The new reality of TV has arrived. OTT is now in the broadcast mainstream: an integral part of how video content is made, delivered, consumed and monetized. Led by changing consumer habits, video and advertising are evolving to offer more mobile and personalized experiences. The industry is plotting its future around new services and synergies, and technology is adapting to deliver video in advanced and immersive ways.
Differentiated programming is becoming a critical competitive advantage in a crowded and fragmented marketplace, where content demands are exploding and production processes are changing to help solve these challenges. Data will prove to be the connective tissue and winning ingredient to ensure broadcast success everywhere.
Today, consumers are demanding video the way they want it: on their time and their terms. And they’re getting what they want. The digital habits of Millennials are influencing other generations, and the industry is responding by recreating the traditional TV experience on every screen to meet audiences wherever and whenever they’re watching.
And video experiences in whatever form they take, based on whomever is watching, are becoming more and more individualized. Just the way they like it.
The pay-TV broadcast industry is now facing the growth of OTT services head-on. Networks and operators are aunching their own robust OTT offerings, forming strategic alliances with OTT providers and digital companies, or merging with traditional and digital companies for survival and growth. There will be winners and losers in the battle for audiences and revenue, but the time to watch and wait is over. It’s time to commit and move forward.
The technology shifts that the industry has seen to get us to an OTT world are nothing compared to what’s on the horizon. Technical applications that put consumers smack in the middle of video content, make it larger than life and expand it throughout the home are next to hit the mainstream. Hang on, because video just got interesting.
With the plethora of video content and services now available to consumers, broadcasters and OTT services have realized that original (and local content in many regions), along with superior viewing experiences, are going to be what rises to the top. Add to that live content, which is seeing a big push to OTT, and importantly, within the crown jewel categories of live: sports and news. With all of these elements in place, it’s only a matter of time before TV looks and feels the same everywhere.
Monetizing video in this new paradigm offers broadcasters both more complexities and more opportunities for growth. The end goals? Reaching audiences on every screen and platform, delivering tailored and engaging ad experiences, and gaining accurate measurement to maximize revenue on ad-supported content. However, the journey there is still littered with obstacles. A data-driven and holistic view of ad sales is emerging as the best path forward as OTT and linear TV continue to dance around each other and step ever closer towards full integration.
While it’s clear that OTT video is the new norm for the
broadcast industry, it’s still in an early growth spurt, with
many iterations to come for consumers, industry players,
technology companies, creators and advertisers. Data will
be the collective glue that binds them all and helps them
charge forward together.