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SOCIAL MEDIA RULER: FACEBOOK Presented by 50 RULERS OF ENGAGEMENT Presented by NAB Show CATEGORY COMPANY A small group of big SVOD Netflix Search Google companies dominate a Wearables Apple Box Office Disney dizzying array of products Streaming Audio Spotify Smart Speakers Amazon and services aimed at Social Media Facebook Messaging Facebook your eyes and ears. App Stores Apple Operating Systems Microsoft In the grand scheme of how a global ing with each other across a broad swath Cloud Services Amazon pandemic will reshape the future, there are of overlapping business interests, from Smartphones Samsung more profound issues to consider than the TV stations to app stores to video game PCs/Tablets Apple impact COVID-19 is having on the media consoles to smart watches. and technology businesses. But even as so These companies are the “Rulers of TV Networks Disney much is disrupting these industries, some Engagement.” Variety Intelligence Platform TV Stations Nexstar things don’t change: Their competitive and the National Association of Broad- framework remains intact. casters present a topline examination of Pay TV Comcast From 30-minute TV shows to 3-milisec- the trends and rivalries that distinguish SVOD Aggregators Amazon ond search-engine returns, a mega-war is the many different markets in the atten- being waged for mindshare across billions tion economy. In the slides that follow, we Virtual MVPDs Disney of devices worldwide. While the media examine 25 such competitive sets. Connected TV Roku business is at the epicenter of this frenzy, Take a front-row seat to the biggest Game Publishers Tencent it’s the technology giants who have esca- business battleground on the planet. lated the conflict. They too create content Livestreaming Amazon to support their ultimate goal: keeping Game Consoles Sony consumers inside their ecosystems of products and services for as long as possi- Cloud Gaming Sony ble (and away from their rivals). VR Headsets Facebook That means conglomerates from Apple Andrew Wallenstein Smart Glasses Microsoft to AT&T to Amazon to Disney are compet- President and Chief Media Analyst, VIP RULERS OF ENGAGEMENT Presented by NAB Show SVOD RULER:RULER: FACEBOOK NETFLIX OWNER SERVICE A surge of new subscription Alphabet YouTube Premium LAUNCH video on demand services Amazon Amazon Prime Video LAUNCH LAUNCH LAUNCH isn’t likely anytime soon LAUNCH Apple Apple TV Plus October 2015 April 2018 to topple Netflix, the July 2015 April 15, 2020 AT&T HBO Now, HBO Max Nov. 12, 2019 (for Xfinity); company far and away at GLOBAL SUBS GLOBAL SUBS GLOBAL SUBS Comcast Peacock July 15, 2020 the forefront of this market. GLOBAL SUBS Disney ESPN Plus, Disney Plus, Hulu 11m** 20m*** 7.9m (for public) Lionsgate Starz 54.5m FLAGSHIP FLAGSHIP FLAGSHIP GLOBAL SUBS CONTENT Netflix Netflix CONTENT CONTENT FLAGSHIP ViacomCBS CBS All Access†, Showtime CONTENT N/A “Billions” "Cobra Kai" "Detail" "The FLAGSHIP Mandalorian" CONTENT “Battlestar Galactica” reboot LAUNCH LAUNCH LAUNCH LAUNCH LAUNCH LAUNCH LAUNCH LAUNCH March 2008 April 2015 April 2016 May 27, 2020 January 2007 February 2011 October 2014 Nov. 1, 2019 GLOBAL SUBS GLOBAL SUBS GLOBAL SUBS GLOBAL SUBS GLOBAL SUBS GLOBAL SUBS GLOBAL SUBS GLOBAL SUBS 32.1m 8m 8.6m^ N/A 183m 150m* 11m** N/A FLAGSHIP FLAGSHIP FLAGSHIP