17 NOV 2020

MIP CANCUN 2020 DAY 1: OTT TRENDS PLUS FRESH DRAMAS AND FORMATS

Day one of this year's digital Mip Cancun covered the most notable TV dramas and formats of 2020, the success of broadcast TV series and other OTT trends, and various business models used by global export producers.

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This year's digital Mip Cancun kicked off today with an opening introduction from its Director, Benedicte Touchard de Morant, Director of MIP Cancun. The introduction was followed by presentations covering various trends in the OTT market and its consumption, various structures in exporting global production, and the success of broadcast TV series on OTT platforms. 

Daniel Punt, Senior Managing Director at FTI Consulting covered various structures of media companies that serve as export producers. One, for example, is the traditional domestic media companies, which focuses on linear tv, is integrated with studios, and doesn’t export content as much as it imports, tending to serve the broadcaster and engage in oligopolistic competition within a “protected market.” The content is also high volume but at a cost-effective price point. Many media markets have faced increasing competition from global streamers as consumers shift towards SVOD platforms. US streamers are becoming increasingly popular in other regions around the world, posing a threat to domestic broadcasters in each corresponding region. As a result, many niche-based subscriptions are being created to better tailor each specific region. Studio business model, work-for-hire model in which the studio licenses all rights to the linear TV network. The studio syndication model consists of accepting financial burdens and then license more limited domestic rights to the TV network, through which syndication is more common. The increasing popularity of streaming has allowed production studios to sell and retain global content rights, such as Televisa's TAO studio.

Ivan Marchant, Vice President of Comscore discussed various domestic and global OTT trends, the strategies used to garner OTT data, and what the figures could mean in the near future. OTT content viewing has become the top mainstream media trend in the US as 69.8 households are using OTT, with an average of 102 OTT hours watched per month. The various platforms that will be developed to better analyze and reach OTT viewers include OTT Intelligence to measure data across TV-connected devices, Connected Home to monitor the usage of the internet, Custom Reports, and Raw Data Feed and Audience Targeting.

Marchant also spoke about the key difference between OTT and CTV, which is that OTT refers to any internet-based content and can also include programming, and CTV refers to devices that deliver video through physical TV connection. Covid-19 led to OTT and CTV device spikes, though the numbers have now stabilized in most regions around the world. Desktop and mobile consumption increased from 43 billion to 64.3 billion, and many shifts have ensued among the top five global streamers. There has also been an increasing trend in ad-supported services, which are outpacing non-ad-supported services. 60% of connected TVs in the UK watch CTV regularly, as well as Italy, 56% in Spain, 43% in Germany, and 25% in France. There is 23% more streaming volume in the market than linear worldwide. 

Director of Applied Analytics of Parrot Analytics, Alejandro Rojas discussed how broadcast TV series have been successful on OTT platforms. Internet engagement relating to a show is an indicator that there is interest in demand and has contributed to the success of broadcast TV series. According to Rojas, new releases for digital originals are experiencing the greatest demand share as a result of the current surge in OTT. Despite the spike, broadcast content is still scarce in broadcast content, and linear content continues to attract the majority of the audience's attention. Rojas also covered the ability for IP to attract existing fan bases within a particular genre, with the top ones being action and adventure, animation, and children as the genres with the most valuable IP. IP franchises are also a form of holding on to show demands on behalf of existing fans, leading to higher demands. New broadcasts released in Latin America are projected to transition into OTT. 

Virgina Mouseler, CEO from The Wit talked about fresh TV dramas and formats. This year, the seven scripted formats released in Latin America have shown the most strength out of the entire global format market, making up 8% of scripted formats. Turkish series worldwide have also increased in popularity this year, making up 4% of total scripted formats. The most adapted formats this year around the world were Chile’s “Amanda,” Japan’s “Mother,” the UK’s “Dr. Foster” and “Liar.” Other formats that were mentioned were “Black Money Love,” distributed by Inter Medya and NBCUniversal’s “Armas De Mujer,” among others. “Daydreamer” and “Sisterhood” were successful formats in Italy.” The most adapted formats of 2020 were “Masked Singer,” “Big Brother,” “Family Feud,” “Dragons’ Den,” among several others. Other highlighted formats released this year include Spain's “Monster Kitchen,” distributed by BETA entertainment, “Epic Game Show” distributed by Fremantle in the UK in May of this year, “The Star In the Star,” distributed into Germany by Banijay Rights in September, Cash Back distributed initially in April in South Korea by CJ ENM and Banijay Rights, with the series later premiering during the Fall, and several others.