Published October 13th, 2017
According to a study from Digital TV Research, online TV episode and movie revenues for the leading 138 countries are going to hit $83 billion in 2022, which is more than twice of the $37 billion recorded in 2016.
The new Global OTT TV & Video Forecasts report also suggests that Over the Top (OTT) revenues will exceed $1 billion in 14 countries by 2022, twice that at the end of 2017.Two-thirds of global revenues will go to the top 5 nations. $9 billion will be added in 2017 alone.
US will continue to be the leading territory for online TV and video revenues by some margin. US share of the global market is set to fall from 51% in 2016 to 40% in 2022. China will add a further $7.6 billion, with its total revenues hitting $12 billion in 2022.
According to the report, Subscription Video on Demand (SVOD) became the largest source of OTT revenue in 2013. Half of OTT revenues by 2022 are estimated to be generated by 2022. $24 billion in revenues will be added between 2016 and 2022.
AVOD revenues are up by $17 billion and its revenues will amount to $29 billion by 2022, up from $12 billion in 2016.
Revenues and SVOD subscribers to increase two-fold by 2022
Speaking at the Nordic TV Summit in Copenhagen, September 28th, Simon Murray, principal analyst at Digital TV Research, also showcased how the number of subscription video on demand (SVOD) services is expected to reach 546 million by 2022. In other words – expected to double the 263 million by end of 2016. It covers 621 platforms in 138 countries which means SVoD revenues are expected to get to twice the number in the period hitting $US 41 billion in 2022 as opposed to 17 billion in 2016.
Subscriptions in the Asia Pacific region are all set to overtake North America from next year. Asia Pacific will account for 43% of global SVOD subscribers by 2022. North America will provide 31%, up from 35% in 2016 respectively.
Netflix’s global dominance overall is decreasing to one fourth by 2022, from a third last year. 28 million subs are being added between 2017 and 2022. Netflix’s global SVoD revenue share will fall to 40% by 2022 from 45% in 2017.
Source: Digital TV Research (www.digitaltvresearch.com)
May 06, 2020
By Ramon Duivenvoorden, Chief Commercial Officer at 24i
The key to producing consumer products cost-effectively is mass-customization. We’ve certainly come a long way since you could have a Ford in any colour as long as it’s black, but a modern car manufacturer will not give you a huge number of product variables – yes, you can choose a colour other than black, and you’ll be able to buy a sports pack, or upgrade the in-car entertainment system, but the car OEM will probably decide whether the model you want has a spoiler!
In many ways, software development has followed a similar path – the developer has decided what the solution set should be for a given problem, built a product around that solution set and allowed some level of customization around that.
Over time, additional features are required that go beyond the level of customization allowed in the original product specification. Pretty quickly under this development paradigm, the client has a system that’s no longer based on a solid code-base, so it cannot benefit from roadmap upgrades, shared innovation and maintenance. At the same time, they also have a system that lacks the benefits of custom development such as full control over code and feature set.
This is how media entertainment apps have traditionally been developed, and we think it’s broken. Fortunately, there’s another way.
Over the last 2 or 3 years, we’ve striven to base 24i product development on what we call Customer Centric principles.
As you might guess the overarching philosophy is to put the customer first, but in reality, what does this actually mean?
We’ve boiled this down to a number of principles that we adhere to in how we think about s/w development and build products, as follows:
So, how does this work in practice? As an example, one of our clients wanted to move from a profit to a non-profit model. The consumers using their app could move from a subscription model to a ‘single charitable donation for life’ model. There are complex rules that have to be adhered to when you’re accepting charitable donations – if this customer had been with a traditional developer, the switch would have needed a lot of new code, too much time and money, and potentially compromise the architectural integrity of the application. This is assuming they did not select an out-of-the-box vendor that would simply decline the request for the new flows.
Because our app was built on micro-services, with a minimum of dependency between the services, we were able to replace the components that needed to change and make the switch in weeks. More importantly, we enabled this change without a branch in the client’s code, so that moving forward they continue to gain from future 24i product roadmap developments.
I believe that sooner or later virtually every client has specific needs that are critical for their business. Yet, at the same time, most requirements are common between all streaming media businesses. Our Customer Centric approach based upon micro-services means that we can deliver scale, innovation and stability on these common needs, while offering the freedom to break free for that custom 5% that enables our customers to set themselves apart from the competition or fulfill unique business needs.
We know that customer-centric development based upon micro-services is the way to go – but it’s not necessarily obvious to potential customers how great an advantage this is, until they need to make a key pivot in business model, or another customized change is the one that breaks this particular camel’s back. Which is why I’m writing this blog!
If you would like to know more about our approach to Customer Centric development, please get in touch - and look out for upcoming blogs from 24i CTO Pavel Jacko who will discuss the technical principles in more depth.
Contact us today to find out 24i can help you scale and extend your OTT streaming services
Apr 07, 2020
By Ryan Chanatry, General Manager. Topic
Following today's news on the launch of Topic, a new streaming video service for ‘culture cravers', Ryan Chanatry, General Manager shares his insights on the service, what makes it unique and what he and the team are providing a unique source of entertainment for people at home during what is an extremely challenging time He also shares some great tips for content owners looking to go direct-to-consumer with their own OTT video service.
