Tendencies and thoughts on 2022:
In 2022, over-the-top video streaming demonstrated to the world how it is adapting and combining different content distribution models (SVOD, AVOD, TVOD, FAST) into its business strategies. These models all have one thing in common:they all need you to know more about their user’s preferences and behaviors and understand how they consume content from which device, on what days and at what times- in order to create a more personalized approach to the user experience and increase user lifetime value.
According to Statista, SVOD revenue is projected to reach US$80.83bn for 2022, with over 1.63 billion users by 2027, followed by AVOD with revenues of US$12.9bn and Pay-per-View (TVoD) projected to reach US$8.89bn for 2022, and 861.5 million users by 2027. This data points to a major opportunity for OTT to improve customer loyalty and retention and try different strategies and channels to create impact across audiences.
Keep an eye on these trends:
- Data-driven as the center of everything: not having a clear understanding of your business performance is like sailing the sea without a true course.You need to know if you are getting the results you want in order to take immediate action and increase engagement to produce the best return on investment.
- SVODs are changing their strategy: players like Disney+ and Netflix are focusing on the quality of their content and opting to include new content distribution methods such as Free Ad-Supported Streaming (FAST) TV and premium subscriptions. It’s a great way to introduce more segmented and personalized advertising that connects with users.
- The number of FAST TV platforms is growing steadily: traditional TV providers have invested in the OTT market through FAST platforms,as these are rising in popularity. “By the end of 2023, OTT video ad spending is expected to be near $10 billion, accounting for 3.4% of all digital ad spending and 10.2% of total video spending” Strategus
- Sports OTT is here to stay: live sports events are becoming more popular and accessible, and established channels like NFL+ have launched their own platform, with many others paying for the rights to offer highly-demanded sports games.
- User experience as a priority: users are looking for a great entertainment experience on your platform, therefore the process of finding what they want to see based on recommendations must be user-friendly and highly personalized.
JUMP is ready to understand your needs, customize your insights and KPIs and take advantage of these global trends to achieve your business goals and boost your video service.