nScreenMedia OTT multiscreen media analysis

Three ways OTT will reshape the TV market by 2027

IBC 2017

Since the beginning of the decade, over-the-top video delivery has had a fundamental impact upon what it means to deliver video entertainment. How will things change over the next ten years?

At IBC 2017 I had the privilege of moderating the opening panel at the Connected Hub, entitled OTT Video- The State of Nation. The far-ranging and informative discussion finished with a final question: what role will OTT play in the TV market ten years from today, in 2027? The panelists from Roku, Magine, and Easel TV see OTT continuing to exert a transformative influence on the market.

Advertising will dominate OTT in 2027

Within ten years, Ed Lee, VP of Content Acquisition, Roku, believes streaming will dominant all content delivery. I am sure most would agree that such a statement is not a surprise coming from an executive at the company leading the connected TV revolution. However, he foresees a radical shift in the OTT video market, from subscription VOD to advertising-supported video online:

Ed Lee Roku“A big component of that success will be advertising supported content. The maturity of the ad market in ten years will be much higher. The level of interactivity, the level of targeting, the level of measurement and insights you’ll be able to get as an advertiser to target your commercial message and go after customers will be one of the material paradigm shifts in the industry.”

The re-emergence of big aggregators

Rahul Puri is the GM of Magine Digital Media and CTO at Magine. The company runs IP-based services in Germany and Scandinavia delivering live and on-demand video. The company’s platform is also used by other companies to deliver OTT video services.

The proliferation of SVOD services continues. The most recent market entrants are the traditional TV providers, as they begin to launch standalone online services to try to recapture their audience as it migrates online. Mr. Puri does not believe this market fragmentation will continue for much longer:

Rahul Puri Magine“Within ten years, the period of disintermediation where everyone goes out on their own, builds their own apps, builds their own thing, will be over. Eventually, what you will have in the OTT space is a new set of aggregators emerge that then begin to replace the traditional operators, broadcasters and so forth.”

The role of the channel number and EPG

Easel TV provides an end-to-end OTT solution that allows content owners to deliver streaming VOD content to an audience quickly and cost-effectively.

Joe Foster, the company’s Co-Founder & CEO, recognizes the importance of linear television today. However, he sees big challenges ahead for some of the fundamental concepts that have defined television viewing for fifty years or more:

Joe Foster Easel TV“Almost every major TV channel today will still have their broadcast channels, but actually they’ll be streaming their live channels on their OTT service. Then they will have all their catch up, all their library and everything. However, there will come a point in ten years where you’ll start