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Against Cannibalization (bug free pdf)

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Portante Andrea
Portante Andrea

The document discusses evidence that there is no "cannibalization" between TV broadcasting and online video streaming. It uses data from the Italian TV show "X Factor" to show that making content available on YouTube did not negatively impact traffic to the broadcaster's own website and may have increased it. The broadcaster's revenues from YouTube have grown and represent an increasing share of their overall online revenues. The document concludes broadcasters should create and widely distribute their content across multiple platforms to maximize views and revenues.

1 of 24
TV Broadcasting and Online Video: Cannibalization is a hoax! The You Tube Case
The purpose of this presentation is to provide evidence against “cannibalization” between TV and online video streaming and, in particular, between “competing” online portals.
Some common “nightmares” “If the viewer can watch the program on the web , we’ll lose share on TV” “If we do not put our videos onYou Tube, users will have to come to our portal to watch them” “If we embed our videos into Facebook, we will build traffic for them”
In the case of X-Factor and You Tube we have “scientific” evidence against these fears For Series 2 of X Factor, we had the official web site on RAI portal and an official “channel” on You Tube We uploaded X factor videos on the You Tube channel, allowing clips uploaded by the fans, also within “unofficial” X Factor fan channels, and monetizing them For Series 3 of X Factor, we had an “upgraded” official web site on RAI portal and “to maximize traffic”, we limited the You Tube channel to a few promotional videos and, through fingerprinting technology available with You Tube, we blocked all video uploads by the user community. Given flaming protests by the public, online and offline, after a few weeks we “re-opened” the X Factor You Tube Channel. We have therefore the possibility to analyze “experimental data” about the impact of the availability of videos on You Tube and the performance of those videos on the broadcaster’s portal
There is no cannibalization between You Tube views and own portal traffic The X Factor Case XF3, Pageviews Xfactor.rai.it You Tube “Blocked” You Tube “open” Xfactor.rai.it: 8,5 million PV Xfactor.rai.it: 7,2 million pagevews No obvious negative impact from “opening” You Tube
Evidence is clear if comparing two consecutive editions of X Factor Pageviews Xfactor.rai.it Xfactor3-Xfactor2 1.500.000 1.125.000 750.000 375.000 0 -375.000 -750.000 X Factor 3:You Tube “Blocked” X Factor 3:You Tube “Open” X Factor 2:You Tube “Open” X Factor 2:You Tube “Open” While You Tube was blocked XF3 After You Tube was “open”, XF3 official web portal registered outperformed XF2, for the same 200,000 pages less than in the period, by over 600,000 pages corresponding period of XF2, when YT had been left open
The RAI Group • 13 free-to-air TV Networks (DTT) • 43% share of italian TV audience • Yearly turnover of US$ 4,5 billion, 50% of which from advertising • 5 national radio channel • 3 international channels
A Yearly Production of: • 1,200 hours of italian fiction • 3,400 hours of news • 700 hours educational programs • 1,500 hours of sports Over 500,000 hours of archival material
RAI on the Web means: • RAI.tv • 14 live “simulcast” channels • 21 “web TV” • 8 radio channels • over 300,000 videos online • 4000 new videos added each month • RAI.it • Over 800 web sites (news, entertainment, kids, pubblic utility, etc.)
