Published July 10th, 2017
There is a high level of activity in the European over-the-top (OTT) / Video-on-Demand (VOD) services market in terms of financial investments, new features, and service launches. The fragmented ecosystem, with over 450+ unique video on demand service providers in the region, is transforming as partnerships between various stakeholders in the value chain increase to capture market share.
About EUR150 million was invested in 2016 in content and technology firms to drive expansion of connected video services. However, intense competition, price sensitivity among consumers, regulatory uncertainty due to Brexit policies, and the digital single market strategy of the European commission, are some of the challenges that could restrain the growth of the market in the near term.
Content personalization and customization strategies are crucial for growth, finds Frost & Sullivan’s Digital Transformation team
“Various events in the media industry in 2016 and early 2017 reflect that the OTT video industry in Europe is undergoing major transformation,” states Frost & Sullivan Digital Transformation Analysts Vidya S Nath and Swetha R K. “Despite being a highly fragmented market, there have been several new launches with innovative features and services.”
“Despite intense competition, a fragmented structure and regulatory pressure, the diversity of the population and changing subscriber preferences ensures that there is still space for everyone,” notes Swetha R K. “Strong content strategy and technological innovation will be the key to differentiation.”
Key factors fuelling growth in the European OTT market include:
• OTT/ VOD services being offered by the entire ecosystem of media companies including, Pay TV providers, broadcast networks, OTT portals, and
social media companies
• Expanding Internet penetration levels and demand for travel-friendly options to watch TV that promote online multimedia consumption;
• Innovation in the form of several advanced value-added features and novel business models;
• Diverse international and local content and attractive bundling offers from TV providers that fuel OTT service adoption among a tech-savvy
• Low penetration in Central and Eastern Europe, where demand for local content is booming; and
• Need for an assortment of service providers for different requirements of an OTT video operator, including compression, streaming, real-time
video analytics, user experience, and payment options.
“While the next 12 months hold a promising market outlook for OTT growth, the key to survival and sustenance of growth will depend on how various service providers are able to drive personalization and customization while differentiating their service value proposition, ” reveals Nath.
Nordic TV Summit – exploring Content personalization and customization strategies
According to the new research from Frost & Sullivan, content personalization and customization strategies are crucial for growth. At the annual Nordic TV Summit in Copenhagen, Sept. 28th, we’ll talk more about the need for content personalization and customization strategies, get insight from industry pioneers, share best practice and much more. Visit www.nordictvsummit.com for more details about this must attend event.
Nov 09, 2017
Mar 13, 2019
Parks Associates research has found that OTT video services have transitioned back into the home's living room, with a majority (52%) of U.S. broadband households now watching online video on a TV that is connected to the internet.
Its report, 360 View: Digital Media and Connected Consumers, also found that watching TV or films at home is the most popular leisure activity among US broadband households, with 55% selecting this among their top two favourite leisure activities.
"While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available," said Billy Nayden, research analyst, Parks Associates. "The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing. As OTT competition becomes a battle for the living room, the challenge for device makers and content producers is finding the correct product mix to maximise both profit and utility."
The report also found that subscriptions are the dominant business model for OTT services. As more services emerge, many stakeholders fear an impending subscription overload in US households.
"As consumers' taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households," Nayden said. "Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback."
Parks Associates also found that 19% of consumers subscribe to either Netflix, Hulu, or Amazon Prime Video and another OTT service, compared to 13% in 2017; and overall, consumers watched 25.7 hours of video per week in 2018, down from 29.5 hours per week in 2016.
Source: Rapid TV News & Parks Associate
Jul 25, 2017