Most Americans can get internet on their TV — but they’re still mostly watching plain old TV

How To Launch An OTT App

Over the top (OTT) television is changing the way people watch video. Whereas television screens were once used almost exclusively for linear TV, today’s viewers use may connected devices, media adaptors and Internet TV apps to consume digital content. The average American, per eMarketer, watches more than 12 hours of OTT content each week. That figure is expected to grow to nearly 19 hours by 2020. From a consumer perspective, this growth shouldn’t come as a surprise. OTT is a convenient medium, one highly immersive and tailored to the viewer’s tastes in terms of content and advertising. Broadcasters and content owners can no longer reach their audiences solely through traditional channels. They need OTT offerings that enable viewers to access their preferred content on any device, anytime. Unfortunately, building a good OTT app can be easier said than done. Throughout the development process, video publishers must navigate a number of key choices that will ultimately make or break their execution. 1. Be Where Your Target Audience Is The always-connected consumer is driving cultural changes in content consumption that impact how companies connect with and engage consumers. Chances are, your audience watches OTT content across a massive number of mobile devices, smart TVs, consoles and media adapters. To be successful, you need one app for each device. The right digital agency can provide a future-proof template solution that allows you to quickly get to market with personalized apps for a variety of digital environments. Once you’re up and running, this technology lets you seamlessly launch new channels across multiple devices, as well as \publish and monetize content with a tailored template. 2. Personalization Is The Key To Engagement A critical ingredient to OTT success is establishing a one-to-one relationship with consumers that turns viewers into enthusiastic “fans,” those more passionate than your average loyal subscriber. By creating a user profile for every viewer, you can deliver personalized recommendations that guide customers through a potentially overwhelming content library. These users return to your properties every day, creating a cycle that allows you to learn more about your customers and deliver highly personalized experiences. This means monetizing your service more effectively and broadly. 3. Each Screen Has Its Own Unique User Environment In OTT, every screen you stream presents the user with a unique viewing experience. For instance, the relatively large size of TV screens creates a much more immersive environment for users, making these devices perfect for long-form content and binge watching. Tablets and smartphone devices allow content providers to take advantage of interactive features not found on the big screen. Mobile devices are also a great place to stream short-form content tailored to the individual user. Each device is likely to have different kinds of people watching. For instance, kids and Millennials watch video almost exclusively on tablets and smartphones. Tailor accordingly. 4. Help Audiences Find Your Content Even if you have quality content and a great user experience, your app won’t be worth much if no one knows it exists. Buy promoted placements on the homepages of OTT platforms like Roku. This gets your app in front of viewers at the precise moment they’re deciding what to watch next. It’s also important to open additional lines of communication beyond the OTT channels. By establishing email contact, you can drive repeat viewership by letting people know when you’ve added new content to the app. 5. The Way To Measure Success Consumers are extremely sophisticated about the quality of the video services they use. With access to more video than ever before on any device, people expect a more personalized service and a flawless viewing experience. If you fail to meet these expectations, viewers won’t return. It’s important to measure how many people are watching your content, how long they’re engaging for, and how smoothly they’re receiving your video feed. If users encounter buffering every time they try to stream your content, they’re not going to stick around. OTT is a fast-moving space where content owners need to remain flexible in order to keep up with the latest innovations and consumer trends.

Binge Viewing is Pervasive, Though Age Plays a Key Role in Frequency

86 Percent of Adult Broadband Users Binge View at Least Occasionally, With 58 Percent of 18-34s Binging Daily

According to new research from The Diffusion Group (TDG),  binge viewing — that is, viewing more than one episode of a TV series back to back — is rapidly becoming universal, with nearly nine-in-ten ABUs binging at least occasionally. But the frequency of binge viewing skews strongly in favor of younger adults.

TDG's new analysis, Binge Viewing - A Consumer Snapshot, identifies and profiles three groups of adult broadband users in terms of their binge viewing habits.

Heavy Bingers (binge daily, comprise 14 percent of ABUs),

Medium Bingers (binge monthly but not daily, comprise 51 percent of ABUs), and

Light/Non-Bingers (21 percent of ABUs that binge less than once a month, 14 percent that do not binge at all).

Importantly, TDG analysts found that the frequency of binging is strongly correlated with the viewer's age. For example, 58 percent of Heavy Bingers are between the ages of 18 and 34, while 56 percent of Light/Non-Bingers are age 45 and older.

"The fact that 31 percent of Heavy Bingers are between the ages of 18 and 34 further illustrates just how different millennial viewing habits are from those of older generations," notes Michael Greeson, President and Principal Analyst at TDG. "For more than a decade, TDG has predicted and observed a structural transformation in what it means to 'watch TV,' with viewing behavior slowly changing from an activity defined by flipping between different live shows on different networks, to one characterized by on-demand binging of individual series."

As these consumers age and younger generations steeped in quantum habits follow behind them, Greeson argues that this behavior will only become more prominent, further impacting programming and distribution strategies.

View TDG's latest analysis of contemporary viewing behavior, Binge Viewing - A Consumer Snapshot for an insight into the different segments of binge viewers — who they are, how they behave, and what drives their decisions and preferences.

Source: TDG Research 

Free trials often end up to Subscription

Nearly one out of three people who try out a video-streaming service during a limited free period end up subscribing, according to new research by Parks Associates. While spending on transactional services has declined, average monthly spending on subscription OTT video has increased, reaching $7.95 per U.S. broadband household in 2016.   Most households build their services around at least one of the top three services, Netflix, Amazon, and Hulu, which also show among the most effective trial conversion rates. "Free OTT trials are effective in converting a sizeable portion of trial users into subscribers," Glenn Hower, Senior Analyst, Parks Associate said. "There is a potential for free trial abuse, but only roughly 1% of consumers are 'serial trialers' who abuse free trials to avoid paying for services. Most consumers use trials for their intended purpose of trying out a service before deciding whether or not to continue as a paid subscriber." According to Parks, more than a fourth of US broadband households tried out at least one online video service in the last six months with a free trial. Of these, 47 percent subscribed to at least one trial service after the free period expired. Source: Parks Associate