OTT Content strategy: the secret to streaming success

It’s no secret that content can make or break the success of an OTT service. Viewers have more choices than ever before, so you can’t expect subscribers to stick around if you don’t offer the content they want to watch (or enough of it). Putting an OTT content strategy in place is important for every video service that hopes to see positive subscriber growth.

What is a content strategy?

It’s essentially focusing on the planning, creation, and delivery of your content, whether it’s video content for your service or copy for your website and marketing channels. It boils down to asking yourself what content you should be producing or buying for your video streaming service and why? 

The goal is to offer sustainable, high-quality content that engages your viewers. The content you provide should ultimately inspire them to act, whether that’s to subscribe/purchase or return regularly to watch more.  

Content strategy starting points

Here are a few things to consider before you begin outlining your OTT content strategy:

  • Define your end goal: How can an OTT content strategy improve your streaming service? Before you begin mapping out, figure out what you want to achieve. Do you want to see an increase in subscriber numbers, for example? Reduce churn? Or, have it help inform your decisions around content acquisition or production? Knowing your end goal will help you devise a strategy that can meet it.
  • Audit your content: Before you begin making plans to produce or purchase more content, review what you already have. What are your viewers watching? How long are they watching for? Are they engaging with content through other channels such as social? Understanding what content is already working and why will help you decide what you need more of or what needs to change.
  • Strategy & Planning: Your OTT content strategy should always align with your communications and marketing strategies. Planning for content production/purchases is important but your timeline for release should be carefully considered. For example, some content may be topical and worth waiting to release until relevant. Regardless, you should always align new content releases with your marketing plans to boost its chances of discovery online.
  • Maintain & Track: Continually review your content strategy throughout the year and be ready to adapt and make changes. Most importantly, keep reviewing your library and track what content is working. Global services should also consider location – some content may show low viewing numbers overall but could be particularly popular in some parts of the world. 


For more guidance, check out our
Top 5 Content Strategy Tips. You can also find out more about Magine Pro video streaming services, and in particular how we can help you build your own successful OTT service, here

Don’t forget to subscribe to the Magine Pro newsletter to stay up-to-date with our latest news, partners, products, and to find out which industry events we’ll be attending next. You can book in a meeting now on our events page; meet the team and demo our OTT services firsthand.

 

IBC2019: OTT has arrived!

September welcomes one of the busiest calendar events for us here at Magine Pro and the entire OTT industry, IBC. The annual event has long been considered the leading go-to exhibition and conference for media, entertainment, and technology and as such, attracts industry professionals from all over the world.

This year marked our fourth year exhibiting in Content Everywhere hall 14 and was arguably one of the busiest we’ve seen. Without doubt, there were more buyers present than years previous, with a noticeable increase in production houses, smaller ISP’s and Telco’s all looking to go OTT for the first time. Not too surprising.  In our post-IBC 2018 blog, we reflected on how the OTT takeover was looming, and how telcos could move into the OTT market by either vertical integration or through partnerships. Check out our reflections on last year’s event here

This year, the impact of OTT services dominated most discussions at IBC2019. There were panel sessions dedicated to monetization models, niche content, and how streaming is driving a golden era of content creation. It certainly raised some interesting questions around how new market entrants could compete against big brands with much bigger budgets.  A popular opinion being that new entrants would need to offer services tailored to niche interests and content. On the Magine Pro stand, we demoed a few of our partners who offer just that. If you missed it, check our experience page to learn more about niche services such as PassionFlix Docsville and True Royalty.

User engagement has been a nascent trend in the OTT space this year. Likely driven by SVOD user fatigue and competition, we’ve seen more content owners looking for innovative ways to monetize and engage their users. Many now want to focus on customer loyalty, engagement, and differentiation in the user experience around content. This also explains why recommendation tools (although not new) were a popular talking point at IBC2019.

