© 2015    1 Gabriel Dusil dusil.com

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© 2015    3 OpportunitiesBehaviors ChallengesStrategies

© 2015    4 Most Significant OTT Business Challenges Obtaining Content Rights for Multiple Screens48% Bandwidth Caps from Network Providers41% Lack of Consumer Awareness or Interest41% Free Services – User Generated Content Free Services – Direct Broadcast Access Poor Set of Vendor Solutions 37% 38% 21% Verimatrix - OTT, A Major Game-changer for Pay-TV (Infographic, 13.Sep)

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© 2015    6 down-with-clicks-up-with-video/

© 2015    7 /2009/01/the-easiest-way.html

© 2015    8 Top Technical Challenges for OTT Network Bandwidth Limitations59% Delivery Standards Broad Device Support Content Security 48% 37% Quality of Service & Experience55% 34% Search & Discovery 30% Transcoding 26% Verimatrix - OTT, A Major Game-changer for Pay-TV (Infographic, 13.Sep)

© 2015    9 Verimatrix - OTT, A Major Game-changer for Pay-TV (Infographic, 13.Sep) Top Devices for OTT Development Tablets80% Smartphones71% STB - Internet Streaming Smart TV 56% 55% PC & Mac72% Game Consoles 41% STB - Traditional 29%

© 2015    10 Verimatrix - OTT, A Major Game-changer for Pay-TV PVR = Personal Video Recorder, PoS = Point of Sale Most Important OTT Services Video On Demand Catch-up TV & time shifting Live & Linear Content48% PVR Functionality23% Network PVR22% PoS10% 54% 7% 15% 11% 10% 2% 3% 3-5 Years 79%

© 2015    11 Verimatrix - OTT, A Major Game-changer for Pay-TV DD+ = Dolby Digital Plus Audio, DTS = Digital Theater Systems, Inc. Most Significant Technologies Top Delivery Protocols Top Platforms to Support HTML575% 4K HEVC DD+ 3D DTS 49% 35% 24% 21% 13% Apple’s HLS65% Adobe’s HDS MPEG-DASH MS Smooth Stream Don’t Know 43% 41% 38% 24% Flash/RTMPE 28% Android74% Windows 8 Mac OS Windows <7 61% 60% 55% 14% Apple iOS73% Blackberry

© 2015    12 Verimatrix - OTT, A Major Game-changer for Pay-TV OMA = Open Mobile Alliance, HLS = HTML Live Streaming Most Important for OTT Security Top Strategies for Digital Rights Management Apple HLS Enhanced38% Apple HLS Basic34% Adobe Flash Access Microsoft PlayReady OMA 25% 23% 16% Many DRMs in One Platform Single DRM in One Platform Many Parallel DRMs Don’t Know29% 19% 12% 22%

© 2015    13 Top OTT Video Business Drivers Attract New Subscribers49% Increase Profitability Retain Existing Subscribers Enhance Competitive Profile 38% 33% Don’t Know 7% Be a Loss Leader* 6% *Maintain Customers so they pay for other services. Verimatrix - OTT, A Major Game-changer for Pay-TV (Infographic, 13.Sep)

© 2015    14 OpportunitiesBehaviors ChallengesStrategies

© 2015    15 dusil.com

© 2015    16  Check out other white papers, video presentations, and opinion pieces from my blog “Digital Video for a Digital Generation": dusil.comdusil.com  Building a new Video Streaming service starts from understanding the market landscape. We’re all familiar with the SWOT analysis: Strengths, Weaknesses, Opportunities & Threats. But dissecting the challenges in the Video streaming industry is about understanding problems, before a solution can be formulated. Creating a gap-analysis is the next step in recognizing opportunities in this rapidly changing market space. Then, examining subscriber behavior ensures that we look through the lens of the consumer. Once those steps are completed, we can formulate a strategy to build an innovative and competitive video streaming service. This presentation takes a modern market approach for video streaming through an assessment of Challenges, Opportunities, Behaviors, & Strategies (or COBS)

© 2015    17  2nd Screen, Broadcast, COBS, Connected TV, Digital Rights, Digital Video, DRM, dusil.com, Entertainment Streaming Behaviors, Entertainment Streaming Challenges, Entertainment Streaming Opportunities, Entertainment Streaming Strategies, Gabriel Dusil, Internet Video, Linear TV, Multi-screen, Multiscreen, Online Video Platform, OTT, Over the Top Content, OVP, Recommendation Engine, Return On Investment, ROI, Search & Discovery, second screen, Smart TV, TCO, Television, total cost of ownership, TV Anywhere, TV Everywhere, Video Streaming