Home / ANALYSIS / OTTs tipped to win

OTTs tipped to win

by Digital Studio India Staff on Aug 16, 2017

Research from A.T. Kearney sees OTT platforms and content produced for OTT as the likely winners from a major shake-up in the  broadcast industry.
Research from A.T. Kearney sees OTT platforms and content produced for OTT as the likely winners from a major shake-up in the broadcast industry.

Today, more than half of the world’s population is online, and consumer demand for online capabilities is experiencing a huge spike, forcing companies to keep up with the shift towards digital video distribution.

Companies such as YouTube, Apple, Netflix, and Amazon are constantly updating and forcing traditional networks to merge with other companies and to provide their customers skinny TV offers to keep their prices at par with online providers.

The global study observed that online video supply is growing fast, where demand is not, creating confusion at the customer.

Where 55% of customers are willing to pay and 53% want recommendations from their preferred platform, the report sees a new role developing in the value chain: a Content Navigator provides order for customers, based on a smart, but simple, interface, providing access to all video available.

This ‘disruption’ in the traditional TV ecosystem has been caused by a myriad of reasons. Compared to the ‘old world’ of television, this new ecosystem caters to a larger, global scale audience, allowing easy access for audiences with smart TV and smartphone availability.

Content Navigator platforms will evolve into a business platform that are simplifying and enhancing the video experience for viewers and adding value for all stake holders.

The revenue streams from this model come from ‘multiple sides’: customers pay for subscription fee or one-time payments to watch content provided by the company, advertisers pay to place ads on the service, content producers pay to receive data that will improve their content.

Where cablecos and telcos have the choice between a focus on connectivity only become Content Navigator, Pay-tv operators need to evolve into content navigation.

The report, distinguishes between four Content Navigator business models: pure navigator, premium producer, integrated, and tech navigator.

Each model stems from, amongst others, the level of proprietary content provided, the types and volume of advertisements offered and the amount of digital involvement in their navigator.

Becoming and remaining successful as the industry evolves will become a ‘survival of the fittest’ competition – one that will force companies to excel in several capabilities at the same time: provide compelling content, provide an exceptional customer experience, project a clear brand identity, and remain flexible in their commercial propositions.


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