Vuuzle TV's Strategy to Win 'Cord-Cutters': DSP & Advertising

More Americans than ever are cutting the cord in favor of over- the-top (OTT) video-streaming platforms. The household numbers of cord-cutters in America is now surging up to 34%. This only spells bad news for traditional cable and pay television companies, but it’s great news for Vuuzle.TV OTT live streaming platform and priority services.

According to Investopedia, OTT refers to film and television content provided via a high-speed Internet connection rather than a cable or satellite provider. Viewers who eschew paying for bundled content are often referred to as cord cutters.

The structure of Vuuzle OTT television offers global brands an opportunity to further personalize the ad experience and deliver the right creative to the right consumer when they are engaged. Vuuzle Media Corp has built upon our existing addressable framework, with live dynamic ad insertion, allowing our brand partners to leverage customizable first-party subscriber data in real-time.

In the 1970s, as written on NCTA’s Cable Story, the first cable TV networks began to emerge to the wider U.S. audience. Names like HBO, ESPN, and Nickelodeon offered viewers new and exciting content compared to what we were used to.

At the same time, TV advertisers were pushed outside of their comfort zone to learn how to advertise on this new “coax cable”— scrambling to understand new terminology, what new content was available, and best practices for reaching the audiences shifting away from the antenna. Today, we’re seeing a similar shift happening where viewers are “cutting the cord” to stream content over the Internet to all of their different devices, including their connected TVs (CTV).

Advertisers who have been successful in traditional TV now need to expand their expertise to include this new and growing technology. It’s no surprise that consumers today are watching video much different than even 5 years ago. As the world has become more mobile, the demand to access video outside of the cable box has millennials and baby boomers viewing content over the mobile phone. Click this video SpotX made which called the evolution of OTT.

How Fast Can Internet Change The World?

TED and NCTA Partner to ask “How Can Fast Internet Change the World?” The business of digital advertising has changed massively over the past couple of months. Publishers are trying to increase mobile consumption of their content, up their monetization game and better leverage the opportunity that programmatic brings. Agencies, in turn, are busy restructuring and up-skilling in a bid to better embrace the digital world.

Vuuzle TV is the answer with free digital live television for Publishers and Brands.

Brands that don’t participate in digital today, will miss a generation, About 70% of today’s Internet population comprises millennials (broadly, people who are less than 35 years of age today) including members of Gen-Z (15-18 years old). What characterizes these young people? They are people who spend a lot of their time online—they prefer brands online, they shop online, technology influences the way they make their choices. For example, they prefer online banking than offline banking. Around 75% of the total time spent on digital is spent by the millennials. These millennials are making brand choices today that will remain with them over the next two decades. So for brands, it’s very important to connect with them in different ways today. Social media, OTT advertising and online retail are some doors through which brands can enter the world of these prized millennials. In fact, many millennials erroneously believe that the brands they see online are the only brands that exist in the market today! In the coming days, ad-supported OTT will take the largest pie of digital advertising, and this category is closer to taking away television dollars.

Mobile, as we know, is the device of choice to access Internet content, but apps, have not been commensurate with the extent of mobile usage. When it comes to advertising trends so far, mobile web has been greater than mobile app. This trend will play out in reverse in the days ahead, Mobile app advertising will overtake mobile web and desktop advertising. Why? some reasons include the increasing storage space on mobile devices, better in-app user experience, engagement time is higher on apps, good connect with DSPs hence better monetization options through programmatic advertising. At present, the retail (e-commerce) and entertainment (OTT) categories are better suited to be consumed through apps (as opposed to mobile web) than content categories like news and sports.

The Vuuzle landing page is the start of epidemic that will inspire 3 generations to watch Vuuzle.TV as our technology that extends to all mobile devices and set top boxes being used today.

Subscription-based on-demand OTT platforms like Netflix and Amazon Prime have risen in popularity over the past couple of years and are fast displacing traditional TV programming as the preferred medium of entertainment. A broadband connection of at least 4 Mbps is an absolute must-have in order to stream video effectively without losing your mind waiting for the video to buffer.

Consumers have a number of options for streaming devices—from game consoles like Microsoft, Xbox One, to hybrid DVRs, but the best performance, in a live product review last year, can be found on dedicated streaming devices like the Roku, Apple TV or Amazon Fire TV. These retail between $49 and $99. Google Chromecast offers added functionality, particularly the ability to cast video from a laptop to a television, and is the lowest-priced streaming device at $35.

Netflix’s prices are based on its standard plan of $8.99 per month, which allows users to watch on a maximum of two screens at once. Its $11.99 plan allows users to watch on four screens at once and will include 4K/UHD streaming once its test period is complete. However, even with all that, Vuuzle.TV will be free and subscribers get HD television with a merit of other free services.

But cord cutters cannot live by Netflix alone. Other SVOD services are available like Amazon Prime Instant Video ($99 a year) and Hulu Plus ($8 monthly), but those who worry about suffering withdrawal pangs from linear TV and its sweet, sweet commercials have a couple will be looking elsewhere. That is where Vuuzle.TV comes in as we pack 88 premium TV network channels as well as VDO for free.

< p>Viewers who want to pick up the local news can stream available news broadcasts from Vuuzle.TV’s website on their mobile phones. There are also free, ad-supported online VOD services available as Vuuzle.TV application is on streaming devices like Roku and a number of other set top box devices.

