Each region of the globe is experiencing differences in OTT roll out and consumption habits but OTT will become a $65 billion market by 2021. It’s the future.
When we look at activity across the Americas, Europe and APAC, it’s clear that OTT video and supporting technologies are being used to drive revenue and audience engagement everywhere.
EUROPE: MEDIA LOGISTICS
Industry demands for content have surged, personalized video appetites have increased and distribution outlets have multiplied. In Europe, this has been dramatic: The MAVISE database of the European Audiovisual Observatory reported that the EU saw a 49% increase in TV channels between 2009 and 2015.
Mobile has fuelled consumer hunger for OTT video. As the Ooyala Q3 2016 Global Video Index found, Europe leads the world in mobile video viewing. The Netherlands and Belgium have the highest mobile play percentages at 65% and 59% while Great Britain and Ireland top mobile sports viewing at 59% and 57%.
Media supply chain management (media logistics) has become essential for companies to keep up with these changes. Sky Sports in the U.K. uses media logistics to deliver hundreds of Premier League clips and highlights for online and linear consumption to 40 licensee partners in minutes.
Media logistics reduces complexity while improving visibility and efficiency in creating, producing, syndicating and monetising OTT video content.
NORTH AMERICA: ANALYTICS
In the U.S., 70% of viewers binge-watch shows —a selling point of OTT and SVOD. In the U.S. and Canada this is driven by Millennials. These findings suggest the level at which audiences (particularly younger ones) are willing to engage with video, try recommended content and stick with services that meet personal viewing demands.
OTT streaming providers are adapting. Hulu’s on-demand service sees 75% of viewing driven by recommendations. Netflix is known for its data-driven approach to selecting content for audiences and found 70% of viewers were hooked after two episodes of Stranger Things.
The Ooyala Global Video Index revealed OTT viewing patterns vary considerably by time, day, device and business model. Identifying and understanding this helps providers optimise content and maximise revenue.
Using data to curate personalised content and advertising separates the winners from the losers.
LATIN AMERICA: LIVE VIDEO
On-demand enabled the industry to scale, but live video will make it soar. It has evolved to provide the same experience as live TV and is a differentiator in crowded markets. Latin America is seeing this, particularly with sports.
América Móvil offered live streams of the Rio Summer Olympics across Latin America via Clarovideo . In Argentina, football clubs negotiate individual broadcast agreements; they’ve found that while linear TV deals have diminished live streaming has become lucrative. E-sports is becoming popular for live streaming; the top platform, Twitch, has the highest reach in Latin and North America.
Companies are harnessing libraries, audiences and learnings gained through VOD to launch live streaming for deeper OTT offerings and revenue, and beating the competition.
ASIA-PACIFIC: AD MONETIZATION
Where audiences move, ad revenues follow. In APAC, digital video advertising is booming. Australia saw 75% growth between 2014 and 2015, compared to 27% in the U.S. Video is the fastest growing segment of Japan’s display advertising market and India’s digital video ad spending share rose from 12% in 2014 to 17% in 2015.
However, ad blocking is now a global problem–and not just on desktops; in Australia, ad blocking rates of 18% have been reported. According to PageFair, APAC is leading mobile ad blocking, with 36% of smartphone users blocking ads. In China, 159 million smartphone users block them, versus 122 million and 38 million in India and Indonesia–and only about 2 million in the U.S.
The need for programmatic video, holistic advertising and ad re-insertion has increased exponentially. Malaysia’s Media Prima uses a platform that integrates direct and programmatic trading into one service; the company can track campaigns in real-time, making on-the-fly adjustments to maximise yield.
CONCLUSION
As companies expand their OTT vision, it’s clear it will continue to grow rapidly, offering opportunities for expanding audiences, content and revenue—whether the needs are local, regional or global.