1.What is Topic and how does it compete against Netflix and other popular video streaming services?
Topic is a new streaming service that launched in the US and Canada on November 21st. We’re a part of First Look Media’s entertainment division, which also includes Topic Studios. We are a curated selection of drama, comedy, discussion, narrative, documentary, and doc-shorts. We’re available on iOS, Apple TV, Roku, Amazon Fire TV, Android, and Amazon Prime Channels. A monthly subscription starts at $5.99 and you can save with a yearly for only $59.99.
We are not aiming to “compete” with other mainstream services but instead are looking to appeal to a particular frame of mind among consumers who are looking for a compliment to their typical entertainment options.
Most of the non-major streaming services program to a particular genre niche (horror, British, etc), but our vision is that Topic will appeal to a frame of mind or specific sensibility instead.
Our programming sits at the intersection of entertaining, provocative, meaningful, elevated, and smart, and we see ourselves as a compliment to the major streaming players and definitely not in direct competition.
We feel that there is room in our audience’s lives for a service they want to actively associate themselves with, that reflects their values, and says something specific to them with its programming.
2. What are your ambitions for the service over the next year or two? Do you intend to extend to new markets?
We have many exciting projects in the works for 2020. We’ve recently premiered French drama Vernon Subtext, Shane Meadow’s incredible drama series, The Virtues (starring Stephen Graham), as well as episodes of our discussion shows Rough Draft with Reza Aslan, What’s Your Ailment?! with Maria Bamford, and coming on April 30th, Soul City, a three-part Topic Original set in New Orleans.
In addition to many more drama and comedy series premieres, we’ll be releasing narrative and documentary films throughout the year, highlighting engaging and critically acclaimed films from around the world, as well as lesser known titles that might not have had a previous presence on streaming services.
Beyond that, we aim to super serve our intended audience by providing them with a curated selection of programming that appeals to their desire to experience stories and creators that aren’t represented significantly within mainstream North American entertainment choices. We also look to provide a distribution option for series and narrative & documentary film that deserves to be seen without having to attend festivals or awards shows.
If there’s a demand for Topic in markets outside the US and Canada, we’re certainly open to exploring that in the future!
3. How does working with 24i help you meet your mission to push the art of storytelling to new heights?
24i enables us to present Topic consistently across all of the major app platforms in a compelling and simple way. They allow us to focus on our programming and marketing, while knowing that our product experience is in solid hands. Backstage, 24i’s CMS, lets us make adjustments to how titles on Topic are presented in seconds.
Additionally 24i keeps each app up to date and best in class, allowing us to take advantage of new features and bring those quickly to our audience. Their experience working across so many different types of streaming services also benefits the overall product roadmap.
4. There has been a boom of streaming video services over the past few years and competition is fierce. What advice would you give to someone looking to start their own, direct to consumer service?
Zeroing in on the service’s niche is most critical. Audiences will support and make room in their lives for brands and services that speak to them directly and that they wish to identify with. Finding that audience connection is the key first step. From there, creating relationships with many of the established and emerging providers specializing in the streaming video space, such as 24i, enables you to get up and running at a fraction of the cost of a few years ago, while leveraging their scale and technology. Given the competition, one of the biggest challenges is creating awareness for your service among the intended audience. Experimenting with a variety of marketing and press levers is essential to figuring out how to break through the noise and ensure your programming is seen and understood by those who are most likely to subscribe. Testing and iterating across product, programming, and promotion to optimize your funnel can then kick in.
5. Since people started having to stay home because of the COVID-19 virus, demand for streaming services has never been so great. How is Topic managing this increased demand and are you doing anything special for your subscribers hungry for good programming?
We are grateful to be able to provide audiences with a unique source of entertainment during what is an extremely challenging time on so many levels. Working closely with our teams on the 24i side, we’ve increased server capacity to handle the additional subscribers and streaming time that we’re seeing. Additionally, we’re excited to imminently announce a limited series comedy special, that will include some extra special guests, taking place over April/May. It’s bound to lighten up people’s spirits. We have also rearranged our overall programming schedule to launch a few of our high-profile and most binge worth dramas and comedies earlier than initially planned.
We’ve also launched a special 30 day free trial that leads to a 50% annual subscription ($29.99), available here. Read the press release HERE
Contact us today to find out 24i can help you take your content to new heights.
Sep 08, 2020
In the first of our IBC On Location series, Martijn van Horssen, joint-CEO and Co-founder of 24i welcomes us to the RAI and our home city of Amsterdam. While all may be quiet on the ground without this year's show, the high demand for entertainment services, puts the streaming media industry in an enviable position of creating, delivering and supporting the flood of exciting new video services that have come to market since last year's show.
Martijn talks about how the bar has been raised to a new level for service providers to deliver truly competitive, premium video experiences and why this shines new importance on the growth of technical collaboration and innovation across the ecosystem. Martijn shares an update on 24i since joining the Amino family a year ago, and reminds us of the importance of staying positive and having fun, even if we cannot do so together in person this year.