Streaming Video Continues to Rule As Cord Cutting Rockets Into 2019

“Streaming video blasted beyond any tipping point in 2018 and will command even more attention in the coming year” [1]

Image credit: Tech Pro Research

The Fight Is On For Viewers & Subs

There is no doubt that subscription streaming services are a massive hit for countless consumers who adore watching top level TV and films. The figures provided by the Leichtman Research Group survey prove this. In 2018: viewers' adoption of Netflix along with other services, continued to shoot up, with approximately 69% of consumers now paying a sub to Netflix, Hulu or Amazon Prime. - That is up 17% since 2015. - Moreover, it is important to add that 43% of homes pay subs to multiple streaming video services. - Which is up a whopping 20% from 2015 [1].

Cutting, Shaving & Shunning

The rise of content delivery via broadband, and doing away with the traditional pay-TV cord by the masses, is backed up in yet more survey research results. - This time by Deloitte, the world renowned consulting firm. The latter indicated that 55% of households in the US: “subscribe to at least one video streaming service [and] the average subscriber in the survey paid for three services” [1].

"We see the entire pay TV sector slowly declining in the next five years" [1]

Another Significant Milestone

Now in 2019, it is very likely that American households that enjoy streaming services could easily overtake homes that subscribe to conventional pay TV companies. In fact, it is predicted to be in excess of 78%. - And that certainly is a big number! In the US, as it currently stands: streaming video services have already surpassed pay-TV in households that have broadband. This applies to around 80% of all households. Further, the Diffusion Group think tank has published stats which show that 76.4% of homes pay for a streaming service such as Hulu, Amazon Prime or Netflix.

Marginally less broadband households (74%), pay for a conventional pay- TV service from a fiber, satellite or cable company. On top of this, 8% subscribe to a "virtual" pay-TV service which they receive via the internet. The latter include: Sling TV, Now, and DirecTV [1].

Streaming Disruption Successfully Changing the Dynamics

“SVOD service adoption is strong with the OTT TV subscriber group (91%) versus 70% among the larger group of adult broadband users” [2]

The prediction for the M&E landscape, is that 2019 will see continued disruption and more streaming options. As it stands, the demand for new content to stave off competition from Netflix and other such video platforms, has already resulted in Disney's $71 billion purchase of Fox films and TV studios, along with Fox's 30% share in Hulu's streaming service; not to mention AT&T's colossal $85 billion Time Warner acquisition. And Disney and AT&T are both planning on launching new services during the course of the year [1].

Consumers' Need For Increasing Flexibility

Rich Greenfield, a tech and media analyst with financial services firm, BTIG, stated that customers are discerning and reactive to changing values and prices. He remarked that: “the Diffusion Group's survey found about 21% of broadband homes with a pay-TV service (traditional/broadband) were at least considering canceling in the next six months. The main reason? The service was too expensive for what they got, 56 percent said” [1].

Are Ads & Higher Prices On the Way?

The answer to this is surely a resounding “yes!” As platforms increase their features and programming in order to keep up/ahead of the mega fierce competition, it is extremely likely that they will raise their sub rates. In 2018 alone, YouTube TV, Sling TV, PlayStation Vue, fuboTV, and DirecTV Now, did just that [1].

The bad news for many, is that as live streaming services adjust to what consumers want and will pay for, subscribers can anticipate more price increases. Conversely, other platforms may turn to an AVOD (ad-based video on demand) service. The founder and head analyst at Digital Tech Consulting, Myra Moore, noted that although streaming providers: "step lightly into advertising, there will be more advertising from (them) in the future” [1]. In fact, due to the lack of profit, AT&T and Hulu have made statements regarding their intention to incorporate advertising into their streaming services. "At some point, prices either have to continue to increase, or else advertising and other promotional efforts have to be implemented to be profitable," she said [1].

OONA OTT Next Generation – One Step Ahead of the Game

OONA Global OTT TV, which started out in Indonesia with a winning strategy that offers 185 million consumers the flexibility of AVOD, SVOD and TVOD options, is an excellent case in point. These days - all the world over, everyone wants, and indeed expects, different choices in the services they subscribe to, so that they can find a plan which is perfectly suited to their lifestyle and needs.

Flexibility is a number one consideration with OONA, and its strategy empowers viewers so they can enjoy the freedom of not being 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 (ad-based live & on demand video service) is completely funded by personalised ads which are regularly updated according to what branded products each individual consumer is interested in at the time. Further, the technology 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, free phone minutes, branded goods and services, discounts, meals and other fun things). These tcoins are easy to accrue from watching various channels, looking at ads, sharing content with friends and family, and interacting with OONA's AI Genie in the app, Siskabot. They are stored in a personalised virtual wallet.

Option 5

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

Second Rate Streaming Quality Will Be a Thing of the Past

Just as OONA's founder and CEO, leading digital strategist, Christophe Hochart, understands: viewers' expectations for live content quality, reliability, interface performance and convenience, must be met, and if possible, exceeded. After all, viewers who have been used to top quality live content from cable, demand exactly the same: "Gone are the days when the early adopters of live streaming accepted convenience over quality." [3]. Now, OTT viewers want to tick the boxes for all these aspects that a leading mobile service should offer.

Personalisation is Essential

OONA viewers are empowered with a patented personalized AI chatbot, who is there is serve them, and deliver the entertainment content and ads they are interested in. They also enjoy the benefits of a user-friendly interactive platform, and have their constantly evolving favourite channels, programs and ads, lined up ready and waiting for them. Users can also edit content, and use a variety of fun tools and stickers when they share exciting films and programs, and send messages to friends and family.

Standing Out From the Crowd

The OONA platform is unique in that it gives its viewers cool rewards in the form of tcoins (which can be exchanged for branded goods and services, fun days out, meals, discounts, and free phone minutes and telcom products), just for watching content and personalised ads; sharing content with friends and family, and interacting with OONA's world first AI genie in the app, Siskabot.