The OTT Age! Part 4 : The Future of Content

Lot of Disruption to the content pipeline

New productions likely won’t be greenly until late 2020, or 2021

Challenges for platforms dependent on new content offerings

Limited access to financing in a potential recession

Increased competition from new entrants

Consolidation in a global marketplace

Impact on consumer choice

The distinction between different formats is blurring

Cinematic content comes in all shapes and sizes, and filmmakers often work across multiple formats ( series / documentaries)

Franchises are more important than formats

Long term enterprise value created through IP ( e.g Marvel, star wars, merchandising and video games)

Major studios will continue to focus on large releases with built-in audiences

Small speciality producers and distributors will exist to satisfy the gaps in the marketplace, and target underserved audience.

Read part 3 here

The OTT Age! Part 3 : The Content Discovery

Digital innovation is putting the user experience at the centre of value proposition.

Device manufacturers are aggregating content from multiple subscriptions ( Apple TV)

Speech recognition and recommendations to improve navigation and content discovery

Real time feedback allows services to adapt to audience preferences

E.g  Adding more regional content to MUBI INDIA and expanding access to older content with library

Ease of access widens the breadth of content available

Consumers are no longer restricted by geographic location, time, format, platform, or connectivity

Streaming time is ever increasing- the average American streams 8 hours of content per day under lockdown.

Digital distribution enables audience to discover films considered too niche or obscure ( OXONE in Netflix)

MUBI INDIA highlights alternative cinema, including our Parallel Cinema and New Voices series.

Localisation makes international content more accessible to audience

The proportion of non-English language content on platforms like Netflix is increasing with multiple subtitles and audio-tracks available to users

Example—— Dark – German

Platforms are able to focus on specific Genres or Verticals

  Disney+ ( Kids / family),

Shudder ( Horror / thriller)

Crunchyroll (anime)

BritBox ( UK TV /film)

In the next part, we will look into the Future of content.

Read Part 2 here

The OTT Age! Part 2 : The Growth

SVOD consumption has overtaken pay TV in almost 30 countries

Total worldwide subscriptions are forecast to reach over 1 Billion by 2025, including huge growth in India and China.

India is forecasted to have the third highest number of SVOD subscribers worldwide by the end of 2020 due to increasingly affordable devices, cheaper data and faster internet access.

This growth will be driven by new services like MUBI, with Amazon and Netflix’s combined market share decreasing from 42% today to 34% by 2025.

Consumers in major markets are embracing multiple platforms and devices.

Stacking streaming services has become the norm

SVOD penetration will accelerate due to the heavy promotion by top services like Disney+ and HBO Max

SVOD stacking will accelerate as consumers adopt these new services without canceling existing subscriptions

74% of all US households have at least one SVOD service

51% have more than one SVOD service

How many OTT platforms have you registered? I have 3.

Exclusivity means that there is little overlap between different platform offerings.

Increased investment in content has turned streaming into a game of quantity vs quality

Platforms are optimising for time spent and size of library, others are focussed on increasing the quality of content and improving the user experience. 

OTT and Engagement

Online platforms are engaging the audience beyond the viewing experience

Social and editorial features foster dialogue and a sense of community

Social viewing creates new opportunities for engagement 

Examples for social viewing : 

MUBI watch party

Netflix party

Twitch viewing parties  

Social features mimic the collective experience of watching and discussing content with friends or family, while allowing for social distancing

To Be continued. 

In the next part, lets look at How is digital expanding the scope of Cinematic content

Read Part 1 here

The OTT Age! Part 1 : Cinema Vs Digital

I recently attended one virtual conference on live streaming / OTT platforms. Thought of sharing some of the highlights from the conference.

These are the excerpts from the keynote speaker Efe Cakarel, CEO and co-founder of MUBI.

Cinema Vs Digital

COVID-19 has accelerated the following changes

Cinemas (Theatres) are facing acute challenges and are forced to close temporarily

  • Social distancing, combating fears over returning, implementing health and safety measures
  • Massive closures: 41 % of UK venues said they cannot reopen with social distancing guidelines
  • Right-holders ( production houses) shortening windows – e.g Disney eliminating waiting period altogether 

Online distribution can substitute for the theatrical release

Rights holders (Producers) opting for digital distribution

Film festivals cancelled ( but resurrecting online)

New content production paused ( But now slowly started in various places)

MUBI’s virtual preview of EMA debuted in multiple territories with over 25,000 views in one day.

Universal’s digital only release of Trolls World Tour netted $95 million in 3 weeks.

SVOD Consumption

Subscription Video On Demand (SVOD) / Digital consumption is overtaking traditional forms. 

Technological innovation is reshaping the way we consume content

UX design is the focus of further innovation

Design thinking – what do we use technology for?

We want to be connected and be constantly entertained, and are designing new technologies to satisfy these desires

Technological innovation is going to bring lot of changes, to make it faster, smaller and cheaper.

Innovation has led to greater portability and new use cases like Internet of Things (IOT) and smart home which can create new forms of engagement.

New platforms specifically optimised for mobile are struggling in the current climate ( Quibi)

SVOD platforms have the benefits of increased data

  • What are people watching? when? How are they viewing content? What will they finish? What won’t they finish? What will they binge?
  • <80 of the TV shows watched on Netflix are discovered through the platform’s recommendation system 

Platforms use these data to refine their acquisitions strategy

  • Netflix has increased reality and documentary content based on indicators that these perform better amongst viewers.
  • But this also narrows the experience – you only see what’s in your recommendation ‘bubble’.

To Be Continued.