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Top 4 Challenges Faced by OTT Players in India

Top 4 Challenges Faced by OTT Players in India

McKinsey [1]reports that globally about 2.5 billion less-than-25-years-old digital customers spend 315 minutes daily on an average online. Keeping up with the trend, OTT subscribers in India is also witnessing a growing trend. According to a report by Ernst & Young[2], India had 250 million video consumers in 2017, of which 190 million were aged between 15 – 34.

Low-cost smartphones coupled with fall in data tariffs and increased internet speed will continue to drive greater demand for online content across India.  EY estimates that with the evolving OTT service consumption of the Indian audience video consumption can reach 500 million by 2020.

However, these opportunities have also thrown some strategic challenges to the OTT service providers in India. We list below four such challenges that the OTT providers need to address to succeed in the game:

Monetization

Reports [3]predict that the Indian digital advertising market will grow by 30 percent Y-o-Y to ₹120 billion in 2018, of which approximately ₹18 billion will be spent on the video. Despite the growth of online advertising, it comprises only about a fifth of TV advertising.

OTT players are exploring various revenue models – advertising, subscriptions, and freemium to achieve profitability. With the decrease in profitability from 90% to 40% despite the increase in advertising spends, OTT players need to provide a personalized quality viewing experience on a robust technology platform to ensure monetization.

Relevant content

With traditional TV, the audience paid a fixed amount for a choice of 200+ channels across genres, languages, and domains. As the paradigm shifts to ‘pay-for-what-you-watch,’ generating relevant content that will grab the audience attention and continue to get them hooked is a challenge. With the millennial getting into the habit of binge-watching, many often complain that after their favorite shows are over, not much is left to watch.

For OTT players in India, the fact that ‘content is king’ is now truer than ever. Though global players like Netflix are streaming global content, the need for quality regional content drives the viewership and subscriber rate.

Moreover, with a variety of content to choose from, OTT players are challenged to provide a personalized experience to the audience. Services need to improve content discovery and mapping functionalities to suggest content based on the viewer’s preference.

Video quality

For OTT services to rival broadcast television, they need to provide optimal viewing experience to the consumers without jitters or buffers. However, the current broadband infrastructure of India does not allow for that seamless experience everywhere. With the lower than average Internet speed, buffering does cost the OTT players almost a quarter of their audience.

OTT players are collaborating with telcos to bundle their entertainment offerings with 4G services to address this challenge.

Privacy & licensing

Streaming of live TV channels contributes to a bulk of traffic for the Indian OTT players. Live streaming also exposes them to privacy issues. With the growth of broadband, it is becoming increasingly difficult for OTT players to track piracy and illegal streaming.

Moreover, complex IP protocols, royalty definition, character rights, geographical restrictions, and platform diversity are not only impacting their revenue but also exposing them to copyright infringement risks.

OTT players are here to stay and grow in the coming years. Content and user experience will be the key for wider adoption of the service. For monetization the value needs to be shown with respect to viewer numbers for the advertisers.

[1] https://www.forgeahead.io/blogs/the-top-threats-and-opportunities-affecting-ott-today/

[2] https://www.moneycontrol.com/news/trends/entertainment/the-rise-of-ott-players-streaming-platforms-and-the-threat-to-the-box-office-2688531.html 

[3]https://brandequity.economictimes.indiatimes.com/news/digital/digital-advertising-market-to-grow-30-in-2018-report/64014990

10 Web Series You Must Watch

10 Web Series You Must Watch

Thanks to cheap data plans, quality content, and competitive marketing, web series is officially thriving in India. Gone are those days when family members used to flock together to watch a series on television, and missing an episode meant taking updates from others.

Recent surveys also underline the preference for online content. A survey conducted by Chrome Data Analysis & Media[1] unveils that 44% prefers watching exclusive online content. An Ofcom[2] report suggests broadcast TV viewership by 4 – 24-year-olds fell 33% between 2010 and 2016.

A survey by the Diffusion Group (TDG)[3] reveals that SVOD services are more popular among 18-24-year-olds. Though 57% of those surveyed chose traditional pay-tv over SVOD, around 66% 18-24-year-olds and 54% 25-34-year-olds prefer SVOD services.

