When was the last time you watched OTT programming? If you’re a millennial there’s an overwhelming chance (89%) that you watched it in the last week. Amazon’s vice president of video wants to capture 100% of OTT services in the US and integrate them onto the Fire platform. That means Application Development & Delivery Professionals need to respond to and support this trend.
Amazon's Michael Paull speaking at NAB 2016.
OTT or over-the-top lets you watch video (repurposed television programming or otherwise) through an app or device like a Google Chromecast, Amazon Fire or game console. They’re big with cord cutters, cord nevers and cord shavers as a way to reduce cost and increase selection. At the National Association of Broadcasters (NAB) conference in Las Vegas, Michael Paull the vice president of digital video at Amazon discussed discussed an OTT push for the company, where he revealed his goal of signing up 100% of SVOD (subscription video on demand) services in the US.
As an AD&D pro you cannot ignore the implications of OTT. You need to answer these questions:
Will you partner? Amazon made it clear that it’s making a big push to consolidate OTT players. It has 30 US SVOD services on its Fire TV platform and it’s hoping to grow. Partnering can mean growing your audience, but splitting your revenue; surrendering about 30% is standard.
For the NFL: Of all social networks, Twitter has the most active real-time conversations around football games, and NFL athletes use Twitter as their primary social sounding board. It makes sense to sync live viewing with live social conversation and merge those activities into one platform. In addition, this partnership offers the NFL reach into global markets. While the NFL has worked to establish a UK footprint by flying teams to London to compete, this deal signals real expansion.
For Twitter: Twitter is struggling with user and revenue growth, and this is a huge win for two reasons: the partnership provides 1) the ability to deliver quality content and attract dormant users and, more critically, non-users; and 2) the ability to be a unique provider of a live event plus live conversation viewing experience, creating more engaged users.
For users: Broadcasting live events on social networks isn't new (see: YouTube live concert streaming; Periscope live streaming the Mayweather vs. Pacquiao boxing match). But, the NFL is the varsity league: more teams, more games, more fans, and more dollars at stake. And, let's not forget the mobile factor – now users can (theoretically) watch Thursday NFL games on the go.
Is this Twitter's Hail Mary pass to prove it can still compete? Maybe. But, a Hail Mary still represents a chance (just ask Aaron Rodgers).
Title got your attention? It should. In a report I just published this week, I use our Forrester Consumer Technographics® data to identify the 7% of adults who are digital cord-nevers — measured as people who have never paid for TV and who are under age 32. This is the worrisome group whose arrival TV-industry pros have nervously anticipated. As we show in the report, they are officially now larger than the entire adult population of cord cutters, who come in at 6% of all adults. Put them together, and you have 15% of adults who are not paying for TV while still getting all the TV value they need from a combination of Netflix, Amazon Prime Video, and other tools.
Don't jump out of any Times Square windows just yet. TV is still massively popular and will continue to be. I wrote that report earlier this year, and Forrester clients can read it here. These defector groups are going to grow over time, true. And as the title of this post suggests, if we model this behavior out over the next 10 years, we expect that 50% of adults under age 32 will not pay for TV, at least not the way we think of it today. That compares to 35% of that age group that doesn't pay for TV today. (That's right, a third of them are already out of the pay TV game.)
Hollywood director Francis Ford Coppola once said: “The very earliest people who made films were magicians.” In some ways, things haven’t changed -- although the media producers of today seem to pull the classic reappearing act as their key trick: When content finishes on one screen, it reappears on another . . . and then another.
Video is available across myriad personal devices, and consumers’ viewing habits are fragmented across technologies. Just as channels for video consumption are becoming more profuse, the types of content that viewers seek are also increasingly diverse. In the past month alone, American audiences said hello to streaming-exclusive dramas and goodbye to long-running TV shows. This week, consumers viewed an array of films like those premiering at SXSW, and tuned into the March Madness sports frenzy.
Consumers have choices about what to watch, on which device, and when. According to Forrester’s Consumer Technographics® data, US online adults still prefer to watch longer-length video on TVs but frequently turn to smaller devices for shorter content:
Machine to machine (M2M) technologies are not new, but recently a wide range of service providers, device manufacturers, application developers, system integrators, and other companies are developing products, establishing business models, and implementing strategies to stake their claim in the M2M market. A quick search of M2M press releases during the past six months resulted in over 100 announcements on the topic of machine to machine or M2M.
It's high time somebody said it. Sit through one too many CES keynotes, press conferences, or pitches, and you just might leave Las Vegas with the mistaken idea that 3DTV is going to be in all of our living rooms next year. ESPN and Discovery are committing to 3D cable and satellite channels, Sony is upgrading its PS3s to do 3D, and Taylor Swift's live performance opening night at CES was shown live in 3D (Right behind her, mind you. You had to put the glasses on in order to see Taylor Swift in 3D when she was, actually, in 3D already, right in front of the audience.)