OTT

Home / Posts tagged "OTT"
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