Online Television: A New Era in Anytime, Anywhere Programming

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Online Television A New Era in Anytime,
Anywhere Programming

• Patrick Bautista, Miyuki Akasaka, Joe Belton
• HTM 304, Dr. Fang
• 05/08/07

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Online Television

• Overview
• What Exactly is Online TV?
• Ideal Viewers for Online TV

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Online Television

• Advantages
• On Demand
• Free
• Never Miss Out
• Disadvantages
• Embedded Commercials
• Minimum System Requirements

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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

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History

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

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Technology

• 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

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Technology

• Networks Required Programs
• Adobe Flash Player 9
• Windows Media Player
• Real Media Player
• Broadband vs. Satellite
• The Potential
• Revolutionize Television?

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Four Major Television Networks

• ABC
• CBS
• NBC
• FOX

All free shows Require DSL, Cable, or higher
bandwidth
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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
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ABCs 14 current regular / online TV shows

• Dancing with the Stars
• The Bachelor
• The Knights of Prosperity
• According to Jim
• Lost
• Ugly Betty
• Greys Anatomy

• October Road
• Six Degrees
• Desperate Housewives
• Brothers and Sisters
• Day Break
• What About Brian
• Notes From the Underbelly

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ABCs 2 online only TV shows

• Men in Trees
• Voicemail

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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

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CBSs 15 current regular / online TV shows

• 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

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CBSs 12 online only TV shows

• 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

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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

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NBCs 13 regular / online TV shows

• 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

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NBCs 4 online only TV shows

• Thank God You Are Here
• The Biggest Loser
• The Law and Order SVU
• The Office

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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

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FOXs 12 regular / online TV shows

• 24
• American Dad
• Are You Smarter?
• Bones
• Drive
• The Loop

• Prison Break
• Standoff
• Talk Show
• Vanished
• The War at Home
• The Winner

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FOXs 4 online only TV shows

• Hells Kitchen
• Mad TV.com
• Till Death
• Trading Spouses

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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

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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)

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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

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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

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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!

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Porters Competitive Forces Model

• The components of the model
• Industry Competitors
• New Entrants
• Substitutes
• Suppliers
• Buyers

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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)

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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

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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

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Substitutes

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

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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)

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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)

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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

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Questions or Comments?

• For more information see
• www.marketingvox.com
• www.imediaconnection.com
• www.pewinternet.org
• www.internetnews.com