samedi 10 janvier 2015

OTT everywhere. A TV paradigm shift?

American television goes over-the-top (OTT). Streaming, broadband, stand-alone, OTT, vMVPD: are we seeing the beginning of a TV paradigm shift?

Streaming started for TV with Netflix, Amazon and Hulu around 2006-2008. A few years later, as OTT flourishes, Netflix boasts over 43 million subscribers, more than HBO. Now, traditional media launch their own OTT service. Among them:
  • CBS All Access, a paid subscription channel ($6/month with commercials, $10 without), on-demand. Sort of catch-up TV. All kinds of its programs with a few notable exceptions: NFL or "The Big Bang Theory". CBS will use its Syncbak server. Each CBS station will be equipped with it. Generally speaking, CBS affiliated stations approve CBS All Access. Note that since it is not part of Hulu, CBS was free to develop CBS All Access. In retrospect, it also explains the determination to destroy Aereo. In July 2015, CBS All Access reaches 75% of U.S. TV homes. In August 2017, CBS All Access adds CBSN. In 2018, CBS All Access will be available ad-free via Amazon Channels (Amazon Prime subscribers).
  • CBS News
  • HBO Now launched a stand-alone OTT service, like Netflix. It is not necessary to buy packages to watch HBO (included in premium bundles) as a Web streaming-only service. No need for a pay-tv subscription. HBO is expecting 10 million subscribers. HBO costs $16 a month while Netflix is sold for $9 (in the USA). HBO Now $14,99 per month (via iTunes Store)
  • Showtime (CBS Group): the President says Showtime is "prepared for an OTT World" (Showtime's OTT service to debut in July 2015, $10.99).
  • Dish Network launched its OTT service in February 2015, Sling TV streaming 19 channels for $20 (600,000 subscribers, February 2016)
  • ESPN will create a stand-alone service with NBA
  • For Starz, "going OTT is a no-brainer for content owners". Launched in April 2016 ($8,99).
  • In December 2014, DirecTV launched YaVeo, a service for Spanish-language programming ($8), including programs from Univision, Caracol, etc. YaVeo was closed in December 2015.
  • Nickelodeon (Viacom) launched Noggin, an OTT channel dedicated to children using mobile in 2015 ($6)
  • Major League Soccer will go OTT in 2015 too
  • Urban Movie Channel (UMC) launched in February 2015
  • Watchable by Comcast (beta version, September 2015)
  • Cox Flare MeTV (November 2015), Flare Kids
  • CuriosityStream, non-fiction programming, 2015
  • Verizon Communications: Go90, free to start with (October 2015)
  • Smithsonian Earth, $3,99 (November 2015)
  • Univision Now (Univision, UniMas), $5,99, launched in November 2015
  • SeeSo, comedy channel, launched by NBCU (January 2016), closed in 2017
  • FilmStruck, streaming service, announced by Turner (April 2016, Time Warner)
  • PlayStation Vue, launched by Sony in March 2015 (120 000 subscribers in June 2016). Cloud DVR.
  • Hulu: slimmed-down bundle (planned Q1 2017)
  • DirecTV Now (with AT&T, planned March 2017)
  • Glosi ($9,99): Hispanic multiscreen service with Cox (2017 ?) 
  • Fox Nation will be launched in 2018 (fourth quarter)
A new TV paradigm? What are the implications? For the time being, the development and generalization of OTT television pose many questions.
  • HBO and Showtime going OTT could interfere with MVPDs (Multiple Video Programming Distributors) like DirecTV and MSOs, which sell HBO or Showtime as a flagship product in a bundle, a mix of programs. Is there a risk of cannibalization?
    • Could OTT increase the propensity to leave bundling, raising the number of cord-cutters or cord-nevers? Will MVPDs sell the streaming service too? What are the consequences on MVPDs and their bundle economy? Is this the beginning of the end for MVPDs?
    • Would OTT become just another way to sell TV programs, as CBS says? A "supplementary offering" to reach broadband-only homes (cord-free)? 
    • How about Net neutrality? The FCC will vote on new rules. Netflix is criticizing the Republican "fast lane" proposition, calling it a "misconception", but the FCC wonders if Netflix is not building or testing its own "fast lane".
    • What about advertising? OTT channels do not carry commercials. But this could change... Could free OTT with advertising make sense?
    • How will commercial measurement keep up with these new platform developments? 
    • In the long run, will every network develop its own OTT(s)?
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    2 commentaires:

    Maximilien226 a dit…

    L'Europe de l'ouest n'est pas en reste face à la montée des OTT. Grace à l'arrivée de Netflix le marché de l'OTT affiche une croissance de 51% en 2013 selon Strategy Analytics. Le marché devrait dépasser les 9,45 mds de $ d'ici la 2018. La principale source de croissance viendra des abonnements en ligne à la VOD qui ont bénéficié d'une forte croissance en 2013 (+133%).

    Anonyme a dit…

    La montée de l'OTT pose un certain nombre de questionnements pour les acteurs traditionnels de la télévision. Concernant la publicité, le modèle économique des chaines et groupes médias comme la fuite des téléspectateurs vers une consommation mobile et délinéarisée, toutes ces questions trouveront leurs réponses à l'avenir. Nul ne peut connaitre l'évolution d'un marché en constante évolution, cependant ce que l'on sait c'est que l'OTT prendra sans doute de l'ampleur et réinventera le modèles de l'ensemble des acteurs des médias et du contenu. Lorsque l'on pense à l'arrivée de Netflix sur le marché Français et à ce que cela fait bouger et suscite comme réactions, il est certain qu'il faudra compter avec l'OTT sur le marché de l'audiovisuel en France comme dans le monde...

    Marjorie 226