Reimagining TV Viewing Jack Davison, Executive Vice President, 3Vision
CTAM Europe OTT Symposium 2019 CTAM Europe OTT Symposium 2019 Growing complexities
Media Direct to SVOD Short Form & Content AVOD Consolidation Consumer Growth Social Market
2 CTAM Europe OTT Symposium 2019 Media Consolidation
AT&T Walt Disney Discovery Comcast & Time Warner & 21st Century Fox & Scripps & Sky $85 billion $72 billion $15 billion $39 billion Mergers March 2019 March 2019 March 2018 October 2018
Discovery, ProSieben TF1, M6 BBC Studios TBS, TV Tokyo, & additional partners & France Television & ITV WOWOW & others 7TV Salto Britbox Paravi Alliances Launched but rebuilding Launch date tbc UK launch date tbc Launched April 2018
3 CTAM Europe OTT Symposium 2019 Direct to Consumer
Disney+ Unnamed Shudder Disney NBCU AMC Launching globally US & UK & others tbc US, Canada, UK & Germany SVOD AVOD on Pay TV, SVOD OTT SVOD
HBO Hayu Crackle WarnerMedia NBC Universal Sony US, ESP, Nordics & others UK, Nordics, US only SVOD Australia & Canada AVOD
Starz Play Hulu Eurosport Starz/Lionsgate Disney, Comcast/NBCU, Discovery US, Canada, UK & Germany WarnerMedia Europe SVOD US SVOD & VMVPD SVOD
Britbox Epix Now Zee5 BBC & ITV MGM Zee Ent. Enterprises US with UK coming US Global SVOD SVOD SVOD & linear channels
4 CTAM Europe OTT Symposium 2019 SVOD Global Growth
Global SVOD Growth
600 50 546 520 490 451 450 38 405 Subscribers (Millions) Subscribers
344 (US$ Billions) Revenues
300 262 25
Revenues (US$B) 179 Subscribers (M)
150 121 13 82 54 27 35 '- 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
5 Source: DTV Research; Global SVOD Forecasts 2017 CTAM Europe OTT Symposium 2019 SVOD ‘aggregation’ increasingly the focus with more and more initiatives
6 CTAM Europe OTT Symposium 2019 Xfinity Flex enabling SVOD
Xfinity Flex Available to all Internet-only customers, $5 per month Integrated guide for accessing streaming services Will be able to upgrade to full TV (with cloud PVR)
7 CTAM Europe OTT Symposium 2019 SVOD - Amazon
Amazon Channels Growth
Volume of Amazon Channels Available in the US International Channel Volumes 160 72 72 2017 2018 2019 Q1 30 launch partners 120 55 52 50
80 40 40
2018 closures 30
40
0 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 UK GER JAP
8 Source: 3Vision Analysis of Amazon Websites and Corporate Releases CTAM Europe OTT Symposium 2019 SVOD - Roku
Roku Player/Platform (Gross Proft US$) 120 Player 112.3 Platform
90 77.8 79 73.5 63.1 60 49.9 44.7 38.8 37.6
30
0 Q4 16 Q2 17 Q4 17 Q2 18 Q4 18
9 Source: Roku Releases CTAM Europe OTT Symposium 2019 SVOD - Apple’s additional pillar to their ecosystem where the focus is on services
10 Source: Roku Releases CTAM Europe OTT Symposium 2019 SVOD - Apple
Annual Revenues (US$B) by Category Quarterly Services Revenues (US$B)
160 12
10 120 8
80 6
4 40 2
2014 2015 2016 2017 2018 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 iPhone iPad Mac Services Other Products
11 Source: Apple Releases CTAM Europe OTT Symposium 2019 AVOD - Ecosystem Changing
You Tube acquired Freedive by Google ipla (Amazon) 2006 (Cfrowry iQiyi Amazon Video Direct Jan 2019 Crackle Polsat) Shahid 2016 (Sony) (Baidu) Pluto Dailymotion 2008 2010 (MBC) 2013 Hotstar Tubi raises (Vivendi) 2007 Voyo 2011 Facebook (CME) (Star India) Watch further $25M 2005 Tvigle 2015 2007 2011 (Aug 2017 Jan 2019
Stirr Youku Multiple Vudu Istikana Tubi (Sinclair) (Alibaba) Channel Catch-up (Walmart) Tencent 2012 2014 Roku Channel Jan 2019 Hulu 2010 Go90 Oct 2017 2006 2007 services Video Pluto acquired 2008-2010 2011 (Verizon) 2015 by Viacom Jan 2019
12 CTAM Europe OTT Symposium 2019 AVOD - Revenue Forecasts
AVOD Market Growth Projections $31.4B
$11.0B $11.0B
$6.0B $6.5B $3.6B $4.0B
