According to a recently released Convergence Research Group study entitled: “Battle for the American Couch Potato;” this year, the speed of consumers cutting the cord is continuing to ramp up, with 4.56 million US households choosing to give pay TV the boot. In fact, by December, 34% of American households will not subscribe to traditional TV [1].
The number of OTT subscribers, based on
the 66 biggest OTT services, compared to the number of traditional
pay TV subscribers (not including online TV bundles)
Streaming Rules
The Convergence report estimates that this year, the pay TV industry will have 5% less subscribers. - This is one percent more than the 2018 figure of 4%, when approximately 4.01 million Americans gave their TV service subscription the boot. Moreover, this year: “based on the top 66 online video services, the number of streaming subscribers will actually surpass the number of traditional pay TV subscribers (households can subscriber to both)” [1]. It is also predicted that this year, US online video services are likely to bring in a total of $22 billion - a sizeable step up from the 2018 figure of $16.3 billion [1].
OTT revenue estimate based on the top
66 OTT services
Conversions to Skinny Bundles
Convergence also predicts that
endeavours to transform cord cutters into skinny bundle subscribers
will not pay off for the industry. The report also outlines the point
that: “With ARPU (average revenue per user) at half the traditional
TV average, lacklustre margins, programming gaps and technical
issues; live multichannel OTT provides little counter to category
killers Netflix & Amazon that sell at lower price points and
essentially without advertising” [1]. The report's authors also
think that: “a number of OTT players, including large and niche,
will fail due to insufficient subscriber traction, cost, and
competition” [1].
Silver Lining
In the case of Comcast, AT&T, and
other of the same ilk: the continuing escalation in video services
also boosts more broadband take-up. In fact, last year's income from
internet access moved up 7% to $61.6 billion, and a similar growth
rate is predicted for this year [1].
Convergence summarised the report by
noting that: “As the majority of TV access providers are also
internet providers, there are benefits to facilitating the rise of
OTT. Residential broadband subs first surpassed TV subs in 2017”
[1].
The Global Trend Towards OTT TV
Choice is the name of the game for
consumers, and top OTT TV platforms are causing an unstoppable
revolution. OONA Global Mobile
TV is a case in point, as it is designed to deliver the best free personalized ad-based live linear and VOD entertainment from hundreds of leading
local and international channels to users who are out and about
on-the-go; or just chilling out watching their smart TV at home,
using OONA app casting.
Making an Impact
OONA is currently set up to serve 185 million Indonesians, and is on route to being established in the US, other parts of Asia, 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 and give them loyalty rewards; give telcoms, studios and content holders an unbeatable deal, operate in a transparent way; and empower billions of people with free access to top entertainment, thereby bringing equality to all, and putting a stop to pirate TV.
Being Rewarded With a Virtual Currency
OONA is currently set up to serve 185 million Indonesians, and is on route to being established in the US, other parts of Asia, 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 and give them loyalty rewards; give telcoms, studios and content holders an unbeatable deal, operate in a transparent way; and empower billions of people with free access to top entertainment, thereby bringing equality to all, and putting a stop to pirate TV.
Being Rewarded With a Virtual Currency
OONA users actually get rewarded with a
virtual currency – tcoins, just for watching the content they love,
checking out personalized ads which can save them time and money;
sharing on social media, and interacting with OONAbot, the cool genie
in the app who is there to serve them, and give them the best
possible CX. Naturally, this is garnering a lot of attention from the
industry, particularly as the OONA's AVOD platform is largely funded by ads.
These tcoins can be redeemed for a whole host of things we would all like. - Quality branded goods, discounts, coupons, meals, fun days out, holistic health treatments, free phone minutes, and various telcom products. And even entry to a daily Bid'n Win competition, where users can win the latest smartphones, or even a car or bike!
Options & Flexibility
OONA users are free to add the OONA+ Premium option (which gives them access to an exclusive content library, and special live events), to their standard free service at any time, whether it is for just a day, a week, month or year. Moreover, OONA's ad-based free service can work in excellent unison with another platform such as Disney+ which is extremely well priced, and can deliver a number of favourites only available via that platform. By just having two services like this, navigation and everything else is kept simple, and the cost is super low. - After all, entertainment is meant to be fun, not complex and expensive...
Reference
[1]. Roettgers, Janko (2019). “Cord
Cutting Will Accelerate in 2019, Skinny Bundles Poised to Fail
(Report).” Variety.
https://variety.com/2019/digital/news/2019-cord-cutting-data-1203194387/
Accessed 24 May, 2019.
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