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We will address one of the most innovative strategies to be implemented by content producers and distributors to address the challenges the TV market faces. Current solutions such as catch-up TV, VOD are useful steps for a more complete strategy. Because, viewers’ habits continue changing from well-known non-linear consumption to brand new multitasking, TV actors lag behind while loosing revenues. Second screen applications transform these threats into advantages, and are the catalyst of the synergies between all the medias and devices TV works on. As the utmost embodiment of global strategies, second screen applications are the corner piece of future strategies as well as survival. They will become so because they provide viewers with additional enhanced synchronized information, give them power and create new revenues. After reading the complete study of the second screen applications you will understand how they help you keep your audience and both increase existing and create new revenues. Designing applications is difficult as they are key for future development and encompass many features. This is why you will have an exhaustive list of the KSFs to ensure during the 3-6 months development phase of applications. This list has been approved and completed by the French cutting edge actors of cross-media, TV and second screen markets. In this paper you will also find out how second screen applications make your business model stronger by highly improving your revenue model, through turning the majority of your costly activities into the newly profitable value sources. You will know who are your key partners, how to deliver the most value, by making the most out of cross sales, and bringing product placement to a new level. Finally, this paper is key to all TV actors investing in business development, their Facebook and Twitter counterparts, as well as venture capitalists and entrepreneurs. Master thesis written on April 2013 - Edhec Business School MSc Entrepreneurship. Don't hesitate to contact me, email on the last slide Master Thesis Aurélien Cazes
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KEEP YOUR AUDIENCE AND INCREASE REVENUES WITH SECOND SCREEN APPLICATIONS
Aurélien Cazes
How to change TV to reconnect with adver9sers and viewers?
2012 adver9sing revenues:
-‐4.5%
From 6 to 25+ channels
Prime9me hours: -‐17%
From push to pull
Internet video consump9on:
rising
Internet revenues: +7% and +4.8%
Cannibalism is a myth
Plus Belle la Vie 10k video views 1k€*
1M video views 100k€*
59 episodes above 3 million viewers in 2012
Palmashow 86M video views 860k€*
* : with a 100% inventory
Aired on TV
Storyboard
This is in 18 months your business model is stronger
you turn your weaknesses into opportuni9es
you reduce costs and increase revenues
you improve your value proposi9on
you should do it
How
Second screen applica9ons transform weaknesses into opportuni9es
• When exposed to an interac9ve ad on TV 1/3 have clicked
• TV is the preferred media for adver9sing investments
• TV accounts for 35 million fans and 20 million Tweets in 6 months
• Online video viewing is rooted in Internet users
• Net revenues per channel from adver9sing are steadily decreasing
• Business models of TV channels rely too much on adver9sing
• Synergies between the web and TV are not well exploited
• 1 program = 1 app. i.e. difficulty to recruit new viewers
• Investors can be_er
monitor their adver9sing campaigns
• They strengthen and
diversity revenues of TV actors
• Catalyst of the synergies between the web and the TV
• Finger prin9ng
technology is available
• Enhance the viewing experience
• Rela9ve success of the new adver9sing formats
• Second screen applica9ons require to answer to many KSFs
• OTT actors are coming
• Applica9ons like Shazam or IntoNow meet success in the US
• No new viewers • Mul9 program apps
Strengths Weaknesses Opportuni9es Threats
Value proposi9on
Second screen applica9ons give the opportunity to turn TV actors’ business models’ weaknesses into new strengths
How? By improving your business model
Efficiency of adverGsements ExisGng revenues Synergies with the Internet Viewer engagement
Influence of compeGtor apps OTT’s share of innovaGon Efforts
Decrease of net revenues Decrease of audiences Wasted efforts
Revenues streams ParGcipaGve TV CustomizaGon Behavioral analysis Value
Raise Eliminate Create Reduce
Today
Key Partners Adver9sers + social networks + Guests
Key AcGviGes Sell adver9sing space on TV
Value proposiGon We offer you video commercials during live programs
Customer RelaGonship No feedback on campaigns
Customer segments All adver9sers present on TV and new prospects
Key Resources Lots of waists – only one finished product
Channels TV + computer: video ad
Cost Structure Financial efforts made on different media and devices without centralizing them
Revenue Structure Dependent on very few adver9sing formats
Key Partners Adver9sers + Social networks + guests + m-‐commerce websites + stores
Key AcGviGes Offer new innova9ve formats and customize shows
Value proposiGon You can now gather all the synergies between your adver9sing investments into one device
Customer RelaGonship Partnering to offer innova9ve formats + feedbacks + purchasing
Customer segments TV + Internet investors + prospects + m-‐commerce websites
Key Resources Use of lem overs + new uses
Channels TV + web: sync. + new formats with direct sales
Cost Structure Benefit from synergies and use new formats on exis9ng resources
Revenue Structure New revenue streams with added shares on leads to purchase
Tomorrow
How to go there: revenues are key
Increase exis9ng revenues
Create new revenues
SynchronizaGon InteracGvity AnalyGcs VOD SubscripGon
Direct purchase Cross selling Product placement
Key Success Factors
How to maximize the revenues at the lowest possible cost?
Synchronize commercials AdverGse at opGmum Gme Make robust partnerships
Avoid over-‐pressuring users Capitalize on quality of TV ads Offer video formats with pre-‐rolls
Easy to use Secure Save shopping cart
SGck to market price Enable to finish payment on the computer Direct to another app – offer to go back to yours
Generals
M-‐commerce
Go to market
.COMMUNICATE
Global media
App Release (MVP)
ParGcipaGve TV
New revenue streams
New & more robust programs
Non-‐linear Social Media
No synergies Li_le revenues
Synchroniza9on Enhanced info
Synergies under exploited Low cash generated
Customized Influence
Cross sales Product placement
Now 3 months 6 months 12 months 18 months
Audience tailored Increased revenues
Generic Fans oriented
Dependence on m-‐websites Partnerships are key
Need big awareness Common prac9ce?
18 months only to reconnect with adver9sers and viewers
3rd month Enter the market with
an MVP
Add new revenue streams amer strengthening current ones
6th month Improve live experience
and thus keep it
18th month Become a unique actor to both TV viewers and web savvys
Let’s get started now
1. Concept + ini9al specs 2. Prototyping +
wireframing
3. Usability tests
4. Interac9on design + final specs 5. Valida9on
6. Development
7. Deployment + valida9on
8. Release
Get your second screen app within the 3 next months
