2015- YEAR END REPORT FOR AMERICA S TELEVISION NETWORK, INC.

Transcription

1 YEAR END REPORT FOR AMERICA S TELEVISION NETWORK, INC. Dear Friends, On behalf of the team at America s Television Network, Inc., we want to wish you and yours a very Merry Christmas and a Happy New Year was a record year at America s Television Network. ATN began in 2012 with one simple computer stream and quickly expanded to cable and over- the- air television in an effort to increase reach and viewership. Our goal has always been and remains to employ the most effective television distribution and scheduling to attain the highest possible viewership and produce the best possible results for our programmers, sponsors and the network. The current broadcast schedule and distribution platforms (channels), that began this time last year has finished. As indicated in our terms and conditions of service, ATN may change or amend any of its broadcast systems and/or schedule. This is done as a part of our ongoing effort to improve the network and increase viewer response. We are excited to tell you about the changes that are currently underway. TELEVISION STILL #1: While it s true that more people are watching television content on computers, tablets and mobile devices than ever before, television or the television set remains the number one device people view programming on. On average viewers watch television 36.2 hours per week compared with roughly 8 hours on a computer, 3.5 hours on a mobile phone and 2.2 hours on a tablet. Our commitment, indeed our passion for television has never been stronger. Television remains the most effective and accessible method to reach viewers and promote businesses; products and services with content that is both visually stimulating and audibly compelling.

2 DISTRIBUTION: However, the way people receive television programming has seen the sharpest changes in the past four years than at any other time. Traditional pay TV services like cable and satellite have seen the biggest declines. Every year between 10% and 15% of current cable and satellite TV subscribers cancel their subscription service and the number of new subscribers has fallen to record lows. Simply put, people are tired of paying high cable bills. This is not just a temporary decline for the cable and satellite industry, many industry analysts are reporting that cable and satellite are dying (and the numbers back that up). In one three month period this year alone, cable and satellite lost it s highest number of subscribers in the history of the industry. So why these massive declines? In today s rapidly changing media landscape more viewers are receiving television content via what is called Connected TV than ever before. Connected TV is a term for the way TV programming and other content is delivered directly to your television set. It uses the Internet (or internet protocol) rather than traditional cable or satellite. While it uses the Internet line (or connection) to deliver programming, it is not simply a website style stream like you would watch on your computer screen. It is content delivered to and primarily for television using the Internet connection the way cable uses cable (think of it as TV coming through your internet connection, rather than on traditional cable or satellite). In 2014 viewers receiving television this way grew by 388%. In 2012 there were 54.7 MM viewers connected to TV this way. In 2015 that number grew to a staggering MM and by 2018 that number is expected to exceed 191 MM. By % of all TV- households will have Smart TV s, making cable, satellite and other external TV boxes unnecessary. As much as I am a product of the era of traditional cable and satellite TV, the changes occurring in television distribution methods are undeniable and cannot be ignored. Our ability to not only succeed but also thrive in this industry is directly related to our ability and willingness to adapt to these dramatic changes. And we are.

3 SCHEDULE: Not only is the way people receive their television content changing but also when they are watching it. Gone are the days of appointment TV. Except in a few remaining instances like sports and big network events like the Super Bowl, viewers do not want to be told when they Must Watch TV content or programming on their television. They are abandoning programming that is not available when and how they want to watch it. For this reason America s Television Network can no longer stick to a rigid schedule that primarily gives only one limited option for viewing our programs and sponsors. By broadcasting nightly from 10:00 PM to midnight we are demanding viewers watch us the old way. At one time this was effective and over the years we have seen some good results. But with changing viewer demands and new methods of distribution comes the greatest opportunity to expand our viewership and increase our response rate than ever before. Rather than produce one program that is seen for only two hours a night on cable, satellite and over- the- air TV, we are expanding to four live 24/7 channels that can be viewed anytime using connected TV distribution. These four channels are targeted to specific demographics and allow our sponsors to reach viewers specifically geared to their desired audience and more often. CABLE, SATELLITE & OVER- THE- AIR TV: Is ATN discontinuing all cable and satellite broadcasting? No. While our focus right now is on digital connected TV, we will continue to use cable, satellite and over- the- air TV but differently and in a more effective way. We will no longer broadcast on one cable, satellite and over- the- air channel that can only be seen in standard definition or SD. Instead we will air 30- minute ATN specials and seasonal broadcasts that target specific demographics. These programs will be less frequent but on more and better channels in both HD (high definition), and SD. TV PRODUCTION: With our old schedule ATN produced one new two- hour show per week. As of this month ATN began producing eight hours of LIVE original programming per week for digital television plus spots and special features. By the beginning of 2016 that number will more than double. Our focus in early 2016 is on greatly improving our television productions, both spots and programming. Our look is changing, our productions are changing and we are taking a much more creatively aggressive

4 approach to television production in Our sponsors and programmers can expect higher quality spots done to agency standards. NEW WAYS TO WATCH ATN: In addition to seasonal cable, satellite and over- the- air television specials, ATN s original 24/7 channel is already available directly on Smart TV s manufactured by five companies, including Sharp. Through the Smart TV Alliance, ATN s four 24/7 TV channels will be added to over 58 MM Smart TV s. With Smart TV s there is no additional equipment or fees required. It s FREE TV, directly to your TV. We are also available and expanding on the number one television media player on the market today, Roku. Last year, Roku users watched 3- Billion hours of programming on their TV s. ATN is proud to be a part of that growing number. ATN digital television can also be viewed on TV with Google Chromecast and Android and we are aggressively working to add Apple TV, and Amazon Fire. HOW DO THESE CHANGES EFFECT ATN SPONSORS: If we don t succeed you don t succeed. But more importantly, if you don t succeed we don t succeed. These changes to our broadcast schedule and television distribution are the result of three years of monitoring and measuring results. With traditional cable, satellite and over- the- air TV we have very little control over viewership and targeting of specific audiences. It is random, happenstance, and unpredictable. Our strength with traditional television has been reach (the number of households that can watch), but our weakness has always been our limited number of hours per day. By largely focusing on digital connected television we do not loose the ability to tap into the cable, satellite and over- the- air television market, but we add 96 hours of television time PER DAY (up from 2- hours per day). That s 5760 minutes of TV- time every day compared with only 120 minutes a day on cable, satellite and over- the- air. For the network this means a measurably greater opportunity to build our television audience and for our sponsors it means more direct access to the viewers and customers you want. If you are a sponsor with an open contract, your ATN products and services will be adjusted to reflect an increased number of spots, segments and program runs on the best possible channels at the best possible times.

5 With our growth comes yours; more time, more targeted viewers and greater frequency for your business, product or service. America s Television Network wishes you a prosperous 2016 and we look forward to continuing to service you in the New Year. Best regards, David Hare President America s Television Network, Inc.