Once upon a time, cable and satellite providers dominated the content distribution industry. Now, viewers access the media they want, when they want it — on a wide variety of devices, screen sizes and platforms. More and more viewers are cutting the cord, preferring instead to access a variety of online subscriptions, advertising supported services and pay-per-view portals. So, what does this mean for today’s content providers? The internet has disrupted today’s $200 billion cable, satellite and advertising market in ways never thought possible, and both existing and emerging content providers need to take advantage of the new opportunities afforded by Over-the-Top (OTT) distribution — starting today!
Gone are the days of consumers shelling out hundreds of dollars for hundreds of unwatched channels.. In boardrooms around the world, content providers are rethinking their bundling and pricing strategies in an attempt to attract future subscribers: especially the influential aged 30-and-under crowd who also happen to be today’s largest pool of cord cutters. According to DigitalSmiths’ Q1 2015 Video Trends Report, 81.6 percent of viewers said they wanted to pay only for the channels they wanted to watch. And unlike current pay-TV subscriptions, viewers preferred to pay for fewer specific channels rather than traditional bundle packages; 17 channels make up the ideal channel count.
Content quality, affordable pricing and slimmer packages are just a few factors that matter most for today’s viewers. Targeted advertising is another. Today’s viewers have limited attention spans and will only engage with content that “speaks” directly to them. It’s too easy for a viewer to change the channel during a commercial or stream something else that’s more appealing. Retaining viewers is all about providing targeted, personalized content within a service model that makes sense.
Today’s content providers have a golden opportunity to experiment with emerging distribution models and put their stake into the emerging OTT market. For you, the question shouldn’t be when to start; it’s how!
Launching a new OTT service doesn’t have to be difficult. With Verizon Digital Media Services as your technology partner, you can take advantage of simplified and accelerated OTT workflows that extend from content acquisition and preparation, all the way through consumer experiences and monetization on an array of internet-connected devices.
Our evolved platform is the first and only of its kind that prepares, delivers and displays content into next-generation digital experiences for your viewers. Here’s how it works:
Above all, we’ll get your apps launched quickly so that you can start shaping viewer behaviors rather than just reacting. With Verizon as your partner, it’s about time that you got on your way to becoming a major player in the new world of OTT distribution.
Check back next week for our next blog to learn more about how Verizon can help you differentiate yourself from other emerging OTT players. Don’t forget to sign up for our 72-hour challenge to see how we can power your content into instant experiences in only three days!