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Online Television: Online Television: A New Era in A New Era in

Anytime, Anywhere Anytime, Anywhere ProgrammingProgramming

Patrick Bautista, Miyuki Akasaka, Joe BeltonPatrick Bautista, Miyuki Akasaka, Joe Belton

HTM 304, Dr. FangHTM 304, Dr. Fang

05/08/0705/08/07

Online TelevisionOnline Television

OverviewOverview

What Exactly is Online TV?What Exactly is Online TV?

Ideal Viewers for Online TVIdeal Viewers for Online TV

Online TelevisionOnline Television AdvantagesAdvantages

On DemandOn Demand FreeFree Never Miss OutNever Miss Out

DisadvantagesDisadvantages Embedded CommercialsEmbedded Commercials Minimum System RequirementsMinimum System Requirements

HistoryHistory

When Online TV StartedWhen Online TV Started Trials and Test RunsTrials and Test Runs Full ImplementationFull Implementation

How Online TV StartedHow Online TV Started Technology ProgressionTechnology Progression

New Way of Using the InternetNew Way of Using the Internet Combining MediaCombining Media

HistoryHistory

InfluencesInfluences Streaming Videos (YouTube)Streaming Videos (YouTube) TiVo / DVRsTiVo / DVRs Video on Demand (Pay-Per-View)Video on Demand (Pay-Per-View) Taping (VHS)Taping (VHS) Re-RunsRe-Runs

TechnologyTechnology

Minimum PC Minimum PC RequirementsRequirements Cable or DSLCable or DSL Windows 98Windows 98 1.5 Ghz Pentium 4 1.5 Ghz Pentium 4

CPUCPU 128 MB RAM128 MB RAM 32 MB Video Card32 MB Video Card

Minimum Mac Minimum Mac RequirementsRequirements Cable or DSLCable or DSL Apple Mac G4Apple Mac G4 OSX 10.2.8OSX 10.2.8 1.5 Ghz CPU1.5 Ghz CPU 256 MB RAM256 MB RAM

TechnologyTechnology Network’s Required Network’s Required

ProgramsPrograms Adobe Flash Player 9Adobe Flash Player 9 Windows Media PlayerWindows Media Player Real Media PlayerReal Media Player

Broadband vs. Broadband vs. SatelliteSatellite

The PotentialThe Potential Revolutionize Revolutionize

Television?Television?

Four Major Four Major Television Television NetworksNetworks ABC ABC

CBSCBS NBCNBC FOXFOX

All free shows

Require DSL, Cable, or higher bandwidth

ABCABC

www.abc.comwww.abc.com 14 current online TV programs 14 current online TV programs

availableavailable 2 “online only” TV* programs available2 “online only” TV* programs available

Shows are varied in the amount of time Shows are varied in the amount of time that they are offered for viewing. Can be that they are offered for viewing. Can be from within the last 2 episodes or can be from within the last 2 episodes or can be whole season.whole season.

Need Adobe Flash 9Need Adobe Flash 9 Commercial every 10 minutesCommercial every 10 minutes

*Not available for live broadcast. Internet viewing only

ABC’s 14 current regular / online ABC’s 14 current regular / online TV showsTV shows

Dancing with the Stars

The Bachelor The Knights of

Prosperity According to Jim Lost Ugly Betty Grey’s Anatomy

October RoadOctober Road Six DegreesSix Degrees Desperate Desperate

HousewivesHousewives Brothers and Brothers and

SistersSisters Day BreakDay Break What About BrianWhat About Brian Notes From the Notes From the

UnderbellyUnderbelly

ABC’s 2 “online only” TV ABC’s 2 “online only” TV showsshows

Men in TreesMen in Trees VoicemailVoicemail

CBSCBS

www.cbs.comwww.cbs.com 15 current online TV programs are 15 current online TV programs are

availableavailable

12 “online only” TV programs are available12 “online only” TV programs are available Shows are varied in the amount of time that Shows are varied in the amount of time that

they are offered for viewing. Can be from they are offered for viewing. Can be from within the last 2 episodes or can be the whole within the last 2 episodes or can be the whole season. season.

