”For better or worse, the growth of video-on-demand has irreversibly changed the face of modern broadcast. As recently as a decade ago cable TV was in its prime, and gathering around the living room television to watch ‘live’ content was a regular occurrence. These habits are now changing. Fueled by a combination of readily available internet access and a growing constellation of mobile devices, consumers are now provided with an unrivalled choice over how, where, and when they consume content”, said the Tom Williams, CEO of Ostmodern in his article The Netflix effect.
Let’s see some facts in infographic by Drew Burstein, owner and CEO of Frame Your TV:
50% of consumers state that they watched streamed on-demand video content at least once a day, up from 30% in 2010.
Today people estimate that they spend 6 hours a week watching streamed TV series, programs and movies on-demand.
In the UK, more than 1 in 4 and in the USA 1 in 2 people stream TV shows 2 to 3 times a week.
There has been a 71% increase in the number of consumers who watch video on their smartphones since 2012.
The average time spend watching TV and video on mobile device increased by 3 hours a week between 2012 and 2015.
Almost 2/3rds of the time teenagers spend watching TV and video is on mobile device.
The growth of streaming services does not mean that traditional television has entirely lost its value for consumers, as there will always be a demand for live TV sports coverage. However, VOD services, with their vast choice of original series, have the potential to steal a significant chunk of market share. So, it is no surprise that the growing popularity of SVOD services has led many to ask whether traditional TV has a place in the future of entertainment.
Linear TV by comparison:
Linear TV still remains strong, but is strongly linked to age.
82% of 60 to 69 year olds say they watch linear TV on a daily basis, while only 60% of millennials do so.
1 in 4 consumers completely cut or pared back their traditional linear TV services in 2015. 47% did so for cost-related reasons.
1/2 of the consumers that watch traditional linear TV say they can’t find anything to watch on daily basis. The number is even higher for those aged between 25 to 34 years.
But, can broadcasters survive in the changing market?
Of course they can! They must play to the strengths which made them so popular in the first place. A large majority of established broadcasters have already successfully launched VOD services, providing viewers with a platform to catch up on content that has already aired. Over the years, broadcasters have developed an understanding of their audiences, their values and local culture. Broadcasters do not need to invest in researching the various nuances between each audience, it’s a strength that they can play on from the get go. Similarly, broadcasters have a prime understanding of how to promote content to consumers, scheduling content, in daily, monthly, yearly cycles in a way which they know appeals to their audiences. But simply relying on their knowledge of localization will not be enough to give broadcasters the upper-hand in the world of SVOD, also personalization is crucial to creating a unique and meaningful VOD product.
With Beenius Interactive TV platform broadcasters can become Viewers First Choice and prevent cord cutting trend. With OTT solution complements Pay-TV services and is not their substitute. The services can also be placed in the cloud. The Nuboly is accessible as SaaS cloud-based OTT service.
In a field that is constantly changing, it is now vital that broadcasters react to the modern age of video consumption habits to avoid being left behind, continuous Tom Williams. The current state of the video-on-demand industry is a perfect opportunity for traditional players to capitalize on the changing viewer habits by creating VOD platforms that appeal to their individual audience needs and expectations. To succeed, broadcasters should combine their long-standing expertise with the help of a VOD delivery expert who has an in-depth knowledge of VOD technology as well as understanding of the broadcaster’s unique style, to avoid falling into ‘one-size-fit-all’ trap when building services.
If you do not want to become a mere infrastructure provider, contact Beenius representative today and find out how Beenius solutions can help you get ahead of the game.