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by Sander Saar
Sander explains how the value chain has moved from traditional cable operators to connected TV platforms that control the consumer experience. Along the way it covers Strategy 1: Building an Audience, Strategy 2: Controlling the Experience and Strategy 3: Monetizing the Platform, and more. Sander summarizes the dynamics of the platform wars and asks viewers for their predictions on who will dominate connected TV.
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Sander explains how the value chain has moved from traditional cable operators to connected TV platforms that control the consumer experience.
On screen: A man in a collared shirt gestures and speaks in front of an educational slide presentation detailing the evolution from cable television to streaming services.
Platforms expand their reach by selling low-cost direct-to-consumer hardware and partnering with TV manufacturers and network operators.
On screen: A presenter speaks energetically in front of graphics showcasing streaming TV platforms, hardware dongles, and partner manufacturers.
Platforms dominate user interfaces, search results, and home screen carousels to steer viewers toward their own content and partner services.
On screen: Anthony Wood speaks in a television interview setting about Roku's user interface and content promotion strategy.
Roku and Amazon generate the bulk of their profits not through hardware sales, but via advertising, channel marketplaces, and subscription revenue shares.
On screen: A presenter gestures while explaining audience monetization alongside on-screen quotes and Roku revenue bar charts.
An overview of how Samsung builds its own Tizen ecosystem, Apple distributes its app across rival hardware, and Netflix opts out of third-party platform integration.
On screen: A man gestures and speaks alongside graphics explaining Apple TV's partner integrations and proprietary offerings.
Sander summarizes the dynamics of the platform wars and asks viewers for their predictions on who will dominate connected TV.
On screen: A man gestures and addresses the camera in front of a diagram illustrating the streaming world supply chain while delivering an outro.
What the footage shows, shot by shot. It is derived from the video itself, independent of the commentary. Timestamps link to the exact second.
0:00–0:05 A man in a patterned collared shirt enthusiastically introduces the topic against a stark white studio background with text graphics behind him. On screen: CONTROLLING THE RAILS
0:05–0:52 A man in a collared shirt gestures and speaks in front of an educational slide presentation detailing the evolution from cable television to streaming services. On screen: CABLE WORLD NBA ESPN COMCAST CORD CUTTING: 37% BROADBAND HOUSEHOLDS ~3x 12.5% 37.0% Q1 '14 Q2 '20 STREAMING WARS STUDIO STREAMING SERVICE STREAMING PLATFORM/…
0:52–0:54 A man stands in front of a white background displaying a graphic depicting the flow from studio to consumer with the streaming service step enlarged. On screen: STREAMING WARS STUDIO STREAMING SERVICE STREAMING PLATFORM/ DEVICE CONSUMER
0:54–1:02 The presenter continues discussing media distribution as the infographic shifts focus to emphasize the streaming platform and device node. On screen: STREAMING WARS -> PLATFORM WARS TUDIO STREAMING SERVICE STREAMING PLATFORM/DEVICE CONSUMER
1:02–1:26 A man gestures and speaks toward the camera as different streaming device and viewership charts appear on the screen beside him. On screen: CONNECTED DEVICES IN 76% OF US HOMES 24% 76% STREAMING BOXES SHARE OF HOURS BY SERVICE 32% OTHER 21% NETFLIX 17% HULU 14% AMAZON PRIME VIDEO 16% YOUTUBE…
1:26–1:32 A man speaks directly to the camera next to a graphic chart analyzing Netflix viewing statistics on connected TVs. On screen: NETFLIX 70% VIEWING ON CONNECTED TVs Signup Viewing Month 1 Month 6 25% 40% 30% 5% 70% 15% 10%
1:32–2:01 A man addresses the camera on the left while on-screen graphics display connected TV data, streaming device hardware, and a US market share pie chart. On screen: YOUTUBE VIEWERSHIP ON CTV GREW BY 80% Y/Y Connected TVs session time and average video length are "mutiple s longer" when compared to mobile and desktops.…
2:01–2:19 A man in a patterned shirt gestures and speaks next to a pie chart displaying US 2018 smart TV market share data. On screen: androidtv tv 17% 14% 31% 38% Roku MARKETSHARE US, 2018 firetv
2:19–2:30 A man stands on the left side of the frame speaking and gesturing in front of a white slide listing three numbered bullet points. On screen: 1. BUILD AN AUDIENCE 2. CONTROL THE EXPERIENCE 3. MONETIZE THE AUDIENCE
2:30–2:36 A man gestures with his hand in front of a presentation slide showing three key points about audience building and monetization. On screen: 1. BUILD AN AUDIENCE 2. CONTROL THE EXPERIENCE 3. MONETIZE THE AUDIENCE
