Tuesday, 28 August 2018

Q2: OTT Prospers As Pay-TV Subs Fall

                           
                                 Photo credit: Libertas

A recent analysis conducted by Strategy Analytics’ Television & Media Strategies, put the spotlight on pay-TV subscriber numbers, and showed that in the US: vMVPDs (Virtual Multichannel Video Programming Distributors, who are responsible for the aggregation of on-demand linear and live TV, but transmit the content via the internet), produced a whopping: "868,000 net adds in the second quarter of 2018, bringing the total number of vMVPD subscribers to 6.73 million, up 119% year-over-year" [1]. 

Regardless of this though, the report, entitled: "U.S. Pay TV and Video Subscriber Update – 2Q 2018,” whicanalyses 27 public traded and private pay-TV operator subscriber bases by considering 97% of all pay-TV subscriptions, indicated that overall: pay TV subscribers (vMVPD, IPTV, satellite and cable), broke a chain of two successive quarters of growth, and dropped to 93.78 million [1]. 

By contrast, 2Q 2018, was not too good for providers of legacy pay-TV (IPTV, satellite and cable, etc.), because they just achieved close to  minus 973,000. - This was the same number of subscribers as the prior two quarters combined - the minus 1.16 Million who jumped ship. Moreover, in 2Q 2018, total legacy pay-TV subs decreased to 87.05 Million, down 3.6% year over year [1]. 

The director of Television & Media Strategies, Michael Goodman, stated that: “while the entire vMVPD segment is growing, AT&T’s DirecTV NOW deserves special notice.” Further, considering its rapid growth over a relatively short time span, if its current growth trajectory continues: “it will overtake Sling TV as the largest vMVPD in early 2019” [1].

Goodman also noted that in the past, pay TV in America comprised: IPTV, satellite and cable, yet: "the introduction of over-the-top pay TV services, commonly referred to as vMVPDs, necessitates a change in our thinking. What we have commonly referred to as pay TV (cable, satellite, and IPTV) should now be referred to as Legacy Pay TV, while the definition of Pay TV should include vMVPDs” [1]. 


                                 Photo credit: Encompass

A Brilliant Opportunity For Content Owners

Content owners now have an excellent opportunity to connect with the countless millions of OTT users who are cord-nevers, or scissor users. By using a vMVPDs, these companies "can avoid the risk of going direct" [2]. vMVPDs include: 

  • OONA FREE TV
  • DIRECTV NOW
  • YouTube Live
  • Hulu Live
  • fuboTV
  • Sling

The above companies, along with others, aggregate providers' content and then distribute it straight to viewers via devices with an internet service such as mobile phones, tablets, laptops, and so on. The majority of the latter demand a subscription to access the content [2]. Examples include: 

  • Apple TV
  • Roku
  • Amazon Fire TV
  • Other iOS and Android devices

vMVPDs are responsible for offering CX and billing [2].

Channel Holders & Content Holders Are Looking For the Best Deal

Leading TV channel owners and content holders are taking an up close and personal look at all the advertising strategies regulated OTT companies such as OONA have to offer. But this is to be expected, when data from the GSMA Intelligence Report, Global Mobile Trends 2017, indicated that: “5 billion unique mobile subscribers globally was achieved in Q2 2017. [And] by 2020, almost 75% of the global population will be connected by mobile” [3].

OONA empowers TV channel companies and content owners by not requiring any financial outlay; and giving them a 100% control, customization and data transparency. And very importantly, their existing model is not threatened. And this is one of the areas where OONA's highly successful strategy partnership is different to other platforms. Further, OONA adapts to each single market without changing its first-class universal user experience. The TV landscape, media content and economics of a particular country remain the same, and every OTT solution is framed using a custom designed model which is beneficial to both the channel company and the user.


Giving Viewers the Choices They Need

OONA TV - the cool, interactive AVOD (ad-based video on-demand & live) OTT entertainment platform which goes beyond TV and OTT, is about to shake up the media industry as it sets about revolutionising TV distribution and viewing experience, while simultaneously offering consumers the choices they need when it comes to free viewing or paying subs.