Spearhead: live simulcast... 14 live channels 24/7 13 canali Tv Live (simulcast)
23 “vertical” web TVs (repositories by theme)
RAI Portal Numbers in 2011 •1,6 billion PVs • 9,5 million Avg monthly UU
Partnership with You Tube key to strategy of “molecular distribution” of RAI content - Over 10,000 “clips” uploaded (so called “short form” - Over 90,000 videos claimed and monetized - 55 millions “video streamed” per month - Agreement on “long forms” (full feature videos) under discussion
Why the partnership with You Tube Generate Additional Revenues Promote our web content Promote RAI Brands/fidelize
Revenues from Monetization of RAI Videos on You Tube have been Growing... Short Form Only (RAI Net Share) Revenues, Euro 2009 2010 2011 Expected Note: Scale accurate. Numbers intentionally left blank to protect confidentiality
...and Represent a Growing Share of RAI Online Revenues RAI Online Revenues from You Tube as Percentage of Own Portal 30% 25% 25,3% 20% 15,2% 15% 10% 5% 4,7% 0% 2009 2010 2011 YTD
Our Current Policy • Upload to You Tube a selection of videos from Rai.tv based on: • Editorial Choice • Rights availability • Monetize matching videos uploaded by viewers • Sparsely use “search” tools to comb You Tube • If we do own the right: monetize • If we don’t: ignore
Videos on RAI “official” You Tube Channel Represent the Largest Share of Revenue 20% 90% 55% Uploaded by User, Claimed and monetized by RAI 80% 45% Uploaded by RAI 10% Monetized Monetized Revenues Videos Views
The Revenue Equation Revenue = CPM X VideoViews “higher” on own portal “MUCH higher” on You Tube • Higher Price • 5x to 20x or higher • No Rev. Sharing ...and since there is no cannibalization each Euro is incremental
The same videos generate more traffic on You Tube than on own portal Video Views, same period 1° 2° 3° 4° 1° 2° 3° 4° Top Sanremo Top Sanremo Videos You Tube Videos Rai.tv
!" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" &#!!!" !!'!!(!!'#)" !$'!!(!$'#)" !!'!!(!!'#)" !%'!!(!%'#)" !&'!!(!&'#)" !$'!!(!$'#)" !*'!!(!*'#)" !%'!!(!%'#)" !#'!!(!#'#)" !&'!!(!&'#)" !+'!!(!+'#)" !,'!!(!,'#)" !*'!!(!*'#)" !-'!!(!-'#)" !#'!!(!#'#)" !)'!!(!)'#)" !+'!!(!+'#)" $!'!!"("$!'#)" $$'!!"("$$'#)" !,'!!(!,'#)" $%'!!"("$%'#)" !-'!!(!-'#)" $&'!!"("$&'#)" !)'!!(!)'#)" $*'!!"("$*'#)" $#'!!"("$#'#)" $!'!!"("$!'#)" $+'!!"("$+'#)" $$'!!"("$$'#)" $,'!!"("$,'#)" $%'!!"("$%'#)" Sunday 23/5 $-'!!"("$-'#)" $)'!!"("$)'#)" $&'!!"("$&'#)" %!'!!"("%!'#)" $*'!!"("$*'#)" %$'!!"("%$'#)" $#'!!"("$#'#)" %%'!!"("%%'#)" %&'!!"("%&'#)" $+'!!"("$+'#)" $,'!!"("$,'#)" Thursday 20/5 $-'!!"("$-'#)" $)'!!"("$)'#)" %!'!!"("%!'#)" %$'!!"("%$'#)" !! '! %%'!!"("%%'#)" !( !! %&'!!"("%&'#)" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" &#!!!" !% '# '! )" !( !* !% '! '# !( )" !+ !* '! '# !( )" !, !+ '! '# !( )" $! !, '!! '#) " " !" #!!!" $!!!" %!!!" &!!!" '!!!!" '#!!!" '$!!!" '%!!!" '&!!!" #!!!!" $% ("$! '! ' !" #)" !!(!!)!!(*+" $* ("$ '! %'# !" )" !'(!!)!'(*+" $+ ("$* '! ' !#(!!)!#(*+" !" #)" $, ("$ '! +'# !" )" !,(!!)!,(*+" %! ("$, !$(!!)!$(*+" '! ' !" #)" %% ("%! '! ' !*(!!)!*(*+" !" #)" ("% %' !%(!!)!%(*+" Monday 24/5 #) " !-(!!)!-(*+" !&(!!)!&(*+" !+(!!)!+(*+" '!(!!")"'!(*+" -./0.$" ''(!!")"''(*+" '#(!!")"'#(*+" ',(!!")"',(*+" '$(!!")"'$(*+" '*(!!")"'*(*+" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" &#!!!" !!'!!(!!'#)" '%(!!")"'%(*+" Friday 21/5 !$'!!(!$'#)" usage !%'!!(!%'#)" '-(!!")"'-(*+" !&'!!(!&'#)" '&(!!")"'&(*+" !*'!!(!*'#)" '+(!!")"'+(*+" !#'!!(!#'#)" !+'!!(!+'#)" #!(!!")"#!(*+" !,'!!(!,'#)" #'(!!")"#'(*+" !-'!!(!-'#)" !)'!!(!)'#)" ##(!!")"##(*+" $!'!!"("$!'#)" #,(!!")"#,(*+" $$'!!"("$$'#)" $%'!!"("$%'#)" $&'!!"("$&'#)" $*'!!"("$*'#)" $#'!!"("$#'#)" $+'!!"("$+'#)" $,'!!"("$,'#)" $-'!!"("$-'#)" Tuesday 25/5 $)'!!"("$)'#)" %!'!!"("%!'#)" %$'!!"("%$'#)" %%'!!"("%%'#)" %&'!!"("%&'#)" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" &#!!!" '!!!!" '#!!!" #!!!!" !!(!!)!!(#*" !$(!!)!$(#*" !%(!!)!%(#*" !&(!!)!&(#*" !'(!!)!'(#*" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" !!&!!'!!&#(" !#(!!)!#(#*" !$&!!'!$&#(" !+(!!)!+(#*" !%&!!'!%&#(" !)&!!'!)&#(" !,(!!)!,(#*" !*&!!'!*&#(" !-(!!)!-(#*" !#&!!'!#&#(" !*(!!)!*(#*" !+&!!'!+&#(" !,&!!'!,&#(" $!(!!")"$!(#*" !-&!!'!-&#(" $$(!!")"$$(#*" !(&!!'!(&#(" $!&!!"'"$!&#(" $%(!!")"$%(#*" $$&!!"'"$$&#(" $&(!!")"$&(#*" $%&!!"'"$%&#(" $'(!!")"$'(#*" $)&!!"'"$)&#(" $*&!!"'"$*&#(" $#(!!")"$#(#*" EXAMPLES $#&!!"'"$#&#(" $+(!!")"$+(#*" $+&!!"'"$+&#(" $,(!!")"$,(#*" $,&!!"'"$,&#(" Saturday 22/5 $-&!!"'"$-&#(" $-(!!")"$-(#*" $(&!!"'"$(&#(" $*(!!")"$*(#*" %!&!!"'"%!&#(" Online video streaming resembles TV %!(!!")"%!(#*" %$&!!"'"%$&#(" Wednesday 26/5 %%&!!"'"%%&#(" %$(!!")"%$(#*" %)&!!"'"%)&#(" %%(!!")"%%(#*" %&(!!")"%&(#*"