2:36–2:42 A man presents next to an on-screen graphic displaying streaming devices and logos for Apple TV, Android TV, Fire TV, and Roku. On screen: tv androidtv firetv Roku amazon
2:42–2:55 A man in a patterned shirt speaks and gestures in front of a graphic displaying Apple TV, Android TV, Fire TV, and Roku streaming devices. On screen: tv androidtv firetv Roku amazon
2:55–3:26 A presenter speaks energetically in front of graphics showcasing streaming TV platforms, hardware dongles, and partner manufacturers. On screen: tv androidtv firetv Roku amazon Powered by fire tv edition Powered 50 TV MANUFACTURERS 20 TV PARTNERS 15 TV PARTNERS SONY PHILIPS Hisense mi TOSHIBA GRUNDIG…
3:26–3:42 A presenter gestures while speaking in front of a comparative infographic detailing TV manufacturer and operator partners for Android TV, Fire TV Edition, and Roku Powered platforms. On screen: Powered by androidtv fire tv edition Roku Powered 50 TV MANUFACTURERS 20 TV PARTNERS 15 TV PARTNERS SONY PHILIPS וח Hisense TOSHIBA GRUNDIG INSIGNIA SANYO TCL…
3:42–3:52 A presenter speaks and gestures beside a comparative graphic display outlining TV manufacturer and operator partners for Android TV, Fire TV Edition, and Roku. On screen: Powered by androidtv fire tv edition Roku Powered TV MANUFACTURERS 20 TV PARTNERS 15 TV PARTNERS SONY PHILIPS Hisense TOSHIBA GRUNDIG INSIGNIA SANYO TCL 36…
3:52–3:58 A man in a patterned shirt speaks and gestures beside an infographic detailing TV operating system partnerships. On screen: Powered by androidtv fire tv edition Roku Powered MANUFACTURERS 20 TV PARTNERS 15 TV PARTNERS NY PHILIPS Hisense TOSHIBA GRUNDIG INSIGNIA SANYO TCL 36 OPERATOR…
3:58–4:02 The presenter continues gesturing enthusiastically in front of the TV partnership comparison chart. On screen: Powered by androidtv fire tv edition ROKU Powered MANUFACTURERS 20 TV PARTNERS 15 TV PARTNERS SONY PHILIPS ni Hisense TOSHIBA GRUNDIG INSIGNIA SANYO TCL 36…
4:02–4:13 A man gestures enthusiastically while speaking in front of a graphic presenting TV and operator partners for Android TV, Fire TV, and Roku. On screen: Powered by androidtv fire tv edition Roku Powered MANUFACTURERS 20 TV PARTNERS 15 TV PARTNERS NY PHILIPS Hisense TOSHIBA GRUNDIG INSIGNIA SANYO TCL 36 OPERATOR…
4:13–4:35 A man gestures and speaks in front of a graphic displaying a bar chart showing the declining average selling price of smart TVs. On screen: AVERAGE SELLING PRICE OF SMART TVS $2,100 $1,950 $1,800 $1,650 $1,510 $1,350 $1,200 2012 2013 2014 2015 2016 2017 2020 $329 Roku Powered $29
4:35–4:39 A presenter speaks energetically in front of a white background displaying a production cost versus selling price chart. On screen: PRODUCTION COST VS SELLING PRICE High definition, low prices Cost of LCD panels per m² , $’000 6 5 4 3 2 1 Average selling price Production costs 0 2001 02 03…
4:39–4:51 A man gestures enthusiastically while speaking in front of a white background next to a slide titled Production Cost vs Selling Price with a line graph. On screen: PRODUCTION COST VS SELLING PRICE High definition, low prices Cost of LCD panels per m2, $'000 Average selling price Production costs 2001 02 03 04 05 06 07 08…
4:51–4:54 The presenter stands in front of a white background beside a line chart comparing TV production costs and selling prices. On screen: PRODUCTION COST VS SELLING PRICE High definition, low prices Cost of LCD panels per m², $'000 6 5 4 3 2 1 Average selling price Production costs 0 2001 02 03…
4:54–4:56 The presenter stands on the left of the frame next to an inset video of a congressional hearing. On screen: MR. RASKIN
4:56–5:00 Representative Jamie Raskin speaks into a microphone during a congressional hearing. On screen: MR. RASKIN
5:00–5:08 Jeff Bezos speaks during a virtual congressional hearing, while the presenter appears on-screen via cut-in towards the end. On screen: JEFF BEZOS Cisco WebEx YouTube House Judiciary Founder, CEO, Amazon
5:09–5:14 The presenter stands in front of a white slide showing a quote attributed to Jeff Bezos. On screen: Sometimes when it's on promotion it may be sold below cost, yes. Jeff Bezos, Founder & CEO, Amazon
5:14–5:27 A man in a patterned shirt speaks and gestures beside a white graphic board displaying text and quotes. On screen: Sometimes when it's on promotion it may be sold below cost, yes. Jeff Bezos, Founder & CEO, Amazon CONTROL THE EXPERIENCE
5:27–5:37 A man addresses the camera on the left while a presentation slide on the right transitions into a smart TV streaming interface. On screen: 2. CONTROL THE EXPERIENCE SUBSCRIBED
5:37–5:44 A male presenter stands in front of a Fire TV interface graphic, gesturing as he explains Amazon's content placement. On screen: Home Live Your Videos Movies TV Shows Apps Settings AMAZON ORIGINAL The Marvelous Maisel Included with prime RECENT NEW AMSTERDAM HUNTERS BILLIONS JACK RYAN…
