Changing viewing habits, local content doubling VOD cake

 

On the latest Connect World Magazine, Michael Rasmussen CEO of Xstream A/S, looks at the state of the VOD market today and gets his crystal ball out to see where it is going. 

In this multi-device, always-connected world, the idea of being chained to a sofa to watch your favourite soap on a television set in the lounge at nine o’clock in the evening has become anathema to many and young audiences in particular. They want to watch a live football match on their mobile in the pub, a concert on a tablet at the beach whenever its suits and they want to avoid paying governments the annual TV licensing fee. 

This viewing habit is not new, it’s just now beginning to spread to other age groups as viewers get more and more fed to the back teeth with endless repeats on traditional broadcasting channels. 

Supply Chain Evolution

Content producers have cut distributers out of the supply chain and established direct links with consumers. This has led to aggressive competition for market share and low customer loyalty making high-end customer acquisition and retention crucial. 

More Market Consolidation Ahead

With over 450 OTT companies servicing the Euro zone, consolidation will become rife over the next 12-24 months. 

Blurring Boundaries

Apart from the pure play OTT providers, the European market consists of broadcasters, Pay TV operators, telecom providers and media houses providing bundled packages combining OTT service with Pay TV services. Content producers and distributors are constantly reinventing themselves to provide a converged platform that can enable consumers to get the content of their choices on their preferred platform. 

Data Driven Personalisation 

The fragmented market structure in Europe is driving OTT service providers to differentiate by adopting data driven personalization using analytics, highly sophisticated segmentation tools and machine learning. 

Content producers becoming distributers

Another trend we see in the industry is content producers becoming distributers. Balaji Telefilms, the largest video entertainment content producer in Bollywood, decided to cut through 3rd party distributors and launch its own brand called ALT Balaji for global markets. On that note, Disney decided not to renew its deal with Netflix and will instead launch its own SVOD service in 2019. 

Read the full story on the Connect World Magazine!

OTT video streaming business models and technologies are evolving at the speed of light… Proliferation of local content, 4K, 8K, 5G, fusion with telcos and MVNOs… Read the full article by Michael Rasmussen on the Connect World magazine (pages 11-12) and learn more… Click here to download – No contact details asked!