LUMA Partners presents “The State of Digital Video,” as presented at the VidCon conference on January 23, 2015. This presentation reviews some of the key topics discussed at the conference: the rise of digital video, the traditional TV model, and convergent video.
3. Hours
29%
Source: eMarketer, comScore
U.S. Digital Video Proper6es
Ranked by Unique Video Viewers
Average Time Spent per Day
with Digital Video by Device in U.S.
YouTube Has Dominated the Rise of Digital Video
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2011
2012
2013
2014
2015
Tablet
Smartphone
Desktop
Other
11. Source: eMarketer
$ billions
ProgrammaAc Video
Digital Video
TV
$0.0$
$10.0$
$20.0$
$30.0$
$40.0$
$50.0$
$60.0$
$70.0$
$80.0$
2012$ 2013$ 2014$ 2015$ 2016$
$64.5
$66.4
$68.5
$70.6
$73.8
But is Still Only a Fraction of the TV Market
16. 100 : 1
19
Buckets
36
~ 100
Companies
~ 400
$150 billion
Total Spend
$6 billion
$1.5 Billion
$ / Company
$15 Million
Traditional TV vs. Digital Video Players
17. 100 : 1
Market Cap: $2 Trillion
Cash: $530 Billion
5x
Cash
New Entrants Have Plenty of Money to Build or Buy
22. Content Channels Media MVPDs Device / UI
9,000+
Channels
C
O
N
S
U
M
E
R
CTV
Devices
OTT
UI
Traditional TV Content Model
23. Content Channels Media MVPDs Device / UI
C
O
N
S
U
M
E
R
Programs NetworksChannel
Bundles
“Must Carry” &
Broadcast Content
Traditional TV Content Model
24. Content Channels Media MVPDs Device / UI
Tier 1
Cable and
Broadcast
Content
M
A
R
K
E
T
E
R
CPG Upfronts$30BB
$40BB Spot and
Scatter TV ads
$6.3BBComcast bundles
in sports content
C
O
N
S
U
M
E
RAffiliate Fees
$40BB
Retrans Fees
$80BB
Subscriptions
Traditional TV Content Model
28. Final Late
Night Episode
Evolution of
Top Rated Show
Most Viewed
Episode
1993
2007
1990
2013
1992
2009
80MM
30MM
52MM
8MM
4MM
38MM
Crosschanneldevices
killedthetelevisionstar!
29. MediaChannels MVPDsContent Device / UI
C
O
N
S
U
M
E
R
“Just broadband
only, thanks!”
Subscription content on license
Discrete content
“Made for web” content
“I forget what
channel it’s on
I just stream it”
“Artist to
Consumer”
Digital Opens Different Distribution & Content Strategies
39. Now TV is Being Aggressive with Data
Credit Card Data
Subscriber Data
Target Audience
Yogurt Buyers
Frozen Snack Buyers
Wireless Data Users
Inspired by WSJ
40. Digital is Increasing Investment in Original Content
Everyone is geVng in on the game
?
42. $0 $0
(1) Assumes 7.5% of TV Spend Shifts to Digital
Source: eMarketer
eMarketer Digital Video Spend ProjectioneMarketer TV Spend Projection
Digital Dollars Could Double
43. Perception vs. Reality in Addressable TV
Linear TV
Programma6c TV
Percep6on
Reality
Linear TV
Addressable
Linear TV
Video On
Demand
(VOD)
Over The Top
(OTT)
Digital
Video
Programma6c TV
47. Digital Video Has a Very Bright Future
1. Preferred Consumer Media
2. Continued Device
3. New Content Formats
4. Ad Inventory Shortage
5. TV Demand Shift
6. Strategic Exit Opportunities
48. New York | San Francisco | Palo Alto
Access. Insights. Execution.
LUMApartners
Thank you! @tkawaja