Versus Nice to Have

If local broadcast channels and Netflix streaming aren’t enough, Dish Network in February debuted Sling TV. For $20 a month, subscribers get a base package of 16 channels, including ESPN and popular cable networks. Add-on packages are available in $5 per month increments. Currently, there are three different packages to slap onto a Sling TV subscription, including Kids Extra, News, Info Extra, and Sports Extra, so viewers can pay up to $35 per month for this service. Subscribers also get at least one cable-like perk: they can authenticate on the separate Watch ESPN app using their Sling TV login credentials, giving sports fans a backup source if Sling TV live stream falters.

The problem with these companies is competing with Vuuzle.TV as we give all these services away for free as we earn money through our customized dashboard and DSP platform. Sling TV’s multi-channel appeal could have subscribers on the fence between seeing it as a need-to-have and a nice-to-have. For $35-$45, you could have cable essentials, and Netflix— all-in for $50-$60. However, do they compete with Vuuzle free TV and live streaming services?

The big hole in Sling TV is there are no local broadcast channels—no ABC, CBS, NBC or PBS stations available on the service at the present time. That means defaulting back to the HD antenna to watch the local news. Or to save them from dilemma, Vuuzle.TV is the only answer for OTT Subscribers.

With OTT content delivery pressing full steam ahead, both in terms of subscribers and the number of OTT providers, common business sense would seem to dictate that prices must go down. Yet in 2019, that is not the case, nor is it likely to be in the near term. In this space, everyone is in a price war trying to sell virtually the same products at the best price. Their profit models are all built on selling subscriptions and this model will never make money as selling a subscriber on your services, being better than the next company is too hard to do.

Free TV is the only answer to win in this business and must be done through publishing and programmatic advertising along with display advertising. That is what Vuuzle Media Corp has been focusing on so we earn money by letting other brands and advertisers pay for the subscriptions as we gain the lion share of OTT live services.

The increased number of OTT users will automatically attract advertisers to take advantage of the platform and market their products or services on Vuuzle.TV. Thus, 2019 is going to witness substantial growth in digital advertising. According to a report, 49% of Gen Z and 48% of the millennials spend much of their time on online streaming. Advertisers have now a smoother and smarter way to cater to their target audience and earn big. Vuuzle streaming AVoD revenue model is in a win-win situation as we can make our service completely ad-free by charging more or can simply reduce the price to free when the subscriber opts in agreeing to watch advertisements. This will increase our user base and keep us earning huge revenue from digital advertisers.

2019 is expected to be the year of cloud-based infrastructure for OTT platforms. Along with extensive storage space for online store owners and their users, it will also assist them to instantly launch and scale their services. This, again, is where Vuuzle.TV slams the competition with its new Clout Nine software that allows subscribers a Rubik cube that lets the subscriber surf visually on the web using cloud services that works via visual cube advertising.

This service is preparatory to Vuuzle Media Corp and its subscribers only. It is a technology that will change the way we use mobile devices and how we store applications. For years, many said that the key to the success of any OTT business was simply to get enough scale and subscribers to cover the costs of licensing and distributing content, but even as we have seen with Netflix, scale doesn’t get you to profitability when the cost to license/create content is high and the price you can charge the consumer each month is low.

The business of licensing content has to change if any of these companies want to make it long term. Vuuzle.TV figures this out a long time ago as we moved our focus from live streaming to OTT-based free services.

Netflix’s subscription rates haven’t grown as fast as it needs them to and the company can’t raise prices each year the way pay-TV providers do. When content costs go up in the pay-TV world, they pass those costs on to the consumer with higher rates. But when content costs go up for Netflix, Amazon, Hulu, Sling TV, PlayStation Vue, they end up eating those additional costs and rarely raise their monthly rates to consumers. Viewers have become accustomed to OTT packages in the $6-10 range for VOD and it’s a sweet spot as we have witnessed. Each time Netflix has raised rates, it has lost subs.

With more competition entering the market, content licensing costs have skyrocketed as more OTT platforms have been bidding up prices. As of last quarter, Netflix has streaming content obligations that total over $13B and its licensing costs have grown by more than 50% from 2010-2015, while its revenue has only grown 26% compounded annually. While breadth and depth of catalog used to be how Netflix promoted its offering in the market, now it has so many competitors that original content is the only way to differentiate the service. Netflix is spending nearly $5B in content licensing/creation costs alone and extrapolating out the numbers simply doesn’t work in Netflix’s favor. The company could literally run out of cash before the number of subscribers can support the business.

With more competition entering the market, content licensing costs have skyrocketed as more OTT platforms have been bidding up prices. As of last quarter, Netflix has streaming content obligations that total over $13B and its licensing costs have grown by more than 50% from 2010-2015, while its revenue has only grown 26% compounded annually. While breadth and depth of catalog used to be how Netflix promoted its offering in the market, now it has so many competitors that original content is the only way to differentiate the service. Netflix is spending nearly $5B in content licensing/creation costs alone and extrapolating out the numbers simply doesn’t work in Netflix’s favor. The company could literally run out of cash before the number of subscribers can support the business.

We understand the model, and the investors who buy shares with us will see how the cash spent for buying traffic makes Vuuzle.TV The next Giant of Entertainment.

Regards,
Vuuzle Media Corp

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