Study: Profitability of Multiplatform TV Service Models Demonstrated in 18-Month Field Trial

Posted by Richard Kastelein in Breaking News on September 29, 2011  |  0 Comments More from this author  |    |  Follow Richard Kastelein on: Facebook | LinkedIn | Twitter | YouTube

Keshet Broadcasting,  the leading franchisee of Channel 2, Israel's major commercial network,  and Applicaster,  a technology and solutions provider for Mobile TV,  announced today - a pioneering collaboration to deliver much lacking proven profitability business cases to the industry, saving others research time and financial expenditures.

This was based on over 18 months of thorough joint research and field trials that covered ad-based, freemium and paid models of service provisioning. The companies tested and optimized the performance of TV applications in a variety of product compositions, including live, on-demand, social driven and second screen experiences.

Results surpassed expectations for swift ROI and higher engagement and resulted in heightened profitability for Keshet:

• Average time per view 24 min. For HQ viewers over 1 hr
• Interactive overlay usage of 6 min+
• Interactive second screen experience usage of 25m p/week
• 20% of the TV viewers engaged with mobile 2^nd screen = conversion rate 1:5
• More than 25% increase in usage during live synchronized events
• Ad-based flagship VOD property attained 81% of national market-share, while freemium, format-based activities attained an avg. 27%
• Avg. time of mobile application monthly usage – 2.3h

The resultant private-label offering being offered by Mako-Applicaster creates a comprehensive service and management platform as a result of the deep insight garnered regarding leading formats, use and viewing habits, and commercial modeling. Broadcasters, cable companies and format owners are able to gain new revenues through a foundation video experience, topped by the tools to instantly create and manage a variety of second screen and synchronized Broadcasters, cable companies and format owners are able to gain new revenues offering an essential and exciting video experience, topped by the tools to instantly create and manage a variety of second screen and synchronized experiences, unique mobile revenue optimization technologies, segmented advertising, brilliant applications, and a wide range of analytics and extensive business intelligence tools. At the core of the service is an elastic cloud array, allowing broadcasters to remain focused on their core business, producing and broadcasting the content.

Applicaster successfully provides solutions for many brands, companies and TV networks worldwide, including FOX International Channels, Vodafone, RTL, TEDx, The Big Brother, The Voice, and many more.

"As mobile and online video viewing increases, new revenues for broadcasters and content owners become a feasible and lucrative option," said Mr. Zohar Alon, Keshet Broadcasing, CTO. "However, video-streaming alone will not revolutionize TV. Extending content and commercial experience to additional viewing devices and offering deep, engaging and complementary experiences is the primary trajectory needed for this industry. We've learned this through our own experience and relationship with Applicaster."

"We are highly pleased with the results achieved so far delivering TV formats to mobile screens in a variety of business models", said Mr. Jonathan Laor, Applicaster's CEO. "This unique collaboration with Keshet Broadcasting and our 'private-label' line of applications opens up exciting revenue opportunities for broadcasters and content owners. We've been able to experiment with the world's best formats on a large scale. I think the accumulated body of knowledge after 18 months of successful field trials is exceptional."

Both Applicaster and Keshet Broadcasting will attend the MIPCOM show held on October 3-6, 2011 in Cannes, France and will share research and commercial deployment results and findings in expert sessions to be held at MIP. To arrange a meeting please contact Idan Maron, i.maron@applicaster.com