5:44–5:48 Orange circle highlights appear on the Amazon interface graphic over Prime Video content as the speaker emphasizes Amazon productions. On screen: AMAZON ORIGINAL Marvelous Maisel Included with prime HUNTERS JACK RYAN prime video Home Live Your Videos Movies TV Shows Apps Settings NEW AMSTERDAM ILLION
5:48–5:59 The presenter gestures in front of an Amazon streaming interface graphic with highlighted Amazon Original shows and Prime Video icons. On screen: Home Live Your Videos Movies TV Shows Apps Settings AMAZON ORIGINAL Marvelous Maisel Included with prime NEW AMSTERDAM CHANNELS & APPS HUNTERS JACK RYAN hulu…
6:00–6:04 The host speaks and gestures in front of an on-screen Android TV search interface for Planet Earth. On screen: Planet Earth Television series · IMDb® Score 9.4/10 · Rotten Tomatoes® Score 95% Dazzling, state-of-the-art high-definition imagery highlights this…
6:04–6:18 A presenter holds a remote control on the left while an Android TV user interface showing search results for Planet Earth is displayed. On screen: Planet Earth Television series · IMDb® Score 9.4/10 · Rotten Tomatoes® Score 95% Dazzling, state-of-the-art high-definition imagery highlights this…
6:18–6:19 A man in a patterned shirt gestures while presenting next to graphics displaying Google Play and Google search results for Planet Earth. On screen: BBC Season 1 planet earth uy full season from 1. From Pole to Pole Planet Earth - Season 1 2. Mountain 3. Fresh Planet Ear Reviews A Google user SMASH
6:19–6:36 A man speaks and gestures in front of digital screenshots of Google search results and an IMDb page for Planet Earth. On screen: Google planet earth All Images Videos News Maps More Settings Tools About 1,300,000,000 results (1.11 seconds) Suggested based on your recent activity: planet…
6:36–6:38 A young man speaks and gestures enthusiastically in the foreground in front of an Amazon Prime Video product page for Planet Earth II. On screen: amazon prime Prime Video Hello, Sander Account & Lists Returns & Orders Prime Cart Customer Service Gift Cards Fresh Whole Foods Browsing History Best Sellers…
6:38–6:55 A man speaks and gestures in front of a white background displaying a television screen with the Roku home interface. On screen: Roku Inicio Función gratuita Mi actividad (5) Buscar Canales de streaming Configuracion Los subtítulos están activados. NETFLIX RoKU tv Channel SHOWTIME…
6:55–6:57 The host speaks in the foreground beside a video feed of a man in a blue suit speaking. On screen: SMASH
6:57–7:19 Anthony Wood speaks in a television interview setting about Roku's user interface and content promotion strategy. On screen: NTHONY WOOD YouTube CNBC
7:19–7:20 A host stands on the left in front of a white backdrop next to an inset video interview clip.
7:20–7:25 The presenter gestures enthusiastically while standing beside a graphic quote box from Anthony Wood of Roku. On screen: We have a lot of areas in the user interface, where we can make customers aware a new TV season is about to start Anthony Wood, Founder & CEO, Roku
7:25–7:26 The host continues talking and gesturing alongside the on-screen Roku executive quote. On screen: We have a lot of areas in the user interface, where we can make customers aware a new TV season is about to start Anthony Wood, Founder & CEO, Roku
7:26–7:34 A presenter gestures with his hands in front of a white graphic displaying a quote from Roku CEO Anthony Wood. On screen: We have a lot of areas in the user nterface, where we can make ustomers aware a new TV season is about to start Anthony Wood, Founder & CEO, Roku
7:34–8:15 A presenter gestures while explaining audience monetization alongside on-screen quotes and Roku revenue bar charts. On screen: MONETIZE THE AUDIENCE ROKU REVENUE PLATFORMS FROM 54% TO 69% OF REVENUE Platform Player $137M $75M $62M $157M $90M $67M $173M $100M $73M $275M $151M $124M…
8:15–8:24 A man in a patterned shirt gestures enthusiastically while standing beside a bar graph detailing Roku revenue breakdown. On screen: ROKU REVENUE PLATFORMS FROM 84% TO 95% OF EARNINGS Platform Player $63M $78M $79M $112M $101M $114M $119M $162M $141M $147M $53M $71M $109M $94M $110M $131M…
8:24–8:47 A man gestures enthusiastically beside a digital bar chart titled Roku Revenue. On screen: ROKU REVENUE PLATFORMS FROM 84% TO 95% OF EARNINGS Platform Player $63M $53M $10M Q1 2018 $78M $15M Q2 2018 $79M $71M $8M Q3 2018 $112M $109M $3M Q4 2018 $101M…
8:48–9:05 An interview segment featuring Roku CEO Anthony Wood speaking against an outdoor landscape backdrop, with the host partially inset. On screen: ANTHONY WOOD YouTube CNBC
9:05–9:13 A presenter speaks enthusiastically with animated hand gestures beside an interview clip of Roku CEO Anthony Wood.
9:13–9:15 The presenter continues gesturing while explaining Roku's role next to the displayed interview inset.
