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Second Screens Apps Market and Trends Renaud Fuchs, VP Strategy, Business Development & Transformation [email protected]

Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

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Page 1: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Second Screens Apps Market and Trends Renaud Fuchs, VP Strategy, Business Development & Transformation

[email protected]

Page 2: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Broadcast Services allow TMT companies to focus on their key priorities

by outsourcing their technical media operations

2

Customers

Key Facts Leader for playout services

Over 180 TV channels currently broadcast worldwide

Proven ability to deliver under tight SLA (five 9’ = 99.999%)

Large and diverse portfolio of customers including

Large international broadcasters (NBCU)

Large national broadcasters (ITV, NPO)

Local players (Equidia)

Live news channels (France 24)

Etc...

Broadcast services provided in over 50 languages

200,000 hours of content ingested per year

Services

Outsourcing of technical media activities (playout,

content preparation, content management, VoD,

etc…)

Solution Design and System Integration

Professional Services:

On 13th March Technicolor received a binding offer from

Ericsson for the Broadcast Service Division

Page 3: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

• Second screen apps?

What it is and what it isn’t

5 segments with different business models

A new Eco system

• 5 years in the making...

A 5 years history

“Early days” driven by multitasking

“Multiplication phase” driven by hard numbers

• To infinity and beyond? What happens next?

• Appendix

TABLE OF CONTENTS

3

Page 4: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Second screen apps: What it is…

4

Device

Smartphone Tablet Laptop

App

A Second Screen app (on a phone, tablet, PC) provides functionalities

to improve the viewer’s experience

Social*

Recommendations

Related content

...

Sources: Technicolor analysis, Wikipedia, http://mashable.com/follow/topics/social-tv/

*Also called “Social TV”: technology that supports communication and social interaction in either the context of watching television, or related to

TV content.

App

Content & services

TV content

Movie

Series

Show

Sport

...

Page 5: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Second screen apps: What it is not

5

• VOD/ catch up

• TV everywhere app

• Web TV

• Twitter App

• Facebook App

• Social TV (Facebook

or Twitter app on

connected TV)

• Browsing web site

for content related

to a TV program

First screen service on a

“second screen”

Social networks Apps Web site content

YouTube Twitter Facebook

IMDb website

Sources: Technicolor analysis

Page 6: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

5 types of apps with different focuses and sponsors

6

Multi-functions

Social Score Mobile

Fav.tv

Tunerfish

Philo

IntoNow

GetGlue

Zeebox

Miso

Yap.TV

TWC TV U-Verse

Mobile

Recommendation

PlayUp

\

Content

owners

Pay TV TV Guides

TV

Foundry

Watch

with

eBay

Shazam

M-GO

Non

content

owners TVPlus

Viggle

ConnecTV

Buddy TV

Related content &

commerce

King’s

speech

Day of

the

Diesels

First screen services

Snappy TV Peel

Sources: Technicolor analysis

TV Chatter

Dijit

ROVI

What’s on TV

FANGO

TapCast

Page 8: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Apps

Technology (Platform , back end...)

Advertising networks

Data analytics

companies

Specialised media

Investors (VC/PE)

A new eco-system around second screen

8

*

*Second screen mostly Sources: Technicolor analysis

*

* *

*

*

* *

*

Page 9: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

• Second screen apps?

What it is and what it isn’t

5 segments with different business models

A new Eco system

• 5 years in the making...

A 5 years history

“Early days” driven by multitasking

“Multiplication phase” driven by hard numbers

• To infinity and beyond? What happens next?

• Appendix

TABLE OF CONTENTS

9

Page 10: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Mar. 2010

Consolidation Early days Multiplication

•Viggle

acquired Loyalize

•MOVL raised funding

•BeRecruited

acquired Fanvibe

•ConnecTV

Apr.

Jan. 2011

Jun.

Jan. 2012

Aug.

Sep.

Oct.

Nov.

