Published on March 27, 2014
Augustine Fou- 1 - Content Continuum Network TV Cable TV YouTube (custom) Netflix/ Amazon Originals Vimeo (UGC) • Mass audience • Very high production costs • Niche audience • Medium production costs • $100M celebrity custom content • <$100M original content • Free user submitted content Mass Niche TREND
Augustine Fou- 2 - Devices Used to Watch Network TV Cable TV YouTube (custom) Netflix/ Amazon Originals Vimeo (UGC) TV TV Centrally controlled access Distributed access TREND Computer Mobile (tablet/smart phone) Computer Mobile (tablet/smart phone) Mobile (tablet/smart phone)
Augustine Fou- 3 - Network Access Network TV Cable TV YouTube (custom) Netflix/ Amazon Originals Vimeo (UGC) Broadcast Cable Access OTT/Internet/Data Wired Broadband Wireless Broadband Centrally controlled access Distributed access TREND
Augustine Fou- 4 - Revenue Model Network TV Cable TV YouTube (custom) Netflix/ Amazon Originals Vimeo (UGC) Advertising Ads Subscription $40B Video Ads $30B $4B User subscriptions Display ads Video ads $1B free TREND
Augustine Fou- 5 - Millennials Watching TV On.. Source: Deloitte via Engadget March 2014
Augustine Fou- 6 - It turns out that cord-cutting isn’t the only threat facing cable channels. Several of the big ad-supported online video outlets, including Google Inc’s YouTube, AOL and others, plan this upfront season to target some of the ad dollars that currently flow to cable channels, industry executives say. The web video outlets see a vulnerability in second tier cable networks, and to a lesser extend in the local TV-station market, executives say. According to multiple media buyers and ad sellers in the Web video industry, digital media companies are looking to draw direct comparisons between their audiences and cable TV networks, a match-up Web video outlets think they can win. Buyers say Google is likely to be the most aggressive on this front, given YouTube’s massive size and its young demographics that don’t necessarily watch a lot of TV. The company has been selling directly against cable networks, with pitches like “X YouTube net reaches more women than E! or Awesomeness TV reaches more tweens than ABC Family.” In one pitch, for instance, YouTube cited Nielsen data from November showing that it reached 49% of all 18 to 34 year olds, versus 45% for FX, 44% for TBS’ comedies, 41% for Comedy Central and 40% for AMC. YouTube also thinks it can capture more local broadcast and cable ad dollars from national advertisers looking to boost spending in certain markets. The company is targeting automotive and wireless advertisers in particularly, said executives with direct knowledge of YouTube’s plans. Loss of Ad Dollars to YouTube Source: WSJ March 2014 Don’t forget about Facebook video ads which debut at $1 - $2.5 million a day. Source: Business Insider, March 2014
Augustine Fou- 7 - Hiding The Cord-Cutting Truth -3% +14% Cable companies lost 1.7 million paid subs, most of them (1.4 million) went to telephone companies and purchased data packages to access content they actually wanted.
Augustine Fou- 8 - Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing advertising across all channels. As TV watching gets more distributed, it will be harder and more expensive for advertisers to find their human audiences.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 @acfou ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou
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