There is a steady rise in the number of players as well as a continual morphing of offerings in the Over-the-Top (OTT) video market, creating a rapidly-changing competitive landscape.
And it seems to be just early days yet. Consider where we are at today:
- 2,300 TV channels in Russia (most on-line)
- Continuing push by likes of Netflix and Amazon in creating original content
- Netflix continuing their global march (130 countries launched simultaneously 6 Jan 2016)
- Consumer push towards unbundling of services and cord-cutting
- Consumer demand for ubiquitous delivery of video across multiple devices (phone, tablet, PC, TV)
It is crystal-clear that content creators and video service providers will need to continually evolve new strategies to remain relevant (or even visible). Essentially this will involve creating sustainable niches that they can identify, target, and hold against competitors. Critically, they must also turn a profit and/or create shareholder value.
A compelling user experience now extends beyond content and technical video quality to include other fundamentals such as:
- apps and billing systems that just work
- leveraging of social media
- providing a rich experience by perfectly matching offerings with the expectations of the target audience
Even today’s nice-to-haves such as mosaics, analytics, and 360-degree views (e.g. for sports) will quickly become tomorrow’s norm.
Whereas the environment is indeed challenging, OTT service providers have new opportunities such as the ability to sell premium targeted advertising. They have access also to analytics tools to optimize the service offering and gauge audience experience. Content creation costs may in some cases be dramatically reduced through use of new technology which, for example, allows centralised production of sports events without having to roll OB trucks. Compelling cloud-based workflow solutions reduce capital and headcount requirements.
While no-one speaks anymore of solutions being ‘future-proof’ at least by maintaining a high level of expertise one can hope to sense the trajectory of change to facilitate delivery of optimal solutions.