X-PLATFORM
April 2016
45
2016: Smart OTT
is the new normal
by peter lofling
Will Netflix lead to accelerated innovation for localised OTT services?
The Netflix effect
by matt kossatz
Netflix is a great driver of change
in the TV industry and its influ-
ence is impacting broadcasters
right across the globe. Netflix has
now come to Asia and has been
met with a certain amount of
concern from the industry, as in
other markets around the world.
It is understandable that
broadcasters and pay-TV plat-
form operators are ner vous
about the impact of Netflix on
their businesses. The looming
perceived threat of this relevant
newcomer to their established
markets — snapping up consum-
ers and disrupting their comfort-
able world order — has caused a
great deal of nervous excitement.
In Asia, we haven’t yet seen
the huge subscription figures
experienced elsewhere, and in
this unique market, it is unlikely it
will happen for some time.
Partly, this is because Netflix
has come late to the party. We
have already seen a great deal
of local services launching from
major providers. For the most
part, they offer similar function-
ality to Netflix, but much more
local content.
Indeed, the lack of local con-
tent is another push back for Net-
flix across Asia-Pacific, but expect
Netflix to remedy this quickly.
As with anywhere, there is still
going to be interest for US con-
tent that comes with Netflix and
consumers will still be interested
in finding out what the fuss is
all about. Existing providers will
naturally have apprehension with
such a global force entering their
market. And that’s a good thing,
as that looming threat is what
leads to accelerated innovation.
Although on a global scale,
we haven’t yet seen many ex-
plicit, head-to-head rivals to
Netflix; we will start to see some
challengers emerge in selected
markets. We are seeing the likes
of Stan in Australia and iFlix in
South-east Asia create some
early noise and we will continue
to see well-established pay-TV
operators and broadcasters in the
region launch new over-the-top
(OTT) services, with a broader
range of content and a wider
spread of devices.
These established players are
in a unique position. They already
have strong customer awareness
and billing relationships in local
markets, as well as an intimate
understanding of how to buy
and package premium content
to drive consumer demand. This,
mixed with the provision of lo-
cal content, will be particularly
crucial in Asia.
Advanced features such as
the ability to download shows
for offline viewi