Research has shown that there is no cannibaliation between TV and the web either The web adds 0,8 to 1,2 percentage points to TV audience coverage (+10% approximately) You Tube increases web coverage by 30 to 50% Minimal Overlap (0,3 to 3%) between You Tube and Own portal Users (reach is incremental) Impact stronger on younger demographics (especially 24-34) Source (and any additional detail) CONFIDENTIAL!
On  the  web  viewers  are  free  and   pretending  to  corrall  them  would  be   like  herding  cats
Conclusions (what we learned) 1) Create content 2) Distribute and monetize it on as many platform as possible 3) Leverage viral effect on branding and views (hence on revenues)

More Related Content

Against Cannibalization (bug free pdf)

  • 1. TV Broadcasting and Online Video: Cannibalization is a hoax! The You Tube Case
  • 2. The purpose of this presentation is to provide evidence against “cannibalization” between TV and online video streaming and, in particular, between “competing” online portals.
  • 3. Some common “nightmares” “If the viewer can watch the program on the web , we’ll lose share on TV” “If we do not put our videos onYou Tube, users will have to come to our portal to watch them” “If we embed our videos into Facebook, we will build traffic for them”
  • 4. In the case of X-Factor and You Tube we have “scientific” evidence against these fears For Series 2 of X Factor, we had the official web site on RAI portal and an official “channel” on You Tube We uploaded X factor videos on the You Tube channel, allowing clips uploaded by the fans, also within “unofficial” X Factor fan channels, and monetizing them For Series 3 of X Factor, we had an “upgraded” official web site on RAI portal and “to maximize traffic”, we limited the You Tube channel to a few promotional videos and, through fingerprinting technology available with You Tube, we blocked all video uploads by the user community. Given flaming protests by the public, online and offline, after a few weeks we “re-opened” the X Factor You Tube Channel. We have therefore the possibility to analyze “experimental data” about the impact of the availability of videos on You Tube and the performance of those videos on the broadcaster’s portal
  • 5. There is no cannibalization between You Tube views and own portal traffic The X Factor Case XF3, Pageviews Xfactor.rai.it You Tube “Blocked” You Tube “open” Xfactor.rai.it: 8,5 million PV Xfactor.rai.it: 7,2 million pagevews No obvious negative impact from “opening” You Tube
  • 6. Evidence is clear if comparing two consecutive editions of X Factor Pageviews Xfactor.rai.it Xfactor3-Xfactor2 1.500.000 1.125.000 750.000 375.000 0 -375.000 -750.000 X Factor 3:You Tube “Blocked” X Factor 3:You Tube “Open” X Factor 2:You Tube “Open” X Factor 2:You Tube “Open” While You Tube was blocked XF3 After You Tube was “open”, XF3 official web portal registered outperformed XF2, for the same 200,000 pages less than in the period, by over 600,000 pages corresponding period of XF2, when YT had been left open
  • 7. The RAI Group • 13 free-to-air TV Networks (DTT) • 43% share of italian TV audience • Yearly turnover of US$ 4,5 billion, 50% of which from advertising • 5 national radio channel • 3 international channels
  • 8. A Yearly Production of: • 1,200 hours of italian fiction • 3,400 hours of news • 700 hours educational programs • 1,500 hours of sports Over 500,000 hours of archival material
  • 9. RAI on the Web means: • RAI.tv • 14 live “simulcast” channels • 21 “web TV” • 8 radio channels • over 300,000 videos online • 4000 new videos added each month • RAI.it • Over 800 web sites (news, entertainment, kids, pubblic utility, etc.)
