Key OTT (Over-The-Top) Market Trends in 2015

OTT Market Trends

Michael Ritchie Director, Broadcast / Strategic Accounts EMEA

THE WAY WE SEE THE WORLD HAS CHANGED.

How we experience How we socialize How we communicate How we consume

1970s

1980s

1990s

2000s

2015

THERE ARE FIVE KEY TRENDS TO BE AWARE OF NOW.

User Experience

4K Landscape

Millennials

Analytics 2.0

Content Monetization

1

2

3 4 5

TREND ONE:

USER EXPERIENCE

USER EXPERIENCE

Content remains as KING, but UX has a KEY role in the transition toward OTT models in order to attract and engage audiences. Customers want a seamless path to their content. They want: §  Reduced Time-To-Content §  Simplified payment methods §  Simple and accessible time-shifted

viewing The key is to not break the experience!

USER EXPERIENCE

As a result the investment on Experience Design is growing in order to create MORE COMPELLING, MORE IMMERSIVE, and MORE INTUITIVE experiences. Pay TV Operators, Telcos, and Media companies, such as Telstra, Telekom Malaysia, and KPN, are making a shift towards a “User-driven Innovation”, identifying UX as a top priority and as a key differentiator.

TREND TWO: CONTENT MONETIZATION

CONTENT MONETIZATION

Implementation of advanced-advertising placement like Dynamic Ad-Insertion and Targeted Advertising are helping operators to perceive higher revenues. SVOD and TVOD consumption continue to rapidly grow. Evolving partnerships between Content Owners and Pay TV Operators are helping to push the implementation of new cloud solutions to better understand and target audiences.

40.5%

16.1%

27.6%

15.8%

I'd rather see ads directed towards my interest

I'd rather see ads for random products and services

Both

Not sure

CONTENT MONETIZATION

Consumer Interest in Targeted Online Ads

Source: Digital Advertising Alliance/Zogby Analytics

New generations of viewers are willing to share their personal information in exchange for more convenient deals and more seamless experiences. The market is witnessing rapid innovation on how TV is traded, where it now is possible to provide the right ad to the right household, or even to the right individual user, using hyper personalization techniques. This allows a more effective use of Operator and Advertiser existing inventory.

TREND THREE: ANALTYICS 2.0

ANALYTICS 2.0

In the new OTT world, things are going beyond simply tracking user activity. It is a switch from Big Data Collection to Smart Data Contextualization. Search and Discovery capabilities are evolving to match customers’ CONTENT consumption patterns more accurately and Hyper-personalization is adding the CONTEXT relevance to the formula.

Capture all the touch points between a brand and a consumer, regardless of where those occur. And this is important not only for the content that viewers want to watch, but also for the ads that need to match those viewing patterns and need to be based on the viewer context.

Authenticated ad views by device

ANALYTICS 2.0

Source: FreeWheel

7% 7%

22%

64%

Smartphone

Tablet

OTT Device

Desktop/Laptop

TREND FOUR: 4K LANDSCAPE

4K LANDSCAPE

There are three main factors to consider when discussing 4K: Devices, Content, and Services. Currently there is still low penetration of 4K devices from a global perspective, and this is mainly due a low awareness and lack of customer education on what 4K is and its main benefits. Today, APAC is leading in the adoption of 4K and is already preparing for 8K. But there is still some road to go.

4K LANDSCAPE

Meanwhile the market is preparing for the mainstream introduction of 4K devices, and the top OTT Players such as Netflix and Amazon are already leading the way (for now) providing 4K content and services. There are many opportunities for operators looking to provide 4K services including offering premium services/packages (higher ARPU), 4K Ads and Bundles between 4K services and broadband higher speed. 4K Devices, content, and services will soon be mainstream…

Forecast: Global Subscribers of 4K Pay TV Services (Million of Subscribers)

Source: Parks Associates

0

10

20

30

40

50

2013 2014 2015 2016 2017 2018

TREND FIVE: MILLENNIALS

MILLENNIALS

It’s not news that video consumption behavior and patterns for Millennials and newer generations is different, but it is important to understand them and be able to anticipate this unavoidable change. There is a clear migration from a TV centric consumption towards Portable and Mobile Devices. Operators need to attract Cord Cutters and Cord Nevers with services that match their consumption behavior and their lifestyle.

Some operators have started to provide slimmed-down/low-cost TV bundles to young adults who might only be interested in Internet-delivered entertainment. But again, it is not only about the pricing, it is about CONTENT, EXPERIENCE and CONVENIENCE. “BUILD IT, AND THEY WILL COME”

MILLENNIALS

Comparison between Broadcast TV vs. Online Video use

1 in 3 Millennials watch mostly Online Video / No Broadcast TV

Source: New York Times Video Study

WHAT IS PIKSEL’S VIEW ON THESE CHANGES AND RECENT TRENDS?

INTRODUCING THE PIKSEL INNOVATION LAB

WHY INNOVATION? Formed in May 2014, the Piksel Innovation Lab is a small team focused on providing thought leadership, identifying gaps in the market, brainstorming ideas for products, and implementing focused proof-of-concepts to support these points. We work closely with clients to ensure their solutions are aligned with the latest customer insights, to provide them the competitive edge they need.

