MUMBAI: Streamers across the world are ready to pay for online video. According to a new study by analyst firm Digital TV Research, SVOD subscriptions will more than double between 2017 and 2023. While Global pay-TV and SVoD subscriptions are expected to reach 1.877 bn by 2023, traditional pay-TV(http://www.indiantelevision.com/dth/dth-operator/dish-tv) will only add 94 mn subscribers.
At the end of 2017, the number of subscribers stood at 222 mn in US which is predicted to reach to 289 mn subscriptions by 2023. But China will see the highest rate of growth by adding 171 mn subscriptions during this period to take its total to 610 mn. However, its pay TV subscription will grow by 32 mn only. India will add 49 mn pay-TV and SVoD subscriptions in this period.
Based on the new subscriptions, total subscription revenues (https://indiantelevision.com/iworld/over-the-top-services/global-ott-revenue-to-reach-129-bn-by-2023-says-study-180921) will increase by 11 per cent ($25.4 bn) to total $251 bn in this period. Due to cord cutting traditional pay-TV revenues will drop by $18.5 bn to $183 bn. On the other hand, SVoD’s revenue will climb by $43.7 bn to $69 bn. This revenue jump will lead to an increase in total share from 11 per cent in 2017 to 27 per cent in 2023.
The market leader US will see total revenue from $108 bn in 2017 to $105 billion in 2023. While Pay-TV subscription revenues will drop by $20 bn, SVoD additions will not be able to make up the shortfall.
Tag: US
-
SVoD subscriptions to see massive growth worldwide
-
Global OTT revenue to reach $129 bn by 2023 says study
MUMBAI: OTT business across the world is now in a high growth period. In the next five years, revenue from online TV episode and films will reach $129 billion, which is more than double of same recorded in last year. Back in 2017, it stood at $53 billion and in 2018 alone $16 billion will be added. Global OTT TV & Video Forecasts has found the data after surveying 18 countries.
The research has also found the top five markets will command 69 per cent of worldwide revenues by 2023, down from 73 per cent in 2017. While online video viewing was a typical trend of some particular developed countries a few years back also, it is clear that emerging markets are rapidly growing, boosting the overall ecosystem. The report predicts that OTT revenues will exceed $1 billion in 17 countries by 2023.
Among all the business models in OTT market, SVOD has highest upward growth in total revenue share. In 2016, it became the largest OTT revenue source by overtaking AVoD. The share of the total will increase from 47 per cent in 2017 to 53 per cent in 2023. However, AVOD is still very relevant in the game being left with enough opportunities. AVOD revenues are projected to increase by $27 billion between 2017 and 2023.
“No prizes for guessing that the US will remain the dominant territory by some distance,” Digital TV Research principal analyst Simon Murray commented. “However, its share of global revenues will fall from 43 per cent in 2017 to 37 per cent by 2023. We forecast that revenues in the US will more than double between 2017 and 2023 – adding nearly $25 billion to reach $48 billion."
China, another growing player, will add $17 billion over this same period to nearly triple its revenues to $26 billion. Its market share will increase to 20 per cent in 2023 from 17 per cent in 2017.
-
Netflix could lose subscribers if it starts running ads
MUMBAI: Netflix users enjoy watching ad-free seamless content. The subscription-based video on demand service recently confirmed that it tested the idea of inserting promos for its shows and movies between episodes of existing programmes. A recent study found that if Netflix content includes ad, it could cost it the overall number of subscribers.
Hub Entertainment Research in its recent study The Future of Monetization examined consumer reaction to several alternatives of Netflix pay model. It surveyed 1,612 TV consumers from ages 16 to 74 who watch at least an hour of TV per week and have broadband at home.
If Netflix increases its subscription by $5, 23 per cent of the respondents said they may cancel the subscription. If it’s being raised to $10 more per month, 28 per cent would consider cancelling it. If the platform were to raise its monthly fee by $2, only 8 per cent said they would cancel.
More importantly, almost one-fourth of the respondents said they would drop the streaming service if it began running ads during Netflix content. Its ad-free consistency is one of the topmost features which attract subscribers.
“I think there are ways that they could arrange it so they retain as many customers as possible, but I think if they add ads at all, even at price reduction, there will be some people who leave,” Hub principal Jon Giegengack said.
Principal at Hub and co-author of the study Peter Fondulas said Netflix’s low price, no ads, vast amount of programming and original shows help it to stand out in the crowded US market.
