A Canadian Perspective October 24 2013 About corus Corus Entertainment is a Canadian media company Very successful focused on specialty broadcast Valuable audiences Women amp Kids ID: 449249
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Slide1
Media & Telecom:
A Canadian
Perspective
October 24, 2013Slide2
About corus
Corus Entertainment is a Canadian media company
Very successful – focused on specialty broadcast
Valuable audiences – Women & Kids
Canadian ecosystem is protected and profitable
But … we are in a period of unprecedented change
TechnologyConsumer consumption patternsDeluge of contentNew broadcast models (for example Netflix) threaten to upend and destroy the old model before the ecosystem can react and changeContent consumption anywhere, anytime has become a consumer requirement How do broadcasters react?
2Slide3
Broadcasting in Canada, both radio and television, is highly
highly
regulated
Canadian Radio-Television Telecommunications Commission (CRTC)
Recently in the news with hearings (and decision) on Bell’s acquisition of Astral
Among other things, CRTC regulations focus on the creation and broadcast of Canadian content
Rules define what is Canadian – creators, funding, producersMost broadcasters have both significant spend and exhibition obligationsCanadian Content (Cancon) enjoys significant benefitsAccess to higher tax creditsAccess to CMF (Canadian Media Fund) and other fundingBetter broadcast placement3
The Canadian advantageSlide4
The Canadian disadvantage
4
Complex and occasionally arcane rules; compliance essential to achieving Canadian advantages
Canadian Content regulations protect small producers; negotiated Terms of Trade are difficult for producers and broadcasters alike
Canada is a small market
Good content of any form is difficult to exploit/profit (Canada = 10% of U.S)
Regulations prevent entry of some US content; Terms of Trade make it difficult to export content southCRTC regulates spectrum – important for OTA TV, Radio, phone service but meaningless to the internetCanadians compete on a level playing field against global entities far larger than domestic playersNetflix commands significant viewership but is NOT regulated in CanadaSlide5
Who is our audience?
Average
Age
of Viewers
Male
Female
Source: BBM Canada TV Meter – 2012/2013 BY, Total Canada, M-Su 2a-2a. Teletoon*=M-Su 3:30a-9p, TAN=M-Su 9p-3:30a, YTV*=M-F 6a-6p, S-Su 6a-4p, YTV Family= M-F 6p-6a, S-Su 4p-6a.Bubble Size=Ind.2+ AMA, X Axis= Gender Skew (F2+ AMA of Ind. 2+ AMA), Y Axis = Weighted Average Age (Ind. 2+).5Slide6
Who is our audience?
Average
Age
of Viewers
Male
Female
Source: BBM Canada TV Meter – 2012/2013 BY, Total Canada, M-Su 2a-2a. Teletoon*=M-Su 3:30a-9p, TAN=M-Su 9p-3:30a, YTV*=M-F 6a-6p, S-Su 6a-4p, YTV Family= M-F 6p-6a, S-Su 4p-6a.Bubble Size=Ind.2+ AMA, X Axis= Gender Skew (F2+ AMA of Ind. 2+ AMA), Y Axis = Weighted Average Age (Ind. 2+).6KidsWomenSlide7
How is our audience changing?
Sources: BBM Canada TV Meter, Total Canada, * Netflix tuning based on MTM spring ‘13 survey: Netflix average wkly hrs Total Pop (A18-64) converted to AMA.
7
-9%
+2%
-11%
-4%-11%+1%Total Tuning By ownership Including Conventional (18-54)Slide8
What is our content?
Most broadcast content is licensed from Canadian or international producers, limiting our ability to exploit beyond our television services… but Corus owns Nelvana Limited, an integrated kids entertainment company
40+ year history as a producer of animated content for kids
Content library of 4,000+ half-hour episodes
Merchandising success with brands like Beyblade and Bakugan
Content is sold in 100+ countries in dozens of languages
8Slide9
Corus & the internet
New Media is where the action is ….
Fastest growing “consumer” segment (time spent, impact, reach, analyst coverage)Advertising dollars are moving online
The
change is even more pronounced amongst younger
audiences
The rise of “Big Data”… but Corus is a small player in New MediaTotal revenues less than 5%; total profit less than 1%Mixed bag of assets – websites, apps, social media, streamingCategory grouping (ie kids, family, women) to create scale and relevanceNew Media strategy attempts to serve multiple interestsAre we driving viewers to traditional media OR driving new revenue?Do we want a direct relationship with consumers OR support traditional partners digital expansions (i.e. MSO TVE)? We want everything.9Slide10
What is the internet for?
Video Apps
MSO VOD
Video Games
MSO Broadband
Website Video Streaming
Network WebsitesFacebookGame AppseBooksShow apps for TV NetworksTwitter10IP ExperimentsSlide11
opportunities
11
Digital-first brands to test audiences
Advantage of using shorts and a strong digital campaign to test audience interest in a brand before developing a TV series
“
Hot housing
” product and marketing strategies in Canada before launching internationally with key partnersProduct strategies (pricing, promotion, game balancing) can be ironed out in 1 territory before key market distribution like the US and UKOwning the relationship with the audienceCanada is catching up to US and UK models where broadcasters manage channel apps and users can authenticate into their MSO During 2014, multiple MSO authentication will likely be available, resulting in the growth of video TV-Everywhere options in Canada.Analytics drives the content and product strategyThe content offering and available platforms change based on how kids watch or play the games. Compiling provider data and analyzing results has been a challenge.It has required changing our team culture from manufacturing to servicing, from product publishing to product iteration