In our little part of the world the most advanced video advertising market and the market with lots of OTT competition is generally considered to be Australia and New Zealand.
Some of the players :: http://www.nokpis.com/ott-asia/#australia – guessing more are coming as well.
So it is interesting to read an article like this :: http://mumbrella.com.au/svod-catalyst-tv-evolution-278126
For example this is a very good point:
Subscription video services have a monetization model devoid of creativity.
They rely on subscriptions and subscriptions alone to bring in the mullah. It makes it easy to balance the books and has the potential to be quite lucrative in a market like the US where there is a whopping 115 million households that will potentially buy the product.
In comparison, Australia will only have nine million households to market to by 2016.
This means that the maximum revenue potential for the entire SVOD market is roughly $1.1b (based on a $10p/m subscription) in Australia.
But I think this also points to the fact that a large regional player looking at ANZ region as just a piece of the puzzle probably doesn’t care too much about the economics. To me the guys that have to worry about these numbers are the one or two country services. Like Quickflix for example which is already hurdling towards going out of business.
This is the good part though:
I am glad that the TV industry is getting scared.
This invasion of innovation and technology will hopefully spur the industry to evolve.
The SVOD infrastructure seems like the perfect foundation for a new ad funded model that blends the programmatic, targeting and measurement benefits of digital advertising with traditional television.
With a web-augmented and data fueled TV and ad experience the TV industry could have something financially viable on their hands. They could give people the tailored and on-demand content that they desire.
They could banish the Nielsen family and create a robust and reliable TV measurement model.
They could continue to sell us that precious ad space.
If the networks use this opportunity to evolve, the arrival of SVOD services could be the best thing to happen to Australian TV since Kerri-Anne Kennerley.
There is room for some innovation. There is either subscription model or freemium or just free with ads. There are lots of other ideas but generally what happens is the folks that own the content don’t allow the OTT services or the OTT aggregators room to innovate. They are stuck doing the same old thing and having to kowtow to the owners of the content. To me the lack of innovation around the OTT space has to be blamed on the content owners who frown on doing things like download or experimentation around social or payment models. That leaves the content owners needing to be the ones to come up with something cool. Maybe they can use TV to do that or try to take advantage of the what OTT can offer by coming up with something truly innovative.
I am not really holding my breath waiting for it to happen though.