Market situation of tv industry

MARKET SITUATION OF TV INDUSTRY

Agnese Lubka matr.№20852Heidi Kotiranta matr.№20840

Dana Mynarikova matr.№20816Oleksandra Soroka matr.№20856

Hochschule Harz 2013

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Table of contents 1. Current market situation & trends 2. TV advertising and how it works3. TV industry online4. New technologies 5. Future of TV industry6. Activity

3 Current Market Situation

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Facts and FiguresThe world broadcasting and cable TV market: Expanded by 6% in 2010 to exceed

$373,000 million Expected to reach almost $475,000

million by 2015Source: MarketLine

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Current trends Internet TV – becoming the preferred

choice of consumers Personal TV viewing: on - demand options,

increasing channels Possibility of watching TV across multiple

devices

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Current Trends Rise of 3Ds movies pulls people away

from their TVs LCD and Flat-Panel Screens Dominate TV is Going Social : viewers are

multitaskingSurfing the web

43%

Talking on the phone30%

Texting/ Send-ing emails

27%

What Americans are doing while watching the TV?

Source: Deloitte survey 2011

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Facts and Figures

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Facts and Figures

9 TV advertising and how it works

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1st TV advertisment Broadcast in the United States on July 1,

1941 The watchmaker Bulova paid $9 for a

placement on New York station WNBT before a baseball game

It was 10-second spot

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The basis Advertisements typically pay for the cost of the

programming you are watching Time slots for advertisements are sold by

television networks for the highest possible price

In an ideal situation, the price advertisers pay for commercials will cover the cost to produce the show and still make enough money for the network to profit off of it

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Ratings

Ratings play a big part in television advertising

Statistics collected by the Nielsen Company show exactly what types of people are watching what shows

The higher the ratings (the more people watching) for a particular show, the higher the price a network will be able to charge for advertisement space during commercials

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TV networks on their shows Major networks have

embraced the evolution of digital media

From daily Facebook posts and regular Tweets driving conversations

TV networks are a prime example of content marketing as they keep audiences coming back, season after season, increasing their ratings and profits

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Future

16 TV Industry Online

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Internet Television A general term that covers the delivery of

television shows and other video content over the Internet by video streaming technology

Professionally created content, distributed through the Internet.

Intended as a free means of distribution and is open to all.

86% of all Internet consumers in the US now watch online videos

12-17 year olds Americans already spend 33% of their online time watching videos.

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Internet TV and TV channels TV channels want to and have to offer their

programs online to reach a larger audience Additional viewing materials

Making of Behind the scenes Interviews And much more

Many channels are offering the material only for a limited time

Advertisement

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Example of MTV US webpage

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Other forms of Internet TV Web television

A term often used to characterize short programs or videos created by a wide variety of companies and individuals (YouTube)

Internet Protocol television (IPTV) Internet technology standard for use by

television broadcasters.

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IP-TV (Internet Protocol Television)

A system through which television services are delivered using the Internet protocol

IPTV services may be classified into three main groups: live television time-shifted television: catch-up TV, start-over TV video on demand (VoD).

Using high-speed access channels into end-user premises via set-top boxes or other customer-premises equipment

Advantages Interactvity Video on Demand

Limitations Need of a high speed Internet connection The IPTV is sensitive (right time, right order, unreliable data)

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OTT (Over-the-top)

Refers to delivery of video and audio over the Internet without a multiple system operator being involved in the control or distribution of the content.

The provider is not responsible for the viewing abilities, copyrights, and/or other redistribution of the content.

Content that arrives from a third party and is delivered to an end user device.

NowTV, Netflix, WhereverTV, Hulu

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Netflix Netflix, Inc. is an American provider of on-demand

Internet streaming media (Available to North and South America, the Caribbean, United Kingdom, Ireland, Sweden, Denmark, Norway, Finland, the Netherlands)

“Watch Instantly“ – Internet video streaming As of September 2013 Netflix reported global

streaming subscribers at 40.4 Million (31.2 million in U.S.)

Netflix currently has exclusive pay-TV deals with major and mini-major movie studios.