  • 10. Spearhead: live simulcast... 14 live channels 24/7 13 canali Tv Live (simulcast)
  • 11. 23 “vertical” web TVs (repositories by theme)
  • 12. RAI Portal Numbers in 2011 •1,6 billion PVs • 9,5 million Avg monthly UU
  • 13. Partnership with You Tube key to strategy of “molecular distribution” of RAI content - Over 10,000 “clips” uploaded (so called “short form” - Over 90,000 videos claimed and monetized - 55 millions “video streamed” per month - Agreement on “long forms” (full feature videos) under discussion
  • 14. Why the partnership with You Tube Generate Additional Revenues Promote our web content Promote RAI Brands/fidelize
  • 15. Revenues from Monetization of RAI Videos on You Tube have been Growing... Short Form Only (RAI Net Share) Revenues, Euro 2009 2010 2011 Expected Note: Scale accurate. Numbers intentionally left blank to protect confidentiality
  • 16. ...and Represent a Growing Share of RAI Online Revenues RAI Online Revenues from You Tube as Percentage of Own Portal 30% 25% 25,3% 20% 15,2% 15% 10% 5% 4,7% 0% 2009 2010 2011 YTD
  • 17. Our Current Policy • Upload to You Tube a selection of videos from Rai.tv based on: • Editorial Choice • Rights availability • Monetize matching videos uploaded by viewers • Sparsely use “search” tools to comb You Tube • If we do own the right: monetize • If we don’t: ignore
  • 18. Videos on RAI “official” You Tube Channel Represent the Largest Share of Revenue 20% 90% 55% Uploaded by User, Claimed and monetized by RAI 80% 45% Uploaded by RAI 10% Monetized Monetized Revenues Videos Views
  • 19. The Revenue Equation Revenue = CPM X VideoViews “higher” on own portal “MUCH higher” on You Tube • Higher Price • 5x to 20x or higher • No Rev. Sharing ...and since there is no cannibalization each Euro is incremental
  • 20. The same videos generate more traffic on You Tube than on own portal Video Views, same period 1° 2° 3° 4° 1° 2° 3° 4° Top Sanremo Top Sanremo Videos You Tube Videos Rai.tv
  • 21. !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" &#!!!" !!'!!(!!'#)" !$'!!(!$'#)" !!'!!(!!'#)" !%'!!(!%'#)" !&'!!(!&'#)" !$'!!(!$'#)" !*'!!(!*'#)" !%'!!(!%'#)" !#'!!(!#'#)" !&'!!(!&'#)" !+'!!(!+'#)" !,'!!(!,'#)" !*'!!(!*'#)" !-'!!(!-'#)" !#'!!(!#'#)" !)'!!(!)'#)" !+'!!(!+'#)" $!'!!"("$!'#)" $$'!!"("$$'#)" !,'!!(!,'#)" $%'!!"("$%'#)" !-'!!(!-'#)" $&'!!"("$&'#)" !)'!!(!)'#)" $*'!!"("$*'#)" $#'!!"("$#'#)" $!'!!"("$!'#)" $+'!!"("$+'#)" $$'!!"("$$'#)" $,'!!"("$,'#)" $%'!!"("$%'#)" Sunday 23/5 $-'!!"("$-'#)" $)'!!"("$)'#)" $&'!!"("$&'#)" %!'!!"("%!'#)" $*'!!"("$*'#)" %$'!!"("%$'#)" $#'!!"("$#'#)" %%'!!"("%%'#)" %&'!!"("%&'#)" $+'!!"("$+'#)" $,'!!"("$,'#)" Thursday 20/5 $-'!!"("$-'#)" $)'!!"("$)'#)" %!'!!"("%!'#)" %$'!!"("%$'#)" !! '! %%'!!"("%%'#)" !