9:15–9:50 A male presenter speaks on the left while on-screen graphics display an Anthony Wood quote followed by Roku account creation details and the Dataxu acquisition announcement. On screen: We get paid when we help sign up ustomers to the streaming ervices on our platform Anthony Wood, Founder & CEO, Roku ROKU ACQUIRES DATAXU DSP FOR $150M Create…
9:50–10:02 A man in a patterned shirt gestures while presenting slides displaying Roku's monetization avenues. On screen: ADVERTISING MARKETPLACE OWN APPS The ROKU Channel OneView NETFLIX hulu HBO GO sling CRACKLE vevo prime video spectrum YouTube TV tubi pluto CONTAGION
10:02–10:05 The presenter continues explaining Roku's monetization strategies while pointing toward the digital slides. On screen: ADVERTISING MARKETPLACE OWN APPS OneView Roku Channel NETFLIX hulu HBO GO mungba amazon sling CRACKLE vevo Spotlight Fall TV PREMIERS ZORN Watch Now prime…
10:05–10:33 A man stands in front of a white graphic display outlining Roku's business model across advertising, marketplace, and owned apps. On screen: ADVERTISING MARKETPLACE OWN APPS neView ROKU Channel NETFLIX prime video Spectrum TV The Roku Channel YouTube TV sling pluto TV tubi The RoKU Channel CONTAGION
10:33–10:47 A man in a graphic-patterned shirt speaks directly to the camera with a graphic breakdown of Roku business categories behind him. On screen: ADVERTISING MARKETPLACE OWN APPS Roku Channel The Roku Channel eView hulu NETFLIX prime video Spectrum TV YouTube TV sling pluto tv tubi CONTAGION ZORN
10:47–10:55 A man gestures and presents in front of a slide outlining Roku's revenue streams across advertising, marketplace, and own apps. On screen: ADVERTISING MARKETPLACE OWN APPS OneView The Roku Channel NETFLIX prime video Spectrum Roku Channel YouTube TV Sling pluto TV tubi CONTAGION
10:55–11:14 A man speaks and gestures in front of a graphic outlining Amazon's advertising, marketplace, and proprietary apps ecosystem. On screen: ADVERTISING amazonadvertising MARKETPLACE prime video | CHANNELS OWN APPS prime video IMDb TV HBO STARZ BET+ HITS SHOW britbox ACORN TV PBS MASTERPIECE IMDbTV…
11:14–11:18 A man speaks facing the camera with a presentation slide in the background displaying Amazon's advertising, marketplace, and proprietary apps. On screen: ADVERTISING nadvertising MARKETPLACE prime video | CHANNELS OWN APPS prime video IMDb TV HBO STARZ BET+ HITS NOW britbox ACORN TV PBS MASTERPIECE IMDb TV…
11:18–11:32 A presenter speaks and gestures with his hands in front of a digital slide displaying bar charts of global AVOD and SVOD revenue projections. On screen: ADVERTISING AVOD REVENUE Worldwide $27B $56B 2019 2024 MARKETPLACE SVOD REVENUE $11B $24B 2023 919 019
11:32–11:34 A man addresses the camera in front of graphic slides showing streaming market revenue projections and subscriber acquisition charts. On screen: ADVERTISING MARKETPLACE AVOD REVENUE Worldwide SVOD REVENUE $56B $27B 19 2024 $11B 2019 $24B 2023
11:34–11:49 A man gestures and speaks alongside an infographic slide detailing subscriber acquisition sources and the Apple tax across streaming services. On screen: APPLE TAX (subscriber acquisition source by streaming service, US) n Prime d w/ other cted App p Store Direct Prime Video Netflix Hulu (no ads) CBS HBO Now…
11:52–11:54 A male presenter speaks against a presentation slide showing a stacked bar chart titled 'Apple Tax'. On screen: APPLE TAX subscriber acquisition source by streaming service, US 7% 17% 11% 10% 14% Prime Video Netflix Hulu (no ads) CBS (no ads) HBO Now Showtime Starz 2% 5%…
11:54–12:04 The presenter gestures and explains while in front of a slide featuring a pie chart analyzing global TV streaming platforms. On screen: SAMSUNG? LG? GLOBAL TV STREAMING PLATFORMS SHARE OF DEVICES IN USE Q1 2020 TOTAL TV STREAMING DEVICES IN USE: 1.14 BILLION STRATEGYANALYTICS Samsung, 14% Sony,…
12:07–12:10 A man speaks on the left against a slide showing market share pie charts for global streaming platforms. On screen: SAMSUNG? LG? GLOBAL TV STREAMING PLATFORMS STRATEGYANALYTICS SHARE OF DEVICES IN USE Q1 2020 TOTAL TV STREAMING DEVICES IN USE: 1.14 BILLION Others, 9%…
12:10–12:17 A man gestures and presents in front of a white slide reading 'HOW TO WIN?'. On screen: OW TO WIN? HOW TO WIN?
