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August 2017 NEWS & VIEWS 11
OTT users willing to spend more for content and viewing experience
PHILADELPHIA – There is continued and increasing demand for subscription video-on-demand ( SVoD ) services , so having the right tools and data to find and engage customers when they are ready to buy is critical , said IBB Consulting .
In a new survey , the consulting firm found that 61 % of SVoD subscribers in the US are willing to spend US $ 2 or more to keep their favourite service and 81 % are willing to spend to add a new service that provides content they want .
Jonathan Weitz , partner at IBB Consulting , said : “ When IBB works with clients on SVoD marketing strategies , we emphasise that essential components of a worldclass offering are a high-quality viewing experience with compelling features and an attractive interface , instant access to a diverse set of flagship content , and easily
While pay-TV revenues appear to be stagnating in some regions , the global outlook for pay-TV remains relatively positive , reports Digital TV Research .
If the correct SVoD strategies are put in place , subscribers are more than willing to pay more to retain or add services , said IBB Consulting .
findable ancillary programming that feels familiar but offers new content to discover .”
In addition to improving how paid OTT providers market to new users , they must also take steps to ensure that offerings are easy to use , Weitz stressed . Constantly expanding libraries , strong human curation and effective recommendation engines driven by machine learning , he cited , are key to the overall SVoD customer experience .
As OTT becomes more international , differentiation on a global scale is even more essential , and requires a solid marketing strategy for scaling user bases and mitigating churn , said Weitz .
He concluded : “ IBB recommends that SVoD services implement comprehensive plans that include span segmentation , programmatic , cross-channel attribution , email marketing , and push messaging and CRM .”
Clear privacy rules needed for audience measurement
GENEVA – The European Broadcasting Union ( EBU ) has raised concerns over the potential restrictions on the role of third parties who gather audience measurement data on behalf of broadcasters , as the European Parliament continues to deliberate on the proposed ePrivacy Regulation .
On January 10 this year , the European Commission released the text of its proposed update to the ePrivacy Directive , the European Union ’ s controlling authority on privacy rights applied to electronic communications technology and content since 2002 .
According to the EBU , media organisations often rely on contractual agreements with research companies to measure audiences in order to better understand their expectations and needs . This contributes towards improving the overall quality and diversity of media offerings , and providing users with a “ unique experience ” in the
Global pay-TV revenues on the rise
LONDON – Despite increased competition from video-on-demand ( VoD ) services such as Netflix and Amazon Prime Video , pay-TV revenues for 138 countries increased by US $ 32 billion between 2010 and 2016 , reported research firm Digital TV Research .
However , only $ 1.23 billion was added in 2016 , with growth beginning to stagnant in some regions . Simon Murray , principal analyst at Digital TV Research , explained : “ Despite its pay-TV revenues being higher in 2016 than in 2010 , North online world .
Thus , the EBU is calling on the European Parliament to ensure that the ePrivacy Regulation ’ s exception on audience measurement is extended to contractual parties gathering data on behalf of media organisations .
Nicola Frank , head of European Affairs , EBU , said : “ Public service media organisations strive
America peaked in 2015 . Its 2016 total was $ 1.77 billion down on 2015 . Although no decline was recorded , European pay- TV revenue growth has slowed down considerably .”
In Asia-Pacific , pay-TV revenue increased by $ 10.21 billion between 2010 and 2016 , up by 42 % to $ 34.38 billion . Latin America increased by 78 % to $ 18.44 billion , while Sub-Saharan Africa more than doubled its total to $ 4.2 billion .
The US accounted for 49.5 % of global pay-TV revenues in 2016 , even as this
The EBU is calling for clear privacy rules for audience measurement , as the European Parliament continues to deliberate on the proposed ePrivacy
Regulation .
to gather data in the most transparent , secure and accountable manner in order to provide the most relevant experience , as well as offer the possibility to discover new content .
“ This is why we need a fully functional data protection framework at EU level , which caters for strong end-user privacy and technological feasibility .”
slipped below the halfway point for the first time . The US , China , the UK , Japan and Canada collectively generated twothirds of global pay-TV revenues in 2016 .
Of the $ 32-billion extra revenues generated between 2010 and 2016 , half came from four countries : the US provided $ 7 billion , China $ 4 billion , Brazil $ 3 and India $ 2 billion . However , revenues declined in nine countries , mainly due to subscribers converting from standalone TV to bundles , which are less lucrative for TV , said Digital TV Research .
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