THE FINAL WORD Finding the perfect balance of service offerings By Paolo Cuttorelli
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TT media viewership has experienced a significant boost over the past year. The rising adoption of such platforms has partially been attributed to broader market trends but also users who have been enjoying “allyou-can-eat” entertainment packages during the extended lockdown caused by COVID-19.
following monetisation models: Subscription VOD (SVOD) such as Amazon Prime or Netflix, Advertising VOD (AVOD) such as MX Player, or a Hybrid model which combines a free tier (generally AVOD) with a premium tier that is SVOD and allows consumers to opt out of (or see fewer) ads, such as iFlix or SonyLiv.
The challenge for OTT platforms is finding the right balance to satisfy their customers. There isn’t a one-size-fits-all option and experience tells us that providers that approach their monetisation models with an open mind and a nimble posture stand a greater chance of weathering the streaming wars.
In the Asia Pacific, digital consumption has seen a spike in demand and it’s expected that there will be 97.8 million Netflix users in the region by the end of the year. Experts expect a similar increase in subscriptions across many of the region’s top-tier OTT services.
Another popular model is transactional VOD (TVOD) which allows users to pay for content on an à la carte basis. TVOD allows consumers to pay a fee to access a content title for a set period. Premium VOD (PVOD) takes the rental model to another level by providing audiences with an opportunity to watch the latest cinema releases from the comfort of their home. Over the past year, studios have been experimenting with PVOD due to the effect the pandemic has had on the regular theatrical releases.
Why taking a hyper-local approach is important
The many faces of video on demand (VOD) Streaming platforms generally use one of the
Traditional Pay-TV packages are no longer fit for purpose in a digital age.
Audiences and streaming providers would agree that one-size-fits-all TV packages—such as those we see with traditional Pay TV packages— are no longer fit for purpose in a digital age. OTT providers must define the strategy that best suits their brand and create customised offerings that will delight their consumers. In the Asia Pacific, local content is perhaps one of the greatest differentiators. It’s easy to buy into the hype of the latest season of Netflix’s The Crown that has just arrived for international audiences. But with a potential 4.1 billion viewers, the majority of the global audience is Asian. They are collectively searching for content that is more relevant to them and that incorporates local stories, traditions, and celebrities. Savvy OTT providers are carefully assessing trends and consumer behaviours in different parts of the world and taking a hyperregional focus when it comes to go-to-market strategies. In India, Netflix has experimented with mobile-only plans, while in France, they launched a linear channel on their OTT. Such December 2020 television asia plus
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