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    The Future of Television: Mark Suster

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    Melody He
    The document discusses how the future of television is moving towards more interactive and digital formats delivered over the internet. It argues that while the television industry has been predicting this change for 20 years, the conditions are now in place for a massive change to accelerate in 2012. These conditions include decreased costs for video production and distribution, increased broadband penetration, and changes in consumer behavior and viewing habits towards online content. It predicts that bundled cable television will be disrupted the same way the music album was disrupted, and that new types of online video producers and distributors will emerge to replace traditional television executives and business models.

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    The Future of Television: Mark Suster

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    Melody He
    13 views24 pages
    The document discusses how the future of television is moving towards more interactive and digital formats delivered over the internet. It argues that while the television industry has been predicting this change for 20 years, the conditions are now in place for a massive change to accelerate in 2012. These conditions include decreased costs for video production and distribution, increased broadband penetration, and changes in consumer behavior and viewing habits towards online content. It predicts that bundled cable television will be disrupted the same way the music album was disrupted, and that new types of online video producers and distributors will emerge to replace traditional television executives and business models.

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    Final Paid Content _Nov 2011_Michael Suster

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    The document discusses how the future of television is moving towards more interactive and digital formats delivered over the internet. It argues that while the television industry has been predicting this change for 20 years, the conditions are now in place for a massive change to accelerate in 2012. These conditions include decreased costs for video production and distribution, increased broadband penetration, and changes in consumer behavior and viewing habits towards online content. It predicts that bundled cable television will be disrupted the same way the music album was disrupted, and that new types of online video producers and distributors will emerge to replace traditional television executives and business models.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    13 views24 pages

    The Future of Television: Mark Suster

    Uploaded by

    Melody He
    The document discusses how the future of television is moving towards more interactive and digital formats delivered over the internet. It argues that while the television industry has been predicting this change for 20 years, the conditions are now in place for a massive change to accelerate in 2012. These conditions include decreased costs for video production and distribution, increased broadband penetration, and changes in consumer behavior and viewing habits towards online content. It predicts that bundled cable television will be disrupted the same way the music album was disrupted, and that new types of online video producers and distributors will emerge to replace traditional television executives and business models.

    Copyright:

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    of 24

    The Future of Television

    Mark Suster PaidContent November 2011 @msuster

    So Interactive, Digital TV is Right Around the Corner?

    Nobody Believes it Because Weve Cried Wolf for 20 Years

    This Has Led Our Industry to Become Frogs Boiling in Water

    Metaphor: put a frog into boiling water and it jumps out, put it in cold water & slowly turn up temperature and it boils to death

    We Overestimate the Impact of Tech on 3-year Horizon & Underestimate on 10-year


    - Bill Gates

    I Would Argue That the Massive Change in Television Will Accelerate in 2012
    1. Massive decrease in costs of capturing & processing video 2. Significant penetration in broadband, increases in Wi-Fi

    3. Huge advances in compression


    4. Massively distributed advertising market

    5. Decreasing traditional paychecks to creative talent


    6. Consumer behavior has made Internet video a reality

    Bundled TV Will be the Album of the Future

    And The Same Forces that Killed the Album Will Kill The Bundle

    1. Disruptive technology that breaks the distribution strangle hold of content

    2. Massive costs reductions in capture, process & distribute


    3. Consumer choice

    YouTube is the New Comcast And Notice the Change in Branding

    And My Bet is that The Future Distributors Are Not Who Most TV Execs Think

    So Why Now?

    Americans watch 5.3 hours of TV / Day


    Media Patterns
    5.3 Hours

    3 Hours

    < 1 Hour Reading Online TV

    Its Not Just Dogs on Skateboards Anymore

    A Disruptive Breed of Digital Content Producer Has Emerged


    $50-100k $6,000-8,000

    Production Costs / Minute

    $100-400

    UGC

    YouTube TV

    Network TV

    These 4 Companies Alone Doing > 3 Billion Video Views / Month

    Costs / Minute

    YouTube TV

    With YouTube Content Distribution is Much More Predictable and Content Producers Have a Direct Relationship with Viewers
    Producer YouTube Viewer

    Subscribers Email Lists Facebook Connect

    Youth Demo Already 1/3rd of Time Online Watching Video

    Streaming Video

    Other Surfing

    And Revenue Becoming Substantive


    US Online Video Advertising Revenue ($millions)
    $3,500

    $3,090 $2,160 $1,420 $1,017

    $3,000

    $2,500

    $2,000

    $1,500

    $1,000

    $500

    $2009 2010 2011E 2012E

    How Mainstream? 86% of All Internet Watch Online Video

    Aug 11

    42 billion

    views

    185 million viewers 228 videos / person


    17 hours

    91% of Households Still Pay for TV (91%)

    This Market Disruption Will Be Enormous And Its Accelerating Now

    Dont Be a Frog. Get Ahead of the Curve.

    </end> Thank you

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