior shifts:

North American households alone are forecasted to grow with ConnectedTV’s by 60% this year (2018) and continue the growth for multiple years to come. (Parks Associates) ConnectedTV’s will compromise 90% of ALL Television sold by 2019. (IMS Research) There are ONE billion Connected TV devices globally searching for streamed and multi- camera synchronization content. The market is going to EXPLODE! (Strategic Analytics 8/2018)

Combine that with…..

While forecasted to be huge, the cost of Sports rights exceeds logic…. Audience reach critical to justify investment or to give another option

>

The global value of sports media rights was just under $47bn in 2017, up from $43.6bn in 2016.

>

Year-on-year growth will continue, with the value of the market forecast to break the $50bn-barrier in 2019 and reach almost $54.3bn by 2021

>

Among sports, US football is the world’s largest generator of rights fees at $18.8bn in 2017, and is the fastest growing sport in the top 10 with a 9.9-per-cent rise on 2017

>

Basketball overtook baseball to become the world’s second most valuable sport in 2017 following a 32-per-cent increase on 2017 revenue

>

The multi-sport competitions total is almost entirely from the Olympic Games. Olympics media rights revenue has been divided over four-year ‘Olympic cycles’, each covering one Winter Olympics and one Summer Olympics

>

Even golf’s media rights generated $1.2bn in 2017, a 3-per-cent increase on 2016.

>

Cricket is due to break the $1bn revenue mark in 2018 with the start of the new $510m-per-year Indian Premier League global rights contract

• Viewer interest and corporate investment in Sports has been increasing

steadily over the past few years.

• Approximately 10% of U.S. broadband households claim to watch sports on a

connected device, with the majority of viewership among young consumers.

• In 2017, the League of Legends finals in China enjoyed a peak concurrent

viewership of the English-language stream of over 870,000 viewers.

• ESPN telecast of the 2017 MLS Cup averaged 803,000 viewers, which was up by

20% over 2016 figures.

• NBC Sports reported an average per-game viewership for the 2017 Stanley Cup of
• ver 4.7 million viewers and a peak viewership of almost 9.5 million viewers.
• Several NBA franchises are beginning to invest in eSports franchises and several

media outlets have created basic coverage for those.

However, are Sports really that strong? Yes…it will be huge!

• Provide LIVE, synchronized connections

immediately around the world to build audience.

• Empower all viewers on all screens with a

better television engagement

• Provide all carriers with stable, scalable and

continuous live coverage via IP video programming easily on all platforms – effectively, efficiently in-order to build an engaged and profitable audience engagement

• Drive the acceleration of LIVE video to

everyone

• Provide the underpinnings for LIVE OTT

engagement over every IP Video network today

Baseball’s Opportunity

• Voice-based user interfaces & technologies that support LIVE streaming and

high-resolution formats are the dominant themes among product and service upgrades in the OTT Video Market (Frost & Sullivan March 2018)

• TV (video) initiatives will push more live programming to portable, connected

devices

• Viewers who already like long-form cable/IPTV programming on their TV sets

will rapidly supplement this behavior with OTT offerings via IP services on connected devices. In fact, time spent watching sports on connected devices grew over 75% between Q4/2017 and Q2 2018. (Ooyala Global Video Index

Report)

• TV is not dead! The subscription model has just shifted and the race is on to

provide all programming, both new and legacy available to retain audiences.

• Introduction/retainment to become the holy grail of the M&E category

Why?

Fundamental shift in the economics of television

• All new new deployments provide multiple

platform/device distribution – it’s a given

• Time to market critical – Cloud based service providers

capitalizing and pace of Networks (Telco/Cable) deployments.

• Portability’s the primary growth category
• Mobility - 60+% of all video delivery/consumption

Tablets/phablet’s = personalized viewing

• Short form LIVE programming capitalizing on second screen

behavior.

• Nearly 90 percent of people watching television are also

tuned in to another device

• It’s no longer enough to receive information via one screen

at a time. (NPD)

• A continuous, stable connection is a mandate for networks

in order to retain viewership!

Being in the right position….key

Viewers want LIVE programming on all devices…

Why is LIVE, synchronized programming so important….

• Whether you are a broadcaster, publisher, producer or operator leveraging valuable LIVE assets accurately

• LIVE interaction platforms are more productive and open up new motivators for revenue.
• The quality, speed and breadth of delivery and playout are just as important as content creation. Audience

• Faster, more efficient, real-time, multi-platform content delivery generates greater ROI at every point of the

• Live content increases popularity of programming in crowded markets
• 47% of respondents in a recent Q1/2018 IAB study state they had increased their “live” viewing due to the

• LIVE streaming is not just Sports but also news (especially sports related)or breaking events where immediacy

• LIVE programming goes beyond monetization providing community and cultural engagement that has proven

Where?

Synchronized devices are personalized….

• FAANG’s enjoy scaled economics way beyond the capabilities of nationally

bound service providers

• FAANGs may be willing to sustain loss making businesses in order to build

market share

• Local service providers have a lead in sports and local language content, but
• Sports rights auctions have FAANGs bidding with increasing levels of

spending and aggression need LIVE streaming –– device synchronization key as well as non-English language

• Where there is opportunity against FAANG’s is in LIVE NEWS and

significant events

• Competing against FAANGs will drive consolidation in the USA as broadcasters

scramble to:

• Defend the traditional pay TV and commercial broadcast businesses
• Build the capability to offer D2C platforms based on owned and

produced content

• Build the scale to roll out D2C platforms across multiple territories
• * FAANG – Including Apple

Who’s driving the fear…? Jump on or be left behind

 Devices

Entertainment

“When it comes to LIVE event streaming, online users want to view what’s happening in sync with the action displayed over their connected screen versus legacy networks…there’s a big

• pportunity for providers who get it right!”

Allan McLennan, Chief Executive Global Market Technologist M&E, IP/OTT/Video/AI/Data allanmc@pademgroup.com 415‐383‐8397