We also noticed more interest and focus on analytics and business tools, as operators look to move on from just having OTT, to now successfully monetizing. There was also an uplift in SVOD and live event offerings, alongside traditional AVOD, and subscription and advertising led linear.

But, more important things you might have missed from Magine Pro were our live product demo’s on the stand, including demos of the Magine Pro Console. If you didn’t get a chance to stop by, you can find out more about our products here or download our white paper. Get in touch if you would like to learn more or try a demo.

With OTT being a hot topic at IBC2019, it’s no surprise that hall 14 will be expanding at next year’s event as organisers increase capacity for more vendors by adding hall 5. It seems the OTT takeover is no longer looming, it has arrived!

 

We’re heading to the SportsPro OTT Summit next month.  If you’re attending and would like to meet with a member of the Magine Pro team get in touch!

Top 5 OTT Content Strategy Tips

Planning to build your own OTT service now or in the new year? Check out our top 5 content strategy tips that can help you prepare for launch:

1. Get to know your target audience

Identifying your target audience may not be an obvious content strategy tip, but it’s important nonetheless. Before you should even begin to consider creating content or securing rights to some, get to know your audience. Understanding your key demographic’s interests and viewing habits will help you create a much stronger content strategy. It can inform decisions regarding the type of content you should invest in, when and what time to release it and the best marketing channels to promote through.

2. Offer Unique content

Subscribers are signing up to more than just one OTT service these days as their appetite for high-quality and original content increases. In fact, Digital TV Europe’s 2018 annual survey revealed 62.9% of respondents agreed original content that’s not available elsewhere is the most compelling reason to sign up to an OTT service in the first place.

To attract potential subscribers, offer content they won’t find as easily elsewhere. We’ve seen this work particularly well with our own partners, Passionflix which provides exclusive and original romantic content and True Royalty, an SVOD service dedicated to premium royalty related content.

3. Be original

You don’t have to produce your own content for it to be original. Secure rights to original content with content owners instead. Try exploring markets that are often overlooked, such as local or regional content for expats and niche sports content that’s not being widely distributed. Don’t rule out purchasing the rights for older content that can be digitized either. Our partner FlixOlé is home to Spanish cinema and features new as well as classic movies that are particularly popular with their subscribers.

4. Promote your content

No matter how great your content offering, if it isn’t easy to discover, you won’t see the viewing figures you expect. To get a good return on your content investment, carefully consider how and where you promote it, both in and outside of your service.
Our partners are able to promote new and old content in their Magine Pro Pioneer and Premium services wherever and whenever they like. Our templated OTT solutions can be customized via the Console, enabling them to independently curate featured content on the start page and even content categories.
Promoting content outside of the service is equally as important. Create an engaging communication strategy that maximizes your marketing channels and don’t overlook SEO. Content metadata that is SEO optimized is a great way to boost awareness and traffic. Potential customers, for example, could find your service simply by searching online for a particular TV show or movie.

5. Keep things fresh

Even those that launch with a large library of content should refresh their service at regular intervals. Updating your service with new content not only encourages user engagement but also helps to reduce churn. Frequent changes give users a reason to return regularly. But that doesn’t necessarily mean you need to invest in new content. Promoting older content that has previously been overlooked is a great way to refresh the look and feel of your OTT service without incurring any additional costs. Magine Pro partners can do this independently using the Console, which gives them control over content positioning within their service.

______________________________________________________________________________________________________

Want more advice and support on your OTT content strategy? Get in touch with the Magine Pro team and find out how we can help. You can also download our latest white paper – Turn your Content into Cash to learn more. And check out our branded OTT solutions and services here.

Converting Leads into Loyal Subscribers: Part Two

In part one we looked at optimizing the marketing conversion funnel and user journey to turn new leads into loyal subscribers. This week we dive deeper and take a closer look at the digital ecosystem and ideal channel mix for marketing a new OTT service.

The digital ecosystem gives an overview of the channels you should be utilizing pre, during and post launch. The channels outlined work together to build brand awareness, user interest, drive action and improve retention rates. 

