information systems workshop is tv as we know it gone? role: cbs team 1: cristian, david g., fabio...

Information Systems workshopIs TV as we know it gone?

Role: CBS

Team 1: Cristian, David G., Fabio B., Fabio P., Manuel, Roseane

Professors Sandra Sieber and Javier Zamora

CBS Today

Tradicional bussines

• Primary Broadcast Networks: CBS corp. is the biggest TV station group with 27 stations reaching 35M households

• Revenues

• Advertising sales on stations

• License fees from cable operators and affiliate stations

Production

• The content I produced mainly by 3rd studios and Production companies

• CBS Productions: Own production of films and series (CSI series, Wild Wild West,..)

• Program schedule based on Shows, Series, Films, Sports and News. (high % of live events)

Online Strategy

• Open non exclusive model: Pushing content to 300 different sites including CBS.com

• Offers free advertisings-supported streaming

• Paid Downloads in iTunes; Unbox and Xbox

• Content related Shop at CBS.com

Aliances

• CW (CBS+TimeWarner) – Broadcast network

• Comcast – Video on Demand

Production Programming Distribution

Content distribution chain and revenue models: up to a few years ago…

TV networksTV networks

Cable and satellite operators


Studios and production companies


Cable networks

Cable networks

Other content providers


TV affiliated stations


Eg.: CBS Studios, Warner Bros, Universal• Licensing/ syndication fees• % of advertising rev• Products

Eg.: NBA, NFL, shows • Licencing fees• Products

Eg.: CBS (35 MM*), NBC, ABC, FOX, CW• Advertisement (upfront

+ scatter markets)

Eg.:Showtime (CBS) , Discovery, ESPN• Advertisement• Fees from cable/

satellite operators

Eg.: Comcast (24 MM*), TW Cable (13 MM*), DirecTV• User’s monthly fees for

cable or combo (cable + internet + telephone)

* 2009 Figures

CBS Corp.

Production Programming Distribution

The industry started to change some years ago, challenging CBS

TV networksTV networks





Cable networks

Cable networks





* 2009 Figures

CBS Corp.

Online TV through Internet, mobile, tablet,…

Online TV through Internet, mobile, tablet,…

YouTube

Netflix

Own websites

Hulu TV Everywhere

Future Trends

• Online TV will be consolidated , fostered by better internet access, and will offer new capabilities thanks to digital density

• The Cloud will allow digital content to be available in several platforms, and players will be able to store and process a huge volume of content online.

• Multiplatform: Mobile internet will make possible online TV through mobile, tablets, watches, glasses, Car TV, and maybe other new platforms…

• Thanks to Big Data analysis and user interaction TV advertising will change:

• It will be targeted to each user.

• It will appear recommendation engines

• TV networks will be able not only to advertise, but also to directly sell!!

• Advertising Integration

• Social media will allow people a higher interaction with the content especially in live shows.

CBS position in the online TV in 2016

• In 2016 these changes will be underway

• budgets in online TV advertising increasing exponentially

• We will have to maintain for some years the old station infrastructure but without doing new investment

• Value proposition for CBS network:

o For fans:

Good programs available online, everywhere, for little or no additional cost

Innovate with new entertainment experiences and user interaction

Recommendations about the content we guess they would like

Less advertising but more interesting

o For advertisers:

Maintain own advertisement revenues (main stream for CBS) and develop targeted advertising based on database from users

Develop the integration of advertising with the content

Integrate a maketplace for the advertising: Compulsive buying!!

Better ROI with less investment

Tangible options for CBS

Allow several platforms (mobile, Xbox…)?

Allow live content to be streamed?

Allow CBS to manage own adv. revenues?

Allow data gathering and targeted adv.?

Other networks onboard ? (growth may be limited if not)

Bargaining power for CBS network?

Own and partner websites (AOL...)

TV everywhere (through cable oper.)

HuluiTunesNetFlix

Google as a partner (to be developed)

• Recommendations for CBS network: CBS to manage own advertisements revenues, data collection Take advantage of our alliances with Studios and advertisers to improve the advertising

experience: advertising integration and recommendation engine Increase revenues with the commissions of the Marketplace Prioritize our own enhanced online channel and make it multiplatform Only license our platform in the case we can control the advertising process

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information systems workshop is tv as we know it gone? role: cbs team 1: cristian, david g., fabio...

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