According to the recent research report released by Capgemini Projects, “OTT Streaming Wars: Raise or Fold,” SVOD services are projected to take over 30 countries by the end of this year. As a result of the rise of consumption in 2020 amid the Covid-19 pandemic, the industry has seen a great rise in daily sign-ups.
The report analyzed various states of the media industry, including content sourcing, customer acquisition, customer loyalty, cost, and lifetime value. Various new OTT includes broadcasters, telecom operators, right holders and others, on local and international levels pursuing direct-to-consumer relationships, were included in the study. Nearly 70% of the 40+ media executives we interviewed for the research report, declared data to be business-critical for survival. If the content is king, data is now the ace. Only media companies able to extend their reach and personalize experiences will have a place at the table.
The need for subscribers and advertisers have spiked due to OTT launches on behalf of local players whose viewership is declining while traditional TV are declining. The service fragmentation has led to the need for restructuring. OTT was found to have entered all forms of content, including sports, gaming, podcasts, theater, and even business.
Capgemini's report also indicated that nearly 70% of those interviewed declared data to be business-critical for survival. The survey noted that data could increase competitiveness in all core business areas, including content experience personalization and enrichment by 70%; audience and data monetization by 55%; content production and acquisition by 40%.
The report indicates that the age of data creates challenges the entertainment industry as it needs to learn and balance creativity, tech, and data from production to distribution or monetization. However, it also creates unique opportunities to differentiate the role of media in contrast to the global algorithm of social media.