FLAGSHIP FLAGSHIP CONTENT FLAGSHIP CONTENT CONTENT FLAGSHIP CONTENT CONTENT CONTENT FLAGSHIP CONTENT CONTENT “Handmaid’s “Game of "Power" “Tokyo Vice” “Stranger “The Tale” “Twilight Thrones” "The Morning Things” Marvelous Zone” Show" Mrs. Maisel“ 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FIRST WAVE SECOND WAVE SOURCE: MOST RECENT COMPANY DISCLOSURES; DIGITAL TV RESEARCH (GLOBAL REVENUE); NOTE: *AMAZON PRIME VIDEO FIGURE REPRESENTS NUMBER OF GLOBAL AMAZON PRIME MEMBERS. †VIACOMCBS HAS ANNOUNCED PLANS TO LAUNCH AN UPGRADED VERSION OF CBS ALL ACCESS, BUT HAS YET TO DISCLOSE DETAILS. **CBS ALL ACCESS-SHOWTIME OTT COMBINED. ***FIGURE IS ACROSS YOUTUBE PREMIUM AND YOUTUBE MUSIC. ^LIONSGATE OTT SUB COUNT. Global $36b $47b $87b SVOD Revenue 2018 2019 2024 1 RULERS OF ENGAGEMENT Presented by NAB Show SEARCH RULER: GOOGLE U.S. Search Engine Market Share for Q2 2019 MARKET SHARE Google 93.53% Google Search 69.35% Google Images 20.45% YouTube 2.98% Google Maps 0.75% Estimated Net U.S. Amazon 1.99% Ad Revenue Share for 2020 Yahoo (Verizon) 1.41% AD SHARE Bing (Microsoft) 1.18% Google 71.1% Facebook 0.96% Amazon 14.3% DuckDuckGo 0.4% Microsoft 5.9% Twitter 0.2% Verizon 1.7% Pinterest 0.2% Yelp 1.7% IAC 0.7% Other 4.6% Google’s long-lasting domination of the search engine market is unparalleled. They’ve simply owned it since the beginning, though Amazon has strengthened its hand over time. SOURCE: JUMPSHOT, SPARKTORO(MARKET SHARE); EMARKETER (AD SHARE) 2 RULERS OF ENGAGEMENT Presented by NAB Show WEARABLES RULER: APPLE Smartwatches are expected to demonstrate healthy growth this year alongside hearables like AirPods—all good news for Apple, the leader in both categories. Global Wearables Market 2019 MARKET SHIPMENTS SHARE Earwear 139.4m 45.7% Smartwatches 69.3m 22.7% Wristbands 68.2m 22.4% Global Smartwatch Other 28.2m 9.2% Market Share Q1 2019 Total 305.2m 100% MARKET SHARE Apple 35.8% Global Earbud Market Share Sept. 2019 Samsung 11.1% NOTABLE MARKET COMPANY PRODUCTS SHARE BBK (imoo) 9.2% Apple AirPods, Beats 50.2% Fitbit 5.5% Samsung Galaxy Buds 10.2% Xiaomi (Amazfit) 3.7% Xiaomi AirDots 6.5% Huawei 2.8% Bose SoundSport 5.7% Fossil Group 2.5% GN Group Jabra 5.1% Garmin 1.5% Other 22.3% Others 27.9 SOURCE: IDC (WEARABLES 2019, EARBUDS SEPT. 2019); COUNTERPOINT RESEARCH (SMARTWATCHES Q1 2019) 3 RULERS OF ENGAGEMENT Presented by NAB Show BOX OFFICE RULER: DISNEY Domestic Studio Market Share Other 100% 5.5% 2.6% 2.9% 5.0% 7.0% 80% 11.8% 60% While no rival studio can match Disney, the entire 13.4% film business is poised for a dramatic decline in 2020 due to widespread theater closures amid 13.8% the pandemic. 40% 4.8% 38.1% 20% 11.4% 12.1% 13.9% 12.2% 13.9% 14.9% 14.9% 19.8% 26.3% 21.8% 26.0% 33.3% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SOURCE: BOX OFFICE MOJO 4 RULERS OF ENGAGEMENT Presented by NAB Show STREAMING AUDIO RULER: SPOTIFY AVG. YoY Estimated Trajectory of SERVICE GROWTH Global Paid Music Streaming Subscribers by Service Spotify +27% 250m Spotify still leads the Apple Music +18% sector expected to account Amazon Music +21% for close to three quarters of all recorded music 200m Tencent Music +18% revenue by 2022, and is Global Recorded Music Google Play/YouTube +4% Revenue by Segment also making a push into Pandora +1% podcasts to contest Apple’s 150m Digital Streaming control of