Published April 22nd, 2017
It’s been a while since the last overview of what’s happening in the world of TV technology, so it’s high time for another update. As always, the year kicked off with CES in Las Vegas, where each of the large TV brands (Samsung, LG, Sony, Panasonic, Philips, etc) presented its plans for 2017. Same as last year, the focus in display technology was on HDR, which is becoming the new normal. While in the past LG was the only company known for OLED technology, many others announced OLED screens as well, although most of these will probably be rebranded LG displays. Another trend was a move towards extremely thin screens, with the logic, HDMI ports, offloaded to a separate module which can be hidden discretely. Old non-sensical hypes like 3D TV or curved TVs are going away. In the area of software, there were relatively few changes. There were the usual updates to webOS, Tizen, etc, but no major shifts. The only problematic case appears to be Firefox OS, which runs on some Panasonic TVs, for which the development team inside Mozilla was scrapped. In the console space, Sony is stronger than ever with its PlayStation 4. It has sold a massive 53 million consoles, dwarfing Microsoft’s Xbox One sales, which are roughly half. Meanwhile, both Sony and Microsoft are steadily working on improving the software on their consoles. The next big step will be Microsoft’s introduction of its Project Scorpio Xbox at E3 in June. The big news in the console space was the launch of Nintendo’s new Switch console, which is basically a handheld which can also be docked to a TV. While very interesting, Nintendo has chosen to focus exclusively on gaming for now. Video streaming capabilities are expected to be added later on, but none are present on the device right now. With regards to set-top boxes, Apple appears to finally be working on a 4K and HDR version of its Apple TV. Currently, it’s the only major TV platform which hasn’t got that capability yet. NVIDIA pushed out a new version of its SHIELD TV at CES“>CES, where Amazon“>Amazon announced that it is licensing its Fire TV OS to Smart TV brands, similar to how Roku TV and Android TV work. Amazon also significantly overhauled the user interface of its Fire TV software. Roku is finally deprecating its old legacy SDK in favour of the much more versatile and pretty SceneGraph SDK. Outside of the major players, Caavo announced a set-top box to connect them all, although the price is very high at $400. Meanwhile, the shift in political power in the US has resulted in a new FCC which is unlikely to force any changes to the operator set-top box landscape in the US.
In an annual contest at Coney Island, participants vie to see who can eat the most hot dogs in 10 minutes. It has seemed in recent years that US adults bring a similar spirit to their consumption of media, cramming as much as possible into an average day.
Thanks to multitasking (and our method of accounting for it, explained in a moment), US adults’ average daily time spent with major media will slightly exceed 12 hours this year, according to eMarketer’s latest report, “US Time Spent with Media: eMarketer’s Updated Estimates and Forecast for 2014-2019”.
Jan 22, 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.
Nov 02, 2018
Oct 26, 2018
Ad-funded VOD (AVOD) is outpacing other paid media with spend set to double to $47 billion (€41.2bn) by 2023 worldwide, according to WARC’s latest Global Ad Trends report.
More broadly, both consumer and advertiser investment in OTT platforms is rising: globally, spend is projected to reach $129.3 billion in the next five years.
As a medium, AVOD is still young, though notable examples of Hulu, HBO Now, and Sony’s Crackle, as well as reported interest from Amazon, hint at its future power.
Compared to other paid media in WARC’s International Ad Forecast, AVoD is growing faster. The expected $23.8 billion in brand investment that AVoD will receive this year equates to a 5.2 per cent share of global adspend, but spend has increased year-on-year. As a percentage of total OTT spend (estimated by Digital TV Research at $68.7 billion this year – up 29 per cent from 2017), AVoD will account for 34.7 per cent.
“Consumers’ voracious appetite for video content anywhere, on any device, has been propelled by SVoD services such as Netflix. But it is AVoD platforms which present the opportunity for advertisers to marry rich consumer data with pinpoint targeting during engaging content,” says James McDonald, Data Editor, WARC. “This is why AT&T and Amazon are exploring moves into the AVOD sector next year, with the ultimate aim of taking the lion’s share of a market expected to be worth $47 billion by 2023.”
At the strategic level, consumers’ appetite for cross-device streaming is creating an impact. A full 81 per cent of consumers now say it is important that they can watch TV programmes whenever they want.
The wide array of publisher specs, insufficient lead time required to track down all creative assets and a lack of standardised measurement when buying cross-channel audience-based inventory are cited as major concerns by practitioners.
As a result, OTT is not currently front of mind when building media strategies; just a quarter (26 per cent) of US CMOs regard OTT as either very or extremely important to their plans. This despite evidence showing integrated campaigns are 31 per cent more effective at brand building.
Source: Report: AVOD spend to double in next 5 years