Need Windows media player or Real media Need Windows media player or Real media playerplayer

Commercial every 10 minutesCommercial every 10 minutes

CBS’s 15 current regular / online CBS’s 15 current regular / online TV showsTV shows

Armed and FamousArmed and Famous The ClassThe Class CSICSI CSI : MiamiCSI : Miami CSI: New YorkCSI: New York How I Met Your How I Met Your

MotherMother JerichoJericho NCISNCIS

The New Adventure The New Adventure of Old Christineof Old Christine

Numb3rsNumb3rs The PapditsThe Papdits Rules of Rules of

EngagementEngagement SharkShark Survivor : FijiSurvivor : Fiji The UnitThe Unit

CBS’s 12 “online only” CBS’s 12 “online only” TV showsTV shows

15 Seconds15 Seconds The Amazing RaceThe Amazing Race Animate This!Animate This! BBQ BillBBQ Bill Finish LineFinish Line The Green RoomThe Green Room

Holiday MomentsHoliday Moments House CallsHouse Calls InTurnInTurn LA DiariesLA Diaries Road to PriceRoad to Price Survivor LiveSurvivor Live

NBCNBC

www.nbc.comwww.nbc.com 13 online TV programs available13 online TV programs available 2 “online only” TV programs available2 “online only” TV programs available

Shows are varied in the amount of time Shows are varied in the amount of time that they are offered for viewing. Can be that they are offered for viewing. Can be from within the last 2 episodes or can be from within the last 2 episodes or can be whole season.whole season.

Commercial in the beginning of the Commercial in the beginning of the showshow

NBC’s 13 regular / online TV NBC’s 13 regular / online TV showsshows

30 Rocks30 Rocks Andy BakerAndy Baker The ApprenticeThe Apprentice The Black The Black

DonnellysDonnellys Friday Night Friday Night

LightsLights HeroesHeroes My Name is EarlMy Name is Earl

IdentityIdentity Las VegasLas Vegas MediumMedium Miss USA 2007Miss USA 2007 PassionsPassions RainesRaines

NBC’s 4 “online only” TV NBC’s 4 “online only” TV showsshows

Thank God You Are HereThank God You Are Here The Biggest LoserThe Biggest Loser The Law and Order : SVUThe Law and Order : SVU The OfficeThe Office

FOXFOX

www.fox.comwww.fox.com 14 online TV programs are available14 online TV programs are available 4 “online only” TV programs are 4 “online only” TV programs are

availableavailable- Shows are available from the past few - Shows are available from the past few

episodesepisodes Commercial every 10 minutesCommercial every 10 minutes Using MySpace for full episodesUsing MySpace for full episodes Need Windows Media PlayerNeed Windows Media Player

FOX’s 12 regular / online TV FOX’s 12 regular / online TV showsshows

2424 American DadAmerican Dad Are You Are You

Smarter…?Smarter…? BonesBones DriveDrive The LoopThe Loop

Prison BreakPrison Break StandoffStandoff Talk ShowTalk Show VanishedVanished The War at HomeThe War at Home The WinnerThe Winner

FOX’s 4 “online only” TV FOX’s 4 “online only” TV showsshows

Hell’s KitchenHell’s Kitchen Mad TV.comMad TV.com Till DeathTill Death Trading SpousesTrading Spouses

Interesting Articles to ReadInteresting Articles to Read

““CBS Online Show Jumps to CBS Online Show Jumps to Broadcast TV”Broadcast TV”www.marketingvox.comwww.marketingvox.com

““FOX Shows to Air on MySpace, Fox FOX Shows to Air on MySpace, Fox TV Sites”TV Sites”www.marketingvox.comwww.marketingvox.com

““Teens, Tweens Watching More TV Teens, Tweens Watching More TV Online”Online”www.marketingvox.comwww.marketingvox.com

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The Current State of TV The Current State of TV ViewershipViewership

Consumers have seen a large increase Consumers have seen a large increase in the amount and variety of TV in the amount and variety of TV programming over the last 10 yearsprogramming over the last 10 years

The amount of TV being consumed by The amount of TV being consumed by youth is at its highest level ever youth is at its highest level ever

For tweens (ages 7 to 12) and teens For tweens (ages 7 to 12) and teens (ages 13 to 19) TV is the method of (ages 13 to 19) TV is the method of entertainment they would miss the entertainment they would miss the most if taken away (followed by video most if taken away (followed by video games and the Internet)games and the Internet)

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How the Internet Has How the Internet Has Changed TVChanged TV

10% of web users watch TV online10% of web users watch TV online One-third of teens and one-fourth of One-third of teens and one-fourth of

tweens watch TV onlinetweens watch TV online Watching TV online is a daily habit Watching TV online is a daily habit

for two-thirds of web viewersfor two-thirds of web viewers Personal convenience and avoiding Personal convenience and avoiding

commercials are the top reasonscommercials are the top reasons

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How the Internet Has How the Internet Has Changed the Entertainment Changed the Entertainment

