OTT monetization a hot topic at BroadcastAsia 2018
BroadcastAsia has established itself as the destination in APAC for broadcast and entertainment executives looking to get the most out of emerging technologies. By Dimitar Serafimov, Demand Generation Manager, Cleeng
BroadcastAsia happens every summer in Singapore and is already considered as the IBC of Asia in regards to reputation, attendance, and quality of keynotes.
Traditionally, Cleeng covers the biggest events in the world of OTT broadcasting with a short, but concise recap. We feel that our learnings from such conferences are very useful for our clients, prospects, and stakeholders in general. So, let’s keep the tempo.
Here are our main learnings from this year’s event.
1. Local broadcasters and telcos don’t see OTT as a threat
Growing OTT services is an essential goal for most operators in APAC. They see the benefits of OTT complementing the TV experience, and how it gives added value to the core TV proposition. The main directions are creating more personalized, cheaper video bundles or launching OTT services.
Currently, the market is dominated by heavy competition between regional players such as iflix, Viu and Hooq and international players such as Netflix, Amazon and YouTube, plus lots of minor pay-TV providers exploring OTT. The APAC market needs more OTT success stories.
2. The focus is on growing subscribers, instead of big profits
Due to ever-increasing costs of content rights, OTT providers go for more margin-friendly content production strategies to secure subscribers and viewers, rather than investing in labelled content. Some OTT platforms focus on live streams from amateurs and professionals, a strategy with a very low relative cost base.
According to GlobalData, categories like gaming, fashion, and makeup seem to get the most attention from viewers. The new content format has wide appeal among young viewers, while investors are encouraged by the potential for quicker returns compared to traditional OTT video due to relatively lower costs.
3. Hybrid models are the best fit in the current economic context
In terms of revenue models, most OTT providers in APAC opt for a hybrid of live and on-demand content, and/or a hybrid of AVoD and SVoD. The AVOD/SVOD as a dual revenue model is preferred by broadcasters. The reason is simple. There is a higher proportion of viewers who don’t mind ads for TV series, sports, and even movies, as long as it’s free. The term “skinnier packages” is being mentioned often as a way to target this population.
4. OTT services have to incorporate much more than content and payments
In a complex market like this, OTT providers realize it simply isn’t enough to launch and run the business with basic payment methods (such as Visa or PayPal). A systematic approach to marketing, thorough analysis of device usage, payment methods, price points, and partnership management is key to success here. Getting the right mix of technologies, business models and right partnerships is not impossible, and the best have proven that content delivery can be scalable and cost-effective.
5. The new use of data for raising service quality standards
In the OTT world, the amount of data (via the collection of diverse data points) increases exponentially. By studying that data carefully, providers can gain deep insights into viewers’ behaviour and happiness levels. While the GDPR has made things more complex, it is not a deal breaker if done correctly.
Data works great with proper customer care processes in the pursuit to please the modern viewer. In the end, establishing a simple 1:1 relationship with consumers regardless of primary or multiscreen reach will determine the winners from the losers.
Our team had a great time in Singapore. Here are some pictures of us.