Page 15 - The EDIT | Q1 2017

Content providers change from broadcasters to narrowcasters in 2017. More cord-cutters will get rid of their cable and satellite plans, and more media companies
will create direct consumer offerings. This streaming model will undercut the media industry’s current reliance on cable and satellite to carry their feeds — and will also give them revenue directly from customers. In the US, Hulu has signed agreements with Turner, Disney and Fox to carry their shows on it’s OTT service. Similarly, Netflix, continues to be a mainstay in many households across the world.
But this model creates a challenge for brands, as they can be excluded from traditional disruption (i.e. ad breaks) and hence have to think more creatively as to how to engage with their consumers.
Enormous opportunity for big data
OTT platforms exist not just
as a streaming service, but as
a data company as well. By mining internal data on customer consumption behavior, media companies can understand what genres people are most likely to watch — and produce hit shows.
In one particular successful example (if not the most successful one so far), Netflix used data and commissioned House of Cards because people who watched the British version also watched Kevin Spacey movies. The combination of both in one series led to Netflix to make the bold decision to invest in a two-season guarantee of ‘House of Cards’ — bypassing the traditional need for a pilot episode.
“I have used Net ix in the past month” [in %]
Discovery
15
OTT challenges platforms
One of the ways long form content is being experienced is through OTT. A 2 hour movie is just not enough. We need to get to know, love and hate, characters over 10 to 12 hour binge watching marathons.
Source: GlobalWebIndex Q4 2016
THE EDIT ISSUE 05 | Q1 2017