Tuesday 7 May 2019

Are Super Aggregators the New Pay-TV Champions?


                                   Image credit: Nagra

Consumers are now entering a fragmentation tipping zone, and before too long, industry players are going to need to come up with workable re-bundling solution. - But could super-aggregation be the answer?

I Can't Get No-O Satisfaction!”


Our entertainment landscape has been drastically transformed by the rise of on-demand over-the-top multiscreen services, but in this ever increasing on-demand cosmos, consumers expect content on their terms. But are they getting it? Are they completely satisfied, or are they perpetually on the lookout for something better? [1].

Well, the answer seems to be, that although consumers cannot complain that there is not enough content for them to choose from, just getting to the show that want to view right at that very moment, necessitates negotiating through a complex maze of menus across an ever expanding number of services and apps [1].

This scenario becomes even worse when studios strive to distribute their own content directly to viewers - something which allows them to surpass the licensing fees associated with third-party streaming services or broadcast TV. And although this strategy might bump up the studio’s bottom line, the service providers do not receive any support [1].

Turning Negatives into Positives

The much anticipated exciting Disney+ service, serves as “the most recent high-profile example of this scenario. - Content choices are endless, but consumers are more likely to get frustrated by having to search multiple sources for content to reach the shows they want to watch” [1].

And although it could be debated that yet another subscription-based video on demand platform will bring on more pay-TV subscriber churn, it is nonetheless, feasible that this situation presents service providers with an opportunity to claim their role as OTT “super-aggregators,” which offer a major gateway to all the content viewers long for [1].

What Does it Take to be a Super-Aggregator?

To achieve this title, providers need to be branded content distributors able to offer an attractive bundle. - This should include a great choice, as well as customer-friendly flexible pricing and convenience. Furthermore, the provider must be sitting on a large user-base, and should take responsibility for product and service innovation [1].

Research undertaken by Nagra's Pay-TV Innovation Forum, indicates that: “user experience is becoming one of the defining factors for consumers when choosing a pay-TV operator “ [1]. To that end, operators who want to become super-aggregators, will need to be innovative with their user's experiences and user interface systems [1].

Ever Increasing Content

As the explosion of content continues to increase, ultimately, the basis of a first-class user experience will be a fantastic journey of content discovery. These days, consumers who pay subs, expect to locate and consume content easily, via an uncluttered, simple and engaging interface. So operators need to give them just that - whatever the source [1].


Mastering Efficient OTT Content Onboarding

Operators who intend to become super-aggregators, must be highly efficient in on-boarding over-the-top content. This should be done by cleverly harnessing companion OTT apps such as OONA TV; as well as having strong content value protection, and a data-driven drive towards content discovery [1].

The television industry needs to metamorphose so that it offers a platform-agnostic concept for distributing a synergy of video and television content. - Something which should be accessible across all screens and networks. Ultimately, at the end of the day, providers of pay-TV are endowed with a fantastic opportunity to enjoy a lead role in the aggregation of OTT services, something which could make them the new pay-TV super heroes [1].

But Is There Another Solution to Consumers' Dilemmas?

Consumers know what they want, but they want it for a decent price. Simplicity is one of those wants, and to that end, spokesmen at Disney+ made the very valid point that their platform is especially suited to users who crave simplicity. - And this is no doubt, a welcome alternative to: “the thousands of scattershot shows and movies on Netflix. [Moreover], Disney executives said they would offer a streamlined set of offerings from their popular content brands including Marvel, Pixar, and Lucasfilm” [2].

                                 Photo credit: Disney

Disney+ is certainly bringing with it, a whole lot of top quality thrilling content. This incorporates: live action series; animated series & shorts; documentaries, unscripted series & live specials; and original films. This prompted CNN to ask its readers an important question: “How much would you pay for Marvel, "Star Wars," Disney Animation, National Geographic and "The Simpsons"? $15? $10? How about $6.99 a month?” [3]. Well, that really is a brilliant deal for all the enjoyment that Disney+ can endow on families. - And if consumers take out a yearly subscription, then the price is even lower. Moreover, Disney+ undercuts its number one competitor, Netflix [3]. On Disney's Investor Day, last month: “some of the investors and media members in the room actually gasped when the price was announced” [3], so interesting times lie ahead for the industry...


Consumers Don't Want Subscription Overkill

Research conducted by Tony Gunnarsson - a leading Ovum analyst, indicated that most consumers are only prepared to subscribe to 2.25 streaming services. Moreover, leading figures in the industry believe that although the market is likely to accommodate Disney, other streaming platforms will not have that Walt magic [2].


So What's the Solution?

In one word – OONA. - This rapidly up and coming new OTT TV kid on the block, is set to revolutionize the industry, as unlike other players, it puts consumers in the front seat. Why? Well, not only does it offer an awesome free on-the-go and at home entertainment service via the OONA app; it empowers users with a fantastic selection of hundreds of top local and international channels; it even rewards them with a virtual currency (redeemable for a broad range of branded goods and services, discounts, and free telcom products), just for watching and sharing what they love. And if consumers want to pay a sub to Disney or Netflix, etc., then this addition can sit on top of their OONA TV base.



Doing the Math

This ideal scenario means that millions of people in the US and indeed all over the world, will be forking out far far less of their hard earned money per month, and they will have the simplicity that the Disney execs were talking about. And if users want special live baseball and other sports specials, and exciting new content, then they can subscribe to the OONA+ SVOD service. - This has so much flexibility, and you can even request it just for special occasions, such as on certain weekends, or when your family are on holiday. So what could be better than that?


Making an Impact

OONA is currently set up to serve 185 million Indonesians, and is well on its way to being established in the US, Europe, Africa, South America and the Middle East. Headed by leading digital strategist and AI expert, Christophe Hochart, the platform's ethos has been the same ever since he founded it a few years ago: to put consumers first; give telcoms, studios and content holders an unbeatable deal; to empower billions of people with free access to top entertainment, so they do not have to go to pirate sites; reward loyal users with a virtual currency which can be used for countless goods and services; and offer the latest cutting-edge customer functions such as: making your own channel; and OONAbot, the AI genie in the app who personalizes content, and arranges personalised ads which can help consumers save time and money.


References

[1]. Nagra (2019). “Why super aggregators are the new pay-TV heroes.”

[2]. Zeitchik, Steven & Timberg, Craig (2019). “How the dream of cheap streaming television became a pricey, complicated mess.” Washington Post.
Accessed 5 May, 2019.

[3]. Pallotta, Frank (2019). “Disney flexes its media muscle at Investor Day.” CNN. https://edition.cnn.com/business/live-news/disney-streaming/index.html Accessed 5 May, 2019.


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