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clrmoney
12/12/2016 11:04:58 AM
User Rank Platinum
OTT growth
Over the Top needs to find and cater to a specific market so that that they can build more revenue and growth for them in the long run.
Adi
12/12/2016 12:19:50 PM
User Rank Author
Re: OTT growth
@clrmoney - yes, I agree there's a real opportunity in the specific niches for OTT. The reach of the Internet can help aggregate audiences around the world in a way -- and at a cost -- no other distribution technology can. MUBI is a good example -- distributing art house films to a global audience, using a very clever business model. But I do think that most OTT providers -- netflix, Amazon, Hulu -- are going for the mass market. And that's trickier, for the reasons outlined in the post above. Bigger risk, but also bigger reward.
afwriter
12/12/2016 12:30:26 PM
User Rank Platinum
The HBO Effect
I wonder how much churn is from people signing up to watch one show, then ditching the service when the season is over. Many people do this with pay TV channels like HBO and Showtime, I could see it happening with OTT too.
Ariella
12/12/2016 1:48:36 PM
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Re: The HBO Effect
@afwriter very likely. But if that is the case, it behooves the businesses that want to retain their customers to find out what got them on board and then offer the shows that would appeal to those tastes to keep them on.
srufolo1
12/12/2016 6:03:20 PM
User Rank Platinum
High Churn Threatens OTT Growth
@afwriter I agree with that. OTT is similar to services like HBO in the regard that people get tired of the same old thing and then decide to just cancel the subscription. These OTT service providers need to get their finger on the pulse of what they can do to retain subscribers somehow, perhaps offer more choices to viewers.
elizabethv
12/13/2016 8:50:06 AM
User Rank Platinum
Quick Churn
My first thought was that maybe there was some kind of deal, or promotion being offered for the holidays that won't last - and that would potentially explain why people were planning to leave.... but then I kept reading. I am pretty confused about how someone would know they were going to leave due to a poor experience without actually having experienced it first. Unless I'm misunderstanding when the people are being polled for their leaving. Also, a poor experience I would think would be easier for providers to fix much more than the other issues, like content. In my opinion, the process is kind of a strange one, are you that desperate for whatever content is on that provider, to sign up for it - to only watch whatever you were wanting, and then leave them? I've had Netflix for years now, and the content I watch now is nothing like the content I watched when I first signed up. But I like having the service. So for OTT providers, I think they need to make the jump from getting someone with their content - to getting someone because of the ease or convenience. Content will come and go, but the product is what you should be selling, if you want people to stick around.
Adi
12/13/2016 9:15:42 AM
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Re: Quick Churn
@elizabethtv - I think @afwriter is right, a lot of people are signing up for these services with the idea of watching one or two shows. If you look at Netflix' library in the UK, for example, many of the shows in the US are not available. So basically, the idea is to sign up, watch a couple of top shows - House of Cards, Orange is the New Black -- and once you have got through the series, walk away.
Adi
12/13/2016 9:18:27 AM
User Rank Author
Re: Quick Churn
@elizabethtv - but I would also caution against assuming the enitre selection of respondents who said they would churn, will actually churn. People get lazy, but also they end up being attracted to other shows. As you say, people try stuff and like it, and then keep watching. Or something new comes on, and they end up watching that instead.
Still, I think consumers are also getting past the initial appeal of a brand like Netflix, and asking what else is there? And it seems even those signing up recognize that the depth is limited.
Ariella
12/13/2016 10:08:40 AM
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Re: Quick Churn
@Adi speaking of these kinds of services, I see your side of the pond is going in that direction according in reaching out to its American consumers to this report in the Guardian: BBC and ITV to launch BritBox on-demand service in US:
"BritBox will be the best and most comprehensive British streaming service in the US," said Simon Pitts, managing director of online, pay TV and interactive at ITV. He said the service would include "a rich catalogue of classic, new and exclusive shows easily accessible to US viewers in one place".
Adi
12/13/2016 12:01:49 PM
User Rank Author
Re: Quick Churn
@ariella - yes, saw that and it's probably worth a shot. A lot of brit shows do well in the states, but usually its period dramas. More modern stuff usually just gets remade in the states, with local actors and locations because American audiences tend to prefer their own content for more contemporary situations. And something like Eastenders...I don't see it working in the US at all. But I suppose it isn;t costing them much, so why not.
Ariella
12/13/2016 1:19:18 PM
User Rank Author
Re: Quick Churn
@Adi sometimes those shows do take off as in "The Office" But sometimes they don't even get off the ground as in the American version of "The IT Crowd," which even retained Richard Ayoade. I also got the impression that the American version of Broadchurch did not do as well as expected. Now I know some people who say they cannot make out the British accents, but I don't think that's the majority. I also wouldn't think Americans insist on seeing familiar geography. So I'm not altogether certain why some shows are picked to be Americanized.
elizabethv
12/16/2016 2:09:13 AM
User Rank Platinum
Re: Quick Churn
@Adi - I supposed that's a good point. Just because someone says they are going to churn doesn't mean they actually will. People most definitely are lazy, that's why so many businesses anymore like people to sign up for a contract with recurring payment - even better if that recurring payment is automatic. People just forget that the money is coming out of their account, get used to it and leave it be. Even if companies get an average of 3 extra payments out of a person that way, that's 3 extra months worth of profit they wouldn't have had without the effortless step of "automatic recurring payments." Heck, if I was smart I'd cancel Hulu through the summer months when nothing I watch is new on there, but I don't. So Hulu gets 3-4 months worth of payments out of me every year while I'm not even using the service.
mhhf1ve
1/4/2017 9:06:06 PM
User Rank Platinum
Re: Quick Churn
> "Hulu gets 3-4 months worth of payments out of me every year while I'm not even using the service."
Hulu just got a month of payment from me.. and I hardly watched in December bc my favorite shows were off for the holidays... darn. should have suspended for a month. I think this "gym membership" model might start to get old..?
One-offs
Anecdotally, I know a few people who will sign up for an OTT service to watch a specific show, and then quit when done watching that show.
dmendyk
12/13/2016 3:59:33 PM
User Rank Platinum
Re: One-offs
OTT is a one-off proposition for the most part. It's hard to imagine any predictability to an OTT business. This is the thing that has to scare content providers the most.
mhhf1ve
12/15/2016 3:05:42 PM
User Rank Platinum
Re: One-offs
The unpredictability of scripted shows and reality TV is what makes OTT services so churn-filled. But at some point, I imagine, live sports will take to OTT for some reason or other, and then there will be some loyalty to OTT channels because die hard sports fans won't switch services if they can find their team on a certain service for a good value (or even not such a great value)....
It's starting to happen.... it will take some time, but maybe the FCC's push to open up cableboxes will grind to a halt and the drive to OTT will slow significantly.
dmendyk
12/15/2016 3:16:15 PM
User Rank Platinum
Re: One-offs
The content supply chain operates on one very simple principle: The path to the most money is the path that gets followed. As long as conventional networks are willing to spend multiple billions of dollars/pounds/zloty/whatever on sports content, and the content owners don't see more money doing things differently, the model will remain intact. Yes, there will be some OTT wrinkles, but these are mainly ancillary to the main revenue stream.
dlr5288
12/30/2016 1:57:40 PM
User Rank Platinum
Re: One-offs
I agree. I think the big sports fans are who are really going to influence the future of OTT.
OTT
I have lots of neighbors that seem to only signup for the trial period to watch that certain show or movie they want and then just let it run out and quit it. I guess there is a purpose for this but I think it will get a lot better in the new year coming. My husband seems to find easy and watch lots of British shows, so I think they will continue to grow in the new year.
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