Traditional TV & Video
Traditional pay-tv providers continue to transform their business models, implementing strategies to help minimize churn. This includes a focus on offering value-added products and packages to drive loyalty (and profits) from core customers, while also launching slimmer or “skinny” bundles that appeal to the cost-conscious.
Subscription TV revenue of US$94.6bn in 2018 will continue to contract at a -2.9% CAGR to US$81.8bn by 2023, due to a mature market and cord-cutting, largely resulting from SVOD competition (Disney+, HBO, NETFLIX etc.). The United States, however, still remains the world’s biggest pay-tv market by some distance, accounting for 46% of the total global revenue.
An increasingly tailored world (Skinny Bundles) has major implications for every E&M business across every segment. Whether the subject is business and revenue models, emerging technologies or regulation and trust, companies must keep on top of current and future developments, as well as being sufficiently agile and ready to respond proactively and at pace.
One Size does not fit All
The move to personalized, active M&E experiences has profound implications for how companies go about framing and developing offerings. At the same time, it will impose new responsibilities and, occasionally, limitations, on how they market and present their products and services. These new dynamics apply across different platforms, content types and digital and physical experiences—though their ultimate impacts can vary among different geographic markets.
Meeting Consumers where they are
As media and e-commerce experiences become more personal, gratification for consumers is becoming more instant and immediate. In response, content creators and distributors are devising new ways to appeal to consumers as individuals, and marketers are busy figuring out how to meet people at the point of consumption—and guide them instantaneously towards purchase. The result is a rapid expansion of and evolution in consumer touch points.
Importance of Data
As consumers increasingly push to be at the center of their own world of media experiences, it’s unavoidable that their personal data—whether the music they stream or the products they buy—become a central player in the process. In a digitized world, billions of small transactions and activities are captured and tracked as a matter of routine, and every interaction with a customer has the potential to build or damage trust.
Data has become as important as content and platform. We offer you solutions that help you utilize from the insights this data can provide you about your consumers.
OTT Platforms
The United States remains the largest OTT video market globally, accounting for more than half (55.6%) of all OTT revenue in the world in 2018. OTT video revenue in the US reached US$14.5bn in 2018, following a 15.5% year-on-year growth. Although year-on-year growth rates will slow as the market matures, further expansion at a 10.3% CAGR will produce revenue of US$23.7bn in 2023.
Notably, SVOD’s share of total revenue will increase over the forecast period (from 68.7% to 75.2%), as the popularity of streaming services continues to grow. The increase in competition means new entrants will have to work to differentiate themselves from mainstream SVOD players in order to attract subscribers. One way to do this is through content—particularly exclusive and original commissions, which have proven to be the crucial determinant in the battle to attract subscribers to streaming services. The level of content spend being poured into the market by both new and existing players is prodigious and shows no signs of lessening any time soon.
We can provide you with resources to help accelerate in the race to launching your OTT platform. Currently we have resources available for video testing and development.
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An increasingly tailored world has major implications for M&E business across every segment. Whether the subject is business and revenue models, emerging technologies or regulation and trust, companies must keep on top of current and future developments, as well as being sufficiently agile and ready to respond proactively and at pace.
Consumers are growing insatiable appetites for digital content. They want it all, and they would like it delivered yesterday. Lightning-fast download speeds delivering binge-worthy content anytime, anywhere are expected—making fleeting customer loyalty an expansive battleground.
Wireless carrier networks need to be faster, more agile and—above all—studded with next-gen functionality. Momentum is the name of the game to scale in this fast-paced market and the key to access customer wallet share. Technology never sleeps. The achievement of next-generation 4G LTE and 5G networks is the enabler. You need to keep up and generate new revenue streams by defining and executing first-class strategies that drive content-rich—and personalized—experiences. It’s time to own the future and edge ahead.
Wireless data use will continue to grow. Americans are projected to use four times more mobile data by 2021, and by 2025, people will interact with connected devices every 18 seconds.
At ESQOPS our analysis and perspective offer various insights into how M&E companies are adapting, investing and innovating by the increasing need to get personal.