Published March 25th, 2019
For the first time ever, global subscriptions to online video services surpassed cable subscriptions in 2018, according to IHS Markit research cited in the Motion Picture Association of America’s “2018 THEME Report.”
The MPAA report citing IHS Markit data has shown that there were more subscriptions worldwide to online video services (613.3 million) than there were for cable (556 million) in 2018, reflecting a 27 percent jump in streaming over 2017. Cable subscriptions dropped two percent in that period. IP-based TV overtook satellite, too, indicating a larger overall shift to the digital realm.
The annual report covers both the home and theatrical entertainment markets (THEME stands for “Theatrical and Home Entertainment Market Environment”).The data in the report also indicated that people were spending more on digital video at home than trips to the theater. While theatrical spending did grow ever so slightly in 2018 to $41.1 billion, people around the world spent a total of $42.6 billion on streaming, downloads and video-on-demand. Discs, meanwhile, declined to $13.1 billion — just over half of what it was back in 2014. Spending on physical media is down 48% since 2014, while digital spending has increased by 170% in the same period, according to IHS Markit and Digital Entertainment Group research cited in the report.
Cable and satellite are still larger than streaming when combined. More importantly, cable and satellite are still the most lucrative in terms of sheer revenue, if not necessarily profit. Cable’s influx of cash grew $6.2 billion in 2018 to reach $118 billion, suggesting that those people who did stick with cable were paying more than ever. The MPAA added that most of those who were subscribing to internet services also had conventional TV, suggesting that the number of cord cutters isn’t as large as you might think.
These are nonetheless major milestones for internet video. It’s now the most popular individual TV format in terms of sheer subscriptions, and companies wanting the widest possible reach might have to pay attention.
24i Media has been helping global brands design, create and launch innovative video streaming apps across all devices and platforms since 2009. If you need some help to create or update your online video service, we’d be happy to discuss how we can help you launch video streaming apps people love to use. Contact us today to learn more.
Join us for a fun networking event where you'll get to meet with industry professionals from across the world in a relaxed environment with drinks and snacks in one of the finest penthouse suites in Vegas.
The event kicks off at 5pm on Sunday, April 7th in the Penthouse Suite at Nobu Hotel. Don’t miss out. Tickets are limited! So hurry up and RSVP to reserve your ticket today!
Date: Sunday, April 7th 2019
Where: Penthouse suite, Nobu Hotel at Ceasars Palace Las Vegas
When: 5PM – 8PM
We are looking forward to seeing you there!
The NAB kick off party is brought to you by:
Jul 01, 2020
There is much debate around the future of
TV, from both a production and consumption perspective. One thing is clear,
however, that while we mostly take the User Interface of our TV and video
services for granted, it is often a key deciding factor when the time comes to
renew our subscription(s).
In a recent interview published for International Women's Day, hosted by Women in Streaming Media, Peggy Dau, Founder & Managing Partner, MAD Perspectives, and Yujin Joung, UI Designer at 24i, discuss the often hidden importance of UI design for TV and streaming services. The lively and informative discussion covers:
1: UI/UX is gaining a lot of attention with the increased number of OTT services. Why is UI/UX important to pay-TV and OTT Providers?
As we already know, today the market is very competitive and fast-growing. Service providers need to build their own clear strategy for UI/UX in order to retain their customers. We can help them by creating distinguished features that users love to have. We look at the market trends and see if they are relevant to our clients based on their users and their own content. For example, let’s look at autoplay. This is when the video service automatically starts playing the next episode when you are watching a TV series. There is no need to manually select the next episode. If all services don’t have this same feature, subscribers will get annoyed by the services that don’t have it. This is a good example where the UI/UX anticipates the user’s needs. This small feature improves the general perception of the product.
Why has the UI/UX design with rows of images become the "standard"
for video services?
I think the rows of images started from the experience at the movie theatre when you see posters next to each other on the wall. We wanted to provide a similar experience which was the start of a trend that has become the standard.
We are more attracted to visual images than text. Images are easy to consume because they require less cognitive effort. Big images are more eye-catching than long boring texts. I believe the same to be true for video services. TV is a visual platform, not made for reading text. Instead, TV is mostly made for consuming media. Therefore, we need to make an easier and more usable product for the content.