12:17–12:39 A man addresses the camera while standing beside a digital slide detailing Samsung's smart TV operating system and TV Plus interface. On screen: BUILD OWN SAMSUNG Bloomberg erg TV Schedule 7:40 Dirk Van De Put Mondelez International Inc Chairman/CEO 8:00 Willem Buiter Columbia University Visiting…
12:39–12:41 A man gestures and speaks in front of a presentation slide showing the Samsung TV Plus interface. On screen: SAMSUNG BUILD OWN Bloomberg TV Schedule NIKKEI (C) -12.05 19771.19 0.06% HSI (C) +67.63 24643.59 0.28% SHANGHAI (C) +12.42 2822.44 0.44% KOSPI (C) +1.76 258.15…
12:41–13:08 A man in a patterned shirt gestures actively in front of a slide display showcasing Samsung TV Plus and its smart TV user interface. On screen: BUILD OWN SAMSUNG Bloomberg TV Schedule 7:40 Dirk Van De Put Mondelez International Inc Chairman/CEO 8:00 Willem Buiter Columbia University Visiting Professor…
13:08–13:23 A man gestures and speaks next to a presentation slide displaying Apple TV integrations on Samsung and Roku television screens. On screen: PARTNER tv What to Watch STAR IS BORN BOHEMIAN RHAPSODY Disney Mary POPPINS RETURNS NETFLIX prime video YouTube Spotify Smart Things internet DEEZER SAMSUNG…
13:23–13:33 A presenter speaks in front of a graphic displaying a Fire TV set displaying the Apple TV app alongside brand logos. On screen: PARTNER tv Watch Now Movies TV Shows Library Search Settings Up Next Dickinson JOHN WICK SEE HOBBS &SHAW firetv
13:33–14:15 A man gestures and speaks alongside graphics explaining Apple TV's partner integrations and proprietary offerings. On screen: BUILD YOUR OWN tv+ tv channels tv What to Watch TED LASSO BOYS STATE See All Apple TV Channels EROSnow MOVIES NOW H vault IFC Films UNLIMITED Lifetime MOVIE…
14:15–14:50 A man gestures and speaks beside a graphic showing an Apple TV interface crossed out next to the Netflix logo. On screen: OPT OUT NETFLIX Watch Now Up Next What to Watch Channels
14:50–14:54 A man gestures expressively beside a digital graphic of a video streaming interface crossed out next to the Netflix logo. On screen: OPT OUT NETFLIX Watch Now Up Next What to Watch See All MULAN BOYS STATE Channels CBS ALL ACCESS epix STARZ
14:55–15:26 A presenter stands on the left talking to the camera as presentation slides behind him illustrate streaming access and platform friction. On screen: OPT OUT NETFLIX “Apple’s a great company. We want to have people watch our service — or our content on our service. And so we’ve chosen not to integrate into…
15:26–15:50 A man gestures expressively beside a slide displaying a bar chart titled 'Friction Remains' comparing clicks to access Netflix, Disney+, and Apple TV+ on iOS. On screen: FRICTION REMAINS Number of clicks to access the service on iOS 19 Netflix 9 Disney+ 3 Apple TV+
15:50–15:53 A host appears on the left against a white background alongside an inset video of Andrew Ross Sorkin at a conference. On screen: ew York Times ealBook Reed Ha YouTube New York Times Events Deal An
15:53–15:58 Andrew Ross Sorkin gestures with papers in hand while speaking during an interview on stage. On screen: ew York Times ealBook Reed H YouTube New York Times Events Dea An
15:58–16:00 Reed Hastings sits on stage and begins responding to a question at the DealBook conference. On screen: YouTube New York Times Events The New York DealBook/ gs REED HASTINGS
16:00–16:06 Reed Hastings sits onstage speaking animatedly while gesturing with both hands in front of a DealBook backdrop. On screen: The New Yo Deal ok/ YouTube New York Times Events gs REED HASTINGS Founder, Co-CEO, Netflix
16:06–16:15 Reed Hastings speaks on a panel at a DealBook conference before the presenter appears in the foreground. On screen: YouTube New York Times Events The New York Times Dea▄ok/ gs
16:16–16:34 A man gestures expressively while standing in front of an informational graphic outlining the streaming ecosystem from studio to consumer. On screen: STREAMING WORLD STUDIO STREAMING SERVICE STREAMING PLATFORM/DEVICE CONSUMER
16:34–16:42 A man in a patterned shirt speaks animatedly to the camera in front of a white graphic titled Streaming World. On screen: STREAMING WORLD AUDIO STREAMING SERVICE STREAMING PLATFORM/DEVICE CONSUMER SUBSCRIBE SUBSCRIBED
16:42–17:00 A man gestures and addresses the camera in front of a diagram illustrating the streaming world supply chain while delivering an outro. On screen: STREAMING WORLD STREAMING SERVICE STREAMING PLATFORM/DEVICE CONSUMER SUBSCRIBED
17:00–17:14 A light grey end screen displays animated graphic placeholder boxes and prompt text. On screen: WATCH NEXT YOUTUBE RECOMMENDS SUBSCRIBE
0:00 Speaker A: Hi, I'm Sander. Speaker A: I'm really excited to explore with you who are the companies controlling the rails in this world or who are the new cable operators? Speaker A: Because we moved on from the cable world where a content owner, an IP owner, produced a piece of content with a studio that was sold to a channel who then sold it to a cable operator who bundled it up and offered it to consumers. Speaker A: The cord cutting has been accelerated faster than ever. Speaker A: And now almost 40% of the US households do not have broadband with broadband connection, don't have cable subscriptions anymore, and that's accelerating faster than ever.
