The OTT market is showing tremendous growth, making it an extremely interesting time for new entrants and those already within the industry, says Magine Head of Commercial Operations Fredrick Engdahl.
We are now starting to see consumers subscribing to three or more OTT services, and although they may be the smallest, they are also one of the fastest-growing segments in the market. At Magine, we believe it’s a great opportunity for new OTT service entrants to grab the number three or even four spot next to the OTT streaming incumbents such as Netflix, HBO, and Hulu.
In recent years, the viewer’s appetite to consume new types of independently-produced content has also increased. And we’ve seen content production costs and content sourcing becoming less of a barrier for those looking to launch their own OTT service.
We’re really seeing a democratising of content distribution in the OTT market, and hopefully, we will see this trend accelerate in future.
The foundations for global growth in OTT are also falling into place. In fact, we’ve seen increased investment and coverage of fixed and mobile infrastructure.
Consumer data buckets are getting bigger and data even cheaper. Expansion of LTE networks and 5G roll-out will further expand the availability of data connections in existing and new markets for OTT streaming.
This is particularly important for those considering launching their own OTT service, as consumers are now spending more time watching video content on their mobile devices than ever before. Mobile viewing is one of the biggest growth areas, and we expect to see this continue in coming years.
Traditionally OTT has proved most popular for linear TV and video-on-demand content. However, the demand to broadcast live events via OTT is on the rise.
Previously the required hardware, distribution and transport of live streams had been complex and unstable. This was a significant barrier for new market entrants as it resulted in negative customer experiences and lacklustre live stream quality.
However with better delivery methods and new protocols for live streaming being experimented with and rolled out, more OTT services are able to successfully deliver live to audiences globally at great quality and with little effort.
Another interesting development is the ongoing refinement of server-side dynamic ad insertion technology. Ad-supported OTT services are becoming a more viable alternative for OTT monetisation. Services can better monetise their audience through ads with higher CPMs.
With the current speed of innovation and new technologies in the market, we put great effort and time in being at the industry forefront, enabling us to offer the best and most innovative technologies to our clients.
Through IBC Content Everywhere, we hope to garner insights into the latest trends and technologies that are shaping our market, and also engage in interesting and enlightening discussions with our industry peers.
Fredrick Engdahl is Head of Commercial Operations at Magine.
Magine will be exhibiting at IBC2018 on Stand 14.C25