( !! %&'!!"("%&'#)" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" &#!!!" !% '# '! )" !( !* !% '! '# !( )" !+ !* '! '# !( )" !, !+ '! '# !( )" $! !, '!! '#) " " !" #!!!" $!!!" %!!!" &!!!" '!!!!" '#!!!" '$!!!" '%!!!" '&!!!" #!!!!" $% ("$! '! ' !" #)" !!(!!)!!(*+" $* ("$ '! %'# !" )" !'(!!)!'(*+" $+ ("$* '! ' !#(!!)!#(*+" !" #)" $, ("$ '! +'# !" )" !,(!!)!,(*+" %! ("$, !$(!!)!$(*+" '! ' !" #)" %% ("%! '! ' !*(!!)!*(*+" !" #)" ("% %' !%(!!)!%(*+" Monday 24/5 #) " !-(!!)!-(*+" !&(!!)!&(*+" !+(!!)!+(*+" '!(!!")"'!(*+" -./0.$" ''(!!")"''(*+" '#(!!")"'#(*+" ',(!!")"',(*+" '$(!!")"'$(*+" '*(!!")"'*(*+" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" &#!!!" !!'!!(!!'#)" '%(!!")"'%(*+" Friday 21/5 !$'!!(!$'#)" usage !%'!!(!%'#)" '-(!!")"'-(*+" !&'!!(!&'#)" '&(!!")"'&(*+" !*'!!(!*'#)" '+(!!")"'+(*+" !#'!!(!#'#)" !+'!!(!+'#)" #!(!!")"#!(*+" !,'!!(!,'#)" #'(!!")"#'(*+" !-'!!(!-'#)" !)'!!(!)'#)" ##(!!")"##(*+" $!'!!"("$!'#)" #,(!!")"#,(*+" $$'!!"("$$'#)" $%'!!"("$%'#)" $&'!!"("$&'#)" $*'!!"("$*'#)" $#'!!"("$#'#)" $+'!!"("$+'#)" $,'!!"("$,'#)" $-'!!"("$-'#)" Tuesday 25/5 $)'!!"("$)'#)" %!'!!"("%!'#)" %$'!!"("%$'#)" %%'!!"("%%'#)" %&'!!"("%&'#)" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" &!!!!" &#!!!" '!!!!" '#!!!" #!!!!" !!(!!)!!(#*" !$(!!)!$(#*" !%(!!)!%(#*" !&(!!)!&(#*" !'(!!)!'(#*" !" #!!!" $!!!!" $#!!!" %!!!!" %#!!!" !!&!!'!!&#(" !#(!!)!#(#*" !$&!!'!$&#(" !+(!!)!+(#*" !%&!!'!%&#(" !)&!!'!)&#(" !,(!!)!,(#*" !*&!!'!*&#(" !-(!!)!-(#*" !#&!!'!#&#(" !*(!!)!*(#*" !+&!!'!+&#(" !,&!!'!,&#(" $!(!!")"$!(#*" !-&!!'!-&#(" $$(!!")"$$(#*" !(&!!'!(&#(" $!&!!"'"$!&#(" $%(!!")"$%(#*" $$&!!"'"$$&#(" $&(!!")"$&(#*" $%&!!"'"$%&#(" $'(!!")"$'(#*" $)&!!"'"$)&#(" $*&!!"'"$*&#(" $#(!!")"$#(#*" EXAMPLES $#&!!"'"$#&#(" $+(!!")"$+(#*" $+&!!"'"$+&#(" $,(!!")"$,(#*" $,&!!"'"$,&#(" Saturday 22/5 $-&!!"'"$-&#(" $-(!!")"$-(#*" $(&!!"'"$(&#(" $*(!!")"$*(#*" %!&!!"'"%!&#(" Online video streaming resembles TV %!(!!")"%!(#*" %$&!!"'"%$&#(" Wednesday 26/5 %%&!!"'"%%&#(" %$(!!")"%$(#*" %)&!!"'"%)&#(" %%(!!")"%%(#*" %&(!!")"%&(#*"
  • 22. Research has shown that there is no cannibaliation between TV and the web either The web adds 0,8 to 1,2 percentage points to TV audience coverage (+10% approximately) You Tube increases web coverage by 30 to 50% Minimal Overlap (0,3 to 3%) between You Tube and Own portal Users (reach is incremental) Impact stronger on younger demographics (especially 24-34) Source (and any additional detail) CONFIDENTIAL!
  • 23. On  the  web  viewers  are  free  and   pretending  to  corrall  them  would  be   like  herding  cats
  • 24. Conclusions (what we learned) 1) Create content 2) Distribute and monetize it on as many platform as possible 3) Leverage viral effect on branding and views (hence on revenues)