Published January 22nd, 2019
There will be more than 777 million global SVOD subscriptions by 2023, more than double from 2017 according to Ooyala’s new State of the Broadcast Industry 2019 report, which also found that the momentum only stands to increase.
The report – which draws on Ooyala’s own data and analysis as well as research conducted by other organizations – also underscores that viewers of all ages are increasingly adopting streaming services as their primary source of TV content. While Boomers and the Silent Generation (those born before World War II) remain the lifeblood of traditional broadcasters, they too are increasingly adopting over-the-top (OTT) and video on demand (VOD) platforms.
2018 was a year of significant change in the broadcast industry. There was a surge in M&A activity, an increase in the amount of time consumers spent with SVOD and AVOD content and a significant decline in pay-TV subscribers in North America as viewers changed how they watch TV… OTT jumped into the mainstream. There’s even more change in the cards for 2019.
Among US adults 50-64, OTT viewing increased 45% between 2016 and 2017; among US adults 65+, viewing was up 36%.
The report also postulated that mobile platforms will be a significant factor in OTT consumption in the future, given that estimates say video could make up as much as 90% of all 5G traffic.
“For OTT, that means faster and smoother delivery of video, no buffering, higher resolution, and a better, more engaging experience for users; for AVOD companies specifically, it will foster the collection of better, deeper data that could be used to better personalize advertising,” said the report.
The lesson for traditional broadcasters, the report noted, is to adopt the mindset of a diversified media company – as more programmers and distributors are joining, rather than fighting, the push into OTT.
“Subscription and ad-supported OTT services are steadily replacing traditional content delivery, and there’s no end to the opportunity to create connections with a global audience,” said Ooyala principal analyst Jim O’Neill. “OTT is not traditional TV. It thrives upon consumer choice, often random interaction, and the convenience of viewing when, where and on what device a consumer chooses. It thrives upon its own ability to iterate in order to respond to the changing conditions of the new TV environment.”
Meanwhile, as mobile viewing soars, it turns out that screen size still matters to the majority of consumers. A full 40% of US consumers who replaced a TV between October 2016 and October 2018 said they wanted to purchase a bigger screen, per The NPD Group. And consumers are going all-in on 4K UHD, driven largely by SVOD services, like Netflix, and the promise of 4K and UHD content from major sporting events, like the Winter Olympics and the FIFA World Cup.
“Content owners have seen a massive increase in the demand for their products,” continued O’Neill. “That will continue as OTT services push out across the globe and original content maintains — and grows — its value. It’s becoming increasingly important for media companies – both big and small – to closely monitor and control the content supply chain.”
New OTT Services Aren’t Saturating the Market, they ARE the Market
Is the influx of new OTT services creating saturation in the market? Not by a long shot. While there’s likely a limit as to how many SVOD services users really are ready to pay for, that upper limit hasn’t yet been reached. And, as we see more channels become available a la carte, that limit may continue to rise, especially as younger consumers — who see streaming as the norm — grow older.
Ooyala State of the Industry 2019 report
Source: Rapid TV News
A new OTT report from Parks Associates predicts OTT services will accelerate their global expansion over the next five years, with more than 310 million connected households having
at least one OTT service by 2024. OTT Video Services: Disruptive Globalization estimates approximately 200 million households had at least one OTT service at home at the end of 2018.
"The U.S. leads in adoption of subscription OTT services, but other regions are experiencing significant growth as new services expand across borders," said Brett Sappington, Senior Research Director, Parks Associates. "Content producers and OTT service providers want to capture audiences, and revenues, worldwide. As a result, Western Europe and other global markets will experience more rapid subscriber growth than North America over the next few years.”
“The US leads in adoption of subscription OTT services, but other regions are experiencing significant growth as new services expand across borders,” said Brett Sappington, senior research director, Parks Associates . “Content producers and OTT service providers want to capture audiences, and revenues, worldwide. As a result, Western Europe and other global markets will experience more rapid subscriber growth than North America over the next few years.”
The report also found that device preferences vary significantly from country to country. While US households prefer smart TVs or streaming-media devices, Canadians more often use game consoles than the Americans, and in Asia, smartphones and mobile-only devices are most prevalent.
“Ultimately, the success or failure of a service relies on the quality of its content library, but small variations in pricing and user experience can cause significant adoption differences across countries,” Sappington said.
“For example, HBO has tested its OTT service with pricing tailored to specific regions, with variances from Spain to the Nordic countries to the US. This level of experimentation will continue in the near term as service providers and content creators continue to test and tweak to find
the right formula for pricing, content and service quality for each region.”
Jul 25, 2017
More Americans are using more devices, regardless of age. Which age group is most keen on what varies and could have a profound effect on the future of devices.
In general, smartphones are the most pervasive technology measured among all age groups, according to new data from measurement company Nielsen, which tracks American households that have TVs.
Seventy-three percent of people aged 2 to 20, known as Generation Z, have video game consoles, 7 percentage points more than the next-most-likely gamers, millennials. Generation Z is also fondest of tablets, with 78 percent having one in their homes. But as Gen Z is still so young, it’s possible they’ll lessen their video game and tablet habits as they grow up. People between 2 and 20 account for 26 percent of Americans and is the most racially diverse age group.
Millennials (age 21-37) are the most likely to have access to video-on-demand services like Netflix. Relatedly, they’re most likely to own multimedia devices — technology like Chromecast or Apple TV that streams online content onto TVs.
PCs are most popular among Generation X (age 38-52), 85 percent of whom have one in their homes.
The only device measured that saw substantial declines among all age groups was, unsurprisingly, DVD players. Still, DVD players are available in 62 percent (millennials) to 81 percent (boomers, age 53-70) of households.
Smart TVs and multimedia devices are the least pervasive gadgets among all age groups, but they’re still relatively new. They also have very high growth rates (24 percent to 31 percent year over year).
Sep 11, 2018
Televisions are often the big center piece of a living room. Chairs are faced towards the device, usually a table for drinks in front of it, and nice speakers attached for the best home-cinema experience. Which means it would be a shame if you are not present on the big screen. How can you compete with the likes of Netflix, HBO GO and Amazon Prime Video, when it comes to bringing video into the living room -- if you don’t actually have a SmartTV app?
May 03, 2017