Amongst the more than 2,600 five-pointed terrazzo and brass stars embedded in the sidewalks on the Hollywood Walk of Fame, sat hundreds of leaders in the entertainment industry at the first annual NATPE Streaming + Conference on July 28th.
The global video streaming market size is anticipated to reach $124.57 billion by 2025 and with more and more big players stepping up to bat, such as Apple, NBCUniversal, WarnerMedia, and Disney, the market surely won’t stop there.
With streaming as a main focus for TaskUs as a vertical for both current and prospective clients, our team set out to the NATPE Streaming + conference to learn anything and everything about what’s happening in Hollywood when it comes to streaming.
Here’s what I took away from the show:
1. Methods of Monetizing - AVOD, SVOD, TVOD
AVOD: Ad-Supported Video On Demand
Ad-based VOD is a model that is free for users. Users are free to log in and stream videos, in return for spending time watching ads. Youtube is the best example of AVOD - with many channels showing niche content.
SVOD: Subscription Video on Demand
Subscription VOD is a type of service, where you enter into a subscription agreement, which will then grant you access to the service to watch until you unsubscribe, that means to watch with no limits. The best example of an SVOD service is Netflix.
TVOD: Transactional Video on Demand
Think buying or renting a single movie on Amazon Prime Video. This one is slowly being phased out as AVOD and SVOD grow.
2. Personalization Through Automation = $$
Deeper audience engagement through OTT (over-the-top) content delivery and personalization is how platforms will differentiate themselves and break free from the clutter. Differentiation means more market share, subscribers, and revenue.
Since OTT platforms are delivered over the internet, they can be more can be more profitable versus cable streaming platforms due to better visibility of audience profiles when utilizing the internet. This gives a personalized recommendation on what to watch and gives operators an opportunity to attract higher advertising rates because OTT has the potential to facilitate the delivery of richer interactive experiences. Companies are finding OTT to be a preferred platform for many consumers.
Technology is following this trend. Operators are increasingly adopting tech solutions across OTT and devices that offer deeper engagement for their audience.
3. Linear vs Digital - Delayed Viewing
Linear TV is a real-time television service that broadcasts scheduled programs, conventionally over the air or through satellite/cable, not streamed to a specific user. Nearly all broadcast television services count as linear TV. Think traditional TV.
Digital distribution of television content is streaming, whether it be online or over the internet. Companies originally started streaming to compete with on-demand services, but the trend caught on without intention and the traditional broadcasters realized viewers weren’t switching back to linear.
One issue we face in digital is the 24 hour delay from linear to platform for new premieres. The big question: will that gap be closing in the near future? The saying goes - If you do what is right for the consumer eventually they will do what is right for you.
Another issue we face in streaming is connectivity issues. However, the increasing demand for high-speed Internet connectivity acts as an advantage for the market.
4. Platform Matters
Popular platforms can enable a shows viewership. Putting an old or “has been” show on a popular platform *cough cough Netflix* and then returning to the show’s original platform to release a new season can enable subscribers on the original platform. We saw this with Riverdale, an American teen drama television series. The series was made for The CW but after a few seasons of dropping numbers, the previous season’s rights were sold to Netflix. Riverdale saw incredible numbers on Netflix so when it came time for a new season to premiere on the CW, subscribers and viewers grew. The CW is trying this again with All American.
Heard at the show: "CW has been a destination for some “busted” shows that didn’t do so well in the past. We think great shows are great shows, and they want to be the home for the niche fans,” said Rick Haskins, Executive Vice President of Marketing and Digital Programs at The CW.
Other interesting takeaways:
- 18 episodes is a sweet spot for binge-able shows (Are we noticing this with Netflix Originals? I think so...)
- Consumers will only pay for less than 10 of the 100+ streaming subscriptions out there (What is going to happen to the ones that don’t make it?)
- Pluto TV created a 24/7 Hills and Laguna Beach channel to promote the new MTV seasons - both Pluto TV and MTV are owned by Viacom - this added tons of viewers for Pluto TV
- There is an 80% chance people are watching videos on their phone without volume
- Viewers on average watch 17 networks in total
- It’s always about the audience now, not the content
Wanna chat shows, streaming and support? Let’s talk. Send me a note here.
Always looking to empower the front-line and her teammates, Jackie’s not one to shy away from helping someone out. She left the IT world and started her career in business development due to the joy she finds in enabling others, and at TaskUs she is able to help the world’s biggest, best, fastest growing Media, Entertainment, and Social Media companies find the right way to engage with their customers.
Since her time at TaskUs began Jackie has drank the “CX obsessed” kool-aid and has enjoyed nothing more than watching the intense battle to the top of the OTT streaming market and following brands like Bumble who are fighting to redefine their space.