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Insert Coin to Play: OTT Is Booming, But It's a Seller's Market

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Ever feel like you’re being chased through a maze, looking for that one game-changing event that suddenly gives you the advantage ... 至少目前是这样? Welcome to “Online Video Industry 2016—OTT Time.”

Our industry’s ebbs and flows are so cyclical I can pretty much set my watch by them. This time, it’s a seller’s market. 网飞公司 has created tremendous pressure for just about every company with premium content to get its act together online. The reality has set in and this pressure is not going away. 但你不应该惊慌. Take a deep breath and realize we have a long way to go, and the business case isn’t as simple as just starting a channel on Roku or 苹果电视. 不管怎样, I’m very happy that companies will be spending on our industry like they never have before. In fact, subscribers to this magazine alone have earmarked a budget in excess of $5.2016年70亿美元. That’s an incredible 60 percent jump from 2015—it’s real money.

The problem is how to make good choices with that money, and there will be a lot of impulse buying and then the inevitable do-overs, which is a worry whenever we see this kind of buying cycle. Whenever there’s money to be spent, “companies” come out of the woodwork—big ones, 小的, spin-offs from existing companies, some without a product to sell—all looking for a piece of the pie.

And then there’s all this noise about creating original content. Don’t get me wrong, I think it’s a great play. 忠诚是件大事, especially since pricing models are coming apart so you can buy a single episode on 苹果电视, 而不是一个系列, much less a subscription to a network (here I include Amazon, Hulu, HBO, 美国广播公司, and others that charge a subscription fee for access) that might only have one golden goose. Publishers are spending more on technology and content than ever before, but they charge less per subscriber. 总有些东西要放弃.

网飞公司 has pretty much reached capacity for subscriptions in the U.S., so it’s turned its attention worldwide. 这样做的时候, Reed Hastings indicated 2016 is going to be a “break-even” year for 网飞公司 while the company bears the rising cost of content and international expansion.

The folly that many content companies must try to avoid is trying to emulate 网飞公司’s business model and joining the race to the bottom (getting more content for less). Experimenting with second-screen and full-season releases, as well as other new delivery strategies, can contribute to subscriber loyalty. 但是等一下——第二季 《百家乐软件app最新版下载》 现在在美国的亚马逊上.S. and 网飞公司 in other countries, but it’s only delivering one episode a week! So much for binge-watching that one.

Surely the age-old business model of paying the most for the best content and then monetizing that opportunity still applies here. 到了紧要关头, and shareholders put pressure on 网飞公司 for profits, don’t be surprised if ads start showing up, unless you want to pay for a new premium account level. Now, those ads could be something actually worth watching. Wouldn’t it be cool if 网飞公司 struck an exclusive deal with Marvel to create a 25-minute 十佳 预告片? I’d open up my wallet for that. 对,插页广告. A commercial you’d pay good money to watch. 你先在这里读.

For those of you looking to invest in the online video industry and choose a vendor this year, there are really good companies to look at in this 原始资料. If you want to win big at this game, read it cover to cover; we’ll help you get a high score. We love to see innovation, so with the help of this 原始资料, go make some news!

本文发表在 2016 流媒体 Industry 原始资料.

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