-
Netflix’s ’13 Reasons Why’ shows massive popularity across markets
MUMBAI: Netflix’s celebrated series 13 Reasons Why which returned for its second season in May has unbeaten popularity across several countries. Data science company Parrot analytics has come up with Global Television Demand Report for the quarter April-June where it examined ten markets. Among those ten markets, the Netflix original topped the chart for most in-demand original series in eight markets.
The ten markets on which the report is based are the US, the UK, Austria, Canada, Colombia, Germany, Malaysia, Portugal, New Zealand and Poland.
Stranger Things, Black Mirror and Orange Is The New Black have also been placed among top ten in-demand originals in most of the markets. The newly launched YouTube Premium original Cobra Kai has also attracted many viewers in some of the markets. Amazon Prime original The Grand Tour has also managed to maintain its appeal this quarter while its last episode was released in February. Hulu’s second season of The Handmaid’s Tale appeared within the top 20 across all evaluated markets.
With the sweeping change in technology, viewers across the world are consuming TV content through various devices. Smart TV, a new obsession of viewers, has highest reported usage in the US (21 per cent). The UK is another market with high Smart TV usage (19 per cent).
Interestingly, the audience in Malaysia is more likely to watch television on a mobile (24 per cent) or tablet device (22 per cent) than through a regular television set. In New Zealand, viewers that engage with TV content are very likely to do so through a laptop or desktop. On the other hand, people in Colombia and Germany are more likely to engage with TV content through traditional TV devices.
-
Netflix outperforming traditional TV, YouTube in the US
MUMBAI: Netflix is outperforming traditional TV in the US. It has reached the top spot among platforms for watching entertainment on TV leaving traditional cable and broadcast television networks as well as YouTube and Hulu behind. A recent survey of US consumers by Wall Street firm Cowen & Co. has revealed the fact.
The survey conducted in May included 2,500 US adults. The participants were asked which platforms they use most often to view video content on TV. 27 per cent of the total respondents choose Netflix. Other sources of entertainment like basic cable, broadcast and YouTube stood at 20 per cent, 18 per cent and 11 per cent respectively.
More importantly, millennials give Netflix higher preference. 40 per cent of adults aged 18 to 34 prefer the platform most often to view video content on their TVs. Only 17 per cent of them use YouTube, 12 per cent basic cable, 7.6 per cent Hulu and 7.5 per cent broadcast.
“Over the long term, assuming [Netflix] is able to continue to increasingly offer great content, this lead clearly bodes well for further value creation,” Cowen & Co. analysts led by John Blackledge wrote in a research note as quoted by Variety.
Other than US, Netflix is trying to strengthen its foothold in other countries too. In India, it has recently launched Lust Stories that has been critically acclaimed. It’s also being very bullish about its original content. The company hopes to add five million international subscribers at the end of this quarter.
“Owning a leading international content-production footprint and ramping relationships across the talent ecosystem should prove beneficial to Netflix’s ability to increase production in those markets, much of which is produced at a lower cost than similar content produced in Hollywood,” the Cowen & Co. analysts wrote.
Also Read:
-
Oyo expands footprint in China
MUMBAI: Indian budget hotel company Oyo Rooms has forayed into China to cater to the country’s burgeoning hospitality industry. Oyo Rooms.
The Softbank-backed Oyo in China will have 11,000 exclusive-franchise or merchandised rooms across 26 cities. The service will be available in Xiamen, Kunming, Shenzhen, Chengdu, Nanjing, Xian among others.
The company will compete with already established players in the market including Home Inns, GreenTree and Motel 168.
Oyo founder and CEO Ritesh Agarwal says, “The country’s tourism industry is on the cusp of booming and flourishing wherein it enjoys a strong influx of both domestic and international tourists; also the market is as fragmented as the Indian hotel market. With our expertise in managing chain of hotels backed by technological innovations, we will further continue to strengthen our footprint while empowering neighbourhood hotels to emerge in the same league as the big boys of hospitality.”
The company is looking at expanding its footprint in international markets, with Dubai and Indonesia being high on its priority. Agarwal is also said to be exploring opportunities in the UK and US markets.
-
YouTube Red rebranded as YouTube Premium with expanded reach in 14 countries
MUMBAI: YouTube Red, the ad-free subscription video on demand (VOD) service launched in October 2015, has been rebranded as YouTube Premium on 17 May 2018. The rebranded service, YouTube Premium, will be rolled out soon in existing YouTube Red markets like US, Australia, New Zealand, Mexico and South Korea.