For example, right now, its Indonesian platform, OONA Indonesia, is set to offer 185 million Indonesians its free cutting-edge AVOD interactive entertainment service that gives viewers the very best in top international and national content on up to 300 channels. Further: "Brightcove’s industry-leading Video Cloud platform will stream live channels on OONA, as well as enable server-side ad insertion (SSAI) for a broadcast-like seamless ad experience" [3].

And on top of its AVOD service, OONA has premium options available as well, so that everyone's preferences and needs are met. OONA is also is well on course for expansion in other parts of Asia, Africa, the Middle East, South America, the US and Europe.

A Cut Above the Rest

The OONA platform is unique in that it gives its viewers rewards in the form of a virtual currency - tcoins. These can be exchanged for branded goods and services, discounts, meals, fun days out, and free phone munutes and telcom products. Users just have to watch content and personalised ads; share content with friends and family; and interact with OONA's world first patented AI genie in the app, Siskabot.


Siskabot

Siskabot, OONA's patented AI genie in the app, serves as a personal assistant and virtual friend who has users' favourite content ready and waiting for them. She also has regular chats with viewers to see what kind of brands and services they are really keen on, so she can arrange ads that will not only interest them, but save them time and money. All personal information is kept strictly confidential, and all of OONA's policies are completely transparent for users, channels and content holders.

21st Century Flexibility

This is a number one consideration with OONA, and its strategy empowers viewers with an awesome choice of content, and the freedom of not having to get tied down with financial commitments to cable companies etc. - In fact, OONA consumers have a whopping five choices:

Option 1

Viewers do not have to pay subscription or data charges. This is because OONA's AVOD is mainly funded by personalised ads which are regularly updated according to what branded products each individual consumer is interested in at the time. Further, the tech that OONA uses, enables first-class digital FTA (free-to-air) broadcasting in a clear (unencrypted) form.

Option 2

OONA's SVOD (subscription based live and on-demand video service), offers viewers the choice of paying for specific premium content on a daily, weekly, monthly, quarterly or annual basis.

Option 3

OONA's TVOD (transaction-based live and on-demand video service), provides a pay-per-view option. So for example, if a couple just want to enjoy a newly released premium film on the odd Friday night or weekend, then they do not have to sign up for an extended period of time, and be burdened for paying for more content than they really want, like they would have to with other platforms. 


Option 4

Viewers can unlock premium content by using their tcoins (OONA's vitural currency rewards which can be used for telcom products, branded goods, meals and other fun things). These tcoins are easy to accrue from watching various channels; looking at ads; sharing content with friends and family; sharing a referral code on social media; and interacting with OONA's AI Genie, Siskabot. They are stored in a virtual wallet.

Option 5

Premium pay-TV content can be easily included in the user's telcom data plan bundle.

For enquiries and further information on OONA Global TV,  please visit the website

References
[1]. Radio & Television Business report (2018). "Despite vMVPD Subscriber Surge, Overall Pay TV Down. https://www.rbr.com/despite-vmvpd-subscriber-surge-overall-pay-tv-numbers-down/  Accessed 27 Aug. 2018.
[2]. Brown, Gregg (2017). "What is a Virtual Multichannel Video Programming Distributor (vMVPD)? Encompasshttps://www.encompass.tv/blog/virtual-multichannel-video-programming-distributor-vmvpd/  Accessed 27 Aug. 2018.
[3]. Kulbyte, Toma (2017). “32 Customer Experience Statistics You Need to Know for 2017.” Superoffice. https://www.superoffice.com/ Accessed 27 Aug. 2018.
[4]. Digital TV News (2018). "Telkom Indonesia launches OONA mobile TV app with Brightcove."  http://www.digitaltvnews.net/?p=31233  Accessed 27 Aug. 2018. 

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