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Trends Shaping OTT, Media, and Streaming in 2020
With the growing fragmentation, new technologies, increasing revenue and growth, what will
shape the year 2020 in this dynamic industry? Let's check out the OTT trends that will shape media, streaming,
and VOD this year..
The OTT and media market is exploding with innovations, services, and also revenues.
Last year saw tremendous growth in the market, with almost USD 81.6 billion in revenues and advertising
spending, which increased by 37% to nearly USD 7 billion (IAB). The industry is witnessing an unprecedented
spike in original content offerings as more M&E companies enter the space with their D2C offerings. In 2019, the
eight biggest US M&E companies spent approximately USD 105 billion producing original content, mostly for their
“The OTT and media market is exploding with innovations, services, and also revenues.”
Increasing D2C OTT Offerings
In 2019, Disney stirred much speculation and apprehensions in the industry with its
new platform, 'Disney+'. Almost all major Hollywood studios are following suit, and the year 2020 will witness
even more OTT platforms from M&E companies entering the market. While this trend creates healthy competition and
more favorable conditions for viewers, it also creates fragmentation, leading us to the next of our OTT trends.
A Super Aggregator platform that combines content and provides convenient UX
Aggregation and Bundling
The number of households with two or more actively subscribed OTT services has grown
over substantially in the last couple of years. The traditional broadcast subscriber had grown accustomed to
single billing through their providers. Comcast, Dish, Sky, and DirecTV are some of the original MVPDs
(Multichannel Video Programming Distributors) in the industry that still have a stronghold over many regions.
Internet penetration and media technologies have paved the way for virtual MVPDs like
Sling TV, Amazon Channels, Youtube TV, Hulu, and many more. But while Amazon Channels play the role of a
prominent aggregator in the US, UK, and Germany, there is still a need for "Super Aggregator". A super
aggregator platform will combine various services under a single platform with search and personalized
recommendations across the libraries, all with single billing.More and more Telco-OTT partnerships are also giving way to the bundling of services
under a single UI with carrier billing and integrations. India has been a prime example of this, with almost all
significant carriers starting their bundling and aggregation platforms.
More Original 4K and HDR Content
One of the major streaming trends is the proliferating investments in original
content production. Companies like Comcast, Disney, Netflix, and Amazon are attracting viewers with exclusive
content offerings tailored to their choices. Localized content tailored to certain regions has also increased
many folds, thanks to the demand and, in some cases, regulations.Another ongoing trend keeping pace is the
increased production of 4K and HDR content to play catch up with the adoption of related consumer hardware. Read
our article - The Challenging World of 4K HDR
Streaming to know what 4K implies in terms of technology fragmentation and security.
Serving the Niche
With shifting viewing habits and growing dominance by giants in the industry, one
novel way to compete is to cater to specialized audiences with niche content. Several services have appeared
with such a motive and are successfully serving thematic original or curated content in their niche. For
example, New Faith Networks, or Voorstelling by Dutch Channels, former targeting faith-based content, and latter
targeting dutch audiences of cabaret, theater, and stand up comedies. Then there is DocsVille, CuriosityStream,
DocuBay, and LoveNature aimed specifically at documentary film lovers targeting specific sub-niches. But as big
players also realize the value of localized content and personalized targeting, there's a looming threat on such
Today an average US viewer watches 3.4 services, shelling almost USD 9 a month. They
have plenty of options to choose from, and this makes cancellations and churn a considerable concern in the
industry. Organizations, on the other hand, are now ramping up their retention strategies with novel ways to
personalize and target their offering towards customers. They are actively personalizing content, metadata,
recommendations, advertising, and more. Machine learning and AI technologies are helping platforms tweak
recommendations, image or video previews, advertisements based on users' behavior and preferences. Moreover,
based on the payment methods and rituals, the platforms can also now offer customized cross-selling, up-selling
Taking Back Ownership
The surging trend of building your own backend amongst companies
For platforms and businesses all these trends add a lot of technical complexities and
extra considerations to build and integrate. There is an ongoing race to the middle, as native streaming
platforms are actively taking ownership of content. In contrast, traditional broadcasters and production houses
are building technical know-how and expertise to compete in the modern internet age. One proven way for M&E
companies is to partner with the best of the breed solution providers or leverage renowned technology stacks to
compete in this streaming war. Read our article -
Expert-Built or BIY: Choosing your OTT Strategy to know more about this.
To learn more about these OTT trends or to know how Axinom can help you stand out from the
rest, chat with us today!
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