How to offer an extraordinary visual experience anywhere

Screenshot 2022-01-04 at 17-03-34 SES Marketo

The broadcasting and video space is among the most disruptive industries today. New technologies and evolving video consumer behaviors are fueling the race for more audience engagement and revenue..

Harald Ulrich, Charu Verma and Leonardo Godoy talk about the evolution of the broadcast industry.

Screenshot 2022-01-04 at 17-03-41 SES Marketo

How is video consumption behavior evolving today??

SES_Blog_Video_question-1_imageHow people spend more time at home during the pandemic, video and television consumption has increased considerably. According to Omdia, linear television consumption in the United States grew by 28,7% during the first months of the closing, and a report by Neilsen noted that the average time spent on streaming platforms increased by 75% between the second trimester of 2019 and the second of 2020. According to a study by Ofcom, UK viewers spent an average of 6,5 hours a day watching TV and video online during the first days of the network.

Nowadays, viewers have more video consumption patterns than ever, from linear television models, such as pay TV and free-to-air platforms, to over-the-top platforms (OTT), such as video on demand services (VOD). Worldwide, subscriptions to video-on-demand platforms are growing steadily: Omdia predicts the market will grow at a compound annual growth rate (CAGR) of 10,8% between 2019 and 2024. However, a large proportion of global video consumption will remain on linear television. U.S., for example, despite rising VOD subscriptions, the number of households subscribed to linear television platforms has not decreased, and some are also opting for linear streaming options. According to our Satellite Monitor research, this situation is even more pronounced in the EU, where households using satellite continue to increase, despite significant and steady growth in complimentary online VOD subscriptions.

Now, we see video consumption trends evolve differently in each region, with viewers adopting multiple modes of consumption, or hybrid platforms combining linear viewing and VOD options.

How do spectator demands differ in different regional markets??

SES_Blog_Video_question-2_imageViewers choose their modes of consumption based on three elements: the availability of relevant content, the price of the service and the quality of the experience and comfort they receive. These factors are at the heart of the evolution of the regional television and video markets..

Although VOD is popular in most regions with sufficient broadband availability, not the ideal consumption mode for content such as live sports, and often does not offer local news or content in the local language. In countries like India, France and Germany, Consumers continue to subscribe to pay TV to access content that is not available through VOD. In several European countries, the cost of subscribing to multiple video-on-demand platforms is usually higher than that of a traditional pay-TV subscription, increasing consumers' overall budget for video content. On the other hand, consumers from countries like Indonesia, Thailand and Brazil prefer to consume FTA channels and supplement them with VOD subscriptions. In some parts of the world - such as rural India, Indonesia and Africa- the lack of terrestrial broadband connectivity makes traditional linear television the predominant mode of consumption, as mobile data costs exclude these consumers from large-scale on-demand viewing.

Globally, on-demand services are complementary to linear television, siendo el modelo de consumo “VOD + televisión de pagoel más popular en todas las regiones. However, the model “VOD + FTAtambién está ganando relevancia. Although VOD is becoming more and more popular around the world, los hogaressólo VODseguirán siendo una rara excepción.

How is the broadcasting and video industry adapting to meet customer demand?

SES_Blog_Video_question-3_imageFor both broadcasters and platform operators, viewer engagement is critical to maximizing your business revenue. Broadcasters that can find the right price models and offer the most attractive TV package - with an optimal and convenient mix of pay TV channels, FTA and OTT content- they will be able to maintain a competitive advantage in the market. Broadcasting organizations such as HBO and ESPN in the United States, Globe in Brazil, Sky in the UK and Star TV in India offer linear TV and OTT services. However, how these services are offered at a lower cost to meet market demand, much of its revenue continues to come from advertising on linear platforms.

The monetization of content on video-on-demand platforms is a fundamental challenge for the sector. Video-on-demand service providers spend the majority of their annual revenue on the production and acquisition of new content. Low median revenue per user (ARPU) and high churn rates on video-on-demand platforms (SVOD) are a growing concern, and many SVOD providers are increasing subscription costs to achieve profitability.

Content aggregation is a common trend that is emerging worldwide. In the future, the super aggregators that can provide a large library of new and catalog content across all platforms - with curated experiences for individual customers- they will be able to capture a large part of the consumer market.

How does SES support the sector in its evolution?

We have more than 30 years of experience serving the broadcast market with high quality video services. Nowadays, our approach at SES is to help our clients adapt in a highly disruptive market by delivering their content everywhere, across multiple platforms and multiple screens, and to audiences anywhere in the world.

Our innovative end-to-end solutions are available to both broadcasters and platform operators. Through our channel management solution, broadcasters can reduce the complexity of combining multiple content types to create exceptional linear viewing experiences, while leveraging cloud playback to improve workflows. Our direct-to-home streaming solution (DTH) enables broadcasters to bring high-bandwidth HD and Ultra HD content to millions of homes around the world. And our hybrid OTT and broadcast solution enables our customers to launch innovative OTT services to retain their customer base., attract new global audiences and take advantage of new monetization opportunities.

As players in the broadcasting and video industry develop their strategies to meet viewer demand, we help them increase their audience, increase your revenue and deliver exceptional experiences to your viewers, wherever they are. 💡

© 💡 Technology Professional 2022

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