In 72 million U.S. households

State of VOD: Distribution & Content
Distribution
•
In 72 million U.S. households
– Digital Cable and Telco homes
– Still limited satellite VOD capabilities
Content
•
Free VOD content has grown exponentially
– Over 33K unique titles per month, 3x the number of titles since 2010
Categories
•
Free VOD viewership is driven by four main categories:
– 48% TV Entertainment (Broadcast & Cable)
– 25% Kids (Nickelodeon, Cartoon, Disney)
– 10% Music (Music Choice)
– 5% Free Movies (FX Movies)
Sources: DISTRIBUTION & CONTENT: VAB Report: MVPD’s VOD: Driving Engagement & Ad Lift, Oct 2015. CATEGORIES: Rentrak OnDemand Essentials, VOD Category Orders, FY 2015.
Page 2
State of VOD: Viewership
Usage
•
79% of digital cable subscribers and 74% of telco video subscribers
use free VOD monthly
– 51% of cable subscribers have used VOD in the past month –
up from 4% in 2010
•
Networks see an increase from VOD, especially among Millennials
– 28% of prime time viewing comes from VOD
Audience
•
Compared to linear TV viewers, VOD viewers are:
– Younger (29% P18-34, 52% 18-49)
– More educated
– Earn more
Sources: USAGE: VAB Report: MVPD’s VOD: Driving Engagement & Ad Lift, Oct 2015, and Leichtman Research Group “On-Demand TV XIV Study”, Feb 5, 2016.
AUDIENCE: Rentrak/Nielsen Study by ABC per MediaPost “Millennials TV Viewing Favors VOD”, Oct 2, 2015.
Page 3
State of VOD: Viewership – Network Ranker
The top 10 networks account for nearly 60% of all VOD views,
and Music Choice is the largest player in the VOD space
600
2015 VOD VIEWS –
NETWORK RANKER
10%
500
8%
7%
7%
Millions
400
6%
5%
300
4%
4%
4%
200
3%
100
0
Music Choice
Music
Choice
ABC
ABC
Cartoon Network
Cartoon
Network
Source: Rentrak OnDemand Essentials, Network Ranking Report, 2015.
CBS
CBS
Fox
Fox
NBC
NBC
Disney Channel
Disney
Channel
Nickelodeon
Nick
Disney Junior
Nick Jr.
Disney Nick Jr.
Junior
Page 4
State of VOD: Viewership – 2015 Title Ranker
Music Choice had the top 2 VOD titles and 7 of the top 20 in 2015
2015 VOD VIEWS –
TITLE RANKER
12
10
Millions
8
6
4
2
0
Music Choice: Silento
Music Choice: Fetty Wap
Music Music
Choice Choice
Source: Rentrak OnDemand Essentials, Title Ranking Report, 2015.
FOX: Empire
FOX
Disney Junior: Mickey Mouse Clubhouse
Music Choice: Fetty Wap
Disney Music
Junior Choice
FOX: Empire
FOX
FOX: Empire
FOX
Disney Channel: "Descendants (2015)"
Disney
Channel
FOX: Empire
FOX
Music Choice: Omarion
Music
Choice
Page 5
State of VOD: Advertising
Dynamic Ad Insertion is more significant
•
Canoe
– 35+ MM U.S. households (Comcast, Time Warner, Bright House, Cox)
– 130+ DMAs; 49 of the Top 50
•
Freewheel
– DAI integration for non-Canoe MVPDs
DAI benefits
•
Greater flexibility in flight dates and creative changes
•
Shorter lead time – ads can run within hours
•
Increased targeting capabilities – demo, genre, contextual
•
Frequency cap capabilities
•
Ability to start/stop at specific times of day
– Time zone specific
Source: DAI FOOTPRINT & VOD AD IMPRESSIONS: Canoe VOD Viewed Ad Impression 1Q 2016 Report. Canoe Study per Multichannel News “VOD Ads Gain Traction”, June 11, 2015.
Page 6
State of VOD: Advertising
Advertising effectiveness
• Advertisers are utilizing VOD more
– 4B ad impressions in 1Q 2016 (up 70% YOY)
– Music Choice accounted for 12% of all pre-rolls
• Ads viewed on VOD are more effective than those on linear TV
– 6% lift in retention
– 4% lift in purchase intent
– 14% increase in ad “likeability”
Measurable engagement
• Actual set-top box data to count ad views
• No ad blocking or fraud
– Ad blockers are used by 10% of all internet viewers
– 52% of all desktop ad impressions don’t deliver an advertising impact
• Run on parts of the page that are out of view
• Delivered to bots, so not viewable to a human
Sources: AD BLOCKING: comScore Custom Analytics, U.S., Dec 2015; AD FRAUD: comScore vCE Norms, U.S., Q4 2015.
