According to the latest report from Convergence Research Group, cord cutting continues to accelerate this year as well with 4.56 million TV households opting to ditch pay TV. As we end 2019, 34% of U.S. households won’t have a traditional TV subscription!
As consumers move to streaming services, wide range of options are in fact effecting a downside. As per Deloitte’s Annual Digital Media Trends survey, nearly 47% of U.S. consumers are frustrated by the growing number of subscriptions required to watch what they want.
Today, there are more than 300 OTT video options in the U.S. market, and that list is growing. The wide choice is creating two key pain-points for the consumers– Subscription fatigue and increased barriers to content discovery.
In such a setting, a growing realization in the OTT world is that ad-supported streaming services could be a viable model to overcome subscription fatigue. FAST (Free Ad Supported TV) players like Samsung TV Plus, The Roku Channel, Pluto and STIRR are taking an early lead with a combined gross reach of over 80 million users. New launches like Amazon IMDB TV are expected to accelerate this trend.
As content owners, studios, post-cable networks compete to get a share of the OTT pie, taking the route of native apps only complicates content discovery. This requires significant marketing and development spends to create, maintain and market these apps directly to end consumers. In the age of Netflix and Disney Plus, reaching an app download of 1M across OTT devices would require tremendous effort and investment.
Instead, 3rd party distribution through platforms like Samsung TV Plus, The Roku Channel and Pluto is a much faster, cheaper and better option. Linear OTT channels make it easy for viewers to access content through EPGs, and minimizes ‘losses’ resulting from ‘abundance of choices’. Through a linear EPG experience, getting discovered becomes much easier for the content owner. In addition, linear OTT experience provides much higher levels of engagement and loyalty compared to ‘on-demand only’ experience.
As all OTT FAST deals are based on revenue share, time, cost and effort for onboarding new channels on these platforms are significantly lower compared to traditional linear distribution. The viability of the channel purely depends on content-led strategy that attracts loyal viewers, in turn yielding increased advertising opportunities.
At Amagi, we have been a pioneer in cloud-based technologies for broadcasting and monetizing content, enabling digital-first and traditional networks create and deliver linear OTT channels to vMVPD and FAST platforms. Amagi, through its DAI platform supports ad monetization of OTT content, generating ad revenues and providing detailed analytics and insights. Amagi offers the end-to-end solution as a managed service, making it simpler for content owners, digital first networks and studios to launch and monetize linear OTT channels. Amagi’s clients include Tastemade, CuriosityStream, TYT Network, MGM, Conde Nast, PeopleTV, FuboTV, Magnolia Pictures and Pocket Watch among others.
If you would like to take advantage of Free Ad Supported TV, and increase your revenues, Amagi can set up your channel and distribute to all the leading vMVPD platforms, Connected TV and device platforms. The last time I checked, there is no other technology provider in the market who has solution/technology acceptance from all the leading platforms. With Amagi, the holy grail of linear OTT in the world of free ad-supported streaming model can truly be within your grasp.