A View Over VOD. Delivery overview and trend

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1 A View Over VOD Delivery overview and trend

2 TECHNICAL mireality /mir-ree-al-i-tee/ noun: Maria Ingold s reality Maria was one of the first people to combine computer science and art in Now she s been voted one of most influential people in UK New Television by VOD Professional and has set up mireality as a digital media technical consultancy specialising in the delivery of premium video on demand. Prior to mireality, Maria was Head of Technology for FilmFlex Movies, jointly owned by Sony and Disney and one of the most successful ondemand movie services in Europe. CREATIVE

3 The key players Each player has a unique perspective Retailer Customer Suppliers Content Providers

4 The key delivery methods Each way has a type of audience Terrestrial Satellite Cable IPTV OTT Broadcast TVOD SVOD

5 Distribution Stage THEATRICAL (3-6) UK Rights Windows DVD/BLU-RAY/EST (ongoing) CURRENT VOD/PPV (3-7) Collapsing LIBRARY (any time after CURRENT VOD/PPV and PAY ongoing) Collapsing PAY (12-15) SECOND PAY WINDOW (12) Collapsing FREE TV (12-60) Collapsing SVOD The Day & Date line Rights windows are changing all the time Time (Months)

6 The Big Picture: VOD Delivery Overview Content Provider Media Asset Management Content Management System Publishing Deliver to Customer Ongoing Rights List Library Encode Ingest QA Images Trailers / Featurettes Film or TV episode Format 1 CDN / Web Servers / Caches Website / App Device Monitoring Customer Support Fault Resolution Licence Format 2 Mezzanine Accessibility / Localisation Head End New development File-based Assets Tape-based Assets Transcode Store Archive Metadata Package Confirmation Regional Head Ends Set Top Box Reporting Revenue payments

7 Content Provider Rights: Granted and Usage Granted: Territory, Window, Device, Content Type, Security, Rent / Own, Stream / Download Usage: Number Devices, Household, Views Rights List Tape-based Assets SD, HD, 3D, 4K, Multiple Tapes, Surround Sound, Audio Track Layout, Frame Rate, Timecodes Licence File-based Assets Tape-based Assets File-based Assets Varying Master Formats, Sufficient Source Quality, Down-converting, Secure and Fast Delivery

8 Media Asset Management Storing Content Receive Content Securely, Check Into Library, Mezzanine, Ingest, FACT/MPAA, Secure Access and Records, Online / Archive / Backup Library Encode Ingest QA Making Content Useable Editable & Transcodable Mezzanine, Preview, QC, Comply/Rate Mezzanine Transcode Store Archive Transcoding Considerations Bit Rate, CODEC, File Container, Streaming Transport Protocol, Adaptive Streaming, Profile, Resolution, Aspect & Pixel Ratio

9 Content Management System Metadata Superset Receive or Create Metadata, Fields, Space Constraints, Delivery Format, Handshake Results Images Trailers / Featurettes Film or TV episode Enrich the Customer Experience Images, Trailers, Featurettes, Accessibility / Localisation, Formats & Standards Accessibility / Localisation Metadata Package Relate all the Content Mezzanines to Derivatives, Enriched Content to Main Content, Episodes to Series, Content to Licences, Licences to Rate Cards

10 Publishing Double-check and Prepare Metadata Complete and Accurate, Related Content Ready and Correct Select Platform, Select Film Against Rights Format 1 Transform As-Required Transcodes, Transform XML, XSD Check Format 2 Confirmation Publish, Republish & Update Secure and Fast Publish Path, Handshake Success or Failure, Republish or Update

11 Deliver to Customer Satisfy the Customer Now, Content Availability, Cost-effective, Easy to Pay, Quality, Device Availability, Watch Anywhere CDN / Web Servers / Caches Website / App Device Satisfy the Studio Secure, DRM, Code Hardening, Secure Payer, Output Protection, GeoIP Restriction, Device Management, Delete Rental Files Head End Regional Head Ends Set Top Box Satisfy the Retailer Cost-effective Supply Chain, Quality, SLA, Customer Reach, Prominence

12 Ongoing Monitor and Maintain Publishes, Changes, Deletions, Reports, Availability, Quality, Revenue Split, Security Compliance and Updates Monitoring Customer Support Fault Resolution Resolve Bug Fixing, Quality Issues, Content Missing New development Reporting Revenue payments New Development User Experience, Curation, Metadata, Content, Territory, Transcodes, Device Requirements and Skills Required

13 ABI Research on Pay TV The IPTV market is likely to grow at a faster pace than other platforms, with a CAGR of 9% over the next five years to reach 160 million subscribers in 2019 Source: ABI Research: Global Pay TV (January and April 2014) Change YOY Projection Global Pay TV Subscribers 5% M 1.1 B Global Pay TV Revenue $249.8 B $317.5 B HD-TV (% of Pay TV Subscribers) 41% 57% IPTV Subscribers 18.5% 92 M 160 M Cable Subscribers 3% M M DTT (Terrestrial) Subscribers 9.5M DTT (Terrestrial) Subscribers Africa 45% 2.1M 4.8M

14 ABI Research on Pay TV Growth in ARPU is due to a growth in the proportion of customers with advanced pay-tv set-top boxes and upgraded HD programming packages. Source: ABI Research: Global Pay TV (January and April 2014) Change YOY Global Pay TV ARPU 1% $24.10 $23.80 North American Pay TV ARPU 4% $73 $76 Latin America 5% $36.42 $34.60 Biggest DTH: DirecTV (USA) Above $102

15 Consumer Spending $ in Millions DEG USA Q vs Q Source: Digital Entertainment Group Q Home Entertainment Grid (2 May, 2014) Q Q Q didn t include Easter Format 2013: 1% YOY from 2012 to $18.2 B

16 DEG USA Q vs Q Source: Digital Entertainment Group Q Home Entertainment Grid (2 May, 2014) Q % 9% 6% 4% 3% 3% 27% 40% Box Office Sell-Thru Packaged Goods Digital: SVOD Digital: VOD Rental: Kiosk Digital: EST Rental: Physical Subs Rental: Brick and Mortar

17 DEG USA Q vs Q Source: Digital Entertainment Group Q Home Entertainment Grid (2 May, 2014) Q % 12% 6% 5% 3% 2% 24% 40% Box Office Sell-Thru Packaged Goods Digital: SVOD Digital: VOD Rental: Kiosk Digital: EST Rental: Physical Subs Rental: Brick and Mortar

18 UK TV Licencing Telescope Source: UK TV Licencing Telescope (2014) TV viewing is an average of 4 hours daily (up 15 minutes from 2008) 90% of all TV viewing is live 10% is time-shifted (PVR or catch-up) BARB says 81% of time-shifted watched within 2 days Mobile (tablet / smartphone) TV viewing is 3.5 minutes daily 69% of UK have a smartphone 2012: 11% used a tablet 2013: 33% (20M) use a tablet 2015: tablet sales overtake PC 2017: 50% will use a tablet 55% use tablet to watch video Children s viewing 5-12: tablet viewing 2013: 42% 2012: 14% 5-15: TV in bedroom 2013: 52% 2012: 59% 5-15: Traditional TV 98% 5-15: And another device 2013: 45% 2012: 34% : 15% of YA vs 3% Superfast broadband (>=30Mbps) 2013: available in 75% of homes 2012: 65% Public Wi-Fi 2013: 32K spots 2012: 16K spots

19 Maria Ingold Video On Demand Technical and Strategic Consultancy One of VOD Professional s most influential people in UK New TV One of TechCityInsider's top 100 people redefining digital business in 2014

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