Key OTT (Over-The-Top) Market Trends in 2015 by Michael Ritchie. In broadcasting, over-the-top content (OTT) refers to delivery of audio, video, and other media over the Internet without the involvement of a multiple-system operator in the control or distribution of the content. The Internet provider may be aware of the contents of the Internet Protocol packets but is not responsible for, nor able to control, the viewing abilities, copyrights, and/or other redistribution of the content. Consumers can access OTT content through internet-connected devices such as desktop and laptop computers, gaming consoles (such as the PlayStation 4, WiiU, and Xbox One), set-top boxes (such as the Roku), smartphones (including Android phones, iPhones, and Windows phones), smart TVs (such as Google TV), and tablets.

1. OTT Market
Trends
Michael
Ritchie
Director,
Broadcast
/
Strategic
Accounts
EMEA

2. THE WAY WE SEE THE WORLD
HAS CHANGED.

3. How we experience How we socialize How we communicate How we consume
1970s
1980s
1990s
2000s
2015

4. THERE ARE FIVE KEY TRENDS
TO BE AWARE OF NOW.

5. User Experience
4K Landscape
Millennials
Analytics 2.0
Content
Monetization
1
2
3
4
5

6. TREND ONE:
USER EXPERIENCE

7. USER EXPERIENCE
Content remains as KING, but UX has a
KEY role in the transition toward OTT
models in order to attract and engage
audiences.
Customers want a seamless path to their
content. They want:
§ Reduced Time-To-Content
§ Simplified payment methods
§ Simple and accessible time-shifted
viewing
The key is to not break the experience!
Page 7

8. USER EXPERIENCE
As a result the investment on Experience Design
is growing in order to create MORE
COMPELLING, MORE IMMERSIVE, and
MORE INTUITIVE experiences.
Pay TV Operators, Telcos, and Media companies,
such as Telstra, Telekom Malaysia, and KPN, are
making a shift towards a “User-driven
Innovation”, identifying UX as a top priority and
as a key differentiator.
Page 8

9. TREND TWO:
CONTENT MONETIZATION

10. CONTENT MONETIZATION
Implementation of advanced-advertising
placement like Dynamic Ad-Insertion and
Targeted Advertising are helping operators to
perceive higher revenues.
SVOD and TVOD consumption continue to
rapidly grow.
Evolving partnerships between Content Owners
and Pay TV Operators are helping to push the
implementation of new cloud solutions to better
understand and target audiences.
Page 10

11. 40.5%
16.1%
27.6%
15.8%
I'd rather see ads directed towards my interest
I'd rather see ads for random products and services
Both
Not sure
Page 11
CONTENT MONETIZATION
Consumer Interest in Targeted Online Ads
Source: Digital Advertising Alliance/Zogby Analytics
New generations of viewers are willing to share
their personal information in exchange for more
convenient deals and more seamless experiences.
The market is witnessing rapid innovation on
how TV is traded, where it now is possible to
provide the right ad to the right household, or
even to the right individual user, using hyper
personalization techniques.
This allows a more effective use of Operator
and Advertiser existing inventory.

12. TREND THREE:
ANALTYICS 2.0

13. ANALYTICS 2.0
In the new OTT world, things are going
beyond simply tracking user activity. It is a
switch from Big Data Collection to Smart
Data Contextualization.
Search and Discovery capabilities are
evolving to match customers’ CONTENT
consumption patterns more accurately and
Hyper-personalization is adding the
CONTEXT relevance to the formula.
Page 13

14. Capture all the touch points between a brand
and a consumer, regardless of where those
occur.
And this is important not only for the content
that viewers want to watch, but also for the
ads that need to match those viewing patterns
and need to be based on the viewer context.
Authenticated ad views by device
Page 14
ANALYTICS 2.0
Source: FreeWheel
7%
7%
22%
64%
Smartphone
Tablet
OTT Device
Desktop/Laptop