$14.0B 2018 2021 2018 2021 2018 2021 USA EMEA APAC $1,500M $700M $266M $255M
2018 2021 2018 2021 LATAM INDIA
2018 2021 GLOBAL
13 Source: Emarketer, Oct 2018 CTAM Europe OTT Symposium 2019 Short Form - market being driven by social media
The market has had mixed fortunes with high profile failures, but brands are heavily involved and commissions increasing Increasingly competitive App and Social Media ecosystem fighting for audiences and usage - with massive value with video
Failed Failed Failed
14 CTAM Europe OTT Symposium 2019 Short Form - market being driven by social media
Global Social Media User and Usage Growth
3,484 3,196 16% time 2,789 using video
2,307 2,271 2,078 135 2,072 136 1,857 128 1,720 1,788 112 1,545 1,482 100 95 97 1,350 90 1,189 984 845 All Social Media Users (M) Facebook Users (M) Time Spent Using Social (mins)
2012 2013 2014 2015 2016 2017 2018 2019
15 CTAM Europe OTT Symposium 2019 Short Form - There’s a new player in town
Jeffrey Katzenberg's plan is to create premium short-form content for mobile phones with top talent, “to rival HBO and Netflix” He’s raised $1B to build a global video platform for short and mid-form content in 2017, named Quibi (short for Quick Bites) Investors include an unrivalled list of major media players, with the 10 companies investing about $25 million each Expected to spend almost $500 million dollars on programming for the service prior to their launch in 2020
Quibi Investors Disney WarnerMedia Alibaba Group
21st Century Fox Lionsgate Madrone Capital Part.
NBCUniversal MGM Goldman Sachs Sony Pictures Ent. ITV JPMorgan Chase & Co. Viacom Entertainment One Liberty Global
16 CTAM Europe OTT Symposium 2019 Content Market - Production volumes keep rising
US Original Series Volumes SVOD Scripted Originals Volumes Selected Pay TV Initiatives with Originals 200
104
160 50+ scripted projects
82 15-20 series p.a
120 Broadcast 69 Basic Cable Netflix Pay Cable Amazon 50 in 2018 (20 returning) SVOD Hulu $800m p.a. on originals 80 37 29 40 21 22 17 14 originals in 2019 12 8 Budgeting $100m p.a. 4 5 5 6 1 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
17 Source: FX Networks Research 2018 and 3Vision analysis of Netflix, Amazon and Hulu Originals CTAM Europe OTT Symposium 2019 Content Market - New Players in Premium Drama Production - The Rook
Liberty joined the project early and investment gets them rights in key markets and a share of any back-end
Show The Rook Production Cos Character 7, Carpool Entertainment, Lionsgate Commissioned Starz & Liberty Global Description Psychological Drama from “Twilight” author Stephenie Meyer Distributor Lionsgate will distribute the series worldwide Budget (p/hr) Approximately $5M per hour
2019 premiere on STARZ in the U.S. in 2019, simultaneously Rights Liberty will offer the series exclusively on demand across its footprint in Europe, LatAm and the Caribbean CTAM Europe OTT Symposium 2019 Content Market - Production projects with new relationships and structures
19 CTAM Europe OTT Symposium 2019 Distributors still finding homes for New Season TV shows
2016/17 New Season US TV Shows 24: Legacy Exorcist, The Lethal Weapon Shut Eye A.P.B. Falling Water Loaded Sinner, The 162 American Gods Famous in Love MacGyver Six American Housewife Feud: Bette & Joan Making History Snatch Services buying shows in 9 key markets Atlanta Freakish Man With A Plan Snowfall Berlin Station Frequency Marlon Somewhere Between Better Things Get Shorty Mick, The Son of Zorn Beyond Good Behavior Midnight, Texas Son, The 46% Big Little Lies Good Fight, The Nightcap Speechless Blacklist: Redemption Good Place, The No Tomorrow Star Acquisitions by Pay TV Blood Drive Graves Nobodies Star Trek: Discovery Bold Type, The