iWorld
Monetising OTT: Competing in a new game
SINGAPORE: In this session at BroadcastAsia 2013, Ericsson, sr. director, innovation and business development, content and enabler Jon M Sonsteby focused on how best to monetise from over the top services.
He began his session with a very sleekly executed pre-roll advertisement and at the end he exclaimed, “Pre-roll is great, but let’s think outside the pre-roll ad. How can we best monetise from the OTT platform?”
According to the Consumerlab Annual Research, which Sonsteby used during his presentation, Social TV is really exploding – as more than 60 per cent people use social forums while watching TV – these numbers reveal the results of 100,000 respondents, and reflects the views of nearly 1.1 billion consumers from more than 40 countries globally.
Referring to the Ericsson ConsumerLab TV Video Consumer trends 2012, Sonsteby stressed on the fact that consumers are not canceling their traditional TV subscriptions on a larger scale, though the traction for OTT is growing.
He further went on to explain the trend of scheduled broadcast TV falling from 92 per cent to 87 per cent between 2010 and 2012; the drastic fall in the trend of recorded broadcast TV from 61 per cent in 2010 to a mere 45 per cent in 2012. Whereas, DVD/Blue-ray witnessed a minor fall from 48 per cent to 45 per cent between 2010 and 2012 and PPV a rise by a per cent from 19 per cent to 20 per cent between 2010 and 2012.
In terms of on-demand habits, the consumer’s TV/video consumption on a weekly basis or more has witnessed a rise in short video clips e.g. YouTube from 58 to 62 per cent between 2010 and 2012; even streamed or downloaded movies or TV shows witnessed a rise from 54 per cent to 59 per cent from 2010 to 2012.
Sonsteby also mentioned how basic broadcast viewing has slowly migrated from internet based on-demand to multi-screen experience. He further dwelled into the change in social TV habits, where the maximum hike was witnessed during browsing the internet while watching television from 64 per cent in 2011 to 83 per cent in 2012 and the use of social media (Facebook, Twitter, blogs) rising from 44 per cent in 2011 to 62 per cent in 2012.
“The important features that consumers are on the lookout for include: excellent video quality, simple user interface, A la cart TV/video service, ad free telecasts, a diverse availability of content and theatrical releases that come on TV too,” Sonsteby explained.
Finally, coming to monetising from OTT, he said, “There are two possibilities to monetise from OTT, one being use of portal ads that include banner, text or rich media and the second being non-portal ads, which include in-stream ads (pre-roll, mid-roll or post-roll) and out-stream ads also called overlay ads.”
Summing up his session, Sonsteby mentioned that consumers want content anytime, anywhere and access across any device or platform. He also mentioned that social media is the go to place in the future and broadcasters or content owners want to continue building brand loyalty and look at newer revenue streams to receive from consumers directly.
iWorld
Snapchat parent Snap cuts 16 per cent of workforce in AI-driven restructuring
The Snapchat parent is axing around 1,000 jobs and closing 300 open roles to save $500m, as artificial intelligence makes smaller teams the new normal
CALIFORNIA: Snap is snapping. The Snapchat parent has confirmed plans to cut around 1,000 employees, roughly 16 per cent of its full-time workforce, as it bets that artificial intelligence can do what headcount once required. Shares jumped more than 10 per cent in premarket trading on the news, a brisk vote of confidence from a market that has watched the stock shed about 31 per cent this year.
The restructuring, which also closes more than 300 open roles, follows pressure from activist investor Irenic Capital Management, which holds an economic interest of about 2.5 per cent in the company and has been loudly pushing Snap to tighten its portfolio and lift performance. The firm got what it asked for, and then some.
Chief executive Evan Spiegel told employees the cuts would reduce annualised expenses by more than $500m by the second half of the year. The company expects to incur charges of between $95m and $130m related to the layoffs, mostly severance, with the bulk landing in the second quarter. Staff in Snap’s North America team were asked to work from home on the day of the announcement.
The financial backdrop is not without bright spots. Snap expects first-quarter revenue to rise around 12 per cent to approximately $1.53 billion, broadly in line with analyst estimates. Adjusted core profit for the January to March quarter is forecast at about $233m, comfortably ahead of Wall Street’s expectation of $186.8m.
The harder question surrounds Specs, Snap’s augmented reality smart glasses subsidiary, which Irenic has urged the company to spin off or shut down entirely. The unit has absorbed more than $3.5 billion in investment and burns through approximately $500m in cash annually. Snap is pressing ahead regardless, with a consumer product expected later this year, even as Meta leads the market in the segment.
Spiegel is betting that leaner teams, smarter machines and a consumer AR play can restore Snap’s credibility with investors who have run out of patience. The redundancy notices have gone out. The harder restructuring, the one that requires a hit product rather than a headcount reduction, is still very much pending.
