Master class on the new media

November 10 FILM.UA Faculty held a master class within Skill Bill Start "New Media. Internet platforms. New opportunities for content monetization".

We offer you a brief summary of the master class

Artyom Vakalyuk, head of the analytical department at Media Resources Management

According to Wordstat, the number of Internet users worldwide in the first half of 2015 was 3.8 billion people, which is almost half the world's population. Currently, there are 924 million of Pay-TV subscribers. Half of them are located in Asia, and the rest is scattered around the world. When considered in detail the highest internet penetration rate is in North America - 87.9%, when in Europe it is 73.5%.

VoD platforms are divided into 4 types:

• advertising model (the user pays nothing, but watches commercials). Since 2010, these were the most popular services, until user got used to pay for content online. First, Hulu used this model, but later switched to a mixed model of monetization
• paid subscription (unlimited access to the entire catalog for some period of time), e.g. Netflix
• DtO services (user pays for the download of each individual product)
• transition video on demand (user is given a specific time to watch the content)

The total market volume in 2014 was estimated at $21 billion, and by 2020 the estimated market volume will be $51 billion, so the projected growth in 6 years - the market will increase 2.5 times.

Tatyana Shershneva, FILM.UA Distribution

When forming the cost and time when rights will come into effect is very important to understand which model each platform uses.

License fee (royalty):

• Fixed license fees
• The minimum guarantee and revenue sharing - the right holder covers a portion of the risks, and still has the possibility of excess profit
• Revenue sharing - the right holder receives a revenue share.

Factors affecting pricing:

• Theatrical release
• Immediately after the release - video services, operating under EST scheme
• After 2-4 weeks - TVOD 
• Video on demand with a paid subscription - SVOD
• After the air on TV, or together with AVOD.

Foreign platforms' criteria for the selection of content:

• Subtitles, dubbing, voice-over
• Technical specification
• Aggregators
• The number of products for a deal.

You have to work on the content in order to monetize it! If you just put the content on the platform, it probably won't bring any income.

Monetization of content on YouTube:

• Viewers, who were searching by a keyword, make up 18% of the audience
• More than 50% of views comes from the "related videos"
• Premium partners do have the opportunity of digital fingerprint that allows you to receive money for commercials in the video, even if the content is duplicated on pirate resources
• The ability to monetize content on the territories of the world
• Serve as an aggregator and monetize third-party content.

Fedor Gretchaninov, director of strategic development at StarLightMedia

Types of online TV content distribution:

Variations content distribution channel on the web:

• Public broadcasting on site/sites without monetization. Purpose: political influence, shaping of public opinion, social functions (education) and other non-commercial purposes
• Broadcasting with advertising monetization. Purposes of influence (same as free to air) + commercial purposes
• AVOD on channel's site. Objective: To promote content, audience involvement, effective monetization
• AVOD on other sites, platforms, social networks. Objective: fee for the channel; increase in reaching the target audience
• Broadcasting within OTT platforms. Objective: fee for the channel; increase in reaching the target audience
• Broadcasting subscription, SVOD. Objective: monetization.