Great Indoors, The Notorious StartUp Bull Great News People of Earth Still Star-Crossed Channel Zero: Candle Cove Guest Book, The Pitch Taboo Chicago Justice Handmaid's Tale, The Pope, The Young Taken Claws Harlots Powerless This Is Us Conviction High Maintenance Prison Break: Resurrection Timeless Crashing Hollywood Darlings Return of the Mac Training Day Designated Survivor I'm Dying Up Here Riverdale Trial & Error Dimension 404 Imaginary Mary Room 104 Twin Peaks: The Return Divorce Imposters Salvation Westworld Doubt Insecure Search Party When We Rise Downward Dog Kevin Can Wait Shooter Emerald City Legion Shots Fired
20 Source: 3Vision Show Tracker (December 2018). *Sales averages are across key distribution markets (Australia, Canada, Spain, UK, Germany, Italy, Sweden, France, Mexico) CTAM Europe OTT Symposium 2019 Global services buying
Number of Individual Services Licensing Shows by Market
9 VOD 6 Pay TV 7 6 6 6 Free TV
9 6 3 13 8 20 15 15 14 17 9 14 20 6 13 9 9 9 8 6 6 7 4
US UK Italy Germany Canada France Australia Spain Mexico Sweden Market Total 35 32 31 30 29 29 26 24 23 21
21 Source: 3Vision Show Tracker (February 2019). CTAM Europe OTT Symposium 2019 Mixed economy for programmes
Global (ex-US) First Exhibition of Shows by Type
35% 41% 48%
18% 17% 17%
46% 42% SVOD 35% Free TV Pay TV 2016/17 2017/18 2018/19
22 Source: 3Vision Show Tracker. Note: Includes 1st season only for 16/17 and 17/18 season shows (February 2019) CTAM Europe OTT Symposium 2019 Increasingly varied market for international TV sales
1st Window Distribution by Service Type - 2017/18 New TV Season Shows
Australia 27% 35% 15% 23%
Canada 37% 40% 6% 17%
France 16% 52% 5% 27%
Germany 17% 43% 10% 30%
Italy 11% 49% 13% 27% Mexico 61% 3% 36% Spain 1% 43% 38% 19% Sweden 5% 15% 53% 27% UK 24% 46% 5% 24% US 39% 44% 12% 5% 1% Broadcast - Free Broadcast - Pay SVOD - Local SVOD - Global AVOD - Local
23 Source: 3Vision Show Tracker. Note: Includes 1st season only for 17/18 season shows in first window only. (February 2019) CTAM Europe OTT Symposium 2019 On Demand services increasingly the destination
1 On Demand First Windows - By Territory (all forms of VOD) 80% 2016/17 2017/18 1 66% 54% 56% 1 40% 39% 40% 40% 39% 31% 32% 29% 31% 29% 30% 30% 0 22% 15% 17% 10%
0 Australia Canada France Germany Italy Mexico Spain Sweden UK US
24 Source: 3Vision Show Tracker (February 2019). Note: Includes 1st season only. CTAM Europe OTT Symposium 2019 Broadcast Channel Utilisation
% Acquired Shows with Enhanced Catch-up (ex-US) % Audience for first four episodes of Box-Set Shows
75% 31% Free TV Pay TV 69% 71% 49% 16% 56% 13%
36% 1-7 Days 52% 37% 8-28 days 26% Pre-broadcast
Killing Eve Tin Star
2016/17 2017/18 2018/19
25 Source: 3Vision Show Tracker (February 2019) and BARB (March 2019). Note: Includes 1st season only. Enhanced Catch-up means in-season stacking or full boxset delivery. CTAM Europe OTT Symposium 2019 Free TV Scheduling
Innovation with schedules increasing - with the number of series offered with enhanced catch-up growing
Global Free TV Broadcast Channel Exhibition (inc-US)
4% 8% 6% 40% 42% 70% 76% shows offered with enhanced 38% 33% catch-up
19% 18% 17% 6% 2016/17 2017/18 2018/19 Less than Rolling 5 Rolling 5 In-Season-Stack In-Season-Boxset
26 Source: Source: 3Vision Show Tracker (February 2019) Includes 1st season in first window only for 12 global markets CTAM Europe OTT Symposium 2019 Free TV Box-sets
Hard Sun The Son The Gifted Deutschland 86 Seven Network / 7Plus (Australia) SBS / SBS On Demand (Australia) City TV (Canada) Channel Four / All4 (UK ) Boxset & Linear premiere - Feb 2018 Boxset & Linear premiere - Aug 2018 Boxset & Linear 2nd window - Oct 2018 Boxset & Linear premiere - March 2019
