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Collico Savio ITS conference Firenze 2013 VoD
1. VoD in LATAM: a business perspective
Daniel Collico Savio – Snark Consulting
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2. Introduction
Questions
How VOD players are setting prices in LATAM?
Any correlation with countries PPP?
Is there any pattern or strategy?
Guidelines
Focus on VOD projects designed for mainstream.
No bundles, no AdVOD, no fidelization projects.
Always keep a balanced vision:
• What theory suggests
• Practical Business Development approach
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3. Theory vs Practice
Design phase.
Context, market, competitors…
Deal with Content Owners
Define main variables:
TVoD, SVoD, EST
Content quality
Devices
Territory
Some 10+ variables
…
Output: only a business plan
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4. The whole picture
Protection
Publishing
IMS/ERP
Content Owner
Rights
Content
Pre-encryption
Asset
Aggregation
Content
Protection
End User
Bill
Products
Transaction
Manager
Customer
Transactions
Authorisations
Encrypted
Asset
Ingestion
Meta Data
Reoirtubg
Buys and Fees
Asset
Distribution
Meta Data
Content
Mgnt
System
(CMS)
VOD
Server
Encrypted
Asset
Encrypted
Asset
Propagation
Products
Trick modes
STB
Ingestion
Applications
Aggregation
Billing
Info
Content
owner
VOD Catalogue
Marketing
Author
Rights
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Payment
Copy rights
Payment
Licenses
Payment
VOD Assets
End User
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5. iPTV vs OTT
Issue
OTT
Rationale
“My network, my customers”
Total freedom.
Linear TV
Yes
No
Devices
Set-top box = main device
Multiscreen
Service
Defined with precision
“Blur” + Best effort
HD
Yes
No
Billing
Many payment methods
Credit card
BW
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iPTV
> 2M
Adaptive bitrate
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6. STOF Model applied to Content business
Value proposition:
Price, TVoD, SVoD,
VAS, Bundles, etc
Service
Design
Hard aspects:
Speed, QoS, Legacy
system integration,
User Interface, etc.
Organisation
Design
Technology
Design
HHRR :
No skilled personnel
regarding Content
Finance
Design
Economic issues:
MGs and revenue
share negotiations
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“Business Model for IPTV Service: a
dynamic framework”
(Bouwman, Zhengjia, van der Duin
and Limonard) - 2007
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7. STOF dimensions and Content
Dimension
Examples
S
Service
Content definition
Market differentiation.
Type of business.
VAS integration
Major Studios selection.
Multiscreen.
Is it SVOD, TVOD or both?
Promotions? Bundles?
T
Technology
Bandwidth
QoS
Integration with legacy systems,
CRM or Analytics
High BW enables better
penetration and assures
QoS.
Profiles and processing
costs.
O
Organization
Content, legal and Mkt skills in
the organization.
Possible fixed-mobile
convergence reg Content.
Seek help from aggregator.
Share same Studios with
partners.
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Definition
Finance
Revenue share negotiation
MGs negotiation
Need of CPS model
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8. Main parameters in VoD design
Parameter
Constraint
Uncertainty
Initial critical mass
Mkt Operator
Size of operator
Low
SVOD subs
Mkt Operator
Advertising Budget
High
TVOD events
Mkt Operator
Advertising Budget, Medium
virality estimation
# Titles
Studios
Content roadmap
Low
# Devices
NW Operator
Technology
Low
Product mix
Mkt Operator
Technology
Low
Content cost
Studios
Content budget
High
QoS, HD avail
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Source
Tech Operator
Technology
Low
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18. Summary
Mainstream will adopt VoD…
in the long run
if it is perceived as “convenient”
Price
User experience
Technical expertise
End users “normal distribution”
-if there is such a thing.
Mainstream
Followers
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Early adopters
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19. Conclusions
BPs are tricky. They demand a lot of expertise
High uncertainty in Studios and market variables
Rising cost of content
No correlation between PPP and Prices
Zombie strategy: most OTTs are following “big players”
Interesting :“zero VoD” strategy in some cases
Trends of VoD in LATAM
Problems with broadband and piracy
“Content is King” (yes, it´s true this time!)
Twitter killed all 2nd screen developments
Analytics
VoD is not a golden mine, but it is the new mantra.
Who is competitor? Netflix or… Google?
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