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Digital Video Trends For 2016 And Beyond

With the continued emergence of OTT providers, and the ever growing appetite for consumption of digital video content, we thought it would be interesting to take a look at some of the findings of a recent survey by Digital TV Europe and see how these findings relate to potential trends in digital video over the next couple of years.

It seems that industry professionals believe that the continued growth of content provided by Internet companies, such as Google and Apple, will continue to have a significant impact, as will the improvement in 4G and broadband availability on a global basis. One of the most interesting aspects of the survey was that respondents generally believed that Pay TV offerings would still experience moderate growth, but that there would be an expectation of converged offerings from providers.

05789688-photo-netflixThe growth of SVoD and the effect on pay TV

A total of 375 industry professionals, across 44 countries globally, were interviewed for the survey. 89% of them believed that the immediate growth potential for SVoD was strong. Despite this, 46% of respondents felt that Pay TV would still experience moderate growth. It has to be said though that respondents felt growth in OTT services would be higher; 64% felt that OTT services, such as Netflix, are in the best position to deal with the change in viewing preference towards digital video content.

This does not mean that traditional Pay TV providers can’t also compete, by offering converged services. 21.1% of respondents in the survey felt that the development of converged services would have the most significant impact in the world of digital video, over the next couple of years. It would certainly seem that traditional Pay TV providers need to make the most of the potential growth of the UHD TV market, and provide converged services with a concentration on high-quality content.

The importance of TV Everywhere

One of the most important challenges for Pay TV providers to overcome is the provision of TV Everywhere. According to the Digital TV Europe survey, 50.9% of respondents felt that provision of TV Everywhere was an important part of services to be offered by Pay TV providers. In 2015, 53% of Pay TV viewers in North America used TV Everywhere to watch at least some content. You can see why this offering could be considered important. Interestingly, 72% of respondents still thought that the set-top box was the best place to deliver a Pay TV service, with 57.1% of respondents believing that it is very important to reach people on an iPad.

It seems that as the demand for SVoD continues to grow, OTT providers such as Netflix and Amazon are best suited to dealing with the demand. However, Pay TV providers are far from finished and will continue to develop converged services, and the availability of TV Everywhere, in order to remain competitive.

As tech pioneer in monetization of video content, we are proud to establish our InPlayer Paywall as a default software layer for companies and entrepreneurs working in entertainment. The Paywall is one of the most simple and flexible solutions on the market that can be integrated in any environment. If you are looking for a technology partner to sell your content, reach us out at info@inplayer.com.

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