15. TREND FOUR:
4K LANDSCAPE

16. 4K LANDSCAPE
There are three main factors to consider
when discussing 4K: Devices, Content, and
Services.
Currently there is still low penetration of 4K
devices from a global perspective, and this is
mainly due a low awareness and lack of
customer education on what 4K is and its
main benefits.
Today, APAC is leading in the adoption of
4K and is already preparing for 8K. But
there is still some road to go.
Page 16

17. 4K LANDSCAPE
Meanwhile the market is preparing for the
mainstream introduction of 4K devices, and the top
OTT Players such as Netflix and Amazon are
already leading the way (for now) providing 4K
content and services.
There are many opportunities for operators looking
to provide 4K services including offering premium
services/packages (higher ARPU), 4K Ads and
Bundles between 4K services and broadband
higher speed.
4K Devices, content, and services will soon be
mainstream…
Page 17
Forecast: Global Subscribers of 4K Pay TV Services
(Million of Subscribers)
Source: Parks Associates
0
10
20
30
40
50
2013 2014 2015 2016 2017 2018

18. TREND FIVE:
MILLENNIALS

19. MILLENNIALS
It’s not news that video consumption
behavior and patterns for Millennials and
newer generations is different, but it is
important to understand them and be able to
anticipate this unavoidable change.
There is a clear migration from a TV centric
consumption towards Portable and Mobile
Devices.
Operators need to attract Cord Cutters and
Cord Nevers with services that match their
consumption behavior and their lifestyle.
Page 19

20. Some operators have started to provide
slimmed-down/low-cost TV bundles to
young adults who might only be interested
in Internet-delivered entertainment.
But again, it is not only about the pricing,
it is about CONTENT, EXPERIENCE
and CONVENIENCE.
“BUILD IT, AND THEY WILL COME”
Page 20
MILLENNIALS
Comparison between
Broadcast TV vs. Online Video use
1 in 3 Millennials watch mostly
Online Video / No Broadcast TV
Source: New York Times Video Study

21. WHAT IS PIKSEL’S VIEW ON
THESE CHANGES AND
RECENT TRENDS?

22. INTRODUCING THE
PIKSEL INNOVATION LAB

23. WHY INNOVATION?
Formed in May 2014, the Piksel Innovation Lab is a small team focused on providing thought leadership,
identifying gaps in the market, brainstorming ideas for products, and implementing focused proof-of-
concepts to support these points. We work closely with clients to ensure their solutions are aligned with
the latest customer insights, to provide them the competitive edge they need.

24. • We work with our market intelligence team
to identify trends and new developments.
• We then present this intelligence to clients
and the wider market.
• This enables us to offer regular, in-depth
briefings with a general perspective on new
developments or focus on specific topics
clients want us to investigate and analyze.
MARKET INTELLIGENCE

25. USING NEW MARKET OPPORTUNITIES…

26. …TO DRIVE CUSTOMER VALUE

27. PIKSEL PROOF OF CONCEPTS

28. Page 28
PIKSEL MOSAIC
Click this link to watch a video on Piksel Mosaic:
http://www.piksel.com/products/#mosaic

29. PIKSEL MOSAIC
In a world already over-saturated with content, you need a smarter way
to surface meaningful recommendations to viewers. One that’s cross-
platform, tailored to the user, and reassuringly familiar across all devices.
Serving up content they want, when they want it.
Introducing Piksel Mosaic: a single eco-system that combines all the
elements of a digital life into a curated, adaptive micro-service. Serving
targeted context-sensitive recommendations that matter most, and
collecting richer analytics right across the platform.
With an increased understanding about users, companies can deliver
tailored content recommendations based on the viewer’s behavior,
network, and even what they are doing at that time. All of which
reinforces and strengthens the brand for the user.
Piksel Mosaic was also the winner of the NewBay Media IBC 2014 Best of
Show Award from TVBEurope.

