November 13, 2013 © ArcInsight Partners LLC Client Slide 1

ArcInsightP A R T N E R S

VX-360

A Design MethodReliance Entertainment Digital | ArcInsight Partners

(S A N F R A N C I S C O / L O S A N G E L E S)

Oct 2013

Tech | Media | Entertainment | | CONVERGENCE |

Its All About The MetricsViewer Experience Design Drives Advantage In VOD

November 13, 2013 © ArcInsight Partners LLC Client Slide 2

ArcInsightP A R T N E R S

VOD Misconceptions & A Case For Experience Design

Video-On-Demand has reached a reasonable maturity level and user penetration in developed economies.

• Netflix crossed 40M subs, surpassing HBO. No longer viewed as “the Albanian army”.

• Incumbent PayTV networks scrambling to offer competing VoD services to hold back subscriber churn to OTT video. Looking to include Netflix as a cable-“channel” (Surprise !)

They keys to long-term engagement lie in - Deconstructing the viewer context- Identifying key viewer journeys that differentiate, and - Re-mapping the viewer relationship using an expectations-reward framework.

Several misconceptions abound in the SVOD service model.

THE MYTHS

1. Fresh content alone will retain subscribers

2. New releases guarantee a viable premium monetization strategy

3. Ultra low price or freemium models accelerate viewership

THE REALITY

1. Netflix's stale content-library did not drive it out of business

2. Experiments with releasing new post-theatrical and “in-theater” films at super-premium prices did not entirely succeed. Mostly abandoned.

3. Ultra low price / freemium models drive “Trials", not necessarily “Conversions“.

Designing multiple “Moments of Truth”. An evolution in thinking over traditional viewer touch-points.

Typically multi-touch, multi-channel and cross-functional

Events that mark a Defining Experience for each life-cycle phase for the viewer

Anchored in the Viewers own perspective. “How Does My Viewer Think About It ?”

The Viewer Journey

The Truth About Customer Experience / Alex Rawson, Ewan Duncan, Conor Jones: Harvard Business Review

November 13, 2013 © ArcInsight Partners LLC Client Slide 3

ArcInsightP A R T N E R SVX 360: VOD Viewer Experience Mapping

VOD ViewerTouchpoints

ACQUISITION

Acquisition Campaign Emails

Acquisition CampaignDisplay Ads

Store Sign-Ups

FB FanPage Visits

Home Site Visits

Event Sign-Ups

Trial-Account Sign-Up & Credit-Card Setup

Video-Player Controls

Customer Support

Feedback-Gathering Mechanisms

Curated Content

Monthly Billing

Partner Offers/Events

Feedback-Gathering Mechanisms

Account Mgt. Self-Serve

Customer Support

Video-Player Controls

Content Recommendation

Profiling Mechanisms

Rewards ManagementVideo-Player Controls

Curated Content

Feedback-Gathering Mechanism

TRIAL

CONVERSION ENGAGEMENT

November 13, 2013 © ArcInsight Partners LLC Client Slide 4

ArcInsightP A R T N E R SConfusion Abounds In Digital Media Industry

Know The Difference Between Viewer Experience & User Interfaces

They keys to long-term viewer engagement :

1. Deconstruct the viewer context

2. Identify key viewer journeys that differentiate,

3. Re-map the viewer relationship on an Expectations-Reward framework.