The Digital Ecosystem

 

Your website homepage and the OTT service itself are central to your digital ecosystem as all channels feed into them. They are the area on your funnel and user flow where potential customers take action – whether that’s submitting their email for future comms or subscribing to the service.

To break it down, there are two channel categories in your digital ecosystem that help drive leads and convert them into subscribers – the first being acquisition channels and the second, retention channels. Some channels, like social for example, can and do fall into both categories but play different roles depending on where the customer is in the user journey (as outlined in last weeks blog post).

Acquisition Channels

Your acquisition channels essentially help build customer awareness and interest. Acquisition channels for new OTT service entrants should include:

  • PR

Work with an external agency or build your own PR strategy pre-launch. To get the word out, you’ll need to build relations with publications that your target audience is likely to relate to, solidify your key message and create an exciting press release for launch.

  • Social (Facebook, Twitter, Instagram)

Identify which social channels are most commonly used by your target audience. You don’t need to be on all social networking sites. It’s better to have fewer pages on a handful of sites that are active and engaging than a lot of neglected pages everywhere.

  • Paid SEM

Put a budget in place for online advertising and stick to it. Paid ads can help boost awareness and enable you to stand out in a crowded market. Research your competitors, identify your keywords and experiment with ad copy and A/B testing.  

  • Organic SEO

Search engine optimization is essential and will help drive organic traffic to your website and service. Identify your keywords and phrases and use them in the copy on your webpage and within the service. Content metadata that is SEO optimized is a great way to boost traffic – for example, potential customers could find you simply by searching online for a particular TV show or movie.

Retention Channels

Your retention channels keep customers interested and engaged before and most importantly after they have taken action and subscribed to your service.

  • Email

Create an email comms strategy that includes, welcome emails, onboarding emails, and even weekly or monthly newsletters. It’s important to keep subscribers engaged, and emails are a great way to promote new content, offers and inform them on service updates or new features.

  • Social

Your social channels are as important for retention as they are for acquisition. Build a trusted online community for your users where you can keep them up-to-date on new content releases and service features. Your customer service team can also play an active role here and use social channels to communicate directly with customers.

  • Overlays and Push Messages

Overlays are a fantastic way to promote new content, offers, and discounts in your service, and even encourage visitors on your website to sign up to a newsletter. Push messages are useful if you want to send direct messages to users to remind them to open the app if you have new content available for example.

 

Check out last weeks post where we looked at the convesion funnel and ideal user journey here. You can also read more on reducing churn rates.

______________________________________________________________________________________________________

Want more advice and support on converting your leads into loyal subscribers? Get in touch with the Magine Pro team and find out how we can help. You can also learn more about our branded OTT solutions and services here.

 

Converting Leads into Loyal Subscribers: Part One

Loyal subscribers don’t tend to form long virtual queues on the day a new OTT service is launched. A well-executed pre-launch marketing plan may drive a lot of traffic but there’s no guarantee those that show up will sign up and stick around.

Converting potential customers into paying subscribers requires pre-planning and a good marketing strategy. To be successful, you need to optimize your conversion funnel and user journey. Conversion funnels apply to all online sales-focused businesses and outline the journey a potential customer will take before they commit to purchase. In it’s simplest form, the conversion funnel has four main steps that we’ve outlined below.

Awareness

The first stage is all about building awareness around your brand and service. At this point, the funnel is broad because although a large volume of people may become aware of your service through marketing, they may not be interested in going further and finding out more.
In order to successfully build awareness that leads to subscribers, focus your digital marketing efforts on a defined target audience. Use social media to reach out and spread awareness, run targeted paid ads online and ensure you’re website and service is SEO optimized to improve organic reach.

Interest

At this stage, only those who are aware and interested will look for more information and effectively enter the funnel. This may be reflected in increased click-through rates on your paid ads or even a boost in organic SEO-lead traffic.

