Talking Telco OTT

Love OTT Like TWC

If telco and cable service providers (MVPDs), whether large or small, need more to fuel the case for OTT video services, look to one of your major peers, Time Warner Cable. This week, it has been announced that TWC is considering an investment into Hulu.Clearly, a step like this indicates TWC's approach to include OTT video in their future strategy and business planning as a MVPD. 

I thought Joel Espelien with TDG gave 3 good reasons why he thinks TWC would make an investment in Hulu, and implications for OTT. In summary:

1. The majority of TWC's and other cable companies' revenues are coming from broadband services (DOCSIS 3.1?). With that in mind, it's smart business to partner with OTT video providers.
2. OTT itself can become a very compelling bundling service to generate new revenue streams and boost broadband upgrades.
3. TWC could break the "business model" deadlock created for Hulu (ads vs. SVOD) by its owners, mainly Disney and Fox. 

TWC also recently launched TWC TV on Roku, offering live streaming TV channels to authenticated users. This was another bold move for an incumbent cable company to openly embrace OTT by launching TV Everywhere services on a pure OTT set top box like Roku. 

Hulu's adventures and TWC's recent interest in Hulu and deployment on Roku are shaping the future of TV in front of our eyes. Service Providers can lead, follow or get (pushed) out of the way. And it doesn't take a multi-million dollar investment in Hulu. There is a large and rapidly growing industry of digital content producers and owners, increasingly ready to partner with MVPDs and explore new distribution channels. OTT platforms like Endavo can provide the flexibility to ease into it, if that's more comfortable... test the waters... get in the game. To be sure, telco and cable subscribers are spending more and more of their "TV" time going over-the-top to find what they want, when and where they want it... and, importantly, they are paying for it. Smart MVPDs like Time Warner Cable have figured this out. So now it's time to think outside the (cable) box and reach out to regain subscribers' attention (even find new consumers off-net) by launching new and innovative services over broadband, including premium OTT video. 

That's how I see it. What do you think? 

Dubai Media's iPad App Released!

I am very pleased to announce that we launched DMI OnDemand for iPad on iTunes App Store today. This new app is an extension of Dubai Media's VOD website service already being accessed by thousands of viewers daily. The free video service features an extensive VOD library from Dubai Media's 6 broadcast TV channels: Dubai TV, Dubai One, Dubai Sports, Dubai Racing, Noor Dubai TV, and Sama Dubai. DMI refreshes the content in their VOD service daily so users can catch up on their favorite TV shows, on demand, soon after original air time.

Endavo developed and hosts the app and, of course, DMI uses Endavo's OTT Video Services Platform to upload, organize, manage and publish programming to DMI OnDemand, as well as to their VOD website http://vod.dmi.ae/. We recently announced that some of DMI's licensed programming is delivered with PlayReady DRM and geo-blocking, to only allow regional viewing. We also stream all 6 live Dubai Media TV channels on the site 24/7. There are preliminary plans to possibly add the live channels to the DMI OnDemand app in the near future, and then add a catch-up TV service.

Here's a link to DMI OnDemand in iTunes App Store:  https://itunes.apple.com/us/app/dmi-ondemand/id641607453?mt=8

 

The (Paying) OTT Audience is a Rising Tide

For you number-crunchers out there, eMarketer released a new market report, which seems to clearly show that the audience for digital TV and movies is growing at a pace even more rapid than expected. Maybe not totally unexpected for we who drink the cool-aid, but Content Providers, Broadcaster and MVPD's alike probably need to take notice of this evidence of the rising OTT tide, if not already. 

 

 

 

 

 

 

 

 

 

 

 

 

The report also includes some survey results that indicate internet users' increasing potential interest and willingness to cut the cord in favor of OTT video service subscriptions. "As more people in the US watch digital media on a growing range of devices, streaming services are stepping up their competition for subscription and advertising dollars." says eMarketer. 

Although much of this growing OTT audience is paying for and watching Netflix, Hulu Plus and a few other "mainstream" TV Everywhere and Movie services, I believe in the theory that a "rising tide (sometimes) lifts all ships". In this case, I believe the more people access the various connected devices (Smart TVs, Roku, tablets, etc.) to watch their digital content from OTT service providers, the more curious they will become to go discover what else is out there. Throw in cross-channel discovery and search, to create more seamless user experiences (MVPDs, pay attention here), and we can open up a whole new world of great, relevant content and premium services for OTT audiences. 

That's how I see it. What are your thoughts? 

Paul D Hamm

 

Best Buy Circular Ad Highlights Cord-Cutting Content Package - Videonuze

I thought Will Richmond's VideoNuze commentary regarding a retail ad he found in his Best Buy circular was interesting enough to post here on our blog as well. The ad suggests that even a big retailer like Best Buy believes the mainstream consumer video market winds are shifting, as people are beginning to seriously consider supplements, or even alternatives, to the traditional Pay TV offerings. Telcos and Cablecos seeking to enter or expand into Pay TV markets should at take notice to these kinds of things as they consider their own strategies to grow their businesses. There are many opportunities evolving to differentiate services and reach consumers, across and beyond existing broadband networks, by partnering with non-traditional content providers. Like Best Buy did here, Telcos need to think outside the box. 