30. INNOVATIVE PIKSEL SOLUTIONS

31. Page 31
DIGITAL SHOWCASE
Click this link to watch a video on Digital Showcase:
http://www.piksel.com/solutions/#media_is

32. DIGITAL SHOWCASE: SOLUTION HIGHLIGHTS
• Designed and built for a broadcast culture
• Modular, flexible, future-proofed – powered
by the Piksel Palette
• Vendor agnostic - integrates with existing
environments so no duplication of services
or technologies
• User experience methodology delivers cutting
edge design and interaction matching user
preferences and behaviours
• Second screen interactivity
• Faster time to market

33. Page 33
PIKSEL VOYAGE

34. • Scalable cloud-based, SaaS platform
• Works directly with passengers’ mobile devices,
eliminating in flight entertainment installation and
maintenance
• Gathers key data about each passenger that uses the
solution where they shop, eat, or plan to do at their
destination
• Provides a host of studio-level movie and TV content,
with the addition of magazines, newspapers, books,
and other entertainment formats being added
• Piksel Voyage is DRM protected and provides the
highest level of tamperproof, studio-approved security
PIKSEL VOYAGE: SOLUTION HIGHLIGHTS

35. CUTTING EDGE
EXPERIENCE DESIGN

36. EXPERIENCE DESIGN: WHAT WE BELIEVE IN
Relationships
Mutual trust and respect are
fundamental to a successful project
team. We pride ourselves on the long
lasting relationships we build and
maintain with our clients.
Communication
We understand world-class solutions
are not created in silos. Our project teams
are cross-functional and work closely to
maintain a shared understanding and vision.
Process
Projects only run smoothly when
everyone is following the beat of the
same drum. We work hard to
maintain a consistent rhythm through
the whole project lifecycle.
Intelligent Design
We believe in evolution but only once
the overarching vision and framework
is designed. Through research and
upfront intelligence we create
experiences that can evolve naturally.
Simplicity
We are always asking the question of
how we can make things simpler. Great
design will always get out of the way and
in doing so our work becomes invisible to
a user.
Iteration
Everything is a hypothesis until real
people are out there using it. We
therefor monitor feedback loops to
validate and gain insights that
facilitate continual improvement.

37. © PIKSEL 2013. ALL RIGHTS RESERVED | CONFIDENTIAL PAGE 20
OSN Play | Website
EXPERIENCE DESIGN: EXAMPLES

38. NEXT GENERATION
TECHNOLOGY FOR
PIKSEL CLIENTS

39. Page 39
CHANNEL 4: ALL 4

40. CHANNEL 4: ALL 4
• All 4 leverages the cloud to
deliver a new online destination
comprised of all of Channel 4’s
linear channels, digital content,
and services in one place
• Delivers portal-consistent user
experience that creates a unique
digital hub for users
• Initially launched on iOS and
browsers and will extend to other
digital platforms in the future
• Also includes analytics to support
Channel 4’s targeted advertising
strategy

41. Page 41
TRANSAVIA ENTERTAINMENT APP

42. TRANSAVIA ENTERTAINMENT APP
• Low cost air carrier based in the Netherlands
• Allows airline passengers to choose from an
extensive library of content to download to
their devices before flying
• Content is locked until the passenger boards
the flight and is automatically deleted from
the device once the flight has ended
• BYOD approach offers greater choice and
flexibility to the user
• Available on iOS, Android, & PC through the
airline booking system
• Captures passenger information creating
opportunities for future personalized and
contextualized offerings
Page 42

43. Apple / Android : SMARTWATCH KEY FEATURES
• Full Set-top box control through a simplified remote experience
• Voice and keyboard activated search of the full content catalogue
including program and movie metadata
• Make DVR recordings
• Access to your complete DVR recordings
• Shortcuts to your favourite channels
• Android notifications forward to the watch
• Optimization of key features to enhance battery life
• Existing APIs are reused for architecture and design efficiency

44. THANK YOU
For more information please email
michael.ritchie@piksel.com