IndustryIndustryOnline TV:Online TV: Can be accessed with a variety of e-Can be accessed with a variety of e-

devices (desktop, laptop, PDA, cell devices (desktop, laptop, PDA, cell phone, game consul, iPod, and more…)phone, game consul, iPod, and more…)

Allows anytime, anywhere access of Allows anytime, anywhere access of traditional broadcast and online only traditional broadcast and online only programsprograms

Moves consumers from a passive role Moves consumers from a passive role to an active roleto an active role

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How the Internet has How the Internet has changed the entertainment changed the entertainment

industry, cont.industry, cont.In short, the Internet In short, the Internet

has turned the has turned the traditional broadcast traditional broadcast TV business model TV business model upside downupside down

The consumer is now The consumer is now empowered by empowered by deciding when, deciding when, where and how to where and how to watch TVwatch TV

Power to the People!Power to the People!

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Porter’s Competitive Forces Porter’s Competitive Forces ModelModel

The components of the model:The components of the model: Industry CompetitorsIndustry Competitors New EntrantsNew Entrants SubstitutesSubstitutes SuppliersSuppliers BuyersBuyers

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Industry CompetitorsIndustry Competitors

The industry is characterized by:The industry is characterized by: Fierce competition for rapidly Fierce competition for rapidly

growing customer base fueled by growing customer base fueled by powerful advertising revenues:powerful advertising revenues: 2004 ad revenues totaled $9.6 billion2004 ad revenues totaled $9.6 billion 2005 ad revenues totaled $12.5 billion 2005 ad revenues totaled $12.5 billion

(30.3% increase)(30.3% increase) 2006 ad revenues totaled $16.8 billion 2006 ad revenues totaled $16.8 billion

(34.4% increase)(34.4% increase) Threats from piracy and other sites Threats from piracy and other sites

with User Generated Content (UGC)with User Generated Content (UGC)

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Industry Competitors, cont.Industry Competitors, cont.

There are different business models, There are different business models, including revenue sharing and including revenue sharing and strategic partnerships, among the four strategic partnerships, among the four major networks :major networks :

CBS, NBC and Fox share ad revenue CBS, NBC and Fox share ad revenue with their affiliates and partners, while with their affiliates and partners, while ABC does notABC does not

NBC pursuing domestic ethnic groupsNBC pursuing domestic ethnic groups ABC pursuing international dealsABC pursuing international deals

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New EntrantsNew Entrants

The Internet has broken down barriers to The Internet has broken down barriers to entry by “democratizing” a formerly entry by “democratizing” a formerly elite group. The potential new entrants elite group. The potential new entrants are the affiliates of the major players, are the affiliates of the major players, and third party sites, including:and third party sites, including:

MySpaceMySpace YouTubeYouTube Yahoo!Yahoo! Apple iTunesApple iTunes In2TVIn2TV

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SubstitutesSubstitutes

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

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SuppliersSuppliers

All current players are affiliated with All current players are affiliated with or supported by a parent company or supported by a parent company or film studio acting as a supplier or film studio acting as a supplier creative material:creative material:

ABC (Disney Studios)ABC (Disney Studios) CBS (Viacom & Paramount Studios)CBS (Viacom & Paramount Studios) NBC (Universal Studios)NBC (Universal Studios) FOX (News Corp & Fox Studios)FOX (News Corp & Fox Studios)

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BuyersBuyers

Demographics of the average Demographics of the average buyer/viewer:buyer/viewer:

Approximately 55% female, 45 % maleApproximately 55% female, 45 % male 29 years old29 years old Urban and suburban (where high speed Urban and suburban (where high speed

internet access is readily available)internet access is readily available) Lower-middle to upper-middle income Lower-middle to upper-middle income

(with at least one access device and the (with at least one access device and the means to pay for high-speed access)means to pay for high-speed access)

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Buyers, cont.Buyers, cont.

The prime advertiser demographic is The prime advertiser demographic is ages 20 to 34 (Generation “X” and ages 20 to 34 (Generation “X” and “Y”)“Y”)

New key demographics being New key demographics being aggressively pursued by the aggressively pursued by the networks and advertisers:networks and advertisers: Tweens – ages 7 to 12Tweens – ages 7 to 12 Teens – ages 13 to 19Teens – ages 13 to 19

Questions or Comments?Questions or Comments?

For more information see:For more information see:

www.marketingvox.comwww.marketingvox.com

www.imediaconnection.comwww.imediaconnection.com

www.pewinternet.orgwww.pewinternet.org

www.internetnews.comwww.internetnews.com