•Local

Response

acquired Philo

•Umami raised

$1.65m

•Fav.tv

•Zeebox

•TV Foundry

Sep.

Nov.

Jul.

Jan. 2007

A long history

10

•BeeTV

•BuddyTV

•Fanvibe •iPad

•Miso •Yap.TV

•IntoNow

•Yahoo acquired IntoNow

•Philo

•Tunerfish

•BeeTV shut down

•Umami

•Sky Movies

•TweetTV

•BSkyB took 10% in Zeebox

•GetGlue raised $12m

•BlueFin Labs raised $12m

Sources: Technicolor analysis

Feb. •ROVI What’s

on TV

Aug. •U-Verse Mobile

Mar. •TWC TV

Oct. 2009

•TV Chatter

Jul.

•Fanvibe shut down

Jun.

Feb.

Oct.2008

•GetGlue

Jun.

•iPhone

Apr.

Mar.

•TVGuide

acquired Fav.tv

•TweetTV

raised $750K

Jun. •Fanhattan

Jan. 2012

•Viggle

Oct.

•Peel

May •Peel raised $16.7m

Feb.

Dec. •Miso raised $4m

App launches

Acquisitions / Fund raising

•BuddyTV raised $6m

Apr. 2008

Mar. 2011

•CBS acquired Clicker

Jun. 2010

•Yap.Tv raised funding

2007 2008 2010 2011 2012 2009

Page 11: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Early days: it all started with multitasking

11

People use the Internet and Social Networks...

Sources: Yahoo “Mobile Shopping Framework” (November 2010), A September 2010 survey conducted in the UK for Intel, Zeebox CEO,

http://digitalvideospace.blogspot.com, EBU technical, http://www.appmarket.tv/news/373-seventy-per-cent-of-sports-fans-and-55-of-drama-viewers-said-they-

want-to-interact-with-tv.html, http://blog.nielsen.com/nielsenwire/online_mobile/in-the-u-s-tablets-are-tv-buddies-while-ereaders-make-great-bedfellows/,

http://www.emarketer.com/Articles/Print.aspx?R=1008301, http://blogs.hbr.org/cs/2012/02/three_lessons_for_social_tv.html, http://vator.tv/news/2012-02-06-

madonna-leads-in-super-bowl-google-searches?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+vatortv%2Fnews+(VatorNews),

http://www.marketwatch.com/story/truly-madly-deeply-in-love-with-television-nation-spends-more-than-two-months-a-year-in-front-of-screens-2012-03-15

...While watching TV

•70% of tablets owners and

68% of smartphones owners

said they use their device

while watching TV

•Tablet owners said 30% of

their time spent with their

device was while watching

TV/20% for smartphone

owners

•53% of viewers with a PC are

on social network while

watching TV

...To talk about TV

•59% of Britons use

smartphones to discuss what

is on TV

•45% of Britons use social

networks to discuss what is

on TV

•33% of all discussions on

social networks are about

traditional media

...and interact with TV

• 26% of Britons and 44% of

those aged under 35 have

commented to others, online

or via SMS, about a TV

programme they have been

watching

Page 12: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

What drives multiplication?: usage and engagement

12 Sources: http://www.forbes.com/sites/michaelhumphrey/2011/12/06/vinod-khosla-explains-his-venture-into-second-screen-tv-and-miso/,

http://www.fastcocreate.com/1679561/the-race-for-the-second-screen-five-apps-that-are-shaping-social-tv, Second Screen BBC Academy Feb 21st, TOR772-I 9-15 March

2012, http://www.marketwatch.com/story/truly-madly-deeply-in-love-with-television-nation-spends-more-than-two-months-a-year-in-front-of-screens-2012-03-15

More time spent

on the app

• Usage:

Average session on a tablet: 25 minutes

Average session on a smartphone: 35 minutes

• Stickiness:

40% get back to the app in the following week,

60% in the following 2 weeks

Zeebox

More

engagement

• A test of synchronized ad creative running in a USA Network ad

spot, a Web site, facebook and a tablet app engaged 23% of the

people viewing the ad on a second screens

• 50% utilise Zee tags for additional information and links

More users

• GetGlue:

2m users, +54% from July 2011 to January 2012

100m cumulative check-ins, +800% in 2011

350m cumulative data points (likes, reviews, check-ins)

• Zeebox:

300k unique visitors since early March launch

Up to 15,000 new sign-ups per hour following the launch of a

new TV advertising campaign in March 2012

Page 13: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

GetGlue has generated significant engagement

13

2m users, +54% from July 2011 to January 2012

100m cumulative check-ins, +800% in 2011

350m cumulative data points (likes, reviews, check-ins)

Most users are 18-34, 55% female/45% male

130 million people: Get glue daily reach through Facebook and Twitter

Sources: http://www.readwriteweb.com/archives/second_screen_apps_top_trends_of_2011.php, http://blog.getglue.com/?p=8976,

http://www.intomobile.com/2011/04/14/getglue-check-in-social-netowrk-hits-1-million-users/, http://blog.getglue.com/?p=7552

Page 14: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

What drives multiplication?: money

14

Advertising on second screens increases sales

• During the 2012 Superbowl, some Shazamable adverts generated purchase rates

reaching 27%

• Advertising campaigns combining TV with second screens generate new revenues, “even

attracting money that was previously destined for direct marketing” (Videonet)

• 3-month old IntoNow acquired by Yahoo for $30m in April 2011

• 3-month old Zeebox valued at £100m by BSkyB in January 2012

Second screens apps are acquired for huge amounts

• Peel: $16.7m in May 2011

• GetGlue: cumulative $24m since 2007

• Miso: $4m in December 2011

• Loyalize: $6m before its launch (bought by Viggle February 2012)

Second screens apps raise financing

Sources: http://digitalvideospace.blogspot.com/, http://www.adweek.com/news/technology/second-screen-apps-explode-132237,

http://www.lostremote.com/2012/01/08/social-tv-startup-zeebox-scores-over-15-million-from-bskyb/,

http://www.adweek.com/news/technology/loyalize-tries-white-label-approach-check-130725 , http://www.v-net.tv/pay-tv-operators-have-a-

role-in-second-screen-ad-sync/, http://mediatel.co.uk/newsline/2012/03/21/iptv-event-shazam-ceo-on-how-to-use-the-second-screen/

Page 15: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

What drives multiplication?: An App for…

15

A program

A TV series

A TV channel

/ network

A TV group

All TV

channels, all

TV programs Fav.tv Zeebox ConnecTV

The Celebrity

Apprentice Smurf-o-vision

Page 16: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Too many similar apps?

16

“Success is [not] falling gently upon every social TV startup” said GigaOm

blog, even though, over 2011, “at least a half dozen” social TV apps have emerged

Sources: http://digitalvideospace.blogspot.com/, http://www.adweek.com/news/technology/loyalize-tries-white-label-approach-check-

130725, http://www.forbes.com/sites/michaelhumphrey/2011/12/06/vinod-khosla-explains-his-venture-into-second-screen-tv-and-miso/2/

More than 110 second screen

apps counted by “Thoughts on the Digital

Video Space” blogger Chuck Parker in early 2012

“the social entertainment apps market

becomes crowded” said Adweek

journalist Erin Griffithin April 2011

Page 17: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

• Second screen apps?

What it is and what it isn’t

5 segments with different business models

A new Eco system

• 5 years in the making...

A 5 years history

“Early days” driven by multitasking

“Multiplication phase” driven by hard numbers

• To infinity and beyond? What happens next?

