MIPCOM24: The Connected TV Summit
What went down at the Connected TV Summit?
Missed the MIPCOM CTV Summit presented by Alan Wolk yesterday?
Whether you were tied up in meetings, couldn’t make it to Cannes, or just need a refresher, I’ve got you covered!
Introducing Summit Summaries: quick, insightful recaps of the key discussions from yesterday's summit.
Now it’s your turn to turn these highlights into actionable insights for your business ;)
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The State of CTV: Market Dynamics and Emerging Opportunities
Alan Wolk introduced the session by emphasizing the importance of understanding the connected TV (CTV) industry. He highlighted the need for cooperation among media companies to compete against Tech giants like Amazon, Meta, and Google.
Challenges in TV advertising and measurement
Alan Wolk discussed the challenges in measuring TV ad effectiveness compared to platforms like YouTube, which provide detailed metrics.
He predicted that shifting audience preferences toward streaming would eventually move more ad dollars from traditional TV to streaming services.
Impact of churn on streaming services
Alan Wolk introduced the concept of churn, noting a 10% increase over the past year. He discussed different types of churn and the impact on revenue stability, highlighting the industry's shift to ad-supported models and the trend of subscribers dipping in and out.
“What is the operating system on a TV do? It gives you so much control. You become the gatekeeper of content" - Alan Wolk, Co-Founder/Lead Analyst, TVREV
Trends in subscription and Free Ad-Supported services
Alan Wolk highlighted the growing popularity of free, ad-supported services over paid subscriptions, particularly among younger viewers.
He discussed the industry's response to churn, including the "great re-bundling" and offering year-long subscriptions or bundles with other services.
Bundling and creative referrals
Alan Wolk explained the evolution of TV bundles into more creative offerings, including non-TV services like newspaper subscriptions or Amazon Prime. He noted mixed feelings among consumers about bundles, with only a small percentage preferring other options.
Ad-supported streaming and global Expansion
Alan Wolk discussed the rise of ad-supported streaming, particularly in regions with less traditional TV access.
He highlighted Amazon's success in transitioning Prime members to ad-supported tiers and the potential for major streaming services to launch free ad-supported models in developing regions.
Improving Ad relevance and experience
Alan Wolk emphasized the need for better targeting and more relevant ads to improve the viewer experience. He highlighted the importance of reducing the number of ads while making them more engaging to increase viewer acceptance.
“The industry average churn is going up 10% over the last year. It's a slow but steady thing” - Alan Wolk, Co-Founder/Lead Analyst, TVREV
TV OS Wars and their importance
Alan Wolk discussed the growing significance of TV operating systems (OS) in controlling content discovery, recommendations, and advertising space. The competition between digital companies like Amazon and Google for dominance in the TV OS market was highlighted as a key trend.
Global market and regional differences
Alan Wolk noted that 40% of the global market lacks a defined TV OS, presenting an opportunity for growth. He emphasized the importance of TV OS in shaping the competitive landscape and generating additional revenue through recommendations and advertising.
Future of Ad-supported streaming and TV OS
Alan Wolk predicted continued growth in ad-supported streaming, particularly in regions with limited traditional TV access.
He reiterated the importance of improving ad relevance and highlighted the role of TV OSs in controlling content and generating revenue as a key future trend.
Anatomy of a Streamer
Antoine Chotard introduced Samsung content distribution and monetization services within its CTV ecosystem. Samsung is the leading TV manufacturer globally, with 60% of the European population owning at least one Samsung device.
Samsung TV Plus, a premium ad-supported streaming service, is integrated into Samsung CTV ecosystem to deliver premium content directly to users.
Reach and scale of Samsung TV Plus
Samsung TV Plus is available on 60 million TVs in Europe (160 Million TVs globally), with 5 billion hours of content viewed in 2023, expected to reach 10 billion by 2025.
The service offers over 3,000 FAST channels, focusing on quality, and features a variety of programs including live sports and news from partners like Gaumont, ITV, FIFA, etc.
“92% of the users use the top 10 apps. It's very hard for new entrants to really break through the top 10 apps without significant investments and strong content proposition" - Antoine Chotard, BD Country Lead FR & MENA, Samsung TV Plus
Insights into Samsung smart TV users in Europe
Samsung TV users in Europe tend to be early adopters and tech-savvy. Streaming adoption is high, with 82% of EU5 Samsung TV users streaming, rising to 93% in the UK.
