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9/21/2015
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OTT VideoOpportunity, threat or something else?
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Rick PaulsenClient Relations Manager
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A little background info
• MACC is a BSS/OSS provider based in Blair, Nebraska with a nation‐wide client base
• This large client base gives a perspective that I’d like to pass on to you
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What you’ll learn today• Current OTT statistics• Overview of OTT• List of common OTT devices• Overview of OTT content providers• A closer look at Sling• Options for addressing OTT
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Interesting OTT Video StatsNumber of people using a connected TV• 113 million• 36% of the U.S. Population• 87% of households have cable or satellite TV
service– eMarketer, 2015 and Experian Marketing Services, 2014
“Cord cutter” households• 7.6 million – a 44% growth over four years
– Experian Marketing Services, 2014
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Total percentage of homes with an OTT device• 34% – Digitalsmiths 2014
Would recommend the service to a friend?• 54% of OTT customers• 39% of traditional pay TV
– Ericsson’s TV and Media Report, 2014
Interesting OTT Video Stats
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So what is OTT Video?
Over‐the‐top content (OTT) describes broadband delivery of video and audio without a multiple system operator being involved in the control or distribution of the content itself.
Wikipedia.org
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So what is OTT Video?A less formal definition• A method of viewing video content over an Internet
connection – may be live or on‐demand• There are many devices and content sources• Can be a competitive or complimentary service
compared to traditional cable companies – look at ESPN3
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So what is OTT Video?Strengths• It may be cheaper than traditional cable• On‐demand ability• Huge variety of programming• Mobility• Can be HD without HD pricing• Wide variety of programming for the cost
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So what is OTT Video?Weaknesses• Need a strong Internet connection• Need a device or smart TV• May require a little technical ability• More cumbersome than traditional TV• The technology isn’t perfect – think buffering• As in all things – you get what you pay for
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So what is OTT Video?Complimentary• WatchTVEverywhere ‐ ESPN3, HBO GO, etc.
Competition (at least for CATV providers)• Netflix• Amazon Prime• Hulu• Sling TV and more
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Device OverviewRoku Boxes• $45‐$90• Plays Sling TV, Netflix, Hulu Plus, Amazon, and HBO Go
• Remote control or phone app• 2000+ Channels to choose
Kim Komando, 2015
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Device OverviewGoogle Nexus Player• $99• Plays Sling TV, Netflix, Hulu Plus, and Google Play
• Remote and voice search• 8 GB internal storage
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Device OverviewAmazon Fire TV• $100• Plays Sling TV, Netflix, Hulu Plus, and Watch ESPN
• Remote and voice commands• 8 GB internal storage plus a USB port
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Device OverviewApple TV• $69• Plays Sling TV, Netflix, iTunes, HBO GO, and ESPN
• Remote control• Most owned – Digitalsmiths 2014
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Could setup be any easier…
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Device OverviewHDMI Sticks HDMI (High-Definition Multimedia Interface)
• Offered by Roku, Google and Amazon• Less expensive ($35‐$50)• Fewer features• Highly mobile
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Device OverviewOther devices• Smart TVs• Game consoles (Play Station, Wii, Xbox,etc.)• Tablets• Lap tops• Smart Phones
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So what’s on?Just about everything!• Netflix – Movies, TV shows and original content• Amazon – Movies, TV shows and original content• Hulu Plus – TV Shows and Movies• ESPN – ESPN3 and Watch ESPN Apps• HBO GO – Best movies and programs from HBO• Local Channels – CBS All‐Access
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What isn’t on??
A few deal‐breakers for some• Live, local off‐air stations – CBS may be an exception• Many up‐to‐the‐minute network programs• Some live sports – especially pro teams
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About the bandwidth…OTT requires fast, uncapped bandwidth• Netflix recommends 5 Mbps minimum for HD• Apple TV suggests 8 Mbps for HD content• Roku asks for 9 Mbps for HD content• This is per stream…you may have more in each household
Info courtesy of each company’s website
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A closer look at Sling TV
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A closer look at Sling TVSling seems close to “real” TV• A Dish product• Live broadcasts• ESPN, ESPN 2, ESPN U and SEC Network• Other big channels are available – CNN, AMC, & TNT• Only $20 and no contract• Possible subscriber “cap” from content providers
Info courtesy of the company’s website and cNet
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A closer look at Sling TVSelling points against Sling TV• Channels are limited• Only one device at a time• Reliability – outage during Final Four• Limited ability to pause, rewind, or fast forward• No Big 10 Network or Fox Sports• Limited support optionsInfo courtesy of the company’s website, Ad Age, and cNet
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Options for addressing OTT
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If you see OTT as a threat…There are selling points against cord cutting• Local off air stations are harder to get• Local content is likely unavailable• Customers may need to boost their Internet speed*• No one solution has all the channels of traditional cable TV
• Lack of support
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If you see OTT as an opportunityYou can leverage OTT to your advantage• Sell OTT devices or use them in promotions• Some OTT services are complimentary – ESPN3• Offer video services outside of your footprint without the expense of video
• Chance for YOU to upsell faster internet speeds for an improved OTT experience
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If you see OTT as an opportunityYou’re going to sell lots of Internet• OTT and connectivity are the future – plan for it• Educate customers and make sure they have the right Internet plans
• Integrate OTT related questions into your selling process
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What Can I Do with 300 GB of data?
• Listen to over 11,000 hours of 64 Kbps music streaming
• Watch over 1,000 hours of “good quality” streaming video
• Stream two long HD movies a day every day for a month
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Internet Connection Speed Recommendations
Below are the Internet download speed recommendations per stream for playing movies and TV shows through Netflix.
• 3.0 Megabits per second - Recommended for SD quality
• 5.0 Megabits per second - Recommended for HD quality
• 25 Megabits per second - Recommended for Ultra HD quality
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If you see OTT as an opportunityWhat others have done…• Offer Free Roku with a short contract• Have used Roku devices to gain a foothold
in CLEC areas• Heavily promote those complimentary services –Watch TV Everywhere
• Become a content provider
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If you see OTT as an opportunityBecome a content provider• You can create a Roku Channel• The local content you currently have can be used • Local sports, events, and advertisements• More advanced options are available with off‐air capabilities
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Your Turn!Opportunity, threat or something else?
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Questions?
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