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The move to OTT TV requires a shift in the traditional Broadcast Business Model

Written by Warren Kelly | Published in
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Create DateNovember 6, 2015
Last UpdatedNovember 11, 2015

Changing the Channel on the Broadcast Business Model

Viewer Experience: The move to OTT TV requires a shift in the traditional Broadcast Business Model

By Keith Zubchevich, Chief Strategy Officer at Conviva

The biggest disruption the TV industry has ever faced is the arrival of on demand, Over the Top (OTT) TV. Viewing habits have fundamentally changed, driving content providers to focus their efforts on delivering a high quality delivery and viewing experience. Video optimisation companies have access to data and analytics only available because of the OTT model, and they are able to analyse, in real time, how people are responding to content. If the old pay TV model was akin to a manufacturer (the content producer) and retailer (the delivery platform), the OTT content delivery model is more similar to a multifaceted affiliate model. As streaming services such as HBO Now create a user experience via a website or mobile app, content producers and distributors are no longer dependent upon the traditional pay TV providers: it is now the consumer who decides when, where and how they want to view content.

However, meeting consumer expectations has become a much more complex proposition for all parties. The challenge lies in monitoring, analysing and optimizing the performance of these diverse delivery channels, so each consumer experiences a consistent quality of service, regardless of delivery method or device. Because we know that consumers, when they are disappointed, swiftly and ruthlessly switch from one provider to the next, in pursuit of the ultimate experience.

This presents the TV industry with a new set of challenges, as broadcast syndicators have to adapt to viewer’s needs, whilst remaining profitable. The more complex, and less consistent and controlled, delivery environment of OTT is precisely why video optimisation companies collect and interpret data and use it to fine-tune consumer experiences. Companies need data analytics and the technology behind them to identify and resolve issues that threaten the quality of the viewing experience in order to ensure their audience grows, and, importantly, develops brand loyalty. The plethora of information available to video optimisation companies allows them to identify why and where the delivery is mediocre, while simultaneously maintaining an optimal quality for viewer engagement, all in real-time: saving an audience before it abandons, rather than understanding why they abandoned, is the new name of the game.

Optimisation is at the centre of the broadcast syndication business model: everyone in the market has a stake. This unique space is currently occupied by companies who integrate video optimisation and data analytics – they are the foundation upon which broadcast syndicators’ current and future business models are constructed. These companies ensure that no viewing experience disappoints, because they are able to identify why anything might go wrong and pre-emptively fix it. Video optimisation companies ensure that whatever is going on in the delivery network, the viewing experience meets and exceeds viewer expectations. They are not only a crucial piece of the modern TV business model, but they directly ensure broadcast syndicator’s profitability.

Making Analytics and Optimisation Profitable

Nowadays, video optimisation companies play a crucial role in helping content owners such as HBO, ESPN, and Vevo to manage the demands of the user.  They maintain Quality of Experience so that OTT services delight viewers, who either pay for subscription services or watch the ads in the video content. Video optimisation companies direct content producers and broadcast syndicators towards profitable business models, and take advantage of the data available for OTT that is opaque in an MSO-driven environment. Content is still king, but success lies just as much in its delivery: if a show doesn’t stream smoothly, or the picture quality doesn’t scale to the viewer’s device, viewers will abandon the service and find a better experience elsewhere. The market has changed and the vast amount of viewing platforms and shows indicates viewers’ loyalty is always to the best experience. It is a simple concept: if it doesn’t work, no one will watch it.


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