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  • John Frankovich

OTT Trends and Predictions for Media Industry



The media and entertainment industry is in the midst of a transformation and the pace of change is quicker than what we have seen for the last several decades. Digitalization has obviously been the biggest indication of change which has led to a perceptible disruption in how people consume entertainment.


Unlike prior generations who grew up watching their favorite shows on the family television on fixed broadcast schedules, the new normal today is on-demand, screen-agnostic entertainment.


Media consumption has become far more personal, and with the explosion of data availability it has made streaming content over the internet affordable and accessible. These changes have had noticeable impact on the media industry at large.

Here are some trends that we can foresee in the media landscape over the next few years:


OTT Models


The advent of new Over-The-Top (OTT) video models like SVOD, TVOD, and AVOD have fundamentally changed how networks should scale to deliver content and connectivity.


Anybody who has witnessed the rapid change in the TV and entertainment industry is aware of the rise of internet based streaming or Over-The-Top (OTT). OTT is the conveyance of varying media content streamed over the Internet without the contribution of an Internet Service Provider (ISP). In an exceptionally short span of time, OTT has changed the cable and video industry including Video-On-Demand (VOD), "SVOD", "TVOD", and "AVOD."


SVOD


Subscription VOD (SVOD), now and again called "Streaming VOD", is a membership service you watch until cancelled, without any limits or breaking points. It's often referred as the "everything you-can-eat" model. Netflix and Amazon Prime is an example with multiple tiers of SVOD available.


TVOD


Transactional VOD (TVOD) is completely the opposite of the "everything you-can-eat" model, where you pay just for the content you watch. TVOD can offer films, top TV series and games. There are two sub classifications to TVOD – Electronic Sell Through (EST) and Download to Rent (DTO). Clients pay just for what they want, when they want it.


AVOD


At last, Advertising VOD (AVOD), or Ad-based VOD is an "allowed to-all" model, which means you pay with your eyes and not a credit or check card. For instance, consider YouTube, where you can watch a video, by first viewing a promotion, sometimes multiple if the content is long. The AVOD model is truly what the media business is based upon, however, premium content is commonly not offered in AVOD.


Moving Beyond Mass Content Generation


Media companies now need to focus not only on the amount of content that they produce, but also need to think far more strategically about who is consuming their content and how they are consuming it. To succeed in this industry, media companies now must go in with a combination of superior content, the right technology layer to deliver this to the right audience, as well as an attractive and cost-efficient channel to deliver it. As a result, we are seeing content companies doubling down on premium original content to cater to the tastes of their audience, as well as have a strong technology vision to be able to connect with their audience in an efficient manner.


Last-Mile Customer Connect


Media organizations in the US are quickly realizing that the current last mile connectivity mediums, whether providers syndicating to social media channels or 3rd party streaming companies might be too inefficient. They may not be the best path to connect to specific audiences, especially those outside of major urban centers. While multi distribution is not being replaced, to get your audiences to choose to watch your content is in the ease of discovery. This can happen only if you are front and center in their lives.


The result is that media companies are vertically integrating so that they are in control of the last mile connection with their viewers rather than having to rely wholly on external parties.


True Demand

As content distribution channels evolve, we are seeing a shift from bundled entertainment packages to a scenario where a consumer can pay for only the options that they want.

Over the next few years, we could see a media and entertainment revolution that will have a far-reaching impact on how content is created, marketed and distributed. The most nimble and dynamic organizations will survive and flourish. Those who don’t will have a hard time catching up.


Content is still king, but the customer’s experience of how they consume content will make or break the media provider’s bottom line.




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