Page 7
State of VOD: Measurement & Technology
comScore (Rentrak)
•
Measures set-top box behavior
•
Releases monthly transparency usage reports by network and title
•
Developing cross-platform measurement across all devices
Nielsen
•
Total audience measurement will account for all viewing across linear TV, DVR,
VOD, connected TV devices (Roku, Apple TV, Xbox), mobile, PC and tablets
– Data expected to be fully transparent in 4Q 2016
•
Music Choice VOD is measured by Nielsen and available via NPOWER
IP Connected Set-Top Boxes
•
Next-generation set-top boxes in the marketplace (Comcast X1, TiVo) have
more advanced capabilities, including:
– More content, cleaner navigation and viewer recommendations
– Cloud-based
Page 8
Music Choice Update
Page 9
Music Choice Networks
Page 10
Programming Highlights
The #1 music provider on television is now offering more music – and more
original content – than ever before.
Programming initiatives include:
• Brand New This Week
• Primed Emerging Artists
• Artist Takeovers
• Comedy
Page 11
Brand New This Week
Weekly video premieres
• All genres and artists
• Available on demand the same day as Vevo
and YouTube – or sooner
• Dedicated top-level folder
• Promotion across all MC platforms
Sponsor branding
• Category exclusive sponsor
• Pre-roll spot (up to :30)
• Added value: sponsor mention in marketing
campaign and social media messaging
Programming is tentative and subject to change.
Page 12
Primed: Emerging Artist Series
New and emerging artist profiles
• 2 x 5-minute episodes around each artist
• 8 artists per year
• Dedicated folder housing episodes of Primed and
featured artists’ music videos
• Identified on Music Channels as Primed artist
• Cross-platform marketing campaign
• Graduates include Sam Hunt, Lorde, Imagine
Dragons and Jussie Smollett & Yazz (“Empire”)
Sponsor branding
• Pre-roll spot (up to :30)
• Sponsor billboard in show open
• Added value: promo panels on Music Channels
and social media messaging
Programming is tentative and subject to change.
Page 13
Artist Takeovers
A-Listers take over our network
• Cross-platform content and promotion
– Original content produced by MC
– Exclusive music and video premieres
– Channel takeovers or pop-up channels
– Dedicated folder with video catalog
– Artist social media integration
– Promotion from artist and camp
• Targets include Justin Bieber, Demi Lovato,
Alicia Keys, Macklemore, Zendaya, Prince Royce
Sponsor branding
• Pre-roll spot (up to :30)
• Presence at activations and fan events
• Added value: social media messaging
Programming is tentative and subject to change.
Page 14
Comedy Content
The best of the web on your TV
• Digital shorts, such as:
– BuzzVines
– Epic Rap Battles of History
– Powerhouse
– Crash Pad
• Popular web personalities
– Bart Baker video parodies
– Bugatti Beez YouTube videos
Sponsor branding
• Series or episodic sponsorships
• Pre-roll spot (up to :30)
• Added value: social media messaging
Programming is tentative and subject to change.
Page 15
Marketing & Promotion
Music Choice promotes our programming initiatives across our TV platforms,
on our web & app, and through various social media outlets. Content sponsors
can be included in this promotion.
Facebook
Twitter
Instagram
YouTube
1.5 MM fans
113K fans
44K fans
12K subscribers,
10 MM views
Tumblr
Snapchat
Periscope
YouNow
2K fans
3.5K fans
10K fans
11K fans
Page 16
What’s Next: Enhanced TV
All Music Choice products are being made available through TV Everywhere
and IPTV applications. Viewers will be able to seamlessly move between
audio and video and easily access our expanded library of 20,000 videos.
Page 17
Appendix
Music Choice Audience
MC VOD: Largest On Demand Network
• #1 Video On Demand network
• Fully rated by Nielsen
• Now enabled for Dynamic Ad Insertion
• Strong demo delivery: top 10 network among P12-34 and P18-34
• Available in nearly 48 million households
Sources: VIEWS: Rentrak OnDemand Essentials, YTD 2015. Excludes non-participating networks. RANK: Nielsen via NPOWER, VPVH Ranker, Full Day, L+7, Sept 2015. Excludes Spanish-language and sports networks.
DISTRIBUTION: MC, Aug 2015.
Page 19
Demo Guarantee Methodology
Total Ads
Served
1,000,000
For illustration purposes only.
P2+ VPVH
X
1.300
P12-34
composition
X
45%
Guaranteed
P12-34
impressions
=
585,000
Page 20
MC VOD: Targeted Advertising
Pair ads with specific artists or genres to best reach your target demo
URBAN
Hip-Hop
Rap
R&B
POP
Hit List
Kids
ROCK
Rock
Alternative
LATIN
COUNTRY
COMEDY
Note: In Nielsen NPOWER, MC’s music genres are listed as Programs.
Page 21
Programming Calendar
1Q 2016
2Q 2016
3Q 2016
4Q 2016
JANUARY
APRIL
JULY
OCTOBER
ACM Awards
Rocktober
Latin Billboards
CMA Music
Festival
CMA Awards
MAY
AUGUST
NOVEMBER
Back to School
American Music
Awards
2016 New Artists
FEBRUARY
Halftime Show
Black History
Month
MARCH
Billboard Music
Awards
Teen Choice
Awards
Latin GRAMMYs
JUNE
SEPTEMBER
DECEMBER
Summer EDM
Latin AMAs
MC 100
Essence Festival
Hispanic Heritage
Holiday Hits
Party Vids
Programming is tentative and subject to change.
Page 22
Music Choice Play: Cable Music Network
Music Choice Play is a pop music
network for Millennials, bringing fans
closer to artists, their stories, and each
other, through compelling content
designed for a social generation.
Programming includes:
•
Music video shows & countdowns
•
Artist docs & profiles
•
Awards show specials
•
Humor, digital & lifestyle content
Page 23
Music Channels: Largest In-Home Music Service
MC’s Music Channels reach a large,
diverse audience – larger than many
streaming music services and larger
than most cable networks.
Sources: VIEWERSHIP: OTX/Ipsos Music Choice Diary Study, Dec 2015. DISTRIBUTION: MC, Aug 2015.
•
49 million monthly viewers
•
2.6 people per viewing
•
Watch 3.6 hours per day
•
50 channels in nearly 50 million homes
Page 24
Advertising Opportunities
Customized programs tailored to your goals
• Pre-roll spots or ad adjacencies
• Custom playlists or episodes
• Show sponsorship
• Brand/product integration
• Artist/partner activation
• Hosted third-party content
• Social & digital extensions
• Sweepstakes
• Events
Page 25
Conclusion
Why advertise with MC?
• Enhanced programming slate
• Nielsen-rated VOD network
• Dynamic Ad Insertion
• Targeting ability – both to demo and contextually
• Customizable, cross-platform opportunities
Page 26
Advertiser
Success Stories
Page 27
Advertiser Success Story: Chevy
OBJECTIVE
• Maximize brand awareness, opinion, and
purchase intent for Chevy Trucks
SOLUTION
• Align Chevy Trucks with today’s biggest country
artists, weaving key brand messaging alongside
music videos and originals
• Extend Chevy’s association with the CMA Awards
onto Music Choice through custom vignettes
BRANDING ELEMENTS
• Pre- and mid-roll spots
• Sponsor billboards in show open/close
• Talent integration (CMA Award nominees)
• Social media messaging
Page 28
Advertiser Success Story: Disney VOD
OBJECTIVE
•
Drive on demand orders for
"Cinderella”
SOLUTION
•
Music Choice created a custom
playlist tied to a key plot point from
the film – the “rags to riches” story
featuring new artists who rose from
the bottom to the top of the charts
BRANDING ELEMENTS
•
Pre- and mid-roll spots
•
Sponsor billboards in playlist open
and close
•
Social media messaging
Page 29
Advertiser Success Story: FDA
OBJECTIVE
• Deliver the FDA’s anti-tobacco messaging to
at-risk teens
SOLUTION
• Music Choice created a robust promotional
campaign that weaves the FDA’s anti-tobacco
messaging alongside videos and original content
from alternative artists
BRANDING ELEMENTS
• Pre- and mid-roll spots
• Sponsor billboards in playlist open and close
• Social media messaging
• Artist participation
Page 30
Advertiser Success Story: FOX “Empire” Season 2
OBJECTIVE
•
Drive tune-in to the season 2
premiere of “Empire” on FOX
SOLUTION
•
Integrate "Empire" star Ta’Rhonda
Jones into a playlist featuring videos
from show’s soundtrack
BRANDING ELEMENTS
•
Pre- and mid-roll spots
•
Sponsor billboards in show open
and close
•
Talent integration
•
Social media messaging
Page 31
Advertiser Success Story: GEICO
OBJECTIVE
• Boost brand equity and purchase intent for
GEICO
SOLUTION
• Position GEICO messaging alongside top music
videos and original content, including seasonal
music video playlists and vignettes around the
CMA Music Festival, extending their sponsorship
of the event to Music Choice
BRANDING ELEMENTS
• Pre- and mid-roll spots
• Sponsor billboards in playlist open and close
Page 32
Advertiser Success Story: Hyundai
OBJECTIVE
• Establish Hyundai as a fun, culturally relevant
brand among Millennials – a key MC audience
SOLUTION
• Music Choice created Pioneers, an original artist
doc series featuring some of today’s most
imaginative and innovative artists
BRANDING ELEMENTS
• Pre- and mid-roll spots
• Sponsor billboard in show/playlist open and close
