The Future of Video Content Convergence: Consumer engagement opportunities in multi-platform video and over-the-top TV

Date: August 22, 2010
Pages: 169
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: FF69718158FEN

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The Future of Video Content Convergence: Consumer engagement opportunities in multi-platform video and over-the-top TV
The convergence of broadcast, broadband and mobile technologies is creating a dynamic ?ontent everywhere?consumer market context, forcing major transformation and potential restructuring in the consumer electronics, technology, telecoms and media industries, and especially for content creators, owners and publishers. It is the consumer that is driving these changes, forcing the seamless convergence of video content, and this is the essential background to this report. This report lays out the business case for the strategic adoption of video-centric direct consumer engagement, across multiple devices and multi-platforms, with a special focus on Internet connected TVs and other connected CE devices. These devices will create the opportunity for content publishers and brands to develop future over-the-top TV engagement and monetization strategies using a converged content planning discipline. The search for a winning consumer proposition is reflected in the convergence of a number of businesses onto the same ground, creating strong competition as well as potential for consumer confusion in the short term.

This report presents a situation analysis from a video consumption perspective as the basis for making a business case for content owners to move into direct, multi-channel engagement planning with their users. This will include chapters on the back-end platform issues surrounding multi-channel delivery of video, the new over-the-top TV landscape and the issue of monetization of video in this new content everywhere context. Finally, a chapter looking at Brand Generated Content and related over-the-top brand engagement opportunities arisng from a converged video consumption model.

Key Features of this report
  • Overview of consumer consumption of video content across PC, mobile and TV
  • Identification of the key challenges facing traditional broadcasters and content providers in delivering seamless multi-channel VOD services
  • Actionable insight on content monetization in the evolving converged video consumer market
  • Examination of the alternative distribution opportunities & routes to market for content providers in ‘over-the-top’ TV apps /content portals
  • Spotlight on over-the-top brand engagement & the rise of strategic branded video content and their impact on ad agency models
Key findings of this report

Users are not interested in device convergence; it is content convergence that counts. They are not aware of or interested in how their content is delivered and are increasingly looking for a unified experience that is location independent.

We are now entering the Internet era of TV whereby users can expect an increasingly ondemand and personal viewing experience and multichannel video consumption across multiple devices will have a profound effect on future content publishing and monetization.

Over-the-top TV effectively allows content owners to by-pass existing TV platforms and take their programming directly to the TV screen from the Internet, in effect becoming a media owner themselves.

Use this report to:
  • Gain a thorough understanding of future direction of the consumer-driven, converged ‘Video Everywhere’ landscape
  • Understand the emerging commercial models / opportunities for the monetization of content in a multi-platform delivery future
  • Compare how different consumer platform owners, video aggregators and CE manufacturers are positioning and developing their OTT offerings
  • Gain an understanding on how to organize content for multi-channel leverage
  • Understand branded content /direct brand engagement strategies
Questions answered by this report
  • What are the significant trends influencing the development of the converged ‘Video Everywhere’ consumer market?
  • How is this shaping the commercial future for content providers and TV broadcasters?
  • How can this content be monetized in a user driven content consumption environment?
  • What are the current and emerging commercial models/opportunities for the monetization of video content?
  • How are different content aggregators and CE manufacturers developing their consumer offerings?
  • What are the alternative distribution routes for content providers to cost-effectively distribute ‘over-the-top’ content services?
  • What is the best way to organize content management in order to achieve optimal benefit in quality, cost and syndication power?
  • What is the future impact of BGC (brand generated content) on the existing ‘old media’ brand communications/advertising model?

The Future of Video Content Convergence
Executive summary
Situation analysis and market context
Multichannel video content delivery
Over-the-Top TV
Video monetization
Brand generated content


Scope of this report
Who is this report for?
Key definitions
Over–the –top TV / Internet TV / Web-to-TV
VOD – video on demand
DTO – download to own
10-foot viewing experience
BGC – Brand Generated Content
Multichannel content


The content user, viewer, consumer
Towards a more interactive user experience
Converging content – a user-driven “triple play”
Fixed and mobile broadband Internet – the tipping point for video
Time spent on the Internet driven by increasing broadband speeds
Adoption of Web-to-TV
Over-the-Top video is forcing a complete restructuring of today’s online video and TV broadcaster services
Mobile broadband uptake
Multi-platform media consumption - user segments
Connected TV behaviors
Online video consumption
Online video has been around since 2005
Who is paying?
Reasons for watching online video
Key content genres are driving online video viewing
Viewer engagement
Consumer platforms for video content
Existing distribution routes to market
Video software units: DVD and Blu-ray
Catch-up TV / iPlayer phenomenon
Online video
Social networks
Mobile apps
Emerging distribution routes to market
Internet TV / Internet Connected Devices
Social TV
TV on the PC
Mobile Video
Digital Out-of-Home
Content owners, media owners, brands, ad agencies
User experience – choice, convenience and control


The stakes are high for existing content services operators
A game of multichannel video platform (MVP) smoke-and-mirrors
Multichannel video delivery chain
Video platform providers
Video asset management
Importance of content centralization
Importance of metadata
Lack of DRM consensus and standards
Integrated content management
Unified asset and content management unlocks key user benefits
Interactive services to drive engagement/monetization
Converged content becoming a reality
Dynamic online video distribution: ad serving and social media
Users expect a unified, multichannel experience
Will ‘channels’ and ‘channel brands’ be a thing of the past?
HD television becomes ubiquitous
First 3DTVs on sale
The 3D cinema experience is new and exciting


