OTT is Revolutionizing the Broadcast Industry

“New OTT Services Aren’t Saturating the Market, they ARE the Market” [1]

As OTT progressively becomes the central focus of the continually evolving world of studios, tech companies, operators and broadcasters, this article takes a look at their future plans in Ooyala 's State of the Broadcast Industry 2019 report.

The main takeaways are:

• A huge rise in major streaming services onto the market
• A speed-up of M&A & M&E activity as broadcasters engage in building up content volume which can meet global streaming requirements
• A multi-billion$ increase in original content creation
• A plethora of OTT premium sports content as broadcasters & leagues work to attract Millennials [1]

“It’s hard to believe that just a few years ago, streaming was the supplement to traditional broadcast television and pay TV” [1]

It was not so long ago that: due to multiple issues, streaming quality services got the thumbs down; and there was disbelief that Netflix’s foray into streaming VOD would ever make the grade. - In fact, Jeff Bewkes, the CEO of Time Warner actually “compared Netflix’s chance of disrupting the traditional TV ecosystem with that of the Albanian Army taking over the world” [1]. 

Yet, AT&T has consumed Time Warner, and together with NBC Universal's parents, Disney and Comcast, it has partnered up with streaming service, Hulu. In under 10 years, Netflix has earned centre stage as the planet's largest worldwide TV channel; AT&T is set to launch a number of streaming services; and broadcasters NBCU and CBS have transformed the sale of content to streaming consumers into a fine art [1].

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All For One & One For All

Sinclair Broadcast Group’s president and CEO, Christopher Ripley, noted that: it is completely antiquated to think that the broadcast space is separate. “We’re competing with the telecom operators, we’re competing with the Internet companies. We’re all in each other’s spaces. We’re all customers of each other. We’re all competitors with each other” [1]. Moreover, these days, broadcasters have to take on the outlook of a diversified media company [1].

Empowerment of Content

As we rapidly approach 2020, there is no doubt that multiple devices are the norm. From Baby Boomers to the Silent Generation and those in-between, everyone is being empowered by the new tech methods which deliver top content on cutting-edge platforms such as OONA Global Free Mobile TV. - A state-of-the-art app that gives them up to 300 free international/national, and local channels, any time, any where, as well as an option of SVOD premium content. SVP of Nielsen's audience insights, Peter Katsingris, remarked that: “With the increased penetration of subscription video on-demand services, we have also seen increases in the use of devices used to stream content.” Moreover, this applies to consumers of all ethnicities [1].

Open Sesame

Right now, there is a major transition from the delivery of skinny bundles and broadband, towards 5G mobile delivery. This will magically open up the portal to genuine “à la carte services [such as OONA Mobile TV], that make content from anywhere available everywhere, and on any device” [1].

Strategy Analytics director, David Watkins, noted that: “The popularity of connected TV devices, in particular Smart TVs and dedicated media streaming devices such as Roku, Amazon Fire TV and Chromecast, has grown dramatically over the last few years, and has led to a fundamental shift in how consumers view and engage with content on the TV set [1].” So OONA's TV casting option is a case in point, as it means that viewers can enjoy free TV on their mobiles and home TVs.

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Rolling, Rolling, Rolling

As Ooyala 's research shows: the continual upsurge of over the top services has not yet saturated the market, and the latter is a long way off. Moreover, although it has to be said that there will undoubtedly be an upper limit as to how many subscription based video-on-demand services viewers are happy to shell out for, this scenario will take time to come about. Further, that limit could continue to shoot up, as more a la carte channels emerge, particularly as younger viewers who regard streaming as part of their everyday lives, get older. These facts say it all:

• 47% of viewers aged 22-45 do not watch any content on conventional television platforms
• 61% of viewers aged 18-29 primarily watch TV on streaming services (Pew Research Center)
• Netflix's original film, Bird Box, was seen by 45 million account holders during its first 7days
• Americans enjoy over 8 billion hours of content every month (Neilson) [1]

So the salient point is that AVOD OTT and SVOD OTT services such as OONA Global TV: “are steadily replacing traditional content delivery” [1]. And just like OONA - which is currently set up to serve 185 million Indonesians, and is well on its way to providing its free next generation state-of-the-art interactive service (which actually rewards people for watching the content they love), to billions of people in other parts of Asia, Africa, South America, the Middle East, the US and Europe; “there’s no end to the opportunity to create connections with a global audience” [1].

  

New Exciting Entertainment OTT Style

 “Consumers now enjoy unparalleled freedom in selecting media and entertainment options and their expectations are at an all-time high” [1]

As the founder and CEO of OONA, leading digital strategist, Christophe Hochart, acknowledges: “OTT is not traditional television, and OONA not only responds to the new revolutionary environment, it goes a step further by offering more than OTT.” OONA is an experience – a cool platform with an ethos that puts the customer first, and offers a fantastic world of possibilities any time, anywhere - on the go, or at home. It provides the latest high tech functions, including creating the user's own channel; free live and VOD entertainment over hundreds of top international and national channels; fun interaction with millions of users; a personal AI assistant who arranges the content people love; and virtual currency rewards (tcoins), which can be redeemed for branded goods and services, discounts, meals, fun days out, holistic health treatments, and free telephone minutes and telcom products - just for watching and sharing content, which can be jazzed up with the latest editing tools!

“Premium OTT services are predicted to grow at an average CAGR of 9.7% by 2020 globally” [1]

The Diffusion Group's research indicates that in the US, over 76% of households with broadband, subscribe to one main streaming service at least, namely: Hulu, Amazon or Netflix. Moreover, a further 8% shell out for a virtual pay-TV service such as DirecTV Now, or YouTube TV. And research provided by Deloitte shows that the average streaming household has three SVOD services.

Image credit: Lesley Pollock

Wrapping Up

In summary, OTT has achieved the equivalent of reaching another entertainment universe. - And all generations and ethnicities are revelling in being empowered by the fabulous choice of content on offer, which in the case of OONA Global TV, is free. Moreover, as more people reach for their scissors to cut their TV cords, and Millennials and Gen Edge (the post-Millennial generation born after 1995), continue to turn their back on conventional TCV, the surge into OTT keeps surging forward as more and more media companies are joining, rather than battling the winning cohort.

Reference

[1]. Ooyala. (2019). “State of the Broadcast Industry 2019.” http://go.ooyala.com/rs/447-EQK-225/images/Ooyala-State-Of-The-Broadcast-Industry-2019.pdf Accessed 17 Jan. 2019.