the space. Physical Recordings Satellite Radio Digital Downloads 100m Mobile Recordings (ringtones) 50m 2% 0 8% 2% 2% ’17 ’18 ’19 ’20 ’21 ’22 ’23 11% 18% 2018 47% 17% 2022E 13.1% Spotify 2.8% | Overcast U.S. Podcast 57.9% Usage Share Apple 2.7% | Castbox Across Aggregator 25% 68% 2.3% | Stitcher Platforms (45% growth) (Sep 2019) 1.8% | Google 1.5% | Podcast Addicts 1.2% | PocketCast 16.7% Other SOURCE: MORGAN STANLEY RESEARCH, RIAA, IFPI, RAB, PWC (RECORDED MUSIC REV BY SEGMENT); MORGAN STANLEY RESEARCH, RIAA, IFPI, WSJ, REUTERS (STREAMING SERVICE PAID SUB FORECAST); PODCASTS: LIBSYN 5 RULERS OF ENGAGEMENT Presented by NAB Show SMART SPEAKERS RULER: AMAZON The growth in smart speaker ownership opens up a new channel for media companies to 10.0% 2.7% 2.2% reach consumers with Percent of Households Other Apple Sonos digital audio ads, and HomePod One That Own Each Device Amazon’s entries into 0.2% this market have proven Google to be the most fruitful. Home Max 95% 91% 96% 96% 87% 75% 80% 14.9% 72% 1.2% Other 31.4% 69% Google Amazon Home Hub Echo Dot Share of U.S. Smart 23.8% Speaker 61.1% 11.2% Market Google 31% Home Mini 22% 23% 18% 11.2% 23.2% Google Amazon Home Echo or Plus 12% 8% ’19 ’17 ’18 ’19 ’17 ’18 Smart Speakers ’19 +41% YoY ’17 ’18 Smart Watches ’19 +28% YoY ’17 ’18 Laptop ’19 +4% YoY 3.0% 3.5% ’17 ’18 Smartphone Amazon Amazon TV +5% YoY Echo Show Echo Spot Even YoY SOURCE: CONSUMER TECHNOLOGY ASSOCIATION (PENETRATION OF TECH DEVICES); VOICEBOT (SMART SPEAKER MARKET SHARE) 6 RULERS OF ENGAGEMENT Presented by NAB Show SOCIAL MEDIA RULER: FACEBOOK Most Popular Social Platforms (Global MAUs) First-Time Installs of TikTok by Quarter 250m 200m 2.6b 2.0b 1.6b Facebook YouTube WhatsApp Apr 2020 Feb 2020 Oct 2019 Though Facebook is clearly in command with four of the top ten biggest social platforms, what may be more 150m remarkable is the TikTok growth story, particularly 1.3b 1.1b 1.0b among younger demos. FB WeChat/ Instagram Messenger Weixin Jun 2018 Oct 2019 Oct 2019 100m 808m 625m 517m QQ TikTok Qzone Oct 2019 Dec 2019 Sep 2019 50m 497m 430m 330m Sina Weibo Reddit Twitter Sep 2019 Dec 2019 Apr 2019 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NOTE: DATES REFER TO MONTH OF MAU DISCLOSURE 2016 2017 2018 2019 SOURCE: COMPANY REPORTS, DATAREPORTAL (MAUS); SENSOR TOWER, 2020 (TIK TOK) 7 RULERS OF ENGAGEMENT Presented by NAB Show MESSAGING RULER: FACEBOOK Mobile Messaging Apps by Monthly Global Active Users, Oct 2019 App: WhatsApp | Owner: Facebook | Global Monthly Active Users: 1.6b | Video Chat: Video Chat Usage Booms Due to COVID-19 App: Facebook Messenger | Owner: Facebook | Global Monthly Active Users: 1.3b | Video Chat: Zoom Meet 378% 60%+ Year-over-year daily Sustained daily meeting participants active user growth as of March 22 as of March 31 App: WeChat | Owner: Tencent | Global Monthly Active Users: 1.1b | Video Chat: Teams Skype 38% 70% Week-over-week daily Month-over-month App: QQ Mobile | Owner: Tencent | Global Monthly Active Users: 808m | Video Chat: active users as of daily active users as With people stuck in their March 19 of March 30 homes across the globe, video chat services have seen massive spikes in usage, but none as dramatic as Zoom’s, so much so that Facebook is hastily revamping its App: Snapchat | Owner: Snap Inc.
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