Video: Pay TV operators OTT D2C strategies

Direct to consumer (D2C) strategies have become all the rage in streaming producing Paramount+, Disney+ and Disovery+ from a list of many more. What is it that broadcasters are capitalising on by doing this and how do they get on with their rivals and partners, the telcos? This panel from Dataxis, moderated by Julian Clover probes to find out more.

Lydia Fairfax who leads partnerships for Discovery+ starts by saying that the strategy is to maintain the investment in linear channels, which have just seen their strongest Q1 ratings. This is done by working the budgets for linear alongside an incremental budget for Discovery+ which allows them to mirror their younger demographic by producing shows for that demographic which can then be trialled on the linear channels to understand what content will carry well. This is all part of a bid to ensure that Discovery+ content can have a life on linear so that investment is also not wasted. Work is ongoing to see whether showing the first episode of new content on a free to air (FTA) channel first and driving viewers to Discovery+ is a good way forward to whether releasing to FTA after an initial Discovery+ exclusivity window is the best way to maximise the value of content.

 

 

Antonella Dominici from TIMvision explains the role of TIMvision as, for the most part, an aggregator that works with big names like Discovery, Eurosport, Sky and many others to deliver a sophisticated offering to its Italian audience. Making its own content as well, Antonella explains they aren’t going up against Netflix, rather they are seeing specific niches in Italian TV and filling them with their original content. However, another USP over streaming giants is that they also deliver the major linear channels that Italians watch such as Sky Italy and RAI.

A different perspective is offered by Bulsatcom CEO Stanislav Georgiev. Now 21 years old, it’s well known in Bulgaria as a DTH platform and it’s Stanislav’s job, he says to make their OTT offering a major part of their business. They have the benefit of being a trusted brand and Stanislav sees their role as almost purely an aggregator. Turning to a question on the continued relevance of STBs, he says that the set-top box brings ‘order to the chaos’

The STB is still very much present, says Peter Røder Lristensen of 24i and whilst Android TV is growing both in STBs and on TVs, Peter says it’s not a matter of choosing the best, rather you need to be on every device else you’re not relevant. STBs have their benefits, Lydia reinforces, allowing broadcasters to push their brand and offer a shortcut from their linear channels direct to the Discovery+ app using the red button. Antonella says that she sees the STB catering to the ‘lean back’ viewers who much more want to be guided as to what to watch. She says that people who know what they want will just go into the app and search for it. Peter adds that creating consistency and integration across all the devices is key including using Google Voice as a starting point.

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Speakers

Lydia Fairfax Lydia Fairfax
SVP, Head of Commercial Partnerships, EMEA
Discovery
Antonella Dominici Antonella Dominici
Vice President TIMVISION & Entertainment Products
TIM
Peter Røder Kristensen Peter Røder Kristensen
Product Management,
24i
Stanislav Georgiev Stanislav Georgiev
CEO
Bulsatcom
Julian Clover Julian Clover
Editor,
Broadband TV News

Video: The End of Broadcast?

This discussion asks what the limits are of ‘broadcast’ in a world increasingly dominated by streaming. Whilst services like the BBC’s iPlayer have demonstrated how on-demand can sit alongside live streams of linear channels, the growing world of Disney+, Netflix and Apple TV+ is muscling in on the family television bringing with them different ways of accessing video.

Presented by Ian Nock, chair of the IET Media technical network, this is the 2020 John Logie Baird lecture online. First up, is Chris Wood from OTT specialist Spicy Mango who represents the perspective that OTT is the way forward. This isn’t a fight between screen sizes, he starts by saying, but rather about experiences and expectations. A great example of this is how pause and rewind features have made their way into many linear TV offerings. The convenience to pause a video while you leave the room or discuss it was so powerful that when it was possible to bring it into live, it did. This type of feature migration will continue to happen as the types of service merge.

Chris makes the important point that ‘live TV’ often means linear. There is a lot of live streaming available through Twitch, sports providers like DAZN and companies like Amazon Prime which is not captured separately. This makes it hard to understand how much people are still valuing the live feeling. Live TV, he says, is not going away whatever happens to linear RF transmissions because we need live programming, we enjoy it differently.

Source: DTG

Next, representing the UK Digital TV Group (DTG) is Yvonne Thomas who looks at the fragmented landscape with a large variety of types of VoD service available – subscription, advertiser etc. For the younger audience whose experience of video is predominantly over IP, their experiences become quite fragmented meaning it’s hard for a broadcaster to maintain continuity and relevance. Yvonne also talks about the proliferation of IT needed to watch all this content which can lead to families inadvertently exposing their data or compromising their security.

Nigel Walley from Decipher makes the point that some of our intuitions are wrong. As we see trends evolving, whilst the industry was initially discussing the rise of ‘second screens’, it’s important to realise that some of this was driven by the simple fact that the only place you could watch Netflix of YouTube was your second screen. As consumer electronics manufacturers have made space for ‘Netflix’ buttons and we see Google and Apple with their HDMI connected players, we see people have quickly reverted to watching good content on their best screen; their TV.

Another important point made by Nigel is that as much people companies talk about the ability to individually target viewers and deliver highly customised services, there will always be situations with shared viewing whether they may as well not be logged in as customisation takes much more of a back seat.

Source: OMDIA

Maria Rua Aguete from Omdia challenges our assumptions on who the big players in streaming are. They can be ranked both by revenue and by subscribers. Maria shows us that China Telecom, Baidu and Tencent are in positions 2, 3 and 4 when counted by subscribers. Still, one third of the world’s OTT subscribers are held by Amazon, Netflix and Disney+.
Maria continues to deliver a vast range of timely statistics that help us understand the current situation within the pandemic. She covers the popularity of free services with in the UK, recent M&A activity, the consumers’ rising appetite for video and international channels.

The session closes with a 20 minute Q&A.

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Speakers

Maria Rua Aguete
Technology Fellow & Executive Director,
Omdia
Yvonne Thomas Yvonne Thomas
Strategic Technologist
Digital TV Group
Chris Wood Chris Wood
CTO,
Spicy Mango
Nigel Walley Nigel Walley
Managing Director,
Decipher
Ian Nock Moderator: Ian Nock
Chair, IET Media Technical Network

Webinar: Pay TV Sports rights strategies in Europe


Date: Thursday 22nd November, 2018. 13:00 GMT, 14:00 CET, 8AM ET
Business strategy firm Dataxis are back with a webinar looking at sports rights.

Sports is becoming more and more important and costly component of the Pay TV operators programming. This webinar will look at the role of premium sports content in the European Pay TV industry.

Are sports programming costs too high now? Are they sustainable? Can new entrants disrupt the market? This webinar covers:

• Sports rights spendings
• Key sports
• Role of telecom operators
• New entrants
• OTT strategies

Register now!

Presenter

Juliette Boulay Juliette Boulay
Research Analyst,
Dataxis