The disinterest in traditional television among the youth has led to the rise of on-demand services like Amazon, Netflix and Hulu to name a few. The freedom to choose what, when, and where (in which device) to watch for a fraction of the cost of most cable subscriptions is one of the primary reason for the rise of over-the-top (OTT) content providers. The high rate of mobile and wireless broadband penetration also contributes to the rise.

With so many web series across various OTT service providers, choosing a host of ‘must watch’ is difficult. To make the task easier, we list the most popular digital original television shows based on audience demand across India:

1. 13 Reasons Why (Netflix): Produced by July Moon Productions, 13 Reasons Why is an American mystery teen drama web television series. The series revolves around Clay Jensen, a high school student, and his romantic interest Hannah Baker, who commits suicide after a series of traumatic and demoralizing circumstances

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Pic Credit: Netflix

2. House of Cards (Netflix): Based on a novel by Michael Dobbs, House of Cards is an American political thriller. First aired on February 1, 2013, the final season of the web series with six episodes will be released in 2018.

MG_BLOG_10 best web series
Pic Credit: Netflix

3. Inside Edge (Amazon Prime): Based on Mumbai Mavericks, a fictional T20 cricket team, Inside Edge captures the world of cricket and entertainment. First aired on July 10, 2017, the Indian-American web television series follows the twists and turns in the lives of powerful characters.

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Pic Credit: Amazon Prime

4. Bose: Dead/Alive (AltBalaji): Spread over 9 episodes of 20 minutes each, the series is a well-researched story of Netaji Subhas Chandra Bose and his allegedly mysterious death.

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Pic Credit: AltBalaji

5. Pitchers (TVF Play): Launched in 2015, Pitchers features in the IMDB’s Top 250 TV Series List. It traces the lives of four young professionals who quit their jobs to venture out into the wild entrepreneurial world.

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Pic Credit: TVF

6. Baked (ScoopWhoop): Produced by ScoopWhoop Talkies and Pechkas Pictures, Baked is an account of the misadventures of three university flatmates who decide to start a midnight food delivery service.

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Pic Credit: ScoopWhoop

7. Life Sahi Hai (Luv Films): Revolving around four guys, the sitcom explores the hilariously challenging situations they land themselves in every time they deal with their bosses, girlfriends, or each other. Living independently for the first time, they realize that their new-found freedom doesn’t come for free. The first season of the web series aired in 2016, and the second season in 2018.

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Pic Credit: LuvFilms

8. Stranger Things (Netflix): First aired on July 16, 2016 Stranger Things, set in the fictional town of Hawkins, focuses on the investigation into the disappearance of a young boy amid supernatural events.

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Pic Credit: Netflix

9. Sense8 (Netflix): The American web fiction drama traces the story of eight strangers from different parts of the world. These strangers suddenly get linked mentally and emotionally. The series explores subjects like politics, identity, sexuality, gender, and religion.

MG_BLOG_10 best web series
Pic Credit: Netflix

10. Man’s World (Yash Raj Films): A ‘what if’ series, Man’s World traces the journey of a man walking in women’s shoes, in their world. The series, which portrays what if women treat men the way men treat them, is a comedy with an underlying social message.

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Pic Credit:YRF

Sources:

https://www.statista.com/statistics/739033/india-most-in-demand-digital-original-tv-shows/

[1] https://tvnews4u.com/70-watches-web-series-night-study-chrome-data-web-series-consumption/

[2] https://www.ibc.org/consumption/engaging-audiences-the-death-of-linear-television/2660.article

[3] https://www.marketingcharts.com/television/pay-tv-and-cord-cutting-79072

What will 2018 hold for media broadcasters?

What will 2018 hold for media broadcasters?

2018 will see broadcasters streamline their content, technology, and operations for a new segment of customers who consume content on-demand. Driven by the changing content consumption, we foresee media organizations looking at following:

Dawn of the OTT Era

Industry reports reveal that an average Indian consumes 8.5 hours of video content every month on Facebook and YouTube, which accounts for 47 percent and 42 percent of market share. Add the popularity of Over the Top (OTT) platforms like Hotstar, Netflix, Amazon Prime Video, Jio TV, and VOOT to that, and you’d realize that the way Indians consume digital content has changed over the years.

In India, the popularity can be attributed to access to faster and cheaper internet, affordable smartphones, and the wide range of content on offer. With over 460 million internet users, India is the second largest online market[1] whose smartphone penetration rate is expected to reach more than 28 percent by 2018.

While some broadcasters have already launched their platform like Ozee, others will pick this trend in 2018 and look at launching their platforms. Some may also look to optimize and produce their content on commercially successful OTT operators. Broadcasters will be seen investing in tools and technology to prepare their content and distribute it to CDNs.

Solving the Content Conundrum

OTT has changed the way content is created and consumed. As viewers consume content anytime, anywhere, and on any device, the demand for short-form, high quality ‘snackable’ content has been on the rise. Citizen journalism is gaining momentum, with viewers recording events and posting live on social media for the global audience.

Original, consistent, and addictive content is on demand. With players like Apple planning to invest over $1 billion in original content and Facebook spending a chunk of its marketing budget on content, fresh content production depending on current affairs, mood, and preference of the viewers is on the rise.

However, creating fresh consumable content is only one side of the story. To retain subscribers and provide a shared experience across devices, OTT providers also need to recreate the legacy content with proper archiving, metadata and tagging, and digitization. For this, broadcasters will need to dig into their archives to sort, organize, digitize, restore and optimize legacy content to enable easy search, access, and distribution of content across channels.

Embracing Virtualization

Newer digital broadcast avenues like OTT are creating pressure on traditional broadcasters to lower their Broadcast Operations and Engineering (BO&E) budgets. A survey by Devoncroft reveals that more than 40% M&E vendors have products that operate in a virtualized environment. While it is debatable if ‘virtualization’ refers to only IT infrastructure or the entire content supply chain, the fact is – new, small, and medium-sized broadcasters are gradually migrating their infrastructure to cloud-based solutions.

Moving to IP comes with the benefits of using a standardized connectivity and infrastructure to transport videos from locations to the central facilities and on to distribution. Therefore, broadcasters will continue digital transformation keeping content at the center of business to achieve faster time-to-market, scalability, and agility at a lower TCO.

Enhanced User Experience with 4K, HD Formats

A 2016-report by Chrome Data Analytics and Media[2] reveals that 8.34 million households in India have HD televisions, of which 89 percent have DTH HD connection and 11 percent have digital cable HD connection. However, only 9 percent or 91 channels out of 857 permitted private satellite television stations and more than 190 government channels in India are High Definitions (HD).

With the market share of OLEDs, 3D and 4K television increasing every day, viewers often forget to ask – does India have enough 4K and 3D channels? Wikipedia lists only five 4K channels and one 3D channel.

To address the change in viewership, media organizations will continue to upgrade their technical infrastructure to broadcast in HD or beyond (4K). With 2019 General Elections in sight, it is expected that news broadcasters will upgrade their technology, investing in workflows and solutions for presentation and analysis of election results in high definition.

To summarize, 2018 and 2019 will be the year of digital transformation and adoption of technology focusing on improving the viewer experience.

State of OTT (Over the top television) in India

State of OTT (Over the top television) in India

OTT or Over the Top Services has taken the broadcasting industry by storm and given a new dimension to watching content. There is a plethora of video content reaching consumers directly via internet bypassing traditional controllers or distributors.  In US, 57% of Wi-Fi households have OTT devices, Smartphones, most definitely the front runner of them all.1 Based on a recent study done in US measuring 12,500 homes and 150,000 devices, showed that four major OTT streaming services, namely Netflix (40%), YouTube (18%), Hulu (14%) and Amazon Prime Video (7%) account for 80% of viewing time rolling out programs from all across the globe.

OTT in India

OTT Services have climbed the popularity ladder rather quickly and has definitely come in a big way in India giving watchers a whole new experience. With the onset of ‘Digital’ becoming a national phenomenon across the length and breadth of the country, audio-visual content available on OTT platforms has gone viral. With more than 30 OTT providers and approximately 90 million active viewers, the temperature is only expected to rise in the coming times.

The launch of Star India’s Hotstar in 2015 proved to be a turning point in India’s OTT scenario. They were one of the first to have successfully blended world class technology with great content resulting in high viewership. And thereafter, many national and international players like Netflix, Voot, Amazon Prime Video, Viu, etc. followed, leveraging the ever growing popularity in this part of Asian Continent.

Furthermore, hi-speed 4G internet and free data packs with increased bandwidth being offered gave more power to consumers to view on the go. It upped the game forcing providers to aim for cutting edge content and seamless, high definition viewing experience.

Factors affecting OTT market in India

Multiple Players

The OTT market is segregated between original content creators, content aggregators and digital platforms owned by already established Television Broadcasters. For Voot from Viacom 18, where it is fiction and reality shows of TV on one side, they are going equally strong with tailor-made digital series as well. Also, Voot Kids and regional language content are equally big ROI churners. Foreign players like Netflix and Amazon Prime Video are banking high on investments made in acquiring videos and movies from across the globe. According to reports, Netflix has earmarked a whooping amount of $300 million to be invested in India in the coming times.

Cultural Structure

India’s social and cultural structure is an added advantage in this OTT content driven game. Being a multilingual market, it fuels up the demand for variety and compelling content. SUN TV Network has already launched its OTT platform, Sun NXT to facilitate viewers with portable content. But the early bird has been Viu which partnered with Annapurna Studios for Telugu originals Pilla and Pelli Gola with a surprise viewership of approximately 40% of regional language content. Foreign players are also not left behind. Amazon Prime Video are building a strong base of regional content through various licensing deals. Hooq, a joint venture of SingTel, Sony Pictures Television and Warner Bros. strategizes to offer Hollywood movies and famous US TV shows dubbed in regional languages. Increased investments pouring in non-Hindi market is expected to encompass close to 30% of total viewership in the years to come. As Indian language internet consumers surpass English content consumers, language-driven content will play a very important role in OTT players’ growth.

Demography & Infrastructure

With India’s urban market saturating slowly, the need to reach out to a wider audience is obvious to keep the business moving. Government’s initiative to connect the country digitally is just the right thing for OTT owners. Rural sector comprises a major part of India’s population and business experts have a major eye on them. Roll-out of 4G services, better infrastructure have aided in adding more viewership. According to statistics, internet use in rural areas which was 33% of the total internet population in 2013 is fast growing and is expected to reach approximately 55% by 2025 covering a major chunk of viewership. Smartphone users are expected to grow to 520 million by the end of 2020 which clearly means that individual content watching is going to outgrow the rest of the mediums.2

Pitfalls Faced by Platform Owners

  • Internet speed and its quality is the make and break point of OTT market. India, especially, will have to divert a lot of attention and finances to build up better digital infrastructure if it wants to break even in the global market.
  • New players will have to shell out more money to keep the business going. Entry costs are going to inflate. Also they have to keep the budget levels high for acquisitions in absence of library content which old players possess.
  • Technology is going to demand regular high investments in order to match up audience exposure and expectations. Today’s viewers expect seamless, high definition experience irrespective of the medium.
  • Content is the backbone of OTT world and originality and compelling and engrossing content would be the final winner. Repetitive or slackly produced content would be a strict no.
  • Irrelevant advertisements and micro second patience of viewers makes it a major problem where almost 60% revenue of the platform owners is lost in the hands of ad-blockers. Ad-tech company Amagi Media Labs is set to launch its Thunderstorm OTT Ad Insertion service in India, which is already working well in US and UK markets. It inserts ads seamlessly within the content stream and make ad-blockers ineffective. On the individual front, this nuisance can be controlled if advertisers start creating relevant and seamless ads which add some value to the consumers.

Future of OTT

Globally, OTT business is expected to grow from US$36.7 Bn in 2015 to US$158.4 Bn by 2025. 3

A major boom is foreseen in India bringing it closer to US which has always been the top contenders in content driven entertainment market.  Video accounts for India’s 51% data traffic which is set to rise to 75% by 2020. In terms of revenue, the Video-on-demand (VOD) market is anticipated to reach USD 168 million in 2021 from USD 64 million in 2017.4

Going by trends, it’s an exciting and an interesting phase in India, it being the second largest market for smartphones and having the biggest entertainment industry offering an entire ocean of content. But seeing how fickle minded Indian audience is, the onus would be completely on content, how original and diversified it can get. Infrastructure and high quality internet facility would also play a major role in it. Emphasis would be more on interruption free viewing at a lucrative price. It would be interesting to see how these entertainment carriers behave and strategies to be able to capture ever so changing consumer recall value and reach the winning end. 5

Are people still watching movies on cinema screens?

Are people still watching movies on cinema screens?

No matter how many screens we add up, the charm of the cinema screens is still not slowing down. Driven by the growing audience, increased number of screens, and disruptive technology film industry continues to expand the world over.

A recent research by Research and Markets 1 indicates that the global movie and entertainment industry is expected to reach an estimated US $139 billion in 2017 with a CAGR of 4.2% over the next five years.

While as per the estimates by the Motion Picture Association of America (MPAA) total worldwide box office rose merely by 1% in 2016 valued at $38.6 billion in ticket sales. North America (USA & Canada) largely dominate box office accounting to $11.4 billion in ticket sales growing by 2% since 2015 as an individual territory. International markets made up 71% of the global box office in 2016 valuing $27.2 billion, compared with 63% a decade ago 2.

Though bets placed on China’s growth did not meet predictions, yet cinema market is still touted to grow at a staggering 11.6% CAGR from US$6.2 billion in 2016 to US$10.7 billion by 2021 3. Domestic films still command 58.33% of the total box office collection in the country where the release of foreign films meets a restricted number. 2016 saw over 92 foreign films released in China, the highest in country’s history. An average 26 new screens a day were added for the theatre-going audiences in 2016, making it a total of 41,179 movie screens, the most in the world 4.

Still holding the spot for top film producing country, India’s box office market valued at US$1.9 billion in 2016. Overall Indian film industry is projected to grow at CAGR of 7.7% over the next five years. The year 2017 would show higher growth results with the worldwide release of Bahubali 2: The Conclusion (2017) and Dangal’s (2016) release in Asian markets. Dangal has become the highest grossing Indian film ever collecting over US$290 million worldwide. Overseas theatrical release from India witnessed 14% growth year-on-year a reflection of cinema produce and export is being appreciated in the global market. Collections from the theatrical release of Dangal in China alone is close to US$191.03 million 5.

Piracy is one of the biggest threat for filmmakers globally coupled with management of talent. Filmmakers are adopting innovative marketing by premiering of movies on OTT, Pay-TV platforms and incorporating digital storage for content security techniques. Technology along with stories will continue to be the key forces to drive the audience to watch films.

You might also be interested in “[Infographic] Filming For Entertainment: How Big Is The Screening?”

OTT: The Way Ahead

OTT: The Way Ahead

Over-the-top content (OTT) service providers like Hulu, Netflix, and Amazon are showing massive uptake by consumers who want to view content as per their choice of time and platform. According to Juniper Research titled Mobile & Online TV & Video: OTT, IPTV & Connected Markets 2015-2019[1], OTT subscription is forecasted to generate $31.6 billion in revenue by 2019.

As traditional broadcasters face increased competition from OTT service providers, let us take a look at the future of OTT.

New providers in the market

While countries like the United States have already adopted OTT and are on the verge of saturation, developing countries with high mobile penetration and adoption rates of pay-TV and broadband are witnessing increasing popularity of OTT services. A  Digital TV Europe Research[2] estimates that developing countries like Eastern Europe, Middle East & Africa will see greater growth in revenues and that of Latin America will nearly triple from 2015.

Driven by rising mobile data usage, mobile is becoming an important medium to deliver OTT service in East European countries, Middle East & Africa. Pay-TV providers, mobile operators, broadcasters and media companies are expanding their OTT services in these regions either by launching their OTT services or partnering with regional OTT players. For example, UAE-based mobile operator Etlisat has introduced eLife ON, Saudi Arabian Mobily has mView, Times Media Group has an OTT service called VIDI in South Africa, and Pay-TV operator OSN has launched GO across MENA.

SVOD is catching up

Viewers are increasingly opting for OTT services like Hulu, Netflix, and Amazon Video, which gives them the freedom to choose the content they want to consume across different platforms. Millennials are adopting subscription video-on-demand (SVOD) services faster than their older counterparts. A report from BI Intelligence highlights younger viewers watch four times as much video content online than aged viewers. The popularity of SVOD services like YouTube, Sling TV, and PlayStation Vue further underlines this fact.

For SVOD services, usability is the key. Companies need to innovate to leverage OTT and SVOD services to reach out to more viewers. For example, YouTube has launched offline viewing for consumers to download videos and watch it at their convenience – even when there is no mobile connectivity.

With the first screen of the millennials being the mobile screen, digitization provides a huge opportunity for SVOD providers to grow their business. Content creators and marketers can reap the benefits from SVOD adoption. Content creators can profit from the surge in the short-form video, while marketers can capitalize on advanced product placements.

More connected TVs

Thanks to connected TVs, which include streaming devices like Apple TV, gaming consoles, Web-enabled TV sets, and TVs connected to the Internet by laptops in the group, monetization is also growing. According to FreeWheel, an ad-serving company whose clients include major video providers such as AOL, Crackle, Fox, NBCUniversal, Viacom, and Vevo, more than one-third of monetization was led by OTT devices. An eMarketer report[3] estimates that by 2018, 191.4 million or 58.2 percent of the U.S. population will use a connected TV device to access the Internet.

Changing fundamentals of content creation

OTT has unlocked transformational changes in how the content is created and consumed. The availability of unlimited content space has given more freedom to experiment and has provided audiences for all kinds of content. Although most are amateurs, some are earning millions of dollars, while contributing to the depth and breadth of content available to consumers.

Further, the increase of mobile and streaming access has enhanced consumers’ ability to choose what they watch and where and when they watch it. With the rise in mobile use, the demand for short-form, high-quality content, also called ‘snackable content’ has also witnessed a massive growth. Consumers are turning to live, user-generated video and “citizen journalists” for news related to developing events or stories. For example, The Young Turks, which offers short-form news videos on relevant topics around the world every day has become a key news destination for millennials.

The launch of Facebook Live in April 2016, which makes it easier “to create, share, and discover live videos” further highlights the changing fundamentals of content creation. Content creators are also focusing on introducing contextual parameters for content discovery. Factors like mood and current affairs are being taken into account apart from their viewing preference while making a content recommendation to the viewers.

To ensure successful adoption of OTT, service providers must address three critical challenges – aggregation, subscription churn, and transparency. As consumers look to fulfill the 3Ws – watch what they want, when they want to, and where they want – OTT providers not only need to manage content but also create new content and recreate legacy content to retain subscribers. Proper archiving, digitization and tagging of content will help in aggregation while generating content across various formats will provide shared experience across devices and help in customer retention.

[1] https://www.juniperresearch.com/press/press-releases/ott-tv-market-to-increase-fourfold-reaching-32bn

[2] https://www.digitaltvresearch.com/ugc/Global%20OTT%202016%20TOC_toc_149.pdf

[3] http://digiday.com/platforms/ott-video-going-5-charts/

6 Key Broadcast Industry Trends to Watch Out for in 2017

6 Key Broadcast Industry Trends to Watch Out for in 2017

With seemingly disparate events like mobile operators providing seamless unlimited data access to its consumers, entertainment shifting from television to video on demand, and web series gaining popularity over traditional content – 2016 witnessed some major shifts in the broadcast and media industry.

A sudden increase in the popularity of streaming services like Amazon Prime and Netflix and the younger generation’s was observed, leading to movement of TV audience to digital platform.

Let’s take a look at the key trends to watch out for in 2017 that would aid this lateral shift.

  1. Big Data Analytics for Viewer Insights

Big data analytics will help broadcasters analyze viewer preference and develop content accordingly. By accessing the large amount of data sets already in store, organizations can perform behavioral analytics of the views to understand the nature of content consumption and deliver accordingly.

Organizations will increasingly use big data analytics to build 360-degree audience profiles based on geographic, demographic, economic and psychographic attributes to understand various touch points and have better insights, thereby improving the entertainment experience for the end user.

Big data analytics will not only help broadcasters develop appropriate content, it will also change the advertising principles in the industry. By measuring ‘binge watching content’ more accurately using data analytics, companies can help advertisers package the right kind of experience to cater to different types of binge viewers.

  1. Virtual Reality Gets Mainstream

The recent announcement of Netflix to bring its programming to the VR realm, the popularity of Waze and PokemonGo are just the start. A report from Manatt Digital Media[1] projects that revenue from augmented reality and virtual reality will reach $150 billion by 2020. Going by the trend, in 2017, virtual or augmented reality will continue to reshape the face of the broadcast industry. By fostering shared moments and creating a shared space where people can share experience, virtual reality will gain momentum.

With programs like Proto-nominee Convrge that allow people to gather and watch YouTube videos together already in place, the broadcast industry will push this idea further to include streaming sites. While some genre of stories like science-fictions and fantasy are more suited for virtual reality that sitcoms and dramas, the industry is set to experiment more with different genres and take virtual reality to a new level.

  1. Increased Adoption of Over-the-top (OTT) Content

Industry reports[2] predict that by 2021, video will account for 70% of the mobile traffic. Forrester[3] forecasts that by 2025, 50% adults under the age of 32 will not pay for TV. Today, if we look around, the prediction seems believable. With viewers increasingly consuming content across devices anytime and anywhere, OTT seems the next big trend in the coming years.

More and more E&M companies are selling their content to streaming services such as Netflix, Amazon, and Hulu. With the streaming services gaining access to new originals as well as libraries of television shows and movies, OTT services are gaining a firmer grasp on the end-user relationship with their advertising free environments.

  1. Create Viewer-centric Content

As the broadcast industry opens up to more delivery options and devices, the packaging and distribution of the content will change significantly. With the viewers empowered to choose the content they want to consume, content curators need to find innovative ways to monetize content that not only attract eyeballs but create repeat viewers.

Creators will continue to move beyond traditional distribution channels and studios to create and retain consumers who are united by shared interests, ideas and experiences. Content creators/ curators will be more receptive of the likes and dislikes of viewers and create and distribute content to suit their needs and preferences, which will create loyal fans that are less likely to churn and have more spending capacity.

  1. Ultra HD/4K Production

2016 saw Netflix leading the 4K streaming with films like Ghostbusters and shows like Breaking Bad and the Blacklist. Amazon has also entered the league with its popular shows like Mad Dogs, Transparent, and Man in the High castle.  However, content selection now is limited with criteria for subscribers to access the content.

In 2017, Netflix and other streaming data broadcasters will continue to film or upgrade their new content in the 4K format. Content curators will create more 4K content and expects TV watchers make the jump to the higher-resolution standard.

  1. Internet of Things Gets Real

The broadcast industry is increasingly opening up to Internet of Things and beginning to see the benefits of connected broadcasting. Imagine your favorite program pausing by itself as your doorbell rings or you leave the room. Or taking cues from the surrounding like lighting and time of the day to choose program automatically based on your mood.

The future of IoT for broadcast industry looks promising. 2017 will see more crowdsourced and real-time content being generated, giving broadcasters more chance to know the audience and improve the viewing experience with more engaging and interactive programs.

Sources:

[1] https://www.fastcompany.com/3052209/tech-forecast/vr-and-augmented-reality-will-soon-be-worth-150-billion-here-are-the-major-pla

[2] http://www.digitaltveurope.net/547432/ericsson-viewing-is-shifting-from-tv-as-mobile-video-soars/

[3] http://blogs.forrester.com/james_mcquivey/15-10-07-by_2025_50_of_adults_under_age_32_will_not_pay_for_tv

The Tube Goes Personal- My Television, My Time, My Way

The Tube Goes Personal- My Television, My Time, My Way

The Tube Goes Personal

It was just another lazy Saturday noon at 41, Manchester lane for the Smiths. Everyone in the family was busy with their routine weekend affairs. Jenny was busy with her preparations for the dinner they were hosting for their family friends and was hoping to get a helping hand from her teenage kids Amber and Alex. She exclaimed looking at her teenage son, Alex “God knows what these kids to up to! They are always hooked to their mobile phones and iPads.”  It was half past seven and Alex was still completely engrossed in his tablet, watching something with rapt attention. Out of sheer curiosity and a bit of anger, Jenny took a peak into Alex’s screen trying to figure what he was glued to.

What Alex shared was a revelation for his mother. He explained how he can catch up on his favorite TV series on his smart phone or a tablet as and when he gets time. The very thought of watching her favorite shows without having to fight for the remote made Jenny smile, and she was super excited to learn that she can enjoy all of her sops simply by downloading an app on her mobile.

A global research suggests that an adult-internet user spends almost 20 hours per week online – consuming media. Interestingly, for the first time ever, Britons will spend around GBP 1.31 billion on video streaming subscriptions and film/TV downloads in 2016, more than on buying and renting DVDs.

My Television, My Way:  Happy Viewers

Television has been constantly reinventing itself and today, it has transformed itself from an idiot box to a smart device offering a personalized experience.  There were times when watching television was a family affair but with growing options, reach and changing preferences, there is a major change in content consumption patterns. While the previous generations fret over missing an episode, the modern viewer is consuming content in a whole new way.

OTT services providers like Netflix, Hulu, Amazon , beIN Connect etc. are now offering subscription based services to consumers on one end and are investing on sourcing content. Netflix has even taken a step forward by entering into production of content.

Cord cutting (the term used for viewers cancelling their television subscription services for alternate content sources) is now catching up with millennials around the world. As a viewer, on-demand TV gives them a choice to watch the content they like anytime, anywhere and on any device.

Getting Heard:  A Marketer’s Delight    

OTT, SVOD, Mobile TV are a fantastic medium for marketers to reach out their audience. Not only does it offer targeted advertising options but it offers meaningful insights for marketers to analyze and optimize their campaigns.  The result is impactful campaigns, reduced media spill and improved ROI.

Feed the Appetite: Content for the Consumers

With this trend shift, the industry is more focused on creating content to cater to the diverse set of viewers. While creating new content is important, re-purposing old content to make it accessible is also equally important. Digitization and management of old content in various formats is necessary for the survival of the heritage. Because, the new generation may not have read the works of Jane Austen, but chances are they would not have missed ‘Emma Approved’, the web-series based on her popular novel Emma.

What Happens in Vegas Comes to the Television near You!

What Happens in Vegas Comes to the Television near You!

Vegas lights up to host the NAB Show 2016. As the industry gears up to catch the latest in the show, we bring you the top four driving forces for broadcasters in 2016.

Your Favorite Content Anytime, Anywhere

How many times have you watched all the seasons of F.R.I.E.N.D.S. till date? Or played those quizzes circulating on Facebook that determines which F.R.I.E.N.D.S. character do you resemble?

In the age of digitization, the eternal wait for when your favorite season would be telecasted on TV is over. Now, content can be accessed at the drop of a hat. Today, digital asset management has made it possible to archive, access, share and distribute content to the viewers on the platform of their choice, anytime and anywhere.

As DAM/ MAM (Digital Asset Management/Media Asset Management) vendors bring the yesteryears closer to you, watch out how they innovate to make content inter-operable between systems and broadcast workflows.

Video Digitization

Headphones plugged in, eyes glued to phone screen – a common sight at any public transport, right? While our older generation complains that we are becoming unsocial, watching videos in free time has become a routine. No time to go for a movie – watch a short film instead!

With digital archiving around the corner, we don’t miss any episode of our favorite programs? Over the top (OTT) technology ensures our favorite program gets recorded while we are busy. Video-on-demand brings entertainment to our living room at our will.

As content producers move from making two hour movies to 20-minutes short films, the industry gears up for the next big change. New innovations around interactive TV technology, cloud based media resource planning and video digitization is something to look out for at the NAB Show 2016.

World of Mobile Apps

From networking on social media to playing games, from ordering grocery to keeping a tab of finances, our daily life is ruled by various apps. Be it making travel plans, getting news across as and when it happens, sharing photos, messaging, playing games, or even measuring our steps and daily calories – apps influence almost all our daily activities.

With drones capturing videos, monitoring crops, and flying quadcopters, mobile app developers are setting new standards every day. The NAB Show 2016 promises to introduce a host of new apps to drive engagement with functionality-rich experiences for the broadcast industry.

Merger of Real and Reel Life

You don’t miss a single movie of your favorite star, read all his interviews, listened to all his shows, and follow him on social media. Wouldn’t it be great if you could meet and click a selfie with him? Or attend one of his live shows?

As reel life spills over real life, consumers are looking at extending their digital experience to real life experience. With 3D, 4D and 7D technology already popular, industry is moving from watching a movie to living it with 4DX technology, where viewers live the experience with environmental effects.

How the industry players continue to innovate to provide immersive cinematic experience to consumers is something to watch out for this year.

If you are headed to the NAB show in Las Vegas and would like to meet our experts, drop a line to marketing@mediaguru.com