OTT TV Set to Mow Down Cinema Box Office Revenues

Image credit: New Atlas

“A tipping point in the global entertainment industry is set to occur in 2019 with revenues from subscription over-the-top services exceeding cinema box office” [1]

Data collection and forecasting firm, Ampere Analysis, have conducted research which shows that: in the US in 2017, revenues from OTT actually overtook theatrical revenues. Further, it is anticipated that by the close of 2018, Britain will follow suit; and in 2019, the tipping point in China will come to pass [1].

Putting a Magnifying Glass on the Situation

In their analysis, Ampere looked at dismal cinema attendance, and whether admission tickets were too expensive. The firm carried out a survey across 15 markets, and 9 of these, namely: the US, UK, Turkey, Sweden, the Netherlands, Japan, Germany, France and Australia, all showed that: “the average price of a cinema ticket was higher than one month’s subscription to a [subscription video-on-demand service] SVOD” [1].

Conversely, the research indicated that Mexican market has a booming cinema attendance, and that the average price for a subscription video-on-demand service was practically twice as much as the cinema ticket charge. When it came to countries with the least cinema attendance: Germany and Japan topped the list. In Germany, tickets for the cinema are approximately 50% higher than a month's OTT TV sub; and tickets in Japan are virtually twice the price [1].

Are SVOD Subscribers Avid Cinema Goers?

Interestingly, over all the markets that were included in the survey: when compared to consumers without a subscription – those who did subscribe to a service, were shown to be more enthusiastic about visiting the cinema. Moreover, in 9 of the 15 markets which Ampere covered in the Consumer service, namely: the US, UK, Sweden, Spain, Poland, the Netherlands, Mexico, Japan and Brazil, video-on-demand subscribers stated that they visit the cinema at least twice as frequently as non-subscribers. Further, Japanese subscription-on-demand consumers visit the silver screen over three times more than non-subscribers, “even where the average SVOD subscription cost is half of the price of a cinema ticket” [1]. Ampere's senior analyst, Toby Holleran, noted: “Our analysis... reveals that although there are differences in the cost of cinema attendance by country, there’s clearly an appetite for content amongst some consumers whether that be on the big screen, or a smaller one” [1].

Is Home and On-the-Go Cinema the Future?

Unless people happen to miraculously live in the vicinity of a leading multiplex cinema chain like Cineworld – which provides 2D, 3D, 4DX, IMAX, Superscreen, ScreenX and VIP, and offers film lovers a fantastic monthly deal which for the price of less than two cinema admissions a month, allows them to see as many films as they like every day - but has just 800 sites, then subscribing to a first rate SVOD service makes great sense, especially when couples and families can enjoy everything on offer for just one subscription.

OONA OTT Mobile TV – A Case in Point

These days, consumers all across the globe are looking for a great OTT platform which empowers them with the choices and flexibility they need to suit their personal circumstances. One of these is new kid on the block, OONA Global TV - the futuristic, cool, interactive AVOD OTT entertainment platform which goes beyond TV and OTT, and can be accessed at home or on the go.

OONA  is shaking up the media industry as it sets about revolutionising viewing experience and TV and film distribution, while simultaneously offering consumers the choices they need when it comes to a terrific choice of live and on-demand content, and the option of free viewing or paying a sub.

For example, right now, its Indonesian platform, OONA Indonesia, is set to offer 185 million plus Indonesians its free cutting-edge AVOD interactive entertainment service that gives viewers the very best in top international and local 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" [2].

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

A Cut Above the Cinema

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 telcom products, just for watching content and personalised ads; sharing the content users love with friends and family; sharing a referral code on social media; and interacting 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

Cinema fans, and those who love to watch the box at home, as well as out and about, all want 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 - instead of having to pay a fortune for cinema tickets at a standard movie theatre, not to mention transport and parking costs, 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 further information on OONA OTT Global TV, please visit the website.

References

[1]. O'Halloran, Joseph (2018). “OTT takings overtake cinema revs.” Rapid TV News. https://www.rapidtvnews.com/2018121754509/ott-takings-overtake-cinema-revs.html?utm_campaign=ott-takings-overtake-cinema-revs&utm_medium=email&utm_source=newsletter_1970#axzz5a2Pun39M Accessed 22 Dec. 2018.

[2]. Kulbyte, Toma (2017). “32 Customer Experience Statistics You Need to Know for 2017.” Superoffice. https://www.superoffice.com/ Accessed 22 Dec. 2018.