•  We work with our market intelligence team to identify trends and new developments.

•  We then present this intelligence to clients and the wider market.

•  This enables us to offer regular, in-depth briefings with a general perspective on new developments or focus on specific topics clients want us to investigate and analyze.

MARKET INTELLIGENCE

USING NEW MARKET OPPORTUNITIES…

…TO DRIVE CUSTOMER VALUE

PIKSEL PROOF OF CONCEPTS

PIKSEL MOSAIC

Click this link to watch a video on Piksel Mosaic: http://www.piksel.com/products/#mosaic

PIKSEL MOSAIC In a world already over-saturated with content, you need a smarter way to surface meaningful recommendations to viewers. One that’s cross-platform, tailored to the user, and reassuringly familiar across all devices. Serving up content they want, when they want it. Introducing Piksel Mosaic: a single eco-system that combines all the elements of a digital life into a curated, adaptive micro-service. Serving targeted context-sensitive recommendations that matter most, and collecting richer analytics right across the platform. With an increased understanding about users, companies can deliver tailored content recommendations based on the viewer’s behavior, network, and even what they are doing at that time. All of which reinforces and strengthens the brand for the user. Piksel Mosaic was also the winner of the NewBay Media IBC 2014 Best of Show Award from TVBEurope.

INNOVATIVE PIKSEL SOLUTIONS

DIGITAL SHOWCASE

Click this link to watch a video on Digital Showcase: http://www.piksel.com/solutions/#media_is

DIGITAL SHOWCASE: SOLUTION HIGHLIGHTS •  Designed and built for a broadcast culture

•  Modular, flexible, future-proofed – powered by the Piksel Palette

•  Vendor agnostic - integrates with existing environments so no duplication of services or technologies

•  User experience methodology delivers cutting edge design and interaction matching user preferences and behaviours

•  Second screen interactivity

•  Faster time to market

PIKSEL VOYAGE

•  Scalable cloud-based, SaaS platform

•  Works directly with passengers’ mobile devices, eliminating in flight entertainment installation and maintenance

•  Gathers key data about each passenger that uses the solution where they shop, eat, or plan to do at their destination

•  Provides a host of studio-level movie and TV content, with the addition of magazines, newspapers, books, and other entertainment formats being added

•  Piksel Voyage is DRM protected and provides the highest level of tamperproof, studio-approved security

PIKSEL VOYAGE: SOLUTION HIGHLIGHTS

CUTTING EDGE EXPERIENCE DESIGN

EXPERIENCE DESIGN: WHAT WE BELIEVE IN

Relationships

Mutual trust and respect are fundamental to a successful project

team. We pride ourselves on the long lasting relationships we build and

maintain with our clients.

Communication

We understand world-class solutions are not created in silos. Our project teams

are cross-functional and work closely to maintain a shared understanding and vision.

Process

Projects only run smoothly when everyone is following the beat of the

same drum. We work hard to maintain a consistent rhythm through

the whole project lifecycle.

Intelligent Design

We believe in evolution but only once the overarching vision and framework

is designed. Through research and upfront intelligence we create

experiences that can evolve naturally.

Simplicity

We are always asking the question of how we can make things simpler. Great

design will always get out of the way and in doing so our work becomes invisible to

a user.

Iteration

Everything is a hypothesis until real people are out there using it. We

therefor monitor feedback loops to validate and gain insights that

facilitate continual improvement.

NEXT GENERATION TECHNOLOGY FOR PIKSEL CLIENTS

CHANNEL 4: ALL 4

CHANNEL 4: ALL 4 •  All 4 leverages the cloud to

deliver a new online destination comprised of all of Channel 4’s linear channels, digital content, and services in one place

•  Delivers portal-consistent user experience that creates a unique digital hub for users

•  Initially launched on iOS and browsers and will extend to other digital platforms in the future

•  Also includes analytics to support Channel 4’s targeted advertising strategy

TRANSAVIA ENTERTAINMENT APP

TRANSAVIA ENTERTAINMENT APP •  Low cost air carrier based in the Netherlands •  Allows airline passengers to choose from an

extensive library of content to download to their devices before flying

•  Content is locked until the passenger boards the flight and is automatically deleted from the device once the flight has ended

•  BYOD approach offers greater choice and flexibility to the user

•  Available on iOS, Android, & PC through the airline booking system

•  Captures passenger information creating opportunities for future personalized and contextualized offerings

Apple / Android : SMARTWATCH KEY FEATURES •  Full Set-top box control through a simplified remote experience

•  Voice and keyboard activated search of the full content catalogue including program and movie metadata

•  Make DVR recordings

•  Access to your complete DVR recordings

•  Shortcuts to your favourite channels

•  Android notifications forward to the watch

•  Optimization of key features to enhance battery life

•  Existing APIs are reused for architecture and design efficiency

THANK YOU For more information please email [email protected]

Key OTT (Over-The-Top) Market Trends in 2015

Technology

Transcript of Key OTT (Over-The-Top) Market Trends in 2015