The trick here is to keep interested visitors engaged. You need to give them a better understanding of what your service includes and the value it provides. Offering promotions or discounts on your website in exchange for visitor emails is a great way to keep them moving through the funnel. Once you have their email address, you’ll be able to send more helpful info and reminders to them later.

Desire

The funnel will shrink further because not all those who showed interest will actually want the service after they learn more. This stage is predominantly influenced by the service itself and in particular what content is available and whether it appeals to them. It is here that you need to show potential customers why they need your service – what are you offering that others on the market aren’t? Or, what is it you do better?

Ramp up your marketing efforts here and retarget those who have visited your website or service but not committed to subscribe just yet.

Action

This is the smallest part of the funnel as only a small percentage of the original leads will want to take action and subscribe. It’s important at this stage that the process to do so is simple and straightforward to minimize bounce.   

Even after customers have taken action you need to stay active to reduce churn. Automated onboarding emails are a great way to introduce customers to your service and remind them to come back regularly to watch new content. You can also use your social channels as a tool to keep them engaged and up-to-date on new features, content or promotions.  

 

The funnel above gives a great overview but mapping out a detailed user flow will ensure your strategy is tight and easy to follow. It also gives you an opportunity to outline what channels you want to utilize, alongside customer comms that need to be in place pre, during and post launch. Here’s an overview of a typical user flow, which also includes the retention stage you’ll need to consider after action.

In part two we look more closely at the digital ecosystem and the ideal channel mix for marketing a new service. You can also check out our post on 5 ways to reduce your OTT subscription churn rate.

______________________________________________________________________________________________________
Want more advice and support on converting leads into loyal subscribers? Get in touch with the Magine Pro team and find out how we can help. You can also learn more about our branded OTT solutions and services here.

IBC 2018: The OTT Takeover Looms

The idea that OTT will eventually eclipse traditional delivery methods is nothing new, but after seeing some of the latest developments at IBC this year the cord cutting revolution may soon be complete! The industry is evolving rapidly and new tech developments have built new momentum. It’s certainly an exciting time to be apart of the industry and we’re eager to see what the year ahead has in store.

IBC has been considered the annual go to industry event since 1994, and is the leading exhibition and conference for media, entertainment, and technology. The event attracts professionals from around the world involved in content creation, management, and delivery. Here at Magine Pro, integral team members have been attending IBC for over 15 years and since launching Magine Pro in 2016 we’ve exhibited in hall 14.

On reflection of this year’s event, IBC 2018 gave a much better insight into the future of media streaming than we’ve seen before. In particular, how media streaming is evolving and what direction it may take in future. The Content Everywhere hall 14 was packed with vendors presenting much more commercially efficient streaming solutions. There was also an emphasis on diversifying of CDN and meta clouds – something we’ve expected for some time but they’re finally looking like real and viable alternatives.

There also appeared to be more solutions that can efficiently handle ingestion of large-scale broadcasts. Both AWS and Google showcased new products for this.  The actual transition of legacy TV distribution is finally about to take place, or so it seems.

AWS, in particular, demonstrated new services that address the bottleneck issues for live streaming, namely how to ingest traditionally aired linear broadcasts in an optimized and more efficient way. And since it’s AWS, these services are already fully integrated into their ecosystem, allowing their existing partners to take advantage of them in existing deployments. For Magine Pro, it means we’re able to offer more efficient ingest services to our clients through the Magine Platform AWS environment.

Google and AWS are certainly eating their way into the IBC halls as both had much larger booths than in previous years. A sign of what’s to come no doubt and where the most interesting development will take place; the transition to the cloud – next years outspoken mantra.

Facebook was also present in the Content Everywhere hall this year but didn’t have as big a presence as we anticipated. They surprisingly seemed like a much smaller video tech entrant compared to the likes of Google and Amazon – now the video and media behemoths of IBC.

