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Is There Hope For Carrier-Operated VOD Services? Mihai Crasneanu, CEO
Is There Hope For Carrier-Operated VOD Services?
Mihai Crasneanu, CEO
A Global VOD Content Service Provider
Buenos Aires
Hong Kong
Kuaka Lumpur
Dubai
Miami
Mexico
Londo
n Paris
Barcelona
Grey Juice Lab Turnkey Solution
SERVICE DEFINITION
PROCESSING
&
DELIVERY
EDITORIAL & MARKETING
SERVICES
CONTENT ACQUISITION &
MANAGEMENT
Most Pirated Shows Worldwide in 2014
0
50,000
100,000
150,000
200,000
250,000
300,000
Game of Thrones - HBO
Breaking Bad - AMC
The Big Bang Theory - CBS
Orange is the New Black -
Netflix
True Detective - HBO
House of Cards - Netflix
Masters of Sex - SHO
Modern Family - ABC
Fargo - FX Homeland - SHO Mad Men - AMC Scandal - ABC The Normal Heart - HBO
Downton Abbey - PBS
The Good Wife - CBS
Da
ily U
niq
ue
Pe
ers
Poll Reveals Generational Gap in Media Preferences
58
75 80
89 92
72
63
47 43
6
42 39
27
16
6
13
28
16
32
21
Pay-TV Video streaming Music Streaming Newspaper
（Print or digital）
14-25 26-31 32-48 49-67 68+
How TV Watching Has Evolved Over The Past 8 Years
21%
7% 3%
69%
19%
13%
15%
53%
21%
22%
12%
45%
21%
22%
12%
45%
On demand
Plus 7 Days
Same Day
Live
31% 47% 55% 68%
Dexter S4
(2009)
Homeland S1
(2011)
Homeland S3
(2013)
Dexter S1
(2006)
Global SVOD Players’ Strategy: Like HBO 15 years ago, but Better
❶ ✰
❷ ✰✰
❸
✰✰✰ Non-Exclusive
Licensed Content
Exclusive
Licensed Content Original Content
0
50
100
150
200
250
300
350
400
2011 Q2-2014 Q1-2015
Ho
urs
of
Ori
gin
al C
on
ten
t
Original Content Available Hours viewed / day / sub
Original Content boosts SVOD Consumption
2 hours / day / subscriber
± Top 3 US TV Channel
Percentage of peak period downstream traffic in USA (fixed lines)
34.9%
25.1%
14%
8.6%
3% 2.8%
2.8%
2.7%
2.1%
1.4%
2.6%
Sept 2014 (Sandvine)
The most-watched Netflix originals
TV Comparison
David Letterman Finale
13.76m
Big Bang Theory
7.50m
Mad Men Finale
4.65m
4.38m 2.99m 2.66m 0.98m
10.7% 7.3% 6.5% 2.4%
Daredevil Unbreakable
Kimmy Schmidt
House of Cards
season 3
Bloodine
% of sample
viewing
Estimated
audience(millions)
2014
USD 1.7bn content spend
(expected for 2015)
USD 3.3bn content spend
(expected for 2015)
A new Original Show
every 2.5 Weeks
USD 1.5bn content spend
(expected for 2015)
Netflix Spends on Content more than BBC or Sky (excluding Sports)
4
3.5
3
2.5
2
1.5
1
0.5
0 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014
HBO Discovery ITV BBC Pro7Sat1
Group
Sky UK Netflix Amazon
Original and acquired Sport
Contenr spend by provider($bn)
Netflix in 2030
Subscribers
Revenues
Content Budget
Netflix Projections for 2030
800mi
$100bi
$50bi
“Broadcast TV will be extinct by 2030” Reed Hastings, Netflix CEO. Nov 2014
In UK
Exclusively on
Market Share in Germany
TOP 10
VoD-Anbieter
Watchever 2.3%
Videoload 3.1%
Unitymedia 4.4%
Amazon Instant
Video 5.7%
Amazon prime
Instant Video
33.2%
Sonstige
12.1%
Netflix
8.0%
Google Play
10.8% Maxdome
11.3%
iTunes
11.3%
8 years in the Market
6 Months in the market
Deutsche Telekom VOD
(10 years)
Market Superiority
Content:
Smart Decisions
Massive Investments
Exceptional
Execution with
Absolute Focus
Superlative Platform
Remarkable User
Experience
Superior Product
Billing Systems
Strong Customer Relationship
Massive Marketing Power
Brand Awareness
QoS
Carrier X
No Focus
Mediocre
Execution
Corporate
Inefficiencies
Platform:
limited, aging, no
constant evolution
Content:
Little know-how
Resistance to
invest
Poor User
Experience
Mediocre Go-To-
Market strategy
Poor
Product
Market
Looser
Carrier X Partners Managed Service
Content
Professionals
with VOD
Expertise
Original
Productions
Billing QoS
Customer
Relationship
Brand Awareness
Bundling Power
Platform:
State of the Art
Constant
evolution
Superior Product
Market Winner
Dedicated team of
experts with focus on
Efficient Execution
Immune to Carrier
Inefficiencies
Superior User
Experience, constantly
improved
Efficient Marketing
Execution
Thank you Mihai Crasneanu
CEO
Chairil Anwar
Sales Director, APAC (KL)
Diane Powers
Sales Director, APAC (HK)