New battlegrounds emerge
Managed Internet services should hold their nerve
Cutting the cord
TV apps
User interface and experience
Personal screen or shared screen?
User experience is everything
Content discovery will be key to a successful user experience
‘Suggested discovery’
Gesture-based controls are coming to TV
Broadcasters / Pay TV operators
Opportunity for multi-platform content aggregation
Hybrid Broadcast Broadband (HBB) standards development
Multichannel catch-up TV services
Enhanced TV – broadcast interactivity with BBC red button
Green button interactivity
Broadcast/broadband signal synchronization is a big advantage
Sky Green Button and AdSmart
Content owners as media owners
Independent production companies
Sweat the archive
Clearances are a potential issue
Niche/specific interest content owners
Time to take full control of digital distribution
Brand owners/advertisers
OTT distribution landscape
Consumer choice – the race is on to build the most popular service
Delivering the Internet isn’t free
The net neutrality debate
ISPs and telcos are potential OTT gatekeepers
Content commoditization
Connected TVs
TV manufacturers are actively building OTT propositions
Yahoo! Connected TV
Google TV
Apple TV
Connected games consoles
Nintendo Wii
Kinect for Xbox Live
Other connected devices
Blu-ray, DVD, PVR players
Stand-alone digital video/media players
Video aggregators
MSN video
Telcos, ISPs and IPTV services
TV to PC / tablet
TV to Mobile


Dimensions and dynamics
Who will own the OTT TV customer?
Current monetization strategies
Ad sales and ad inventory
Commercially, content in context is the true king
Collaborate for critical mass
Real-time analytics drive monetization
CIMM – coalition for innovative measurement
Monetization strategies
Commercial fundamentals
Sky – a blueprint for success
The hybrid ‘freemium’ business model
Emerging opportunities for added value engagement
Product placement/embedded advertising
Program/channel sponsoring
Targeted advertising
Live streaming to TV and mobile
Mobile advertising - Apple iAds
Mobile-TV audio triggers


Over-the-top marketing will drive brand engagement and ROI in marketing
The currency of engagement is ‘attention’
Cost per engagement models will prevail
Over-the-top brand engagement – a new marketing discipline
Ad agencies need to rethink and not protect an old media model
Lack of applied data skills and affinity for the technology are big
disconnects for agencies
Traditional agency model creates unproductive conflicts
Brands as media owners and publishers
Brands can also ‘commission’ content from consumers
Strategic branded content
Strategy before creativity
“Online” video has a short shelf life
3D Video


Figure 2.1: Consumer mobile broadband subscribers by region (m), 2008-2014
Figure 2.2: Connected TV viewer segmentation
Figure 2.3: Active reach of major online catch-up TV services in the UK (% of all Internet users visiting site), 2008-2009
Figure 2.4: Global mobile applications downloads (m), 2008-2014
Figure 2.5: Global sales of Internet enabled TV sets, 2009-2013
Figure 2.6: Digital and static advertising display views and displays by day (% of footfall, average viewing duration)
Figure 3.7: Multichannel content (video) delivery chain
Figure 3.8: Video platform provider competency comparison
Figure 3.9: Global LCD TV shipments (m), 2008-2012
Figure 3.10: Global 3DTV shipments (m), 2010-2015
Figure 3.11: Number of 3D digital cinema screens globally, 2005-2010
Figure 3.12: Consumer responses to 3D in cinemas, UK, 2009
Figure 3.13: % of UK viewers watching 3D adverts in the cinema, 2009
Figure 4.14: Stakeholder convergence in the OTT video content chain
Figure 4.15: Most popular YouTube categories (% of UK users watching on a regular basis), June 2009
Figure 4.16: Popularity of YouTube channels in the UK (number of views and subscribers), 2009
Figure 4.17: Hulu and YouTube videos viewed online, US, Nov 2009
Figure 5.18: Total online TV revenue (?m), UK, 2004-2008
Figure 5.19: Methods used by web businesses to price / sell video ad inventory (% of Brightcove clients), Q1 2010
Figure 6.20: Over-the-Top marketing – blueprint for brand owners
Figure 6.21: The strategic content planning chain


Table 2.1: Typical Internet connection speeds in different regions of the world, 2009
Table 2.2 Devices used to watch video (% US population aged 18-34 yrs)
Table 2.3 US online video consumption, March 2010
Table 2.4: The top reasons for using online video on websites (% of Brightcove customers), Q1 2010
Table 2.5: Global mobile applications downloads (m), 2008-2014
Table 2.6: Global sales of Internet enabled TV sets, 2009-2013
Table 3.7: Global LCD TV shipments, 2008-2012
Table 3.8: Global 3DTV shipments, 2010-2015
Table 3.9: Number of 3D digital cinema screens globally, 2005-2010
Table 4.10: Popularity of YouTube channels in the UK (number of views and subscribers), 2009
Table 4.11: Hulu and YouTube videos viewed online, US, Nov 2009
Table 5.12: Total online TV revenue (?m), UK, 2004-2008
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