With a boom throughout the Covid-19 pandemic, the online streaming industry has seen a huge boom throughout Covid-19 with a great rise in daily sign-ups and now research from Capgemini projects that subscription video-on-demand (SVOD) will overtake pay-TV in more than 30 countries by the end of the year.
The report, OTT Streaming Wars: Raise or Fold, explored the state of the media industry, aiming to better understand the role of data in differentiation and gaining a competitive edge across different areas like content sourcing, customer acquisition, customer loyalty, cost and lifetime value.
Capgemini interviewed close to 50 senior media industry executives and experts in various companies from APAC to the Americas between July and September 2020 and geographically span the globe. Its discussions included broadcasters, telcos, right holders, pure players and key vendors.
One of the fundamental findings media and entertainment companies of all shapes and sizes, regional and local, were all looking for ways to establish their own OTT (over-the-top) streaming services and searching for answers about how to survive and thrive in a fiercely aggressive market. And the dynamic towards OTT went beyond just series and film. Indeed, OTT was found to have entered all forms of content, including sports, gaming, podcasts and theatre.
Another key element of the survey was to find out how data was being used for business insights. Capgemini said that the survey showed that if content is king, data is now the ace. It found that nearly 70% of those interviewed declared data to be business critical for survival. The survey noted that data could increase competitiveness on all core business areas, including content experience personalisation and enrichment by 70%; audience and data monetisation by 55%; content production and acquisition by 40%.
Two-thirds of companies reach only a basic level of data-maturity; challenges include: lack of clear vision and culture around data and insights; difficulty dealing with privacy and regulation; shortage of adequate people, skills and resources to transform at scale.
Capgemini also saw a market based on consolidation and new opportunities for aggregators. It said it was seeing a rise of aggregating services that are trying were reduce complexities for the consumer, by combining content from various right holders, or different streaming services, via one interface. These aggregators are mainly telecommunication providers or major tech companies such as Amazon Channel, Jio T +, and a bundle solution partnership by Viacom CBS and Apple.
What such services had in common said Capgemini was that their value proposition is focused on ease of use, guidance and support for users who are lost or annoyed by an overload of OTT platforms. The company said that to be successful the aggregators had to excel at user experience and unlock key aspects of the value proposition including ease of use and guidance. The more fragmented the market, the more complicated clear guidance gets, and thus, the need for more aggregators.
In conclusion, the OTT Streaming Wars: Raise or Fold report said that the age of data creates challenges for the Media & Entertainment industry as it needs to learn and balance creativity, tech and data from production to distribution or monetisation. At the same time, Capgemini stressed that it creates unique opportunities to differentiate the role of medias in contrast to the global algorithm “dictate” of social media. Media & Entertainment companies must become more intelligent, trustable and relevant by leveraging both data and people to safeguard media creativity, independence and diversity.