Trends is Sports Live Streaming
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1 Trends is Sports Live Streaming TROY EWANCHYNA 94 VP BUSINESS DEVELOPMENT & DIGITAL STRATEGIES 30 ROCKEFELLER PLAZA NEW YORK, NY P: C:
2 Agenda 1. Introductions 2. The TV Business, Digital Media and Live Streaming 3. Sports Case Studies 2
3 Introductions 1. Background Princeton Technology and Media Business of Sports 3
4 Introductions 2. Trivia Golfer Dustin Johnson has ties to which retired NHL great one? Cost to watch live stream on Masters.com this week? Estimated $650M in lost productivity during work hours thanks to live streaming coverage of what 2012 summer sporting event? 4
5 Introductions 3. Survey March Madness on TV? March Madness on computer, phone, tablet, Twitter/Social? Access content (music, HBO Go, Netflix) through parents/friends? 5
6 Trends In Sports Live Streaming 1. The TV Business Ecosystem the art of bundling content Sports 2. Digital Media and Live Streaming Products Technology Business models 3. Case Studies 2012 Super Bowl 2013 March Madness 2012 London Olympics 6
7 The TV Business Assumption Consumers expect to watch video content on multiple screens, multiple devices, and beyond the home. The device and platform options are numerous: cable and satellite, Internet-enabled TVs, Roku, Boxee, PCs and Macs connected to TVs, AppleTV, Xbox 360, Wii, Playstation, ios devices, Android phones and tablets, and yes, even DVDs. 7
8 The TV Business Ecosystem TV is a $165 Billion Business $85 Billion in subscription fees $80 Billion in advertising revenue 42,500 hours of live sports $11 Billion in sports advertising Online Video is still emerging (<5% size of TV Business) $100 Million in subscription fees paid by YouTube is 1/50 th of Time Warner s yearly $5B yearly production budget $1-2 Billion in advertising revenue Limited but growing amount of legal live sports content <$1 Billion in sports advertising 8
9 The TV Business Ecosystem More Cracks Undermine the Citadel of TV Profits It s like the picked-on kid who tries to get home to his front porch; he has to make it past all the bullies first. We have a heavily defended, heavily concentrated programming industry and a monopoly in distribution, with none of the big players willing to act like a maverick. No one wants to break ranks because the current system has been so lucrative. April 15,
10 The TV Business NBC Universal ENTERTAINMENT LIFESTYLE NEWS and INFORMATION SPORTS APPS AUDIENCE DATA PARTNERS 10
11 The TV Business Sports Live Sports Video Stakeholders Rights Holders: NFL, MLB, NHL, NBA, PGA TOUR Exclusivity: Sell to Media companies Length of Deals: Long-Term deals are the norm Media: Broadcast: NBC, CBS, ABC, FOX Cable/Satellite: ESPN, NBC Sports Network, RSNs MFN Terms: Often contentious with MVPDs Disrupters: Aereo, Hopper MVPDs: Comcast, DirecTV, Time Warner, Cox Affiliates: NBC has 207 (New York to San Francisco) Consumers: Shifting consumption habits 11
12 Media Consumption Habits (2008) NBC TV Network nbcolympics.com 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM 12
13 Media Consumption Habits (2012) NBC TV Network Home PC/Laptop Facebook Mobile Facebook Tablet Live App NBC on DVR Home PC/Laptop Twitter Mobile Twitter Tablet Main App NBCSN Home PC nbcoly.com Non-Video Work PC/Laptop nbcoly.com Video Work PC/Laptop nbcoly.com Non-Video Mobile WAP OOH Activity Tablet Facebook App Tablet Twitter App Swimming (Live Stream) 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM Swimming (Live Stream) 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM Swimming 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM 13
14 The TV Business Challenge How to navigate a complex business of exclusive sports rights holders, multiple stakeholders, various and everchanging business models, high maintenance consumer expectations and extremely lucrative legacy businesses amidst an environment of technical disruption 14
15 Live Streaming Products Current Landscape Subscription: MLB, NHL, NBA, Netflix, Apple Free, Ad-Supported: TV Extensions: NBC.com, ABC.com, CBS.com TV Sports Extensions: Watch ESPN, March Madness Digital Natives: YouTube, Hulu, Amazon TV Everywhere: Comcast, Time Warner, HBO Go Confusion rules the day. And things keep changing. Developing, implementing and growing a successful new business strategy is the equivalent of changing a tire on a car going 65 mph on the highway. 15
16 Live Streaming Technology Current Landscape Multiplatform: Computer, Mobile (WAP, App), Tablet Quantity: Scalable, Many Suppliers Reliability: Limited Downtime Pricing: Efficiencies, Highly Competitive Features: Multi-Camera, Social Integration 16
17 Live Streaming Business Models Who Pays? Advertisers: Subsidize consumer experience Content owners/mvpds: Value add to your cable bill Consumers: Incremental transactions Piracy 17
18 Super Bowl 2012 Case Study Record-Setting Audience (TV and Online) TV viewers: 111,300,000 households Online viewers: 2,100,000 computer streams 92,000 tablet streams 79,000,000 minutes streamed 226,000,000 ad impressions 57% watched as simulcast Search: 64% Super Bowl related Social: 17,000,000 comments during game 18
19 March Madness 2013 Case Study Huge Audience (TV and Online) TV viewers: 10,700,000 average per game Online viewers: 49,000,000 total streams 37% mobile/tablet streams 336,000,000 minutes streamed 88 minutes watched/user 50% lower mobile engagement Social viewers: In-game video clips on Twitter 19
20 London Olympics Case Study Record-Setting 17 Days (Online, Mobile, Tablet) Stream everything : authenticated, 25% rule New partnerships: YouTube technology and promotion Twitter Tracker Facebook integration New products: Mobile apps Tablet apps Prime Time companion experience Different rules: Time Zones Business and Technology trends Social Media etiquette 20
21 By the Numbers 82 million Visitors across multiple devices 154 million visits 2 billion page views 160 million total streams 64 million live video streams 20 million video hours watched 8 million app downloads 10 million authenticated devices +38% vs. Beijing +4% vs. Beijing +42% over Beijing and more than double Vancouver More than Beijing and Vancouver combined +353% vs Beijing +58% vs Beijing and Vancouver combined Biggest event app in Apple history Most successful TV Everywhere event 21
22 Headlines
23 What s Next? 1. New business models for video - Protect the Ecosystem? - Justification for increasing Sports Rights fees 2. Proliferation of Live Streaming - Better products - Major Technology improvements 3. Upcoming activity - English Premier League - NFL authenticated streams? - Sochi Olympics 23
24 Questions 24
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