5 Key Takeaways from Future of Video Conference
Published on 08/01/2019
Recently, I was invited to be a panel speaker at the inaugural Future of Video: OTT, Pay TV, and Digital Media Conference organized by Parks Associates. The conference centered around video and entertainment companies, who tried to be more relevant to the consumers embracing change has become crucial for their survival. The conference saw the focus towards building strategies that helped the industry in becoming more audience centric in the connected world. Across the keynotes and sessions, the following points appeared in multiple talks and do provide a sense of current prevailing trends.
- The video industry is thriving and is a very exciting place to be. There were some traditional operators in attendance but a lot of OTT (over the top) providers, broadcasters, content creators, advertisers as well as technology providers were also in attendance. I spent a lot of time with traditional operators and sometimes I mapped the very real challenges they are facing in terms of subscriber churn and loss to the state of the industry generally. This conference re-confirmed that video is truly a fast changing, growing, and highly innovative industry and an exciting place to be.
- I have always felt that “OTT” has had many different definitions; from a business model – service delivery “over the top” of an access provider – to a group of technologies supporting this business model – ABR, CDN, DRM etc. The conference introduced yet another variant with OTT meaning content creators/providers whose delivery model use internet / OTT technologies. Large companies such as Netflix, YouTube, and Hulu were in attendance, but there were also a lot of smaller/targeted content providers. There were OTT content providers serving such markets as Japanese Anime, US military, UK gardening shows, eSports and so on. What struck me was the huge variety of content that is now available to consumers.
- There is clearly a fundamental change in the business of video services delivery. Consumer expectations are very high – they expect quality, convenience, and value. They want the convenience of content they want, when they want it and where they want it. Content on the go is the way to go. The International Media Streaming Mobile Survey of participants in 10 different countries Brazil, Mexico, Colombia, Argentina, Spain, UK, Germany, France, the Netherlands, cited that video streaming on the mobile is fast becoming a reality across the globe. It stated that 48% of the participants were streaming content daily. For the operators to truly be a part of their consumers daily lives, they must develop capabilities to stream their offering seamlessly on any mobile and across other devices.
- Business models are changing also. Digital enabled business models are increasingly the focus. Customer acquisition is via Google Ads, App Store Promotions and Facebook. There is a focus on brand identity and community building to create a feeling of belonging to something. On ramp is via free trials, credit card payments – frictionless/automatic/immediate service access. Funding models include subscription and ad funded as well as hybrid models. There is a strong focus on consumer and on offering the consumer a high value package – the content they want, in the form they want at a price that represents high value.
- The customer lifecycle management is a virtuous circle based around data. If you offer the customer what they want, they see value in the service and will use it. If you monitor the customer use of the service, then you can derive patterns and offer improved search and recommendation results to the customer – meaning the service has even more value and they use it more. For an operator the better they understand their consumers the better they can adjust services to offer those consumers even better value – better content, easier access, better bundling/packaging etc. For the eco system the more confidence advertisers and content owners have that they are reaching target audiences then the high the value they see in the distributor. And as we step around the virtuous circle – everyone wins.
Changing the video offer and video delivery capabilities requires us to being prepared for new business models, delivery methods, and video offers at a large scale. There are big changes afoot for the next five years, and this represents very stormy waters for those who are slow to change but offers huge opportunity to those who can take full advantage.
VP Product Management
VP Product Management