Streaming has become a daily habit, with users averaging two hours per session, and 53% of users streaming more than watching broadcast TV.
Streaming habits and demographics
Linear broadcast TV remains strong, but Samsung aims to help broadcasters reach new audiences through streaming. Most streaming time is spent on traditional SVOD services like Netflix, though there is a growing shift towards ad-supported platforms.
Younger demographics, especially Gen Z, are leading in streaming usage, with usage growing across all age groups.
Usage of streaming Apps and daily consumption patterns
Most Samsung Smart TV users use multiple Apps to access content, with only 40% using just one app. The top 10 apps are accessed by 92% of users, making it challenging for new entrants without significant investment.
Users typically use four to five streaming apps, with ad-supported platforms becoming part of daily viewing habits, particularly during daytime hours.
We expect to reach 10 billion of hours viewed on Samsung TV plus global in 2025" - Antoine Chotard, BD Country Lead FR & MENA, Samsung TV Plus
Conclusion and key takeaways
Streaming usage is increasing across all demographics, with younger audiences leading the way. Ad-supported platforms are gaining significant time spent, although traditional platforms like Netflix continue to grow. CTV is becoming the norm in Europe, and Samsung aims to support content producers in maximizing the potential of the Samsung TV ecosystem.
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UX Matters: Why The Right User Experience Can Make Or Break Your Streaming Service
Alan Wolk introduced the topic of user experience on TV, with participants sharing their backgrounds: Keith Bedford from Wurl, Dr Bernd Riefler from Veed Analytics, Amanda Stevens from All3Media International and Marc Zand from Anoki.
“What we are doing is helping drive the right content to the right place” - Keith Bedford, General Manager EMEA, Wurl
Challenges in TV User Interfaces
Marc Zand highlighted the paradox of choice, where users are overwhelmed by too many options on the EPG. Keith Bedford discussed the difficulty of personalizing home screens and driving viewership through different content formats, emphasizing the role of metadata in enhancing both user experience and advertising.
“EPG still looks from the 1980s or 1990s it hasn't really advanced” - Marc Zand, Chief Content Officer, Anoki
Personalization and data sharing
Bernd Riefler discussed the challenges of personalization at the aggregation level, noting the reluctance of streamers to share data. Marc Zand highlighted Anoki's efforts to improve content discovery, monetization, and data transparency. Amanda Stevens emphasized the importance of metadata for content discovery and personalization.
The panel also discussed the role of contextual advertising and data sharing in enhancing user experience.
“The whole metadata piece is going to be personalized, the next step is AI generated and personalized synopsis that will improve the conversion of a content” - Dr Bernd Riefler, Founder & CEO, Veed Analytics
AI and personalization in TV
Amanda Stevens discussed how AI can automate channel programming and create accurate metadata. Marc Zand compared TV interfaces to social media Apps like TikTok, emphasizing the need for better personalization.
Keith Bedford talked about the challenges of using AI for scheduling and the significance of personalization in TV interfaces.
“A lot of platforms who have been previously very FAST focus, and now having AVOD to sort of complement the FAST proposition” - Amanda Stevens, VP Global Digital Partnerships, All3Media International
Future of User Experience on TV
The panel discussed the future of UX in TV. Keith Bedford emphasized improving personalization to help users find content easily. Marc Zand and Amanda Stevens stressed the need for relevant ads that users want to see, while Bernd Riefler discussed the role of AI and data sharing in personalization and content discovery.
The panelists agreed on the importance of personalization and relevant ads for improving the user experience on TV, with a focus on AI and data sharing as key elements for enhancing future TV interfaces.
Content Monetization & FAST integration
Mirjam Laux introduced herself, sharing her background in consulting and strategy for media and tech companies across Europe. She welcomed the panelists: Johan Kim from New ID, Christian Russ from Samsung Ads, and Ralf Rückauer, from ZDF Studios.
Lessons learned in the FAST industry
Christian Russ emphasized the importance of building long-term relationships for monetization, citing partnerships with Samsung TV Plus and DAZN or RTVE in Spain. Ralf Rückauer shared his initial skepticism about YouTube monetization and the need to adapt to new technologies.
Johan Kim highlighted the importance of investing in localization and better inventory management, particularly in European markets.