We found the speaking and panel session agenda at the Content Hub was particularly well balanced this year though with engaging topics and debates regarding the state of the industry and its future. Our Head of Commercial Operations, Fredrik Engdahl also took part in one of the sessions, ‘Telco TV: The Convergence of Broadcast and Telecoms’. If you missed it, you can catch up here.  

We also showcased our branded OTT solutions and services for live, linear TV and VOD content on our stand in hall 14 . If you didn’t get a chance to stop by, you can find out more about our products here or download our latest white paper. Get in touch if you would like to learn more or try a demo.

We’ll be heading to Cannes for MIPCOM this month. If you’re attending and would like to meet with a member of the Magine Pro team, get in touch!

As for IBC, we’ll see you next year!

Telco TV: The Convergence of Broadcast and Telecoms

This week, we attended IBC in Amsterdam. IBC is one of the world’s most influential media, entertainment, and technology shows. The annual exhibition and conference brings together industry leaders from around the world to discover the latest innovation in technology and debate the current challenges and opportunities facing the electronic media and entertainment industry.

During IBC, Magine Pro’s Head of Commercial Operations, Fredrik Engdahl took part in the panel debate, ‘Telco TV: The Convergence of Broadcast and Telecoms’. If you missed the session on Monday at the Content Hub, don’t worry you can catch up below.

Fredrik presents his views on the current state of the industry and specifically how telcos can successfully move into the OTT market by either vertical integration or through partnerships. The panelists also debate the future of telcos in OTT and how through partnerships they can leverage each other’s strengths to provide the best customer experiences. 

You can watch the session in full below.

You can also check out Fredrik’s latest blog post ‘Operators and OTT, live together in perfect harmony’ where he discusses the issue in more depth.

 

 

Operators and OTT, live together in perfect harmony

“The modern media company must develop extensive direct-to-consumer relationships, we think pure wholesale business models for media companies will be really tough to sustain over time.”  

-AT&T Chairman-CEO Randall Stephenson during his latest investors call explaining his company’s vision of how to stay relevant to consumers in the fight against Netflix and Amazon, and the rationale behind AT&T’s acquisition of Time Warner.

Randall’s statement is understandable, as Mobile Operators today are feeling the pressure to find the next revenue growth driver. Over the last 10 years, Operator’s revenues have been in decline (as shown in the Northstream graph below), with investments (CAPEX) required for the growth of mobile data consumption remaining flat.

Source: Northstream

Vertical integration is the name of the game

As the graph below demonstrates, mobile data traffic is still showing tremendous growth, and with cord cutting reaching new heights, it’s no surprise Operators are taking a page from the ol’ strategy playbook and begun acquiring content and media companies to achieve vertical integration.

Source: Ericsson

The simple objectives of such vertical integration-deals are scale and to retain customers by expanding the control and ownership of the value chain, bundling all consumer services such as TV, Internet, Phone and OTT into one discounted package and locking the consumer in the Operator ecosystem. Recent examples of this being AT&T’s acquisition of Time Warner and Swedish Telia’s acquisition of Bonnier Broadcasting.

Through acquisitions like these, Operators can consider themselves providers of everything from infrastructure to content production and consumer technology. However, it’s important to remember that the only consistently profitable business Operators have ever had is provision of connectivity and infrastructure. There are many examples of Operators who have dabbled with innovative new services in an attempt to compete head-on with start-ups when market dynamics and status quo had been disrupted. Who, for example, remembers the bold aspirations and goals of Vodafone 360? Or the ambitious operator application service platform, IP Multimedia Subsystem (IMS), which was to be a worldwide deployment of mobile telecommunications networks to offer Operator managed Video, Voice and Business services online, without forcing subscribers to change carrier.

The market, however, ended up going in a different direction, with the ecosystems eventually being controlled by Apple and Google, and OTT new entrants providing superior Voice, Messaging and Video services, as well as ease of use for consumers, bypassing any attempt of an Operator ecosystem. Now, Operators find themselves locked in cut-throat competition with these OTT challengers for what they considered their core business.