Let’s Get Physical Killing Eve Mayans M.C. The Bold Type E4 / All4 (UK) ABC iView (Australia) BBC Two / iPlayer SVT Play (Sweden) Boxset & Linear premiere - May 2018 Boxset premiere - Jun 2018 Boxset & Linear premiere - Feb 2019 Boxset premiere - Mar 2018
27 Source: 3Vision Show Tracker CTAM Europe OTT Symposium 2019 Pay TV Scheduling
Pay TV were even quicker to enhance their linear channel offer than Free TV
Global Pay TV Broadcast Channel Exhibition (inc-USA) 2% 6% 8% 58% 68% 70% 78% shows offered with enhanced catch-up 22% 16% 11% 18% 10% 12% 2016/17 2017/18 2018/19 Less than Rolling 5 Rolling 5 In-Season-Stack In-Season-Boxset
28 Source: Source: 3Vision Show Tracker (February 2019) Includes 1st season in first window only for 12 global markets CTAM Europe OTT Symposium 2019 Pay TV Box-sets
Escape at Dannemora Succession Mayans M.C. Britannia Sky Atlantic (UK) Fox Showcase (Australia) Fox (Italy) Fox Premium (Mexico) Boxset & Linear premiere - Jan 2019 Boxset & Linear premiere - Dec 2018 Boxset & Linear premiere - Dec 2018 Boxset & Linear premiere - May 2018
La Peste The Bisexual Kidding Sweetbitter Movistar Series (Spain) Canal+ Series (France) Sky Atlantic (Germany) C More Series (Nordics) Boxset & Linear premiere - Jan 2018 Boxset & Linear premiere - Dec 2018 Boxset & Linear premiere - Dec 2018 Boxset & Linear premiere - June 2018
29 Source: 3Vision Show Tracker CTAM Europe OTT Symposium 2019 Killing Eve
UK Scandinavia Spain Germany Italy BBC - Free TV HBO Nordics - SVOD HBO Espana - SVOD Starz - SVOD TIMVision - Telco SVOD Boxset & Linear premiere Weekly SVOD stack Weekly SVOD stack SVOD Box-Set Weekly SVOD stack
Australia Mexico Canada Netherlands USA ABC iView - Free TV VOD Paramount - Pay TV Bravo - Pay TV NPO - Free TV BBC America - Pay TV Boxset premiere Linear with no catch-up Linear with in-season stacking Boxset premiere Linear with in-season stacking
30 Source: 3Vision Show Tracker CTAM Europe OTT Symposium 2019 Windowing
Satisfying the binge is important to all services now Content first… and first as a boxset
Dynamics with windowing have fundamentally changed Usage methods as well as service segments matter now
Source: Company Releases CTAM Europe OTT Symposium 2019 Second window deal characteristics
SVOD dominates second windows in usage terms with post-SVOD broadcast second windows increasing tentatively, but with an increasing volume of post-SVOD shows available the market is experimenting more
2W Services Months between 1&2W Premieres Broadcaster Usage with 2W
55 Pay TV Free TV 13% 44 Basic Catch-up 19% 62%
23 Boxset 15 4% None Stacking SVOD 6 20% 68% 14%
3M 3-6M 6-9M 9-12M12-24M
32 Source: 3Vision Show Tracker (February 2019) CTAM Europe OTT Symposium 2019 Second windows are a key area of development - with significant experimentation
Service Type for TV Series with 1&2 Windows Selected Shows with 2nd Windows in UK (Inner ring represents 1W, outer ring 2W) Pay TV First Window Second Window 2% Six 5Spike History UK StartUp Virgin Media Ultra HD Amazon Prime Taken 5USA SVOD Requiem BBC One Netflix 25% Handmaid's Tale, The Sky Box Sets SVOD This Is Us Channel 4 / E4 Amazon Prime 38% Timeless Netflix Free TV 28% Lethal Weapon ITV Amazon Prime Pay TV Harlots ITV Encore StarzPlay 51% Free TV Designated Survivor Paramount Network SVOD 1% Good Place, The E4 Netflix 21% Riverdale 5Star Free TV Sinner, The BBC Four 8% Tin Star Sky Atlantic Channel 4 Marvel's Inhumans Sky1 Amazon Prime Pay TV Pay TV Exorcist, The Amazon Prime 3% Syfy UK 8% Marvel's Runaways Amazon Prime Free TV SVOD 10% 6%
33 Source: 3Vision Show Tracker (February 2019) CTAM Europe OTT Symposium 2019 Wrap-up
34 CTAM Europe OTT Symposium 2019 End
Jack Davison EVP +44 7712 837 263 [email protected]
35