Simon MichaelidesChief Commercial Officer

Customer Engagement, Transformation Summit: 15th Nov 2018

Surviving and Thriving in an On-Demand, Digital World

What is UKTV?

6,500

7,000

7,500

8,000

8,500

9,000

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2011 2012 2013 2014 2015 2016 2017 2018*

Avg

Vie

wer

s (0

00s)

Shar

e (%

)

UKTV Share of viewing vs market

UKTV Viewing Share (%)

Source: BARB TechEdge, 2018 is Jan-Oct

Consistent, market defying growth - despite being linear only until 2013

At risk of being swallowed by the tide of change

User expectations had changed with the onset of digital platforms• The BBC brought the concept of Catch-Up

to the masses, with the launch of the iPlayer in 2007

• Pay TV platform raised expectations further with the introduction of PVR & Box Sets

The Solution…

Exceptional growth on UKTV Play every year since launch

2013 2014 2015 2016 2017 2018

+348%+21%

+48%

+79%

+40%

UKTV VOD Views 2013 - 2018

Source: 2017, BARB / comScore / Broadcaster stream data / OFCOM Digital Day / IPA Touchpoints 2017 / Rentrak

All Individuals: 4hrs, 39 mins

16-34s: 4hrs, 19 mins

Average video time per day

A fundamentally different landscape in which broadcasters have been forced to rethink our offer & up our game

22.1%

1.1%

8.1%

2.0%0.6%

4.3%

12.6%6.4%

9.6%

33.1%

9.1%

1.2%

6.3%

1.8% 0.4%

3.7%

6.4%

3.9%

10.8%

56.4%

YouTube Facebook Other online video Online 'adult' XXX videoCinema DVD Subscription VOD Broadcaster VODPlayback TV Live TV

ALL INDIVIDUALS

16-34s

ALL INDIVIDUALS

16-34s

TV is viewed in many places outside of the home

Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox

0%

2%

4%

6%

8%

10%

12%

14%

Someone else's house Public transport At work Public building In a car Travelling on business

PC/Laptop Tablet Smartphone

Net: 17% Net: 13% Net: 12% Net: 10%Net: 13%Net: 16%

8%

11%

5%

7%

13%

2%

5%

9%

4%5%

10%

3%

6%

9%

1%

5%

7%

3%

Digital change has brought new opportunities where content & product utility are the key differentiators

Business and operational strategies are changing

• How has UKTV adapted / responded?

• Step-change investment in original commissions

• Box set stacking and VOD previews / premiers

• VOD exclusive content

• Co-productions & collaboration

• 3rd party content aggregation

Game changing utility & a re-writing of the content rulebook

We have doubled our investment in UKTV Originals, to great effect

Original commissions are now a key differentiator & driver of performance

Top Ten Shows 2013 ('000s)

Source: barb/TechEdge full year 2016. Top episode. 000s UKTV Originals

BBC Archive Acquisitions

0 200 400 600 800 1000 1200 1400

Megatruckers

Jonathan creek

Suits

Rizzoli & isles

Qi xl

Dave gorman: modern life is goodish

Grimm

Mrs brown's boys

Storage hunters

Dynamo: magician impossible

Top Ten Shows 2018 ('000s)

0 200 400 600 800 1000 1200

Impossible railways

Inspector george gently

Judge romesh

Abandoned engineering

Would i lie to you?

Father brown

Death in paradise

Jon richardson: ultimate worrier

Murder on the blackpool express

Taskmaster

Business and operational strategies are changing

• How has UKTV adapted / responded?

• Step-change investment in original commissions

• Box set stacking and VOD previews / premiers

• VOD exclusive content

• Co-productions & collaboration

• 3rd party content aggregation

Judge Romesh VOD preview - Project Dovetail results

Ep3 consolidated399k

Ep3 Dovetail 491k +23%

Source: Barb Project Dovetail

Taskmaster Series 7 in detail

Episode Preview Live+VOSDAL Time-Shift Online VOD 8-28 Days Dovetail

Ep1 0 679k 453k 36k 102k 1.23m

Ep2 356k 466k 406k 17k 138k 1.34m

+9%

Business and operational strategies are changing

• How has UKTV adapted / responded?

• Step-change investment in original commissions

• Box set stacking and VOD previews / premiers

• VOD exclusive content

• Co-productions & collaboration

• 3rd party content aggregation

Business and operational strategies are changing

• How has UKTV adapted / responded?

• Step-change investment in original commissions

• Box set stacking and VOD previews / premiers

• VOD exclusive content

• Co-productions & collaboration

• 3rd party content aggregation

Product / UI has proved just as critical as content• Enhances experience, differentiates, & drives performance

VOD 2.0 for UKTV Play

• Mandatory registration (a double edge sword)

• Genre led vs Channel Brand led

• Recommendation engine

• Personalised UI

• Simulcast

Increased Views & Dynamic Advertising

Customer ExperienceData & Insight

VOD 2.0 Benefits

VOD 2.0 – UKTV Play Before

Channel highlights

‘More like this’

Suggestions

Genre Recommendations

Secondary Promo

Hero PromoU

KTV

Play

VO

D 2.

0 -B

EFO

RE

Channel highlights

‘More like this’

Suggestions

Genre Recommendations

Secondary Promo

Hero PromoU

KTV

Play

VO

D 2.

0 -A

FTER

UKTV Play 2.0 on Mobile

Where to next? – VOD 3.0

Personalisation: Deeper & more sophisticated

Glass Slate App’: Integration of the linear experience

Where to next? Further market

consolidation in the race to control

content……and

Connect & leverage combined data

capabilities