It will have a higher price point for customers that are new to the premium-level offering which will fetch $11.99 per month, $2 more than the earlier price. Current YouTube Red subs that sign up for YouTube Red service before YouTube Premium is formally launched will get the lower price of $9.99 per month. With respect to updated pricing, one exception is South Korea, which will offer YouTube Premium at the current price of YouTube Red.
The new YouTube Premium includes the ad-free YouTube Music (a revamped music streaming service that will take on rival offerings such as Spotify and Apple Music), plus access to original series, including Cobra Kai, and movies (like upcoming sci-fi title Impulse) and other YouTube content without ads.
YouTube Premium is also getting a wider reach, as it’s to be rolled out in Canada and 13 European markets including Austria, Denmark, Finland, France, Germany, Ireland, Italy, Norway, Russia, Spain, Sweden, Switzerland, and the United Kingdom.
Google hasn’t revealed YouTube Red sub numbers, but the service was reported to have about 1.5 million paying customers a year after launch.
Also Read :
YouTube web series to showcase road safety awareness across India
-
TV relevant for streamers too finds survey
MUMBAI: The growth of video streaming is beyond question as streaming devices are easier options for viewers to explore various chunks of content. However, streamers in various parts of US also have a bonding with traditional TV according to a report from Nielsen local watch report.
93 per cent of streamers watched traditional TV on a typical day. The 7 per cent of the streaming viewer of the age group 25-54 streamed exclusively while 47 per cent of them watched only traditional TV on a typical day. Rest 46 per cent consumed a mix of traditional TV and streaming.
In Detroit 53 per cent watch only traditional TV, while 39 per cent use a mix of both traditional TV and streaming devices. Eight per cent use only a streaming device in a typical day. The statistic varies in Portland where 41 per cent of streamers watch only traditional TV in an average day, with 12 per cent only using a streaming device to view content. 46 per cent use a combination of traditional TV and a streaming device in an average day.
A huge number i.e., over 65 million US homes have an enabled device capable of streaming content to the TV as of last November. However, the OTT-savvy homes are more from urban areas. On the other hand, mid-size markets are showing more growth. Young affluent audience also has more inclination towards streaming devices. Homes, where the head of house is less than 35 years old, are 34 per cent more likely to have a streaming device than the average home. While this age group accounts for 20 per cent of streaming device owners, the age group of 25-54 comprise 44 per cent, and age group of 55+ make up 36 per cent.
Like India, US viewers also have an affinity towards local media. 91 per cent of streaming device owners access local media on TV or online. 51 per cent access local news through app on mobile devices. 43 per cent have accessed local radio. 40 per cent completely or to some extent agreed to the importance of social media for keeping a track of local information.
The survey reaffirms the importance of broadcast TV for even OTT viewers. Broadcast TV’s charm has not faded in this digital era also.
-
Indian diaspora remains sustainable audience for OTTs
MUMBAI: With the Indian diaspora spread out all over the world, media enterprises have found them to be a worthy group to target. Over-the-top (OTT) players, especially, are finding the diaspora audience a rewarding pursuit. Some platforms use Bollywood to grab their attention while others are targeting millennial audiences with original content.
One the one hand you have players that believe in stock content. Yupp TV has been at the forefront of targeting Indian diaspora through catch-up content. Realising the scarcity of Indian entertainment content for the expat community, Uday Reddy founded the venture. While there is scepticism about whether audiences would pay for catch-up content, Yupp TV has relied on SVOD model for the diaspora and a freemium one in India.
Another OTT platform, Spuul, which also has a large presence outside India, takes the help of popular Bollywood titles to attract them. According to its own viewership statistics, the Indian diaspora has a strong inclination to watch Bollywood movies during leisure time.
On the other hand, a new bunch of players wants to break out of the monotony of catch-up and Bollywood content. Arre, a youth platform launched by ex-TV18 execs B Saikumar and Ajay Chacko, gets a good handful of viewers from abroad for both videos and articles.
“Our show Aisha which is primarily a sci-fi thriller/drama is among the most consumed. It is also one of the most awarded shows from India, internationally. Our other shows like Real High (adventure travel reality), Official Chukiyagiri/ CEOgiri also see a lot of international audiences. We also get a lot of readers on our articles internationally,” Arre co-founder Chacko says.
Chacko feels that the younger audiences want original quality programming of modern India and not the staid staples like Bollywood and catch up.