The Operators’ Gordian knot

So how then can Operators untie their Gordian knot of 1- exploding growth of mobile data traffic, 2- flat or decreasing revenue, and 3- competing with innovative and fast-moving OTT challengers? Just as Alexander the Great disentangled the impossible knot by simply cutting it loose with his sword, so should Operators. Rather than clinging to legacy market perceptions and ideas, resulting in ever more complex and unclear new initiatives, Operators should approach the issue as simplistic and pragmatic as possible. They should acknowledge the areas in which they excel, connectivity and infrastructure, and acknowledge what OTT challengers excel in, which is providing innovative and superior consumer services and content.

By entering into partnerships with OTT companies, Operators are able to leverage their true core competencies and provide superior customer experiences through OTT partnerships. We’re already seeing such partnerships becoming more common, with video services being the most popular area of collaboration between Operators and OTT.

Other interesting examples of partnerships are Operator investments in OTT aggregators and platforms. For example, Telia’s investment in SolidTango, enabling the Operator direct access to a multitude of niche OTT services and content channels. And with the increased adoption of multiple OTT service subscriptions by consumers, as well as the growth of niche market OTT services, partnerships like these open up new levels of personalised packages that Operators could offer their customers.

Come together, right now

Operators and OTT companies are in a great position to work together and leverage each other’s strengths, rather than attempting to out-compete each other by limiting distribution or denying access to content. It is clear that what is best for consumers will in the long run also always be best for the companies serving said consumers, and those consumers are now voting more ruthlessly with their wallets than ever before. In a recent report by BCG, Video aggregators and Distributors are at risk of losing $30 Billion in profit as a result of current changes in the media market dynamics.  Even though the future is still up for grabs, not all companies have the scale to keep up, and thus BCG predicts that “their best option is to pick a partner with a constellation of complementary content and assets under the best possible terms.” In the online video market of tomorrow, the writing on the wall is that Operators and OTT companies either succeed together or fail divided.

AT&T’s Randall Stephenson went on to also share his view on Netflix:

“I think of Netflix kind of as the Walmart of (video), HBO is kind of Tiffany. It’s a very premium, high-end brand for premium content.”

This is an interesting view given that Netflix received 118 Emmy nominations this year, which was more than HBO. Netflix will also spend 3x times as much as HBO on content productions this year. It would be interesting to know how Stephenson defines the high-end difference between Netflix and HBO. It does seem AT&T is committed to trying yet again to untangle their Gordian knot in a conventional way, but if it didn’t work before, will it work now?

If you’re attending IBC this year and want to learn more, come by the IBC Content Everywhere Hub where I will be discussing these topics and others in the panel discussion; “TELCO TV: THE CONVERGENCE OF BROADCAST AND TELECOMS”, on Monday the 17th, at 3.30 pm. You can also stop by the Magine stand 14.C25.

 

Competing in OTT Video: How I learned to stop worrying and love niche content

The global OTT video market is growing faster than ever before, but for OTT services the battle hardens every day for subscriber wallet share and viewing time. Of the usual suspects Netflix, Amazon, Hulu and HBO, all take top spots in services ranking according to the OTT Video Market Tracker Top 10 survey, conducted by research firm Parks Associates.

OTT Video Market Tracker Top 10

  1.    Netflix
  2.    Amazon Video (Amazon Prime)
  3.    Hulu (SVOD)
  4.    MLB.TV
  5.    HBO Now
  6.    Starz
  7.    YouTube Red
  8.    Showtime
  9.    CBS All Access
  10.  Sling TV

Source: Parks Associates

In the US alone, there are now more than 200 subscription video services, and in Europe more than 450 OTT video services as of 2017. For new OTT services, this presents challenges. Successfully building a subscriber base in a competitive market now requires having a clear differentiator and value proposition.

A bright spot though for US markets is that more than half of all broadband households are opting to subscribe to multiple OTT services, with 15% subscribing to three or more. Even better for an OTT video service looking to take the seat next to Netflix and HBO at the OTT bundle table, this 15% segment is also the fastest-growing one according to research.