Netflix’s series such as Lilyhammer, House of Cards (3 EMMY awards), Hemlock Grove, and Orange is the New Black

25 New technologies

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Display technology For the past 75 years – the cathode ray tube (CRT) Plasma

Picture quality – lighter, less bulky, wice colour scale – contrast

× Phosphors lose luminosity over time× Hight power consumption

LCD – the most widely produced and sold Lower power usage than plasma× Worse contrast ratios× Blurring and ghosting during fast-moving images

OLED – future? curved display Great contrast ratio× Current costs× Lifespan

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Resolution

First TV‘s with UHDTV resolution come to the market Called also 4K Has 3840 x 2160 pixels – 4 times more than Fulll-HD the image is visually smoother and sharper

SDTV HDTV UHDTV

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3D TV Conveys depth perception to the viewer Displays offset images that are filtered

separately to the left and right eye. Two strategies: wear eyeglasses to filter images to each eye, have the light source split the images directionally

into the viewer's eyes (no glasses required). 3D faces uncertain future

Preferring 3D in cinema Makes some people sick

According to the latest forecasts 3D TV is expected to be in 1.6% of all homes by 2015

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Smart TV Something like smartphone among old phones Sometimes referred to as connected TV or

hybrid TV is any TV that has internet access built in

allowing it to access a range of online services: video on demand, social networking, instant messaging, full web browsers.

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Futuristic Cisco‘s Wall TV Cisco believes that most homes will have

borderless LCD displays, tiled across an entire wall

Controlled by tablet

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Mobile TV Associated with mobile phones and other mobile digital

devices Cell phones provide the best posssible way to reach out to

users Includes:

Pay-TV service Free-to-air

Additional features: Downloading TV programs and podcasts Ability to store programming

Device Manufacturer's challenges Power consumption Memory Display Processing power

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Mobile TV TV-vide usage isn‘t all that mobile

82 % of tablet TV usage and 64 % of smartphhone TV usage occurs in the home

49 % more convenient 13 % want to watch multiple episodess 5 % because of fewer ads

Viewing Mobile TV remains a small part of overall TV consumption

Reason

33How do you imagine the future of television?

Future of TV Industry

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Future of TV

Creators Retailers

Distributors

Technolog

y developers

Mr. Potato

Internet is changing the TV industry…1. What is future of TV?2. Will smaller devices become more used?3. Will the 30 seconds spot decline

because TV is everywhere available?

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Future of TV

Limited means to deliver their producst without distribution access Exploring opportunities to go direct to the customer

Creators Retailers Distributors

Technology

developers

Mr. Potato

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Future of TV

Broadcasters are being turned into retailers

Traditional revenues streams are threatened -> only Live is still strong

VoD will be differentiated on price and brand

Creators Retailers Distributors

Technology

developers

Mr. Potato

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Future of TV

Analog being switched off IP-TV and OTT or hybrid Satellite

Creators Retailers Distributors

Technology

developers

Mr. Potato

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Future of TV

Smart TV Connected TV Multiple connected device brands

Creators Retailers Distributors

Technology

developers

Mr. Potato

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Two-screen usage 50 % of tablet owners view both features

TV shows and movies on device 80 % of UK teens use second screen to

communicate with friends when watching TV

50 % of UK inhabitans using social media while watching TV

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Social TV Answer = Social TV A synthesis of TV and social networking Audience engaging with TV via second

screens (e.g. laptops) and connected TV systems

People talk 24/7 about TV on Facebook or Twitter

41 Music Quiz

Questions?

Thank you for your attention!

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5060hz#utm_medium=selfpromo&utm_source=avmania&utm_campaign=copylink http://cstonline.tv/tv-industry-links-worldwide http://gigaom.com/2013/08/23/ready-for-the-future-of-tv-too-bad-the-industry-is-still-just-

talking/ http://news.discovery.com/tech/gear-and-gadgets/online-videos-forcing-tv-change-130814.htm http://mashable.com/2011/07/20/consumer-trends-tv/ http://www.reportlinker.com/ci02097/Television-Broadcasting.html http://www.thepulsenetwork.com/content-marketing-post/how-tv-networks-use-content-

marketing-to-promote-their-shows-year-round/ http://www.wired.com/underwire/2013/02/nielsen-online-viewing-ratings/ http://www.slideshare.net/sarahlou79/the-effects-of-television-advertising-to-society http://econsultancy.com/de/blog/7731-how-can-marketers-use-offline-ads-to-drive-people-online