I was a panelist again this year at the OTT Exec Summit in NYC. This year was particularly affirming both in terms of the strength of the marketplace as well as the technological approach that Ratio is taking with the Ratio TV product offering. As we mentioned in the last blogpost, Ratio took home the “Most Innovative” product award as voted on by the attendees. However, equally important is what we took away in terms of market insights and trends.
Below were a few of key take-aways that I thought were worth sharing:
Impact of the Skinny Bundle: The Skinny bundle and DTC (direct to consumer) offerings are here, en masse. The whole industry is going to get re-organized. How that will actually occur is completely undefined and there is no clear picture of what the new “new” looks like. None-the-less, there will be a lot of experimentation and iterating to figure out what is best for consumers, and what the impact of that will be on content owners and distributors. Stay tuned for a wild ride.
Cord “slimming” versus “cutting”: One of the interesting aspects of this conference was that there was a live “Focus Group” of Trenders that included all sorts of demographics including Millennials. Millennials are by no means writing off cable. While it may be a slimmer version of cable that they ultimately subscribe to, they still see the value of it and a lighter version of a cable package will likely be in their line-up of entertainment choices next to the skinny bundles.
QOS (Quality of Service) Becoming Increasingly Important : As a lot of the heavy lifting in areas like monetization, advertising and analytics has been done, QOS seems to be the next frontier. There is a lot of technical horsepower being applied to this that should address concerns in this area. Also the Trenders weighed in and said that this definitely matters.
Discoverability Remains one of the Top Challenges: I’ve always felt strongly that this is the number one problem in the OTT space, and as more and more content is delivered OTT, this problem continues to compound. The industry seems to agree. Solutions will involve better UX and better marketing programs. This is a problem for both publishers and consumers.
Monetization Maturity: As publishers look to monetize, the greatest opportunity is around bringing “grown-up” TV ads to the market at scale. While CPMs are already very respectable, the trend will get even stronger with enhanced third party tracking and verification by entities such as Nielsen and ComScore. This will unleash more traditional TV dollars into OTT, but supply is likely to continue to be a problem. While this is a problem we like to have, it goes back to the previous bullet about discoverability.
For more insights, trends and some interesting data, go straight to the source at the OTT Exec Summit web site. And to look at my favorite data-point, check out this graph about how ad dollars are trending.
Thanks for reading the my Blog– I hope you found it informative! If you’ve made it this far, you are probably looking for some more information. Allow me to be helpful.
- If you’re interested understanding more about the RatioTV platform, I recommend you visit our RatioTV Home Page.
- Interested in talking about a project? Send us an email.
- Interested in working for the team? Check out our job board.
- Interested in the co-authored OTT White Paper between Verizon & Ratio? Download it here.