• Appendix

TABLE OF CONTENTS

17

Page 18: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Ingredients for success: Experience & community

18

• Experience:

o Innovative look & feel

o Simple, seamless experience

o Access to the API and backend

analytics to understand what

users do and like

• Community

o Maximum interaction between

viewers

o Creation of a community of fans

o Synchronization with live

events (Super Bowl, the Oscars,

MTV Awards...) to drive

audience

o App available on all 3 devices:

smartphone, tablet, laptop

• Too much change

o Continuously changing app

• Too narrow

o Thinking small, focusing on a

niche, offering one single

functionality

• Saturation

o Saturating the app with ads

o Saturating the app with social

feeds (Facebook, Twitter,

Shazam, GetGlue...) creating

confusion for users

What works What doesn’t work

Sources: http://blog.360i.com/social-media/second-screen-tv, http://magnetmediafilmsinc.com/blog/blog/2011/11/15/5-big-mistakes-to-

avoid-in-second-screen-co-viewing/, Technicolor analysis

Page 19: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

What happens next?

19

• Passive check in and auto sync with set top box

(e.g. DirecTV/GetGlue)

• Convergence in app services (similar services)

• Expansions of devices supporting second screen:

• Growth of tablets, ultrabook

• Umami launched FreezeFrame, allowing to grab

images instantly from the shows and share them via

Twitter and Facebook (February 2012)

Functionalities/ Technology

Still in the multiplication phase…

• Continuous financial inflows from PE

• “Social TV startup activity will double” (lost

remote)

• A “bubble” (MIT research scientist)

• Second screen apps become part of a content release

strategy (with film, DVD, BD, electronic copy…)

• Second screen app adoption rate to increase

• Fierce competition for user attention on the second

screen

• New apps launched and other shut down

• Shorter cycle for success

• Evolution to the Multifunction app

• Disappearing of first screen service apps

• Acquisitions and consolidations:

• to consolidate fans base

• to harness new technologies (BSkyB/Zeebox)

• A tiered market- Apps = web sites

… with a looming consolidation

• Advertising budget shifting to second screen/

multiplatform

• Large players stepping in

• Facebook:

• Social TV recommendations

• Interactive events via Facebook

expected to generate $51.7m in the

UK in 2012 ($2.9b globally by 2016)

• Twitter: Audio-identification software

Some potential game changers

Sources: http://www.fastcocreate.com/1679561/the-race-for-the-second-screen-five-apps-that-are-shaping-social-tv, http://www.lostremote.com/2011/12/30/1-

predictions-for-social-tv-in-2012/, http://www.v-net.tv/pay-tv-operators-have-a-role-in-second-screen-ad-sync/,

http://www.tvtechnology.com/article/understanding-cpa-and-the-second-screen-ecosystem/211053,

http://www.rapidtvnews.com/index.php/2012031520611/broadcasters-show-increasing-interest-in-second-screen.html

Page 20: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Technicolor can help you with your Second Screen strategy

20

B2C

MGO

B2B

MediaEcho

Industry

relationships

Solution

design &

System

Integration

Integrating your Second screen solution with your

broadcast infrastructure

Page 21: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Renaud Fuchs

VP Business Development, Strategy & Transformation

Broadcast Services

[email protected]

mob. +44 782 590 8146

dir. +44 208 987 7942

fax: +44 208 987 7901

For more information, please contact

21

Page 22: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

• Second screen apps?

What it is and what it isn’t

5 segments with different business models

A new Eco system

• 5 years in the making...

A 5 years history

“Early days” driven by multitasking

“Multiplication phase” driven by hard numbers

• To infinity and beyond? What happens next?

• Appendix

TABLE OF CONTENTS

22

Page 23: Second Screens Apps Market and Trends · Second screen apps: What it is… 4 Device Smartphone Tablet Laptop App A Second Screen app (on a phone, tablet, PC) provides functionalities

Related content and social activities are the most common

23

% o

f people

that

use

second-s

cre

en d

evic

es

Applications used on a second screen device while watching TV (Sept. 2011)

Related content

Content owner info Social

interaction

Source : Ovum, “Consumer Insights: Second Screen and the TV”, Sept 2011