That's how I see it. What are your thoughts? 

Enjoy Will Richmond's post:

Best Buy Circular Ad Highlights Cord-Cutting Content Package - Videonuze.

Web Video: Ads vs. Pay

"If Media's Future Is Online, Where Are the Profits?"

WSJ did an article today, linked below, with some interesting data on advertising rates for online video. Seems rates are under some pressure for various reasons, even though the overall online video ad market has grown. So for me, I am often torn between ads and premium (pay) video services when it comes to our clients' business models. Keep in mind our success is largely dependent on the success of our clients, so we're very interested in driving success. We generally work with niche content providers who have fairly targeted and/or known audiences. There's an argument for placing targeted ads to a niche audience with common special interests, but is that necessarily the best path to revenue success? Or, maybe a niche audience will be more willing to pay for niche content if it's relevant, high quality and if the user experience deserves a "premium". Not sure I have the final answer, thus we debate. And maybe the answer isn't just one vs. other. But hey, it gives us a consistently interesting topic to socialize in product development and sales meetings...

People in the media business say that the future is online video. Just how many companies will be able to profit is the big question. Online video-advertising rates continue to fall. Prices for ads on top-tier sites last year... for more click here

That's how I see it. What are your thoughts?

Paul D Hamm

Regular TV vs. OTT - A New Study

TDG announced it will be doing a study of video viewing (Broadcast TV vs OTT) behavior of 18-24s. "Because this age group is defying traditional TV models, businesses [i.e., content and service providers] are being forced to abandon long-established practices in order to accomodate these tech-savvy and demanding consumers."

TV operators should take notice of consumer behavior trends as they are planning their video service strategies for the future. 

That's how I see it. What are your thoughts?

Paul D Hamm

A Great OTT Video Service Starts with a Clear User Experience Strategy

As the folks involved with the first Google TV launch will be the first to tell you, user experience can be the difference between success and failure when it comes to launching any video service. I am sure Google will eventually get it right, but as consumers become more and more discriminating when it comes to how, where and when they are watching video programming, it’s all about the user experience.

Peter Contardo’s recent blog post highlights how hard it can be to “generate eyeballs” for a consumer video service. While I certainly appreciate the process of smart branding and marketing to consumers, I thought I’d take a step back and delve deeper into what it takes to create a compelling user experience in the first place.

So, where do you start when planning your service? Two words…Requirements Definition. And we recommend always beginning by asking two fundamental questions that set the stage for a quality user experience (UX):

1. What business objectives do you want to achieve with your OTT video service? This answer yields the requirements necessary to achieve service objectives.)
2. What do your customers (and you) want to experience from your OTT video service? This answer yields the requirements necessary to achieve user needs.

It is these initial questions about the services that will be deployed that are used to help more efficiently create the desired user experiences for service providers, and ultimately for their end users. It is this process that helps increase the success rate of any OTT video service.

With these requirements properly defined, we then focus on four areas impacting the design, development and deployment of the consumer video offering as depicted in the diagram below:

• Content – Beyond having great content that people want to watch, it’s the organization and discoverability of video programming that helps users find what they want to watch, and keep them watching.
• Services – Creating a service, website and/or app that is generally easy to use and supports specific features and functions related to the service is a key driver of user experience.
• Access – The primary driver here is devices/screens, making the service available on the screens that end users access.
• Delivery – Delivering video content and services users with highest QoS and QoE possible is a key user experience driver for end users.

Our perspective on building a great user experience is grounded in a thorough understanding of the overall business goals. The goals guide the UX and ensure it is aligned with the fundamental reasons why the service is being offered. There can be a big difference in the UX when supporting a pay service or an advertising model, or both.  Device strategy, functionality drivers, content optimization, social sharing options and even the targeted user demographics and psychographics are just more examples of the depth to which you must go in order to thoroughly define your requirements prior to building the user experience.      

Here at Endavo, we always try to keep in mind all 4 key areas of user experience as we develop our products and services. Usually, service providers are forced to cobble together the necessary parts that make up an end-to-end video service experience. We have seen this result in sub-optimal user experience, which can lead to business failure. This is why we strive to keep the user experience strategy at the forefront of what we deliver.

With a solid user experience strategy feeding scope and requirements, a compelling and seamless user experience can be created. If you can nail down user experience first, you can then focus on creating great content and getting eyeballs to watch your content with confidence, knowing that once your customer experiences your video service, they’ll have every reason to stay, watch and come back for more.

That’s how I see it. What are your thoughts?

Paul D Hamm

Quick Thoughts - Keep an Eye on Content Providers' Use of OTT

As content providers continue to embrace OTT as a viable option for direct delivery of programming to their audience, telco and cable operators need to pay close attention as they consider their own video services initiatives.  Whether it’s a single channel provider or a multi-channel media organization such as Dubai Media Inc. (our current “Client Spotlight”), content producers, broadcasters and aggregators know that it takes both multiple programming windows and multple distribution methods to satisfy an audience, plus meet their business and revenue objectives.

When offered as an integrated service along with traditional broadcast or pay TV, OTT distribution can be used to increase audience awareness by offering everything from sneak previews of full-length shows, to catch-up programming, or even “extra” content only available to OTT subscribers. This strategy for expanding their audience through OTT enables content providers with a compelling way to build their case to service providers for negotiating increased per subscriber rates for their video programs.  

Peter Contardo, Endavo’s CMO/Head of Content, adds: “Content providers can also use their expanded OTT audience to deliver additional value to existing advertisers and sponsors of their programming. Advertisers are looking for ways to embrace emerging multi-screen opportunities and what better way than to jump right in by leveraging an established business relationship with a trusted content provider.”

Once again, my advice to Service Providers is to closely follow what’s happening in the content provider space. Knowing what is driving producers, broadcasters and aggregators can help as you evaluate/plan/launch your own OTT initiatives.

That’s how I see it. What are your thoughts?

Paul D Hamm

Quick Thoughts - TV Everywhere is NOT the same as an OTT service. Consumers agree!

Telco and cable video services providers may be better off adopting strategies that are more similar to OTT providers (e.g. Netflix, Hulu) than the current TV Everywhere model, which is generally seen as a defensive strategy. This conservative approach has resulted in consumers being slow to embrace the expanded access to content offered by TV Everywhere. John Fletcher, an analyst at SNL Kagan, reports that TV Everywhere apps “have so far been met with a lukewarm consumer response.” And Parks Associates senior analyst Brett Sappington observed “If TV Everywhere services were originally designed to be a defense against over-the-top video services, this lack of [consumer] awareness is a significant problem.”

Peter Contardo, Endavo’s CMO/Head of Content, also weighs in: “Service providers, especially telcos, are missing a great opportunity to both educate consumers and generate new revenue. We see content producers, distributers and broadcasters growing increasingly frustrated by the lack of marketing resources and commitment to these new video services, to the point where many content providers are just going direct to their audience.”

So to all you Service Providers out there thinking about extending video services to your customers, I strongly recommend that you think through your strategy and be prepared to invest to support it. If not, content providers and aggregators may start passing you by and going “over-the-top” to get to the consumer first…and better.

That’s how I see it. What are your thoughts?

Paul D Hamm

Key Takeaway From NATPE 2012 - Content Provider Perspectives Impacting Telco Video Services.

Because of the exciting work we're doing here in Dubai, I was not able to attend this year’s NATPE in Miami - but I did get a briefing from my team coming out of this annual gathering of creators, developers and distributors of television programming from around the world. Peter Contardo, who recently announced our expanded content services, and Jason Anderson met with many of our current platform and syndication clients and prospects, as well as industry players who shared perspectives on the digital media distribution opportunity and its impact on the television content marketplace. 

Among many content provider perspectives impacting telcos, I wanted to relay some thoughts from our team on the most fundamental question asked repeatedly by content producers, distributors and broadcasters: “How do I make money off my content in digital?” This question comes as yet another distributor was heard complaining that "consumers don't want to pay for content." Well, a quick check of your telco or cable bill, your Netflix, or Hulu Plus and MLB subscriptions certainly counters that argument. Consumers WILL pay for content - maybe just not YOUR content.

So, WHY are consumers willing to pay for some content but not others? Because content providers expect to make money from their programming as they evaluate OTT opportunities, this becomes a critical question for telcos, as well. To the audience of television programmers at NATPE, here are three answers to this WHY question, which telcos need to understand when considering the design, development and delivery of video services.

• Make your content discoverable. “If you build it, they will come” may have worked in the popular movie Field of Dreams, but in a world where 60 hours of video is uploaded to YouTube every minute, your content is not alone. Maximizing use of metadata can help consumers find your programming across every platform. In fact, one company commented that they employ 150 full-time workers to do nothing but identify and tag TV shows by title, lead actor, genre and other key words.

• Content may be king, but viewer data is pure gold. To really cash in on your content, you need to go beyond what is watched and how long it is watched. Google’s TV advertising platform is beginning to deliver data on viewer demographics, tastes and specific ad engagement - telcos should do likewise. Quality data is especially valuable when designing channels across multiple devices that consider different viewing experiences, such as watching live TV in the living room or catch-up viewing on a tablet at the local Starbucks.

• Make your content brand-friendly. Advertising revenue represents roughly half of a typical cable network’s revenue and it is becoming increasingly important for operators reaching the limit of the monthly bill most subscribers are willing to pay. Likewise, brands remain desperate for quality programs on emerging platforms that they can trust, just as much as they've trusted TV fare for the past 50 years. Creating brand-friendly content will drive cross-platform ad revenue and can increase your viewing audience through brands’ ancillary promotional efforts.

There are many other important observations coming out of NATPE and the content community, and I welcome you to contact our content services team to explore how they impact your business.

I also strongly encourage you, if you haven’t attended NATPE in the past, to make plans to visit Miami next January and experience for yourself this global content marketplace. Telcos will clearly benefit from hearing first-hand from the content providers who are creating and distributing programming that is at the heart of the consumer video experience that you are (or will be) building and delivering.

That’s how I see it. What are your thoughts?

Paul D Hamm