"If you gave me a DeLorean, I’d go back to 2010 and invest in YouTube monetization! - Ralf Rückauer, Vice President Unscripted, ZDF Studios GmbH
Future opportunities in the FAST industry
The discussion then focused on future opportunities. Ralf Rückauer suggested maintaining a manageable number of FAST channels to avoid user overwhelm and sustain commercial viability.
Christian Russ emphasized the need for quality content and transparency, comparing Samsung TV Plus growth to traditional linear TV. Ralf also discussed the potential for data sharing to enhance targeting and advertising.
“Looking back five years, I’d focus more on inventory control and localization” - Johan Kim, Executive Vice President & Co-founder, NEW ID
Innovative revenue streams and content strategies
Johan Kim discussed new revenue streams, such as shoppable ads and product purchases via QR codes, and stressed the importance of niche content for targeted audiences.
Christian Russ highlighted the need to professionalize monetization and collaborate with advertisers to improve services. Ralf Rückauer envisioned increased ad spending on FAST channels but recognized competition from other platforms.
“There’s no magic shortcut to growth. It’s all about building long-term relationships and trust” - Christian Russ, Head of Sales DACH, Samsung Ads
Final thoughts and closing remarks
The panelists concluded with key takeaways. Johan Kim emphasized flexibility and innovation, while Christian Russ remained optimistic about future growth driven by partnerships and content quality. Ralf Rückauer noted the significance of data utilization in the industry.
TV OS: Redefining Content Aggregation
Mirjam Laux presented the panel's focus on TV OS and content aggregation, mentioning market consolidation trends.
Kasia Jablonska, Director of Digital and On-Demand for BBC Studios, introduced herself, focusing on digital monetization in the EMEA region. Teresa Alonso Lopez represented Whale TV, discussing their flagship products, Whale OS and Whale TV+.
Current market view on TV OS
Mirjam Laux mentioned the CEO of Roku's prediction that only three TV operating systems would survive, hinting at market consolidation.
Teresa Alonso Lopez disagreed, citing the complexity of the market and challenges for new entrants, emphasizing the need for a robust OS rather than just a user-friendly interface. She compared the TV OS market to the mobile industry.
“I strongly believe the OS which will take the lead on content and advertising revenues” - Kasia Jablonska, Director of Digital and On-Demand for EMEA, BBC Studios
Challenges and opportunities in the market
Teresa Alonso Lopez discussed the engineering challenges and country-specific requirements for TV OS, highlighting the importance of collaboration among existing players.
Kasia Jablonska emphasized the opportunity for niche OS, focusing on differentiated strategies, innovative features, and strong local partnerships.
Content provider perspective and niche OS survival
Kasia Jablonska outlined key elements for niche OS survival, including innovative features and market focus. She compared the TV OS market to the mobile world, highlighting the role of proprietary and open-source platforms, as well as opportunities in gaming and smart home integrations.
Revenue models and market dynamics
Mirjam Laux discussed the shift from hardware revenue to platform and content/advertising revenues.
Kasia Jablonska emphasized the importance of access to content, control of data, and monetization capabilities, suggesting that OS are well-positioned to lead due to their control over user experience, data, and scalability.
Collaboration and future opportunities
Teresa Alonso Lopez agreed on the need for collaboration among TV OS players, emphasizing the leverage OS have with content providers and the importance of long-term usage and creative placements. She highlighted the role of usage data in building effective partnerships and revenue models, noting the value of OS in accessing the living room for monetization.
“I do not see the TV OS consolidation happening just yet” - Teresa Alonso Lopez, VP, whaleTV+ Business Development, Whale TV
Content revenue models and future prospects
Mirjam Laux discussed content revenue models, questioning additional ways for OS to monetize beyond subscriber acquisition, such as consumption models and personalized bundles.
Kasia Jablonska echoed the importance of engaging content providers and exploring new models for effective content monetization.
Conclusion and final thoughts
Teresa Alonso Lopez emphasized building partnerships based on consumption rather than just new subscriber generation.
She highlighted the challenges for mass streaming services to show growth and the need for hybrid models with advertising and subscriptions. Mirjam Laux concluded the discussion by stressing the importance of collaboration.
That’s all for today, key insights from the CTV Summit. If you found this breakdown valuable, spread the word and share it with your network!
Throughout the week, I’ll be sharing with you the latest insights coming from the three MIPCOM summits:
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