0:33 Speaker A: The new streaming world, the value chain looks a little bit different. Speaker A: Where the studio still produces the content, they put it on a streaming service, who then puts it on a streaming platform, who then owns the consumer experience? Speaker A: So the streaming world has changed quite a bit and there's a lot of focus on the streaming wars and the streaming services space, like who the studio sell the content to. Speaker A: But what I think is much more interesting in that space is the platform wars, the ones who control the consumer experience and where do they capture the value the so those this is incredibly important because there's so many connected homes.
1:08 Speaker A: Now 76% of the homes have connected TV devices at their house or streaming devices. Speaker A: And what do they do on these devices? Speaker A: Of course they Stream Netflix, Hulu, YouTube and all the other streaming services over the top that we know that are growing so fast anyway. Speaker A: While on Netflix they might only get 20% of their signups on their connected TV devices, they actually get 70% of the viewing happening on connected TV devices. Speaker A: For YouTube, it's their fastest growing platform.
1:36 Speaker A: 80% Growth year over year faster than mobile platform, for example. Speaker A: And the session times and the video lengths are actually multiple times longer on their YouTube connected TV apps than on their mobile apps, for example. Speaker A: So who are these players who are competing for that award? Speaker A: Obviously there's Apple with Apple TV and their Apple TV apps and platform. Speaker A: There's Android tv, Fire TV from Amazon and Roku, who are the big contenders.
2:02 Speaker A: Roku is the biggest market leader for now. Speaker A: Every third or fourth TV depending on the year that is sold is using Roku operating system. Speaker A: Fire TV is the close second from Amazon, followed by Android TV using the Chromecast and Android TV devices and Apple tv that's the US focused market share. Speaker A: So why is it so critical for them to own that relationship? Speaker A: Number one, they want to build an audience number, they want to control that experience and then they need to monetize that audience.
2:31 Speaker A: And we are dig into each One of them why they're so important. Speaker A: Number one, how do these platforms build an audience? Speaker A: Apple TV is just selling their direct to consumer devices and each one of them has their own direct to consumer devices. Speaker A: Oroku has several boxes and dongles and sticks, and Fire TV similarly has the 4K and HD sticks available. Speaker A: And Android TV has got Chromecast devices and they're also launching their own dongles. Speaker A: And this year, but more importantly and more interestingly, actually they're building a whole ecosystem with service providers and other device manufacturers.
3:04 Speaker A: So Roku has got a Roku powered program where they have other device manufacturers making roku operating system TVs or Fire TVs doing the same thing with Fire TV editions that launched in the UK a couple of years ago and now they're sold all around the world. Speaker A: Android TV is similarly used by many, many TV manufacturers. Speaker A: Android TV in fact has got 50 TV manufacturers, including Sony, Philips, Xiaom and Hisense who are running Android TV operating system.
3:30 Speaker A: And then there's 36 operators, including in the US at&T TV who's using Android TV or powered by Android TV. Speaker A: Fire TV has got 20 TV partners as well with Toshiba and Insignia, but they also have operator partners with Verizon and Tata sky in India. Speaker A: Roku has also been doing that for a while and finding a lot of growth in the area of selling TVs with Hisense and Philips and and TCL powered by the Roku operating system.
4:00 Speaker A: So this is really key. Speaker A: They're not just selling the direct to consumer devices, but they're also partnering with many, many industry leaders or other manufacturers to extend their reach and have more and more of their control in front of people. Speaker A: And that has caused something super interesting. Speaker A: The TV prices have come down so significantly over the last several years. Speaker A: So now you only pay for 55 inch 4K TV, about $300 and the streaming sticks themselves are costing only $29.
4:29 Speaker A: So that's the second way they're reaching their audience or building their audience is selling them super, super low. Speaker A: And it doesn't necessarily mean that the production costs have come down, but the margins on the selling the device itself have almost gone away. Speaker A: And oftentimes they're selling it below their cost price as well. Speaker A: And that's why for consumers, it's so accessible, because those TV manufacturers and operating systems have found a new way to make money.
4:54 Speaker A: Does Amazon price the Echo device below cost? Speaker B: Not its list price, but it's often on promotion and sometimes when it's on promotion it may be below cost. Speaker A: Yes, that is very interesting. Speaker A: So sometimes when it is on promotion, it may be so below cost. Speaker A: As far as I've been on Amazon, most of the time, those devices, not just Echo devices, but Fire TV devices, are on sale or, or at least some kind of bundle sale.
5:22 Speaker A: So those are sold below cost for sure. Speaker A: Number two, controlling the experience. Speaker A: So moving on from how they integrate with all of the manufacturers and how they sell below cost, now, what happens next? Speaker A: How, where do they capture the value instead of selling the devices themselves, they control the experience. Speaker A: So if you launch the Fire TV today, what are you going to see on the first screen is controlled by Amazon, of course. Speaker A: And if you look at some of the tiles here, of course, the biggest carousel with a lot of the pieces of content that I've highlighted here, these are all Amazon productions, Amazon content or Amazon apps.
