OTT Video Opportunity, threat or something else? 1
Rick Paulsen Client Relations Manager 2
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
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
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
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
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
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
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
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
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
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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Device Overview Google Nexus Player $99 Plays Sling TV, Netflix, Hulu Plus, and Google Play Remote and voice search 8 GB internal storage 16
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
Device Overview Apple TV $69 Plays Sling TV, Netflix, itunes, HBO GO, and ESPN Remote control Most owned Digitalsmiths 2014 18
Could setup be any easier 19
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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Device Overview Other devices Smart TVs Game consoles (Play Station, Wii, Xbox,etc.) Tablets Lap tops Smart Phones 22
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
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
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
A closer look at Sling TV 26
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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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
Options for addressing OTT 32
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
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
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
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
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
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
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
Your Turn! Opportunity, threat or something else? 40
Questions? 41
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