How OTT Platforms are Driving the Need for IP Workflows
No industry has felt the effects of digital change as much as broadcasting has in the past few years. Broadcasters have had to adapt to drastic evolution in workflow, platforms, and consumer needs, which provided great opportunities to forward-thinking businesses while forcing the less-agile to play catch-up. Even more change is still to come, especially when it comes to the explosive growth in OTT (over-the-top) platforms.
OTT CLIMBS TO THE TOP
Without question, our favorite viewing platform has changed: weekly viewing has increased by an average of 1.5 hours across screens since 2012, but use of TV screens has dropped 2.5 hours, while use of mobile screens has increased by 4 hours. Despite incredible advancements in picture quality and features, TV sets are losing ground to the convenience of mobile devices, which in turn has opened innumerable doors for OTT services (while closing nearly as many doors for traditional broadcasting). The worldwide OTT industry saw a revenue of $46.5 billion in 2017, and that number is expected to nearly double to $83.4 billion by 2020.
Even with such rapid and incredible OTT growth, consumers still expect more of their platforms. In a 2017 IBM survey, 73% of respondents reported buffering as the most frequent technical problem they experienced. Other pain points included: lack of content or variety of content, dislike of ad-content (even when relevant), dissatisfaction with content recommendations, and cost (25% of respondents said they would cancel services if the cost was too high, ironically just behind the 27% who said they would cancel if there were too many ads). In a highly competitive industry, OTT platforms need to do everything in their power to meet consumers’ varied demands.
This is where IP workflows come into play. IP offers increased flexibility for new content, channels, and live broadcasts that can be implemented immediately at a lower overhead cost. With the upcoming arrival of 5G networks, the potential for what IP can deliver in place of SDI only grows.
To learn more about how an IP or hybrid workflow can benefit your OTT or VOD business, schedule a free, personalized consultation with PlayBox Technology