5:55 Speaker A: So about 60% of what you see in the front screen is fully Amazon branded. Speaker A: So this is the first way how they're capturing the experience. Speaker A: The other way is when you use your voice search on your Android tv, for example, and I say, hey, watch Planet Earth or look for Planet Earth. Speaker A: Then the first thing that pops up, of course is going to be the Google Play memories and Google Play movies, I'm sorry, where you can rent or buy those movies. Speaker A: And if you do a Google search for Bounder, for example, the first thing where you can watch the content now is going to be YouTube link, of course, with direct link to buy and purchase that show or start watching on their own platform.
6:31 Speaker A: If you go to IMDb, the first link of course is going to be the Amazon prime video link, which takes you straight to Amazon Prime Video and so you can start streaming straight away. Speaker A: Same thing with Roku. Speaker A: Like on Roku, they control a lot of the real estate and Roku channel. Speaker A: Their own service marketplace selling other services as well as their own streaming service are both available on the front screen. Speaker A: As soon as you launch the Roku. Speaker C: Service, one of the ways that we can help with that is promoting content to our customers.
7:01 Speaker C: So, you know, we have a lot of different areas in our user interface that we can use to make customers aware that a new TV season is about to start. Speaker C: Their favorite show is about to start and that's something that keeps them engaged with the channel and helps reduce churn. Speaker C: It also helps them come back. Speaker A: That is very, very interesting. Speaker A: We have a lot of areas in the user interface where we can make customers aware a new TV show is about to start.
7:28 Speaker A: So that clearly shows that this is their goal, is to have that Control create that real estate within the app where they control the experience and they are in charge rather than the streaming service themselves. Speaker A: So how do they monetize that audience? Speaker A: What do they do with that control that audience that they build the control that they have on the experience, how do they monetize it? Speaker A: If you look at Roku's revenue over the last couple of years, then you can clearly see that they moved away from this player sales revenue, which was 50 for about a half of the revenue to now only being a 30% of the revenue.
8:02 Speaker A: And their platform is the one that is actually driving that. Speaker A: Their revenue and their platform means selling ads, selling the marketplace and selling the licensing their platform to others. Speaker A: And if you look at the earnings themselves, that gets even more interesting. Speaker A: Like as we spoke about, those devices are often sold below cost. Speaker A: So if you look at like Q4 in 2019, Roku player actually made loss in that year, but it was overly compensated by the platform, meaning selling ads and controlling the experience, the marketplace on their own platform.
8:35 Speaker A: So the earnings have increased from 80% to now almost 95% of Roku's earnings coming from the platform business, meaning owning the relationship and building a large audience by licensing it to others. Speaker C: Our business basically is connecting end users that are watching television with the streaming services that want to reach those users. Speaker C: And so yes, we get paid when we help sign up customers. Speaker C: So when our partners win, we win.
9:00 Speaker C: We help them sign up customers and we get a percent of revenue for that. Speaker A: So he's literally Roku CEO is explaining what the cable company is. Speaker A: We are the one between the content providers and the users and we are the ones who are brokering those deals in between them. Speaker A: So we get paid where they help customers sign up to streaming services on Roku's platform. Speaker A: And of course this is the reason when you sign up to Roku, why they need your gender or why do they need a date of birth?
9:28 Speaker A: Because that's data for them. Speaker A: Roku acquired recently end of 2019 Datazoo, which is a demand side platform to manage all of their ad sales as well as their data. Speaker A: So they, their advertising platform can be more competitive compared to Amazon, Google and Facebook, which they are actually one of the fastest growing advertising platforms today is Roku. Speaker A: And Roku is doing that in three different ways how they monetize their platform.
9:55 Speaker A: Number one, they have the OneView platform, which is the straight ads, the banners that are available in the Roku interface. Speaker A: And they're also putting those ads on the Roku channel content, then the marketplace, which they Call the Roku Channel where you can subscribe to Netflix and Prime Video and other services in their marketplace. Speaker A: And when they get to people to sign up, that's where they get a percentage of revenue as the CEO just explained.
10:21 Speaker A: And then Roku has got their own apps which they fully control, which is called their Roku Channel. Speaker A: And that's where they license content directly and make it available as ad free product. Speaker A: And those are live channels, but some of them are also streaming content. Speaker A: So on demand movies. Speaker A: So the first thing that you do of course when you search for the content on Roku devices, the first thing that pops up when it's available on the Roku channel, of course you're going to click through to that.
10:46 Speaker A: So those are the three different ways. Speaker A: The real estate in the operating system, the marketplace where they get a percentage of revenue and then their own dapps that they're pushing on their platforms. Speaker A: Of course they're not loaning that game. Speaker A: Amazon is doing the same with Amazon Advertising, making that, selling the inventory on the Amazon prime interface there I've got Amazon channels where you can sign up to HBO Starz or Showtime in their own interface. Speaker A: And then they're pushing of course their own apps by offering Amazon Prime Video, IMDb TV which is the advertiser funded video on demand service and Twitch in their own interface.
11:19 Speaker A: And both of those markets are exploding, including this advertiser, Video on Demand which is going to be even larger market than it is today and slightly smaller market in the subscription video on demand based because there's only so many subscriptions that we're going to have as consumers. Speaker A: Interesting in the marketplace side, Apple is also playing a big game there where they're obviously making the Apple tax similar to the Roku tax or Amazon Fire TV tax or Prime Video tax where they're selling the channels or helping those channels to sign up or services sign up, they will get a percentage of that revenue, of course.
11:55 Speaker A: But you might ask, where's Samsung? Speaker A: Where's lg? Speaker A: Those are the biggest TV makers and you're right, those are the biggest TV makers running some of the biggest TV operating systems in the world today. Speaker A: This is a worldwide look now compared to the US look that we had before. Speaker A: So what are they doing about. Speaker A: So how do they win in this space? Speaker A: What's their strategy if they're not working so closely with those three big providers that we already spoke about? Speaker A: Samsung is building their own.
12:20 Speaker A: So that's number one strategy to win against those big players and how they're building their own. Speaker A: They Built their own complete operating system called Tizen. Speaker A: And the first thing that of course it comes with is the Samsung TV plus service. Speaker A: And that's preinstalled as soon as you open the tv. Speaker A: That's the first thing that's gonna launch even before you're gonna switch to your cable input or any other input in your tv. Speaker A: That's the first thing you're gonna see and that's got ton of channels of content including news and kids and everything that you might wanna see.
12:51 Speaker A: And they are fully in control of that experience. Speaker A: If you turn on the tv, Samsung TV is the first thing that's going to pop up. Speaker A: So the only way to get on Samsung platform is either you're going to publish your app on the Tizen Store or you're going to integrate with Samsung TV and make your content available there. Speaker A: So they're fully in control of their own destiny. Speaker A: The other way you can win in the space is also what Apple is doing. Speaker A: They're partnering with every single TV operating system and manufacturer.
13:17 Speaker A: So they made Apple TV app available on Samsung Tizen devices, they made Apple TV available on Roku devices, and they also made Apple TV available on Fire TV devices. Speaker A: So this is very interesting. Speaker A: On Apple is taking the other way where they're not just like pushing out and building their own, but they're also partnering to make sure that their reach is going to be as large as possible. Speaker A: And of course they're building their own as well with Apple TV plus their own streaming service which they're selling to consumers or including in their bundles and Apple TV channels where they're reselling other people's services so you can subscribe to other services on Apple tv and that makes the experience so much more seamless and easier.
13:54 Speaker A: And of course they're selling their own devices still as well. Speaker A: But it's interesting how they're not just focusing on their own, but they're extending it and integrating with as many service providers as possible to make it a no brainer consumer experience as they're not necessarily making their own TVs as of yet, or don't have TVs that are necessarily powered by the Apple operating system, but they're building it in and working as closely and partnering as much as possible. Speaker A: Then the third strategy to win is to be Netflix and say we're going to opt out, we're not going to make our content available in the Apple TV app, we're not going to be selling our subscription to your services because Netflix doesn't want to muddle around and have someone else control the experience.
14:32 Speaker A: So if you look at the Apple TV app on your phone or on your Apple TV devices, there is no Netflix there. Speaker A: If you search for it, you're only going to be linked out to the Netflix app. Speaker A: There's no way to subscribe to Netflix on the Apple App Store services either because they don't want to be mixed up with HBO Max and CBS and Showtime and Starz and other services. Speaker A: They want to control their own destiny and that's why they decided to opt out. Speaker A: When the Apple came out with Apple TV app, they said Apple is a great company, but they want to have their service to have direct connection with their content on their own app.
15:06 Speaker A: So they decided to opt out. Speaker A: So they tried to skip the streaming platform device by just making their app available there. Speaker A: But everything else is happening outside the relationship, the billing, everything else, the search as well as the recommendations are happening outside of their experience. Speaker A: So yes, that is creating a lot of friction. Speaker A: So it's actually taking 19 clicks to watch something on Netflix on an iOS device when you go in the first time.
15:32 Speaker A: It's much easier with Disney plus when it's integrated with Apple TV and you can just subscribe to the Apple TV app and discover content there. Speaker A: And of course Apple TV plus their own service, which is just a couple of clicks away. Speaker A: So that friction is still, still there. Speaker A: But that's also a strategy if you strongly believe that your content is there to stay in the long run. Speaker C: I think there's a problem with all of this, different types of consolidation and. Speaker A: Do you think that you will be. Speaker C: That you're being blocked out from any of it?
15:58 Speaker B: You know, if we have content that people consumers feel great about and really want to watch, then no one's going to block us. Speaker B: And we've never been blocked. Speaker B: It's fine. Speaker B: So no, it's a pretty background issue. Speaker B: The big issue for us is how do we develop amazing stories that you all haven't seen. Speaker A: So the biggest issue for them is focusing on the studio piece and the streaming service piece, making sure they get incredible content, incredible streaming service and try to circumvent their platform and device world by just making their app available there.
16:28 Speaker A: But everything else, recommendations, search, discovery, as well as billing, happening outside of that experience. Speaker A: So that's another way to win in this. Speaker A: Thank you so much for watching. Speaker A: I hope you enjoyed this Platform wars video. Speaker A: And who are the new cable operators? Speaker A: If you did, please give it a thumbs up and let me know in the comments. Speaker A: What do you think? Speaker A: Who are the winners gonna be in the platform war and subscribe to the channel.
16:53 Speaker A: Hit the bell icon if you don't want to miss out on the new videos that are gonna come out soon. Speaker A: Thanks again for watching and I hope to see you next time, Sam.