03 May Use Data to Drive Progress
NAB 2017, as soon as it came, it went! At the annual assembly of the best players in the media industry, we got a taste of where we are, and where we’re going within the online video industry.
We summarized key industry trends that we have noticed in the market and how companies will be using the latest technologies and strategies to enhance content monetization and efficiency over the next 12 months.
Following are “blips” from the NPAW OTT excellence radar:
- Rise of OTT services. Huge opportunities for live, OTT entertainment. OTT offers a viable business model that can scale
SVOD is on the march. Using Netflix as a bellwether, you can tell there is no going back because if 2016 is anything like 2017, the company is expected to have 100 million worldwide subscribers by years’ end. Notwithstanding, original nonnetwork programming stands become a larger and larger portion of the digital content pie.
- People want as much content variety as possible, and without interruption
Niche content, delivered in an accessible and compelling global offering. The best example of content like this is ESports, as well as religious programming, minority language programming around the world, and dedicated platforms for Japanese Anime.
- Linear TV is in decline; Millennial TV viewing is declining
Only 36% of Millennials view a pay TV service as important. As we learned last summer, millennials are shifting their attention toward digital SVOD and AVOD platforms. Their preference to “binge watch” shows according to their schedule cannot be replicated by the traditional model.
- Rise of social media influencers accelerating change in viewing habits
Social media influencers are the fastest growing channel of significance for marketers. An Edelman Digital report released last year further details the importance of these opinion leaders in the digital age.
5. Proliferation of devices
To watch all that content, people (especially young people) will be tuning in via multiple devices – 85% of individuals 18-49 use multiple devices at the same time, according to Google. Google also encourages advertisers who purchase traditional ads in broadcast and primetime slots to strengthen their campaigns – and reach an audience 56% larger.
- ESports are growing as a potential OTT sector
ESports are growing in audiences, but not in service infrastructure, as we touch on in a recent post to our blog. It’s imperative OTT’s recognize this growing sector in order to gain first mover competitive advantage before the audience reaches critical mass.
- The immersion opportunities presented by AR and VR are a next-generation way to reach out to consumers
- Better and deeper understanding your customer base
Advanced analytics platforms, now more than ever, provide crowd-sourced behavioral data – non-sample insights, delivered in real-time.
- Automation of distribution platforms to improve your content efficiency through AI
Increasingly, distributors spend less time implementing, and more time strategizing by using AI to maximize content performance. A recent report by Stanford University states that beyond scheduling – AI can improve captioning thanks to deep learning.
- Synchronization of data to improve speed and usability
Make sure your metrics are working with one another, not flying out in different directions. Synchronous data is consistent, more intuitive, and easier to use!
REAL TIME DATA ANALYTICS ARE THE WAY TO ENSURE PROGRESS
The ability to process audience behavioral data in real time will become increasingly significant to better serve, segment, and monetize audience viewing hours into meaningful revenue. CIO recommends companies rely more on agile data: “In 2017, processing and analytic models will evolve to provide a similar level of agility as organizations realize data agility, the ability to understand data in context and take business action, is the source of competitive advantage not simply having a large data lake.”
“Longitudinal visibility on quality, consumption and behavioural data from end-users empowers content providers with the data to test and make successful decisions at all levels of their entire video service” – said CEO at NPAW, Ferran Gutierrez. “Having intelligence from the moment users login ‘till they log out, will make the difference for companies interested in offering never-imagined video experiences.”
“Streaming data reveals how users interact with the entire video service, how long it takes to select a content title, its genre, how frequently they watch content or on which days of the week and for how long, how frequently do they come back, and how quality impacts audience,” said Product Manager at NPAW, Lucas Bernat. “And these are just a few metrics that can help content providers make programming and editorial decisions, forecast higher ROI and increase ARPU, enhance loyalty programmes, or optimize technical and operational processes.”
Long story short: as a result of market tendencies, online media companies will use real time data to point out and predict, test and act to optimize their business and maximize revenue.
Just another thing to think about from us here at NPAW.