OTT: Hazlo a tu maneraMay 20-21, Buenos Aires

Typical Concerns Regarding OTT Services

• Monetization• Content Rights• Consumer Adoption• Differentiation• Cost of Ownership/Cost of Evolution

Ingredients:• 3 cups premium content• 2 tablespoons of DRM• 20 grams of advertising• 4 packs of bitrates• 1 CDN• 1 package of differentiation• Personalization and Discovery• 1 User Experience• Multiple devices

Instructions:Heat the origin server to 300 degrees. Take the content rights, the transcoding and bitrates and roll them into video profiles. Blend in the advertising. Mix premium content with DRM, pour into CDN and let settle. Bake with differentiation for 45 minutes. Sprinkle with personalization and discovery to taste and chill until authenticated. Add monetization sauce. Careful: Very engaging when hot. Pour into the User Experience mold. Serve in tablets, smartphones, TVs and PCs. Feeds up to millions of subscribers.

OTT Video: What is the recipe for success?

There is no single recipe, as long as you…

• Make OTT an integral part of your strategy• Accept OTT as a key driver of consumer satisfaction and

appreciation• Establish an OTT offering that is a full meal, not just an

appetizer• Make sure you leverage your strengths and differentiating

ingredients• Choose your ingredients carefully, don’t just take whatever is

nearest

Participants (our customers):• The DTT operator• The incumbent IPTV provider• The content aggregator• The competitive broadband/mobile operator

Master Chef: OTT

Temporada 15: Hornada OTT

VO is proud to present…

Contestant No. 1:The DTT Operator

• Strong Pay TV DTT player with no network assets• Recently added VOD and Catchup TV over-the-Top to the STB• Abundance of fibre in the region (>100Mbps) is driving subscribers

to competitors/online video• Multi-screen services come naturally for triple-play operators and

this poses a threat to their existing subscriber base

• What are their strengths?• Existing, high-quality TV service• Premium Content• Subscriber base• Available bandwidth

Contestant No. 1:What did they do?

• Delivering content to multiple screens/devices in order to ‘protect’ their DTT customers (an add-on to the Pay DTT service)• Was planned to distribute content inside the home via the STB• Converted to OTT due to availability of bandwidth and need to

extend the service outside the home• Linear and On Demand content, personalized recommendations,

on iOS/Android tablets/smartphones, PCs, OTT STB, Smart TVs, game consoles and Chromecast

• Now considering OTT TV as a potential stand-alone service (without requiring a DTT subscription), enabling them new growth

• Scheduled Launch: July, 2014

Contestant No. 2:The incumbent

• Successful IPTV/Hybrid service with >5M subs• 27M mobile subscribers with access to a very limited content library

(primarily on demand)• Robust Pay TV offering, wide variety of content (linear and on

demand)• Strong competition from Pay TV operators as well as online video• Ongoing consolidation in France between fixed IPTV operators and

mobile operators

• What are their strengths?• Subscriber base• Nationwide Broadband Network (fixed/mobile)• Content and Experience

• Initiated a multi-screen service, to be synched with the Pay TV service, in order to align the mobile TV service as much as possible with the Pay TV service

• Expanded the reach of the service to all devices: tablets, smartphones, PCs, games consoles, Smart TVs

• Secured content rights to ensure that subscribers had access to the same content over Wifi/3G/4G as they have in the home

• Implemented EST model in the video service to allow subscribers to take their content with them wherever they go

Contestant No. 2:What did they do?

- Confidential -

Contestant No. 3:The Content Aggregator

• Content provider/aggregator with an array of well focused content targeted at a specific market segment

• Limited distribution options on existing Pay TV infrastructure• Under-served market segment that represents a window of

opportunity• Available content rights for OTT• Potential distributors lack the infrastructure for OTT content

• What are their strengths?• Well focused content• A well defined demographic• Expertise in finding distribution partners

Contestant No. 3:What did they do?

• Established a cloud platform for content preparation for linear and non-linear viewing

• Created a cloud architecture for securely delivering the content through a white-labeled OTT service

• Expanded their content offering to include a wider variety of channels, as well as getting VOD rights

• Targeted tablets, smartphones, Smart TVs, Game Consoles and PCs in order to provide maximum accessibility to the content

• Offered distributors a compelling bundle of technology and content

Contestant No. 4:The competitive broadband Operator

• Insufficient growth for IPTV (limited coverage)• Declining Pay TV market, market-wide loss of subs• Difficult economic situation, high un-employment leading to an

emphasis on low cost solutions• Lack of competitive differentiation on IPTV• Abundance of pirated content due to lax anti-piracy rules• Dominant Pay TV provider focused on a higher-tier of customers• Cable players unable to compete on a national basis• What are their Strengths?

• National access (through OTT)• Subscriber base (through mobile/fixed broadband)• Content expertise and experience

Contestant No. 4:What did they do?

• Launched a low-cost (12€) focused service with the top premium channels and access to VOD, in HD and…fully OTT

• Sports package and SVOD available for small incremental cost• Provided low cost STBs that can also receive DTT (popular in Spain,

though very regional)• Focused on 3 core concepts- Simplicity, Innovation and Value for

Money• Presented a network agnostic, innovative service that is accessible

on tablets, Smart-TVs, smartphones, games consoles, PCs, STBs• The results:

• >40% TV growth in 6 months…• High Customer Satisfaction• Low support costs

Orange Spain

And the winner is…(for now)

• Contestant No. 4:

Every Chef has their secrets

• Make sure that OTT is in your strategy• OTT is a key driver of consumer satisfaction• Create consistency in your OTT content offering• Use your strengths and focus on differentiation• Work with proven solutions

Thank you- Confidential -