Tips for OTT strategy
This strange, hard and exciting year is close to the end. Before summing up the legendary 2020 there’s a need to plan next year. We collected highlights to help develop winning strategy within OTT.
The Rise of 5G
In terms of OTT trends we expect to see 5G internet begin to become standard, especially in urban areas. This next-generation cellular network technology will provide much faster, more reliable internet speeds. In tests, 5G is roughly 100 times faster than the best available 4G LTE networks.
The success of OTT content publishers will reflect this trend. For example, 29% of consumers would pay a premium if 5G provided better quality video on mobile devices and decreased buffering.
Innovation in OTT Monetization
By some estimates, more than a third of professional broadcasters monetize their content via subscription models. However, this is having at least one adverse effect on the market.
This current reality is a kind of “subscription fatigue,” and it’s increasingly a problem.
In terms to cope this negative effect service providers should increase usage of bundling different subscription packages together to create channels. As well, “super Apps” are gaining popularity: users are likely to pay for all-in-one service than for 5 different subscriptions. According to a global survey from Apester, 60.1% of people are sick of so many streaming services.
Reevaluate the metrics that matter most
Metrics and dashboards are showing the success as well as revenue. Choosing different metrics and analyzing different indicators is the clue to know what’s going on and take steps for improvement, enhancement and development.
Analytic tools are crucial for a TV service. Data paints a portrait of users on an individual level and gives a broad overview of your subscriber base. So, behavioral analytics combined with user lifecycle engagement rates give options to optimize user experiences. So as you wade through your customer data, you’ll find all ways to create the best experience for your target audience. And as user experience climbs, so will engagement and retention rates (and revenue).
The results from a survey showed that companies effectively using their data are six times more likely to be profitable year over year. And simply personalizing the experience for your users can boost revenue by 10-30%.
Advertising is one of the most popular and profitable ways of monetizing video content. SPB TV Rosing platform includes comprehensibe Advertising Engine that allows TV service owner create, manage and analyze ad campaigns.
Interactive content
Netflix has quietly introduced interactive titles over the past few years but with the release of Black Mirror: Bandersnatch , the mainstream has now been exposed to new form of storytelling.
While we don't know how many people have watched Bandersnatch, practically everyone was talking about the multiple endings, Easter eggs, deeper meanings and how horrible we all were to poor Stefan.
Now user is a mere participant of filmmaking and chooses how the plot develops. Just remember: viewers do want to rule.
Audiocontent
Traditional visual genres today aren’t enough to drive engagement. To succeed in a saturated content landscape, where overall shares have fallen by 50 percent, marketers need to think outside the text box to drive engagement.
Audio content is also poised to become incredibly lucrative. Big brands are already investing heavily in audio marketing. Audio marketing spending is expected to surpass $20 billion by 2020.
According to an IAB study, almost two-thirds of listeners admit they are inclined to consider purchasing or researching a product based on podcasts’ recommendations, or ads streamed during the podcasts they love.
Anyway, creating winning strategy is not a matter of following the rules. We hope these tips will be useful but remember: legendary cases are created by those who dare!