3: What's new in UI/UX design?
There is a lot of focus on personalizing
the user experience. Artificial Intelligence helps to understand your profile
and what you like to watch. You see relevant content directly from the
homepage, instead of using the menu to find what you’re looking for. The
content comes to you, instead of you going to the content. The product can
understand how you use it, and adapts its interface.
One of my colleagues gave me an amazing example of this. He has a video app and uses the same channel every Monday. This app collects the data about what and when he watches. The app now shows the same channel every Monday for him. That’s really impressive. Just imagine how this will evolve in the future.
Why is UI/UX important to consumers?
I think I can explain this with my personal experience. Recently I wanted to get more fit and I was looking for a fitness app which allows me to choose any kind of gym. So, I decided to download a few of them and just compare which one I want to use.
In one app, it was hard to understand what’s what; in general, it was just too difficult to use. I tried to use the map function which would allow me to see the nearest gym, but the result was just a chaos of data and images. Also, the look and feel of the app felt old, which made me wonder if the information provided by the app would be trustworthy. The content of an app is very important, but how we present it is also crucial. UI/UX helps consumers to experience the app in the best possible way. This is why UI/UX is important.
5: What's important as we move ahead?
Users all behave differently and experience
products in their own way. We need to keep looking for new solutions and
technologies to improve the experience.
There must be a "wow" experience when they start to use the product. We need to make the user instantly fall in love with the services we create. Beautiful graphic design, playful animations, and easy interaction are examples of ways to impress the users.
May 15, 2020
It is no surprise that video streaming services are experiencing exceptional growth while lockdowns around the world keep people at home where they want to be entertained. Netflix added 16 million new accounts in the first three months of the year and niche video services such as BroadwayHD, Topic and Pure Flix, have also seen a significant increase in streams and subscriptions.
In the first of our own video series In
Conversation… , Martijn van Horssen, CEO and co-founder of 24i shares insights on
why some media companies are doing better than others during the Corona crisis,
- The 'Watch Party' effect and other smart marketing tactics
- The AVOD challenge and SVOD opportunity
- Scaling services for peak demand and growth and
- How 24i is supporting customers and employees during this testing time.
Hosted by Craig Kierce and produced from home, we hope you enjoy watching this honest and open interview and we look forward to bringing you the next episode of In Conversation soon.
Apr 06, 2020
In just a few weeks, all our lives have needed to adapt to a new way of working - in the broadest sense of the word. The focus of our work has had to shift several times already and is sure to change again as the needs of our customers and their subscribers change.
We are all adapting to working at home, each having our own very individual environments and complications. From finding space for additional TVs for development and testing, to combining conference calls with home schooling, or even simply adjusting our situation after the workday ends. We need to work on staying connected with each other while practicing social distancing and, most of all, we must stay safe.
These circumstances can bring out the 'Darwinian' in all of us. Since founding 24i over 10 years ago, our team has always used shifts in consumer behaviour to accelerate, adapt and innovate. Little did we know that change would take on such a dramatically new perspective in 2020.
I could not be more proud of how the entire Amino and 24i family is showing strength and solidarity during this new kind of disruption. Not only are we helping each other to stay connected but also providing extra support to our customers and communities while keeping ourselves and our families safe at home. It is not a surprise, but certainly inspiring, that some of our team have put technology to work to help their local communities tackle the COVID-19 virus where they can. In many countries, there is a problem with a shortage of protective tools, especially in the medical field. In our Brno office, in the Czech Republic, we have a team working together with Industra Lab to 3D print protective face shields for hospital medical staff, dentists and paediatricians. We have already printed over 60 shields and we are looking to find ways to accelerate the process so we can get more into the field.
While we may not be on the frontline fighting this terrible virus, we are doing what we can within our communities and by helping our customers provide streaming video services. Through these efforts, we hope to make the lives of the people now staying home a little bit more comfortable.
Finally, I look forward to when we can meet in person and look back on how this truly testing time has brought us together, made us take greater care of each other, and inspired us to use technology and creativity to innovate for a better future.
Until then, thank you and stay safe.
Martijn van Horssen, Joint-CEO, 24i