“This emergence will take place as the industry races to keep pace with Netflix and AT&T/Time Warner, should the merger of the telco and media company be approved,” the white paper states.
It noted that this will create fierce competition for both talent and rights in 2017, which will be “dominated by multinational video platforms, windowing will collapse in some markets but be preserved in others, and competitors will be driven to M&A in order to aggregate increasingly larger audiences”.
The report, 2017 Trends to Watch: Pay TV and premium OTT video, also flagged the “proliferation in new types of TV bundle”, stating that: “TV audiences will be segmented more effectively through evolution and innovation in service packaging, tariffing, tiers, pricing, and bundling (but not always as a matter of choice).”
Other trends cited by the report include:
- More integration of the cost of fixed and/or mobile data into OTT and mobile video services. Further integration will be driven by DirecTV Now and, possibly, also by a Trumpian FCC.
- The growing availability of advanced TV user-interfaces (UIs) in an increasingly post-EPG planet. TV UI’s and service functionality are evolving and improving fast, and are, in turn, improving the overall TV and video user experience.
Ovum believes the following key factors are behind the 2017 trends:
- Bundling is evolving. Service providers are increasingly looking past traditional bundled services to increase their appeal to younger and more value-conscious demographics.
- Standalone OTT video is increasingly integrated into TV and OTT services. The fragmentation of audience viewing across multiple video sources is prompting some service providers to integrate these services into their platforms.
- TV UIs are evolving fast. The proliferation of content sources is posing new challenges for UX such as integrating third-party OTT and enabling consistency of UX across platforms.
The white paper highlights Ovum’s recommendations for TV service providers, technology vendors, broadcasters, as well as telcos and operators. Ovum will be running a series of Analyst Workshops at TV Connect London next week. To download the white paper and register your interest in attending a workshop please visit http://get.knect365.com/download-ovum-white-paper