and promo panels on the Music Channels
• Talent integration
• Social media messaging
Page 33
Advertiser Success Story: LEGO
OBJECTIVE
• Boost awareness and purchase intent for
LEGO Friends
SOLUTION
• Pair LEGO Friends messaging with music
through a targeted ad buy and a custom
BFF Playlist emphasizing the brand pillars
and integrating LEGO Friends music videos
BRANDING ELEMENTS
• Pre- and mid-roll spots
• Sponsor billboards in playlist open and close
• Video integration
Page 34
Advertiser Success Story: Sony Pictures
OBJECTIVE
• Drive on demand orders of “Hotel Transylvania 2”
SOLUTION
• Integrate star of the film Selena Gomez into
custom content – a playlist of her top 5 videos
BRANDING ELEMENTS
• Pre-roll spot
• Sponsor billboards in playlist open and close
• Talent integration
• Sponsor message in ad panels
• Social media messaging
Page 35
Advertiser Success Story: Universal Pictures
OBJECTIVE
• Drive on-demand orders for Universal Pictures’
movies
SOLUTION
• Align Universal titles with the newest videos and
biggest artists through sponsorship of Brand New
This Week, weekly video premieres; select titles
also received customized playlists
BRANDING ELEMENTS
• Category exclusivity
• Pre- and mid-roll spots
• Sponsor billboards in playlist open and close
• Sponsor mention in marketing elements
• Ad panels on the Music Channels
• Social media messaging
Page 36
Creative Specs
2016 Ad Specs & Creative Guidelines
Commercial Spots
Deadline: Standard pre-roll: 24 hours before flight start
Sponsorship: 1 week before flight start
Preferred Format: HD (High Definition)
HD Specs: Wrapper: QuickTime/MOV or MXF
• Codec: Preferred: Apple Pro Res or XDCAM
– Not preferred, but also accepted: H.264
• Aspect Ratios:
– Preferred: 16:9 1080i or 720p (4:3 safe)
– 16:9 1080i or 720p Pillared
• Frame Rate: 29.97 fps, 59.94 fps, or 23:98 fps
• Audio: Stereo Pair / AUDIO LIMIT -12
• 3-5 frames of black only at the head and tail of video
– No bars, slates, or copyright
Page 38
2016 Ad Specs & Creative Guidelines
Digital Delivery or Tape Format:
• Extreme Reach
– Destination ID: 59409
– Destination Name: Music Choice
– Market: Network
– Customer ID: 14490
– Customer Name: Music Choice
• DMDS
• Universal
• Also accepted: HDCAM
Materials may be sent via your FTP site.
Please include:
• Agency Name
• Contact Name
• Phone Number/Email
• IP Address/Login Information
Please include commercial instructions:
• Client
• Product
• ISCI Code
• Length
• Flight Dates
Commercial Clearance:
Submission of a commercial to air
on Music Choice shall constitute the
advertiser’s and/or agency’s warranty
that all elements of commercials have
been cleared for air with respect to all
intellectual property rights: this includes
but is not limited to rights of privacy
and master, mechanical, performance
and synchronization rights for music.
Page 39
2016 Ad Specs & Creative Guidelines
Sponsor Billboards & Playlist Graphics
Deadline: 3 weeks before flight start
Preferred Format: Layered Photoshop file/PSD (HD)
• Also accepted: EPS, JPEG, TIFF or TARGA
Include:
• Logo, product image(s), tagline/copy points, video or sample animations,
copyright/ratings, brand guidelines, such as fonts, colors, clear space, etc.
• Copy blurbs should be short – billboards are only on-screen for 5-10 seconds
Graphic Specs:
• Aspect Ratio:
– HD: 16:9 (1920 x 1080 pixels)
– SD: 4:3 (720 x 486 pixels)
• Minimum Graphic Resolution:
– 72 dpi
Page 40
2016 Ad Specs & Creative Guidelines
Ad/Promo Panels (Music Channels)
Deadline: 2 weeks before flight start
Preferred Format: Layered Photoshop file/PSD (HD)
• Also accepted: EPS, JPEG or TIFF
Include:
• Logo, product image(s), tagline/copy points, copyright/ratings, brand
guidelines, such as fonts, colors, clear space, etc.
– The most effective ad panels have simple, straightforward designs –
image, logo, copy blurb
Graphic Specs:
•
Minimum Graphic Resolution:
– 72 dpi
Page 41
2016 Ad Specs & Creative Guidelines
Spots and Instructions to Traffic:
Barry Schwartz
[email protected]
Colleen Cusack
[email protected]
Graphics/Sponsorship Materials to Marketing:
Joanna McKeever
[email protected]
Amanda Thomas-Whitfield
[email protected]
Music Choice
328 West 34th Street
New York, NY 10001
646.459.3300
Page 42
THANKS!
THANKS!