Each week, we break down the most impactful news, insights, and analysis in the OTT video industry.
LATAM set for 70% SVOD revenue growth over next five years
Nearly 60% of Americans Now Stream Video Daily on Smart Phones, Tablets and Computers
The latest data from Leichtman Research Group and its “Emerging Video Services” report finds that 59% of the 1,900 adult U.S. consumers it surveyed in June and July report daily video usage on “non-TV devices” — mainly smartphones, tablets and computers. “While non-TV devices provide the ability to watch video anywhere, the most common location for watching video on non-TV devices continues to be in the home,“ LRG principal Bruce Leichtman said. “Eighty-two percent of those who watch video on a mobile phone, and 85% of those who watch video on a tablet or eReader, do so at home.” Link
Best Buy and Roku Partner for Season-Long Brand Integration in Idea House
The partnership is the first of many lifestyle executions that Roku has planned, initially teased during the company’s NewFronts presentation earlier this year. Idea House serves as the kickoff for further programming, including shows with Martha Stewart and Jessica Alba. In addition to branding on the home screen to promote Idea House, Roku also added pause ads throughout all of the episodes. Link
Peacock President Kelly Campbell On Reclaiming Next-Day Premieres From Hulu, Doubling Content Spend, and Spurring “Next Evolution Of Growth”
In a wide-ranging interview with Deadline, the exec was game to tackle a number of topics, from experimenting with movie release windows to bigger bets on live sports to the task of regaining subscriber momentum after a stall-out in the spring. Link
What if streamers adopted an ad revenue-sharing model for original programming?
Why not broaden the economic model a bit more by co-opting the rev-share model for original programming as digital video platforms have done? The streamers would pay a certain amount of money upfront to help pay for a project’s production, the producing company would cover the remainder, and then both sides would make back their money by splitting the revenue from ads running against the show or movie. Link
Cable TV Is Back … Sort of
Back when there were just three big streaming services (Netflix, Hulu and Amazon Prime Video) it was easy enough to manage them along with a cable subscription, especially since most consumers don’t seem to view Amazon as a video service they are paying for, but rather an additional perk of a free two-day delivery service. But now that we’re up to eight mega-SVOD services, people are feeling overwhelmed. They don’t like having to go to Google to figure out which service that new Kaley Cuoco show about the flight attendant is on. Or remembering which six months free offer is about to expire. Or feeling compelled to only watch original series every time they turn on the TV. Hence the desire for simplicity, for a return to something that looks and feels a lot like the old cable TV system, only without all the bad parts. Link
YouTube Shorts are coming to smart TVs
YouTube wants people to watch more vertical videos on their TVs: The service is getting ready to support YouTube Shorts, its take on TikTok videos, within its smart TV app, Protocol has learned. YouTube has a massive advantage over TikTok on TVs. YouTube’s app is installed on virtually every smart TV these days, while people have to actively seek out TikTok’s app — something few people may feel inclined to do, due to the assumption that TikTok is a mobile-only service. Link
Report: Netflix to keep new movies and kids’ shows ad-free
When Netflix launches its cheaper, ad-supported tier, new movies and kids’ programming will remain ad-free oases, per a report Friday from Bloomberg’s Lucas Shaw. Citing “people familiar with the plans,” Shaw wrote that the Los Gatos, California, firm has told partners that it won’t run ads during original movies and kids’ shows, citing licensing holdups and a desire not to mess with the movie-viewing experience. Link
“Which subscription tier would you choose?”
As Netflix and Disney prepare to roll out ad-supported subscription tiers, new research from Fandom indicates a majority of paying customers plan to take a wait-and-see approach before trading down to a cheaper plan. About 57% of the 1,000 entertainment fans in the study agreed with this statement: “I am not interested in subscribing to any subscription services that have ads.” Just 17% agreed with this one: “I am interested in paying less for an ad-supported tier if there is no free tier.” While 54% of respondents said they only pay for ad-free streaming outlets, just 8% went the other way and said they only get ad-supported ones. About 38% of people reported having a mix of both. Link
Why the streaming industry needs NFTs
How can SVODs increase their user bases while generating multiple revenue streams? NFTs offer one solution – it’s a similar approach that put streaming video on the map in the first place: taking a leap of faith and using new technologies to offer new experiences. Link
Roku announces three new Roku TV partners in Mexico.
Roku, which touts itself as the number one TV streaming platform in Mexico by hours streamed, has announced partnerships with Aiwa, Daewoo, and Sansui. These three brands join the Roku TV offering in Mexico, which already includes Hisense, TCL, ATVIO, HKPRO, InFocus, JVC, Philips, Sanyo, and Sharp. Link