1. Augustine Fou- 1 -
Dr. Augustine Fou
http://linkd.in/augustinefou
December 2013
Surprising
Digital vs Traditional
Comparisons

2. Augustine Fou- 2 -
Executive Summary
• YouTube makes almost 4 times more revenue than hot cable
channels like AMC
• YouTube makes almost 2 times more ad revenue than big cable
companies like ESPN
• Facebook daily active users are like 7 Superbowls every day
• CPM of facebook is also 56 times less expensive than Superbowl
ad CPM
• Netflix has more paid subscribers than HBO
• Netflix streams 4+ billion hours of video each month, which is 87
minutes per user per day, on par with Disney
• Netflix uses about 2x more downstream bandwidth than YouTube
• Burberry’s Facebook audience is 7 times the size of the largest
fashion magazine

3. Augustine Fou- 3 -
YouTube makes 3.5 times more revenue than the very popular cable channel AMC
AMC TV
1.YouTube vs Cable TV
$5.6 Billion$1.6 Billion
Annual Revenues
3.5X
Source: BusinessInsider Dec 2013

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YouTube already makes more ad revenues than ESPN
2.YouTube vs ESPN
$5.6 Billion$3.5 Billion
Advertising Revenues
1.6X
ESPN $10B
$6.5
Subscr
$3.5
Adv
Source: BusinessInsider Dec 2013

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Facebook has seven times the daily audience every day compared to the superborl
3. Superbowl vs Facebook
Superbowl XLVII
728 DAILYActive Users108M viewers
7X
Source: GigaOm Oct 2013
Audience/Viewership
Source: ESPN Feb 4, 2013

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Superbowl CPM ($4 million per spot / 108 viewers) is 56 times more
expensive than Facebook CPM
4. Superbowl vs Facebook
Superbowl XLVII
728 DAILYActive Users108M viewers
Source: Facebook Ads Benchmark Report
CPM (cost per thousand impressions)
$4 million for 30 second spot
Source: AdAge Dec 13, 2013
$37 CPM
Q2, 2013
$0.66 CPM56X

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Netflix paid subscribers is now larger than HBO (29.9 million vs 28.7 million)
5. Netflix vs HBO
Paid Subscribers
29.9M 28.7M

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6. Netflix vs Disney
Minutes Streamed per User
87 minsper day
80+ minsper day
Source: BTIG Research, April 11, 2013
same
Netflix streamed 87 minutes per user per day, which is on par with Disney
Channel

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Netflix uses 2 times more downstream bandwidth/traffic than YouTube
7. Netflix vs YouTube
Downstream Traffic
33% 14.8%2X
BitTorrent (5.9%)
Apple’s iTunes (3.9%)
Amazon Video (1.8%)
Facebook (1.5%),
Source: Sandvine Global Internet Phenomena Report 2H 2013

10. Augustine Fou- 10 -
8. Burberry vs Glamour
16M 2.3M7X
Source: Audited Media August 6, 2013
Burberry’s own facebook audience is 7 times larger than the largest
consumer fashion magazine Glamour (16 million vs 2.3 million)
Facebook Followers vs Magazine Circulation

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9. Facebook vs Network TV
Population Reach per Total Day

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10. TV Ads vs Video Ads
• For every 30 minute episode, there are
about 9 mins of ads (or 10 – 12 ads ) –
used How I Met Your Mother as proxy
• For every 60 minute episode, there are
about 19 mins of ads (or 20 – 24 ads ) –
used 24 as proxy
During the month (May 2013), video ads
accounted for 27.9% of all online videos
viewed (up from 25.5% in April), and 2.6%
of all minutes spent viewing online
video (up from 2.3%).
TV is one
quarter ads
Online
video is
2.6% ads

13. Augustine Fou- 13 -
Dr. Augustine Fou – Digital Consigliere
“I track trends and help clients across
many industries innovate and stay on
trend and ahead of disruptions.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
@acfou
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou

14. Augustine Fou- 14 -
APPENDIX

15. Augustine Fou- 15 -
Netflix Streaming