Not number 1? Then be number 3 or 4

In Europe and the US market, the foundation of all OTT service bundles for the average subscriber will in almost every case be Netflix and HBO, and Hulu, with the addition of an OTT provider of premium sports content depending on customer segment. This means that for the rest of the market the fight is on for grabbing the number 3, 4 or even 5 spot.

To achieve this, an OTT video service will need to deliver on strategies that set them apart from the competition. Content is arguably the best way to do this. Niche content in particular that caters to a smaller subscriber base, that is more loyal and dedicated than the general content consumer crowd, could be the answer. Examples of this working successfully are Magine Pro partner’s, Passionflix who offer niche exclusive and original romantic content and Docsville offering premium documentary content.

There’s still an opportunity to find your niche in the market through local or regional content, overlooked sports content for dark markets (markets for which there are sports rights but not being distributed), or even niche sports. Formula 1, for example, is now launching their standalone OTT subscription service for which they anticipate as many as five million potential subscribers and an annual income of $500m, or the global OTT service Hayu, focusing purely on reality show content.

Leverage your Strengths and Choose your Battles

Digital TV Europe Annual Industry Survey 2018

Acquire and retain subscribers in a competitive market by focusing on niche or exclusive content. Digital TV Europe recently released their annual industry survey in which 62.9% of the respondents agreed, original content that’s not available elsewhere is the most compelling reason to sign up to an OTT service. This mirrors a similar survey carried out by New York-based consulting firm, Activate Inc. where 45% of respondents said that original content was extremely or quite important for keeping a Netflix subscription. 

But smaller, niche OTT services shouldn’t try to compete head-on with the likes of Netflix or HBO, as few can match their financial muscle for marketing and content. Instead, take a lesson from biblical David and compete on your own terms, leveraging your strengths to bring down the mighty Goliaths of Netflix and HBO.

The Content Echo Chamber

Digital TV Europe Annual Industry Survey 2018

Digital TV Europe’s annual survey also showed that long-tail content works best on an OTT service. Results show, 55.8% of respondents believe on-demand long-tail content is the most effective for OTT services as well as niche interest/long-tail linear TV channels at 40.3%.

This indicates that there is still plenty of room in the market for OTT services offering niche movie content, attracting viewers that are not fully satisfied by Netflix or others. In fact, in the last two years, Netflix has reduced their film library by 33% and their television shows by 26% according to a report by AllFlicks. Netflix’s decision to reduce their libraries in favor of a more streamlined content offering is a direct result of their analysis of viewer behavior. But it can be risky to rely on data to dictate content production and procurement decisions. Content will start to fall under the mandate of the majority, as Netflix will only produce and distribute content that is watched by the masses, and the masses will only watch the content produced and distributed by Netflix, creating a self-perpetuating content echo chamber.

This, however, creates ample opportunity for niche OTT services to step in. The incumbents like Netflix, Hulu, and Amazon are already starting to feel the heat from new competitors that offer exclusive content according to the consulting firm Activate Inc. as the growth of SVOD services in the US has slowed considerably over last year as the competition intensifies.

New Markets, New Opportunities

It’s also worth pointing out that the APAC (Asia Pacific) market should be of special interest for new entrants. In the next five years, tremendous growth is expected in the region thanks to increased mobile adoption, amplified broadband expansion, and enhanced purchasing power, creating a new battleground for new OTT entrants and established players alike.

There are interesting times ahead for the OTT industry, and we’re just getting started! Magine Pro offers new entrants or established players anywhere in the world, the possibility to hit the ground running with a trusted and proven OTT video service. Our experience in the consumer market means we know what it takes to beat the competition and can help you succeed. Check our products and case studies to learn more about Magine Pro and how we’ve helped others get their OTT business off the ground.

If you want to learn more about Digital TV Europe’s annual industry survey and the findings, check out our roundup and download the full report here.