Chemistry Of Love Essay

2930 words - 12 pages

New Digital Opportunities
Executive Summary



Ahead of the MIPCOM 2011 market, Zodiak Rights are keen to understand the content licensing opportunities that are being
created by the fast developing digital market, the potential size of these opportunities and the deal structures that are being put
in place with rights’ holders in these new areas.

Speci cally Zodiak Rights want to understand:


What deals have recently been concluded and if possible to understand the terms and structure of these deals.

What content is in demand, from whom?

Where the biggest opportunities for Zodiak Rights lie?

This report focuses on the two major emerging ...view middle of the document...


OTT Market - multiple players, multiple business

The OTT market is complex, characterised by multiple players operating
di erent business models, some on a global basis and some on a single
territory basis.


Essentially OTT services can be boiled down into ve segments:



Free at the point of use ad-supported services such as Youtube, MSN
Video, Hulu
Freemium services that o er some free ad-supported content in
addition to a broad range of premium movies and TV series available to
rent. These services are currently single territory focused i.e. Blinkbox in
the UK, Voddler in Sweden, Maxdome in Germany.
Premium digital pay services that allow you to rent or buy premium
movies and TV series. This space is dominated by the global device plus
ecosystem players i.e Apple/iTunes, Microsoft/Zune, Sony/Qriocity
Physical DVD based subscription services than bundle streamed video as
a free compliment to subscribers i.e. Love lm
Digital subscription based video-on-demand services o ering streamed
access to premium content across devices i.e. Net ix and Hulu Plus.
OTT services are making signi cant investments in content rights as they
prepare for the imminent connected TV explosion over the next 24
months. The underlying assumption is that the ability to watch content
on the primary screen in the home, the TV, will be a game-changer.



OTT market - the connected TV opportunity

The growth of OTT delivery of video and television has been, and
will continue to be, boosted by the rapid expansion of connected
T V devices that o er hybrid broadcast-broadband delivery to the
T V set.

The Netflix Connected TV Experience

Online video companies such as Net ix and Amazon have plenty
to gain from moving to the TV as it is still the primary device that
people use to view TV and video. It is the largest screen in the
home and holds pride of place in the living room. Making
content available to the TV screen o ers users a better
experience than the PC and as such has the potential to grow
revenues signi cantly.
Online video companies are reacting to these market
developments by rapidly transitioning from PC-only services to
multiscreen services. In particular, access to the TV screen
a orded by connected devices has the potential to increase
their revenues signi cantly, as such, these companies are
investing in content to gain market share and are already
nearly ubiquitous on every connected device, globally.

With direct streaming to TV sets, Net ix Watch Instantly has become a consumer hit. Typically,
users across di erent devices consume di erent types of content at di erent lengths. On the Xbox
and other living room devices Screen Digest believes that Watch Instantly users are watching an
average of 55 minutes per video, while PC viewing is shorter - typically just under 28 minutes per
video. The real di erence comes in...

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