Published November 14th, 2017
It may be no surprise to see Netflix, Amazon and Hulu maintain their position as the top guns in the US over-the-top (OTT) market, but research from Parks Associates has revealed that bubbling under the crucial three are now a number of interesting players.
Based on subscriber numbers, the researcher found that the top ten comprised Netflix, Amazon Video (Amazon Prime), Hulu (SVOD), MLB.TV, HBO Now, Starz, YouTube Red, Showtime, CBS All Access and Sling TV. Of most note is the velocity that the skinny bundles have gained in a short space of time. In addition, the HBO Now service has made particular progress.
Parks also noted that YouTube Red entered the top ten list during the past year, and the OTT services for premium channels Showtime and Starz moved up or entered the list. Skinny service Sling TV has maintained its strong growth from 2016, and MLB and WWE continue to lead in sports-related subscription OTT video services, with WWE sitting just outside the top ten.
“While the top three are no surprise, the big story over the past year has been the rapid subscriber growth for OTT video services from HBO, Showtime, and Starz,” said the Subscription Over-The-Top (OTT) Video Services In The US Market report author and Parks Associates senior director of research, Brett Sappington. “The combination of recognised brands and popular original content is driving demand for their offerings. Services such as Sling TV and Crunchyroll are still enjoying strong growth, but other services have simply grown at a faster rate over the past year.”
The research also found that online pay-TV services were also growing quickly, fueled by advertising campaigns across the US. “YouTube TV’s advertising and sponsorship deal with MLB during the recent World Series is just one example of the marketing dollars behind these service offerings,” Sappington added. “While more online pay-TV services could enter the top ten within the next year, those services that comprise the top ten are recognised brands that are aggressively working to expand their subscriber bases. Displacing them will be a difficult task.”
Looking to future trends Parks Associates noted that operators and OTT video services were working together in promotions, OTT service distribution and bundling, integration into the set-top box, zero-rating of video in data services and billing. OTT services were also partnering with each other for distribution and bundling, service promotion, improved brand awareness and content licensing.
“Consumers have a variety of choices and are increasingly self-aggregating multiple OTT video services,” the analyst concluded. “As a result, partnerships within the OTT space are becoming more common, as operators, content owners, and OTT service providers all look to gain an edge in attracting subscribers and generating buzz for their offerings.”
Source: Rapid TV News
Over-the-top video services have overtaken TV set-top boxes as the primary place where consumers watch their favorite shows, according to the 2017 ”Conquering Content” study from Hub Entertainment Research.
Jul 25, 2017
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
Apr 04, 2017