Benedicte Guichard| Wed Jun 15 2016 CET| Industry insights
The rise of internet based content services is phenomenal – so much so, that nowadays, the concept of sitting down in front of the box and flicking through the TV guide is almost alien to most people. On the supply side, exploring into OTT services becomes a focal point for all major entertainment distributors as competition stacks up.
In just two short years, OTT has become a colossal force to say the least. In fact, presently, people binge, binge, binge on video box sets, blockbuster movies, network exclusives, sporting events and music concerts; this diagram, courtesy of CNBC’s Carl Quintanilla, gives a great snapshot of just how things have progressed over this period:
OTT and IPTV services won’t lose their momentum anytime soon – especially as online video streaming services cater so well to these fast paced, highly tech influenced modern times that we live in.
A Juniper research study has shown that the consumer spend on digital content will climb to an incredible $180bn by just 2017, with up to 30% primarily driven by continued migration to web based streaming services.
Now, part of this projection lies with the introduction of services from traditional broadcasters and telcos who are now joining the competition by launching OTT and IPTV services of their own. By developing their own subscription services and OTT-style content, telcos and broadcasters will be able to keep up with the competitions and in return, maintain existing customer loyalty while branching out to a whole new generation of consumers. In addition, these companies have identified the need to source and create their very own unique, original content much like Netflix and Amazon.
Some telcos are even forging partnerships with existing OTT providers to offer bundled ‘zero-rated’ video content monthly that doesn’t impact on data allowances and the advance of social media into TV.
With the overwhelming choice and popularity of digital video content comes the inevitable saturation and fragmentation.
Of course, there is already so much choice and this is expected to grow and grow as the months go by – so what can you do to keep your subscribers loyal while keeping up with the times (and competition)?
When it comes to running a successful online video subscription service, there are no quick fixes or black and white solutions. Limelight Neworks came up with a whitepaper stressing but the key elements that you as a OTT provider should consider on a regular basis if you want to ensure success and longevity:
These are exciting times for the world of digital video content, but with added competition floating around in the OTT market, providers must always keep their fingers on the pulse and find fresh ways of thinking to ensure long-lasting success.
If you’re a consumer, enjoy these exciting times ahead; if you’re a provider, we wish you the best of luck – we know you can do it.
Learn more on how TVN Chile jumped on the OTT bandwagon and extended its service geographically: