Traditional Broadcaster in Transformation

Traditional Broadcaster in TransformationInternational Bar Association IBA

Annual Conference Vienna 2015, 6th October 2015Session “On demand and streaming content vs broadcasting

- the next great disruption?”

Janne Holopainen, Media Regulation Manager,

Yle - Finnish Broadcasting Company [email protected]

mailto:[email protected]

Janne Holopainen

Introduction

• Yle, the Finnish Broadcasting Company,Finland's national public service media company. See more http://yle.fi/aihe/artikkeli/2014/12/31/yle-nutshell

• My professional background: telecom network and av-media delivery businesses last 20 years

Scope of presentation

• “Traditional Broadcaster” covers both • publicly funded Public Service Media companies and • commercial tv-broadcasters

• Finnish perspective,also applies to other Nordic countries

• Focus in video delivery to audience• Note: video = all video content types, incl. tv-content

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http://yle.fi/aihe/artikkeli/2014/12/31/yle-nutshell

http://yle.fi/aihe/artikkeli/2014/12/31/yle-nutshell

Janne Holopainen 3

Overview of video content value chainin broadcasting

Content production

Content financing & commissioning

Content aggregation & publishing

Delivery networks

Customer management & invoicing

User device & consumption

5.10.2015

End-user

To earn:

audience attention and time spending (ad-funded and publicly funded media content)

To earn:

usage fees (pay-tv & other chargeable media content)

Business goals of video content providers,incl. Traditional Broadcasters:

Janne Holopainen 4

The position of Traditional Broadcaster in the value chain

Content production



Delivery networks



IN BROADCASTING NETWORKSTraditional Broadcaster Broadcaster

/Network op.Pay-tv-operator TV- & STB-

manufacturers

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End-user

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Content production



Delivery networks





manufacturers

Scarce resource=> bottle-

neck

Gatekeeperposition

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End-user

Monopolistic during analogue TV period,

until Cable-TV, Direct To Home Satellite-TV & Digital Terrestrial TV,

- currently still oligopolistic

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Video delivery networks vs. Video offering / consumption concepts

Offering / consumption concepts

Linear i.e. program scheduled

Video on demand, VOD

Delivery networks

Broadcastingnetworks

Broadbandnetworks

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Delivery networks


Linear tv-channels

Broadbandnetworks

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Delivery networks


Linear tv-channels

Broadbandnetworks

5.10.2015

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Delivery networks


Linear tv-channels

VHSPVR i.e. DVR

Broadbandnetworks

5.10.2015

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Delivery networks


Linear tv-channels

VHSPVR i.e. DVR

Broadbandnetworks

Network-PVR

Catch-up of linear tv-channels

VOD-catalogues

Personal video playlists

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Delivery networks


Linear tv-channels

VHSPVR i.e. DVR

Broadbandnetworks

Streaming of broadcasting tv-channels

Streaming of single events

”Internet only” tv-channels

Network-PVR

Catch-up of linear tv-channels

VOD-catalogues

Personal video playlists

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Janne Holopainen

Ongoing changes in video consumption habits

1) The speed of the change from linear video consumption to VOD is difficult to estimate exactly

• Direction of change is clear, speed of change may vary in future• New discontinuation phenomena are possible

• Earlier: Impact of smartphones and tablets on av-media consumption,In future perhaps virtual glasses & augmented reality?

2) Demand for linear video channels will continue• Total viewing minutes of linear tv-channels will decrease,

but peak viewing will remain high• Cultural & commercial importance of live events, incl. sports

• Number of linear tv-channels will decrease• Advertising revenues from linear tv-channels vs. VOD-content?• Consumer willingness to pay for linear pay-tv channels vs. VOD-

content?

3) Video usage behaviour will further polarize while older generations will remain with linear tv-channels and younger generations will mostly shift to VOD-viewing

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Janne Holopainen 135.10.2015

15% 19%

Janne Holopainen 14


Content production



Delivery networks





manufacturers


neck

Gatekeeperposition

IN BROADBAND NETWORKSContent production



Delivery networks

User-interface & personalization


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End-user

Janne Holopainen 15

Traditional Broadcaster transforming to Video content provider

Content production



Delivery networks





manufacturers


neck

Gatekeeperposition




Delivery networks



Traditional Broadcaster transforming to Media content provider

Broadband network

operators

Media content provider

Devicemanufacturers

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End-user

Janne Holopainen 16


Content production



Delivery networks





manufacturers


neck

Gatekeeperposition




Delivery networks



Traditional Broadcaster transforming to Media content provider

Broadband network

operators

Video content provider

Devicemanufacturers

Several other video providers

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End-user

Fierce competition on audience attention

Source of user

behaviour data

Janne Holopainen 17

Overview of video content value chain - currently

Content production



Delivery networks



5.10.2015

End-user

To earn:

audience attention and time spending (ad-funded and publicly funded media content)

To earn:

usage fees (pay-tv & other chargeable media content)

Business goals of video content providers,incl. Traditional Broadcasters:

In present-day video content market also several other players are striving for same audience attention and usage fees, incl. - broadband network operators, - ”general use” video platforms (YouTube, Facebook etc.)- marketers of consumer products (e.g. Red Bull)

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Estimated reach of Yle broadcasting TV-channels and pursued reach of Yle on-line services

2017 2020 20232014

1 m

2 m

3 m

4 m

Yle daily tv-reach3.5 - 4 m

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2017 2020 20232014

1 m

2 m

3 m

4 m

Estimated daily reach of Yle broadcasting TV-channels


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2017 2020 20232014

1 m

2 m

3 m

4 m

Pursued daily reach of

Yle on-line services

Estimated daily reach of Yle broadcasting TV-channels


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Janne Holopainen


Yle goal: To maintain its relevance for entire Finnish audience despite the changes in media consumption

Þ Focus of Yle media publishing is shifting to internet• An intensive migration to a “web & mobile first” publishing ongoing

Þ Most important goal in the field of media delivery:• Secure sufficient broadband networks capacity to enable video delivery to

entire nationwide audience simultaneously• Both in fixed and mobile broadband networks

Þ Shift from a broadcaster to a video content provider has also a lot of other impacts on Yle • content creation & acquisition and • aggregation & publishing.

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