Holding the same belief, ALTBalaji CMO Manav Sethi feels that content must be unique to get people to pay. “It is very important for today’s consumers who consume content on mobile, paying for data, to watch differentiated things,” he says.
While it comes to market outside India, the US is definitely a promising one, followed by the Gulf countries. For Arre, the US is the largest market outside of India while for ALTBalaji both come in the list of top-five markets. Canada, with a huge number of Punjabi people, is also an attractive market. In fact, on Spuul, other than Hindi content, Punjabi is the highest consumed content.
Depending on the dominant diaspora language in the region, platforms tweak content accordingly. For example, if Canada has more Punjabi people, there will be more Punjabi content for Canada. ALTBalaji released a Tamil show Maya Thirrai, which got traction in Singapore and the UAE, while its Bengali show Dhimaner Dinkaal received got a great response in Bangladesh. Chacko reveals that through YuppTV, Arre gets significant traction for shows, especially the ones dubbed in Telegu among the Indian American diaspora in the east and west coasts of the US.
Two neighbouring countries of India, Pakistan and Bangladesh, also demand Indian content. The similarity in culture, language, dialect, lifestyle and moreover, the pattern of same entertainment content paves the way for OTT players to explore the business there.
These audiences are a good way for OTT players to also get some revenue since most of them only have SVOD or TVOD options. Players say that the diaspora is more likely to pay for content that keeps them connected to their roots. The average revenue per user is higher outside the country. They also have a huge repertoire of choices with good quality in international OTT platforms.
Some platforms want to go beyond the diaspora communities and reach out to other global audiences as well.
“So far, it has been a sustainable model for us, as we have been working on multiple verticals of content but, going forward, we will be paying more attention to India than last year and separate content for specific markets,” Spuul content head Girish Dwibhashyam says.
Due to the diversity of the diaspora, there is no one formula fits all solution. Content creators have to rely on good quality original content to keep these audiences glued.
Also Read :
We’ll ensure diaspora plays an imperative role in AdAsia Congress, says Raj Nayak
Sony targets 9m HD subs & diaspora with youth-focused Rox in Dolby quality
-
FB reveals CA harvested data of up to 87 mn people
MUMBAI: The Cambridge Analytica (CA) data breach row continues to loom over social media giant Facebook. Revealing a far higher figure of affected users than the estimated 50 million, the company itself confessed that the data of up to 87 million users may have been improperly shared. Admitting in a blog post by the company’s chief technology officer Mike Schroepfer, the company provided its plan to restrict data access on the social media platform.
When the controversy first broke out regarding British data analysis firm CA, it was reported that CA illegally obtained data of around 50 million Facebook users. Now, the added 37 million proves the earlier reports were just the tip of the iceberg. The 2016 US Presidential election which saw the landslide victory of Donald Trump has been rife with allegations that CA targeted voters on the back of illegal data. Soon after the first few reports, the fiasco became subject of debate all over the world.
Facebook also shared the number of users likely affected from several countries including India. Indian users constitute 0.6 per cent (562,455) of the total number of affected users and naturally, the US is the highest affected country with 70,632,350 users (81.6 per cent).
“In total, we believe the Facebook information of up to 87 million people — mostly in the US — may have been improperly shared with Cambridge Analytica,” Facebook officially said. CA, however, had licenced data for “no more than 30m people from GSR” and “did not receive more data than this”.
The revelation comes at a time when after seven days Facebook CEO Mark Zuckerberg would make his first appearances before US Congress to answer questions about the recent data misuse. On next Wednesday, Zuckerberg will appear before the House Energy and Commerce Committee to testify at a hearing on data privacy. It is certain he will face strong criticism.
Australia’s privacy commissioner has launched an investigation to determine whether Facebook breached the Australian privacy act after knowing that 300,000 Australians are suspected of their data being breached by Cambridge Analytica.
From restricting app permissions for information like check-ins, likes, photos, posts or a group content to deleting a tool which allows users to search someone with e-mail id or phone number, the company is putting several efforts to restore users’ faith. “We’ve reviewed this feature to confirm that Facebook does not collect the content of messages — and will delete all logs older than one year,” Facebook said assuring to review the feature which collects call and text history.
Users are likely to learn from this lesson and be wary about giving away their personal information through public platforms. While data analytics is a necessity for businesses, tech companies also need to put an ethical check to data mining until proper regulations are formed to prevent such mishaps. Besides focusing on the analytic tool, the time has come to strengthen the cybersecurity of the entire ecosystem.
Also Read :
Facebook’s move to limit use of third party data brokers angers advertisers