Online broadcasting in GermanyB i d l d k t t dBusiness models and market trends

Dr. Klaus Goldhammer18 November 201018. November 2010

Goldmedia GmbH Strategy Consulting| |Oranienburger Str. 27 | 10117 Berlin-Mitte | Germany

Tel. +49 30-246 266-0 | Fax +49 30-246 266-66Info@Goldmedia.de | www.Goldmedia.com

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3

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G O L D M E D I A

DECLARE YOUR BIAS

Processing Processing PPower

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MobileMobilebandwidthbandwidth

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Available max. mobile bandwidthdoubling every 12 months

Development of available mobile bandwidth in Western Europe 1992-20xx

1 200 LTE Advanced

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LTE Advanced1 Gbit/s

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edia

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85 years of videoy

12

G O L D M E D I A

MARKET STRUCTURE: WEBRADIO & WEB TV 

Web radio: Rapidly growing number of online radio services: 81% online only streams

2 692~3,200

ns 2,692 online radios in Germany (04/10)

SummaryWeb radios in Germany, 2006 to end of 2010

450 521

1,600 1,914 2,2002,692

mbe

r of

sta

tion 2,692 online radios in Germany (04/10)

Goldmedia anticipates about 3,200 online radios by the end of 2010Annual growth of 57% since 2006

2006 2007 2008 04/2009 End of 2009*

04/2010 End of 2010*

Num

gOnline-only stations make up 4/5 of total stations

Sources: Goldmedia Web Radio Monitor; ALM, *Est. for end of `09 & end of `10

2,192

Number of German web radios by service type (04/2010)

= 81%

338151

11= 13%= 6%

= 0,41%

Online-Only Simulcast Online-Subbrands FM User Generated ContentSimulcast streams

14

Source: Goldmedia Web Radio Monitor 2010Online only streams Online subbrands FM User generated content

Web TV channels in Germany: 47 % of providerswith conventional media background

Provider-counting in Germany for the 1th time

SummaryWeb TV in Germany as of 09/2010

1,275 online TV channels (09/10)Nearly half of the TV services are subbrandsof conventional media

1,275 Online TV channels

Gesamt

Number of German web TV channels by service type (09/2010)

Classical Web TV channels (online-only) makeup 1/3 of total stations

Source: Goldmedia Web-TV-Monitor 2010

Number of German web TV channels by service type (09/2010)

43540%

47%330

20320%

30% = 34%

= 26%

47%

90 64 51 47 32 = 3%

16 = 1%

7 = 1%

0%

10%

Online Subbrands Subbrand Corporate Subbrand Non Media Video Video Multimedia

= 4%= 5%=

7%

= 16%

= 4%

15

Source: Goldmedia Web-TV-Monitor 2010

Online-Only

Subbrandsprint

SubbrandTV

CorporateTV

Subbrandradio

Non-commercial

Mediacenters

Video-Sharing

Video-shopping

Multimediaportals

Web TV: The universe of providers in Germany: nine categories of Web TV channels*

Web TV channels(online only)

1Provider withoutlabeling9 Undocumented

Online subbrands of print and radio

media

(o e o y)

2Online TV aggregators

Sharehoster & copyright pirates

labeling

Corporate video/ id h i

Online subbrands of TV channels 3

4

pornography

Non-commercial web TV channel

videoshopping 4

5Non German

N bliMedia and video

centers 6

7

Non-publicVideo-Sharing

Video sharing

Interactive multimedia portals

7

8p

* According to the Goldmedia definition Source: Goldmedia Web-TV-Monitor 2010

1,275 Web TV channels in Germany, with at least 47% belonging to conventional media

0% 10% 20% 30% 40%

Share of online TV channels (base = 1,275 web TV channels)

Online subbrands of print and radio

34%

31%

Web TV channels(online only)

Online subbrands of TV channels

media

16%

Non-commercial

Corporate video/ videoshopping

8%

4% Non commercial web TV channels

Media and video centers

4%

4%

Video sharing

I t ti

3%

Interactive multimedia portals

Source: Goldmedia Web-TV-Monitor 2010, n=1,275

1%

G O L D M E D I A

USE AND SCOPE OF ONLINEUSE AND SCOPE OF ONLINE BROADCASTING IN GERMANYBROADCASTING IN GERMANY

Usage during the day – like conventional TV and in contrast to FM radio: peak in the evening

45%

Use of online TV and online radio during the day (09/2010)

Peaks at nightAttention

35%

40%

gAttention: Combination of different units –

Viewer/user levels of conventional TV and for Internet usage are higher than those for online TV and online radio at all times of the day.

25%

30%

30%

25%

Example: 25% of all daily online TV station hits take place between 6:00 p.m. and 9:00 p.m.

20%

25%

15%

18%

14%

17%

25%

10%

15%

Web-TV (Anteil an tgl. Gesamtabrufen)

9%

14%

4% 10%

12%

16%

Online TV (share of daily total recall)

0%

5%

05 00 06 00 07 00 08 00 09 00 10 00 11 00 12 00 13 00 14 00 15 00 16 00 17 00 18 00 19 00 20 00 21 00 22 00 23 00 24 00

g

Webradio (Anteil an tgl. Gesamtabrufen)

Sehbeteiligung klassisches TV

4%

1%

6%

10% Online TV (share of daily total recall)Online radio (share of daily total recall)Audience rating of conventional TV

05.00-06.00 07.00-08.00 09.00-10.00 11.00-12.00 13.00-14.00 15.00-16.00 17.00-18.00 19.00-20.00 21.00-22.00 23.00-24.00

21

Sources: Goldmedia analysis by www.agf.de, ARD/ZDF-Onlinestudie 2010, Goldmedia Web TV Monitor, n=186 ; Goldmedia Webradiomonitor 2010, n=609

German Web TV/video usage: 151 million views per day – dominance of video sharing

Views per day (in millions)

Average number of video views per day in the German online TV market in 2010

151 million views per day

135.3(89%)

0 40 80 120 160

Video-Sharing-Plattformen

p y4.7 billion videos per month

Video sharing ( )

6.2(4%)

5 7

Mediatheken/Videocenter/Submarken TV MedienMedia and video centers;online TV subbrands

5.7(4%)

2.7(2%)

Kommunikationsportale

Submarke Print/Hörfunk

Interactive multimedia portals

Online subbrands of print and radio media (2%)

1.7(1%)

SonstigesSource: Goldmedia Web-TV-Monitor 2010

p

Other

UGC has the highest share of views, but no professional contentM di d id t h hi h lit t t ll l i ti

Conclusion

22

Media and video centers have high-quality content as well as longer service time per view – far more potential in media budget

Web TV in Germany: top 10 providers account for 93% of use – a “fat head market”

German web TV channels, sorted by number of video views, 2010

0,9

1 Discontinuous graph –section removed! Top 10

providers have up to several million video views per day

Discontinuous graph –section removed! Top 10

providers have up to several million video views per day

0 6

0,7

0,8

nof

view

s) million video views per daymillion video views per day

0,4

0,5

0,6

ws

(in m

illio

0,2

0,3

Dai

ly v

iew

Micro-providers: less than 100 views per day

Micro-providers: less than 100 views per day

0

0,1

1 101 201 301 401 501 601 701 801 901 1001 1101 1201

German web TV channels, sorted by number of video views, 2010

23

Source: Goldmedia Web-TV-Monitor 2010

G O L D M E D I A

ACCESS FIGURES & PROFITABILITY

Majority of Web TV providers satisfied with access figures – but not with profitability

Web TV Monitor 2010: Access figures/viewers and profitability of online TV

“How satisfied are you with your TV’s access fi i l ”

“How satisfied are you with your TV’s fi bili i l “

11,4%sehr zufrieden 17 4%

6,4%

figures in general?”

53% 24%

profitability in general?“

Very satisfied

41,2%

sehr zufrieden

eher zufrieden

neutral32,1%

17,4%53% 24%Very satisfied

Rather satisfied

Neutral

15,8%

29,8%eher unzufrieden

sehr unzufrieden

14,7%

29,4%Rather unsatisfied

Very unsatisfied

1

14,7%

1Source: Goldmedia Web TV Monitor 2010, n=186

C l i

Satisfied with access figures/viewers Satisfied with profitability

Conclusion

Good access figures/viewers, bad viability: only 17.5 percent of providers are unsatisfied with their web video access figures, but 44 percent are unsatisfied with viability -- business models have to yet to become established: i e acceptable usage data for selling ads not yet established

25

have to yet to become established: i.e. acceptable usage data for selling ads not yet established

Success of ads and paid services mainly depends on availability of premium content

Web radio: compared to 2009, providers more satisfied with access figures & profitability

Webradiomonitor 2010: Access figures and profitability of online radio

“How satisfied are you with your radio’s fi i l ”

“How satisfied are you with your radio’s fi bili i l “

17%

10%21%

sehr zufrieden

access figures in general?”

56% 27%

profitability in general?“

Very satisfied

42%

17%

35%

sehr zufrieden

eher zufrieden

neutral

56% 27%Very satisfied

Rather satisfied

Neutral

9%

22%

12%

31%

eher unzufrieden

sehr unzufrieden

Rather unsatisfied

Very unsatisfied

9%

1

1,8%

1Source: Goldmedia Webradiomonitor 2010, n=609

C l i

Satisfied with access figures/viewers Satisfied with profitability

Conclusion

In comparison to 2009, satisfaction with accessfigures has slightly increased, especially the FM stations’ satisfaction indicates that online radio usage is perceived as an important addition

fi bili d 2009 l i i i f i b b d 2009 l 9

26

Profitability: compared to 2009, a clear increase in satisfaction can be observed. In 2009, only 19 percent of the respondents were satisfied with profitability, compared to 27 percent in 2010

G O L D M E D I A

ECONOMIC CONDITIONSECONOMIC CONDITIONS –ADVERTISEMENT AND MARKETINGADVERTISEMENT AND MARKETING

Web radio: Display ads still most important ad form, importance of online-spots increases

Types of ads offered by online radio providers polled in % Conclusion

Altogether, 45% of h id fi

74%

37%

Displaywerbung

Online-Spotwerbung

the providers finance their service at least partly with ads

Display advertisement

Spot advertisement

35%

33%

Sponsoring

Suchwortvermarktung

Display advertise-ment is still the most important ad form for online radios

Sponsoring

Keyword marketing 33%

32%

Suchwortvermarktung

Affiliate Marketing

for online radios (74% of providers)

Online spot ads become even more

Keyword marketing

Affiliate marketing

22%

18%

Pre-Roll-Spot

In-Text-Werbung

become even more established with online-only providers and become more

Pre-roll spot

In-text advertisement

14%

13%

Andere Werbeform

Online-Video-Werbung

important than spon-soring (2nd most important ad form in 2010)

Other advertisement

Online video-ad g

28

Source: Goldmedia Web Radio Monitor 2010, n=609

2010)

96 percent of all Web TV services are free!Advertising most important business model

Share

Web TV’s business models 2010 in Germany

Base: 1,275 Web TV Channels 2010

53% 9% 38%

0% 20% 40% 60% 80% 100%

Mediatheken/ Videocenter

Partially fee based1%

Fee based3%

Media and video centers

95%

97%

100%

2%

1%

4%

1%

Web-TV-Angebot (Online-Only)

Submarke klassischer TV-Medien

Kommunikations-Portale

Web TV channels (online only)

Online subbrands of TV channels

Interactive multimedia portals

100%

100%

100%

Videoshopping

Video-Sharing-Plattform

Nichtkommerzieller Web-TV-Sender

Videoshopping

Video sharing

Non-commercial web TV channels

100%

100%

100%

Submarke klassischer Radio-Medien

Corporate TV

Submarke klassischer Print-Medien

Free96%

Online subbrands of radio stations

Corporate TV

Online subbrands of print media

M t li TV h l d t d bli th f iKey facts

Source: Goldmedia Web TV Monitor 2010, N=1,275

30

Most online TV channels were ad-supported, public, or other free servicesHere is some paid content, especially among the few video centers

G O L D M E D I A

SUMMARY AND OUTLOOK

Web radiosWeb radios

Web TVWeb TVchannels

38

Web TV

40 million €net advertising40 million €

net advertisingrevenues

with online video adin Germany 2009with online video ad

41

Web radio

8 8 million €net advertising8.8 million €

net advertisingrevenues

in Germany 2009

42

346 illi €Web TV

346million€in 2015

Web radio29million€Web radio

29million€in 2014

net advertising revenues in Germany

43

revenues in Germany(Goldmedia Forecasts)

G O L D M E D I A

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© Goldmedia GmbH Strategy Consulting© Goldmedia GmbH Strategy Consulting

Oranienburger Str. 27 | 10117 Berlin-Mitte | Germany Tel. +49 30-246 266-0 | Info@Goldmedia.de | www.Goldmedia.com