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Online Television: A New Era in Anytime, Anywhere Programming

Online Television: A New Era in Anytime, Anywhere Programming. Patrick Bautista, Miyuki Akasaka, Joe Belton HTM 304, Dr. Fang 05/08/07. Online Television. Overview What Exactly is Online TV? Ideal Viewers for Online TV. Online Television. Advantages On Demand Free Never Miss Out

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Online Television: A New Era in Anytime, Anywhere Programming

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  1. Online Television: A New Era in Anytime, Anywhere Programming Patrick Bautista, Miyuki Akasaka, Joe Belton HTM 304, Dr. Fang 05/08/07

  2. Online Television • Overview • What Exactly is Online TV? • Ideal Viewers for Online TV

  3. Online Television • Advantages • On Demand • Free • Never Miss Out • Disadvantages • Embedded Commercials • Minimum System Requirements

  4. History • When Online TV Started • Trials and Test Runs • Full Implementation • How Online TV Started • Technology Progression • New Way of Using the Internet • Combining Media

  5. History • Influences • Streaming Videos (YouTube) • TiVo / DVRs • Video on Demand (Pay-Per-View) • Taping (VHS) • Re-Runs

  6. Minimum PC Requirements Cable or DSL Windows 98 1.5 Ghz Pentium 4 CPU 128 MB RAM 32 MB Video Card Minimum Mac Requirements Cable or DSL Apple Mac G4 OSX 10.2.8 1.5 Ghz CPU 256 MB RAM Technology

  7. Technology • Network’s Required Programs • Adobe Flash Player 9 • Windows Media Player • Real Media Player • Broadband vs. Satellite • The Potential • Revolutionize Television?

  8. Four Major Television Networks • ABC • CBS • NBC • FOX All free shows Require DSL, Cable, or higher bandwidth

  9. ABC • www.abc.com • 14 current online TV programs available • 2 “online only” TV* programs available • Shows are varied in the amount of time that they are offered for viewing. Can be from within the last 2 episodes or can be whole season. • Need Adobe Flash 9 • Commercial every 10 minutes *Not available for live broadcast. Internet viewing only

  10. Dancing with the Stars The Bachelor The Knights of Prosperity According to Jim Lost Ugly Betty Grey’s Anatomy October Road Six Degrees Desperate Housewives Brothers and Sisters Day Break What About Brian Notes From the Underbelly ABC’s 14 current regular / online TV shows

  11. ABC’s 2 “online only” TV shows • Men in Trees • Voicemail

  12. CBS • www.cbs.com • 15 current online TV programs are available • 12 “online only” TV programs are available • Shows are varied in the amount of time that they are offered for viewing. Can be from within the last 2 episodes or can be the whole season. • Need Windows media player or Real media player • Commercial every 10 minutes

  13. Armed and Famous The Class CSI CSI : Miami CSI: New York How I Met Your Mother Jericho NCIS The New Adventure of Old Christine Numb3rs The Papdits Rules of Engagement Shark Survivor : Fiji The Unit CBS’s 15 current regular / online TV shows

  14. 15 Seconds The Amazing Race Animate This! BBQ Bill Finish Line The Green Room Holiday Moments House Calls InTurn LA Diaries Road to Price Survivor Live CBS’s 12 “online only” TV shows

  15. NBC • www.nbc.com • 13 online TV programs available • 2 “online only” TV programs available • Shows are varied in the amount of time that they are offered for viewing. Can be from within the last 2 episodes or can be whole season. • Commercial in the beginning of the show

  16. 30 Rocks Andy Baker The Apprentice The Black Donnellys Friday Night Lights Heroes My Name is Earl Identity Las Vegas Medium Miss USA 2007 Passions Raines NBC’s 13 regular / online TV shows

  17. NBC’s 4 “online only” TV shows • Thank God You Are Here • The Biggest Loser • The Law and Order : SVU • The Office

  18. FOX • www.fox.com • 14 online TV programs are available • 4 “online only” TV programs are available - Shows are available from the past few episodes • Commercial every 10 minutes • Using MySpace for full episodes • Need Windows Media Player

  19. 24 American Dad Are You Smarter…? Bones Drive The Loop Prison Break Standoff Talk Show Vanished The War at Home The Winner FOX’s 12 regular / online TV shows

  20. FOX’s 4 “online only” TV shows • Hell’s Kitchen • Mad TV.com • Till Death • Trading Spouses

  21. Interesting Articles to Read • “CBS Online Show Jumps to Broadcast TV” www.marketingvox.com • “FOX Shows to Air on MySpace, Fox TV Sites” www.marketingvox.com • “Teens, Tweens Watching More TV Online” www.marketingvox.com

  22. The Current State of TV Viewership • Consumers have seen a large increase in the amount and variety of TV programming over the last 10 years • The amount of TV being consumed by youth is at its highest level ever • For tweens (ages 7 to 12) and teens (ages 13 to 19) TV is the method of entertainment they would miss the most if taken away (followed by video games and the Internet)

  23. How the Internet Has Changed TV • 10% of web users watch TV online • One-third of teens and one-fourth of tweens watch TV online • Watching TV online is a daily habit for two-thirds of web viewers • Personal convenience and avoiding commercials are the top reasons

  24. How the Internet Has Changed the Entertainment Industry Online TV: • Can be accessed with a variety of e-devices (desktop, laptop, PDA, cell phone, game consul, iPod, and more…) • Allows anytime, anywhere access of traditional broadcast and online only programs • Moves consumers from a passive role to an active role

  25. How the Internet has changed the entertainment industry, cont. In short, the Internet has turned the traditional broadcast TV business model upside down The consumer is now empowered by deciding when, where and how to watch TV Power to the People!

  26. Porter’s Competitive Forces Model The components of the model: • Industry Competitors • New Entrants • Substitutes • Suppliers • Buyers

  27. Industry Competitors The industry is characterized by: • Fierce competition for rapidly growing customer base fueled by powerful advertising revenues: • 2004 ad revenues totaled $9.6 billion • 2005 ad revenues totaled $12.5 billion (30.3% increase) • 2006 ad revenues totaled $16.8 billion (34.4% increase) • Threats from piracy and other sites with User Generated Content (UGC)

  28. Industry Competitors, cont. There are different business models, including revenue sharing and strategic partnerships, among the four major networks : • CBS, NBC and Fox share ad revenue with their affiliates and partners, while ABC does not • NBC pursuing domestic ethnic groups • ABC pursuing international deals

  29. New Entrants The Internet has broken down barriers to entry by “democratizing” a formerly elite group. The potential new entrants are the affiliates of the major players, and third party sites, including: • MySpace • YouTube • Yahoo! • Apple iTunes • In2TV

  30. Substitutes Although there are no exact substitutes to first-run prime-time programming, substitutes to older content come mostly from the UGC sites.

  31. Suppliers All current players are affiliated with or supported by a parent company or film studio acting as a supplier creative material: • ABC (Disney Studios) • CBS (Viacom & Paramount Studios) • NBC (Universal Studios) • FOX (News Corp & Fox Studios)

  32. Buyers Demographics of the average buyer/viewer: • Approximately 55% female, 45 % male • 29 years old • Urban and suburban (where high speed internet access is readily available) • Lower-middle to upper-middle income (with at least one access device and the means to pay for high-speed access)

  33. Buyers, cont. • The prime advertiser demographic is ages 20 to 34 (Generation “X” and “Y”) • New key demographics being aggressively pursued by the networks and advertisers: • Tweens – ages 7 to 12 • Teens – ages 13 to 19

  34. Questions or Comments? For more information see: www.marketingvox.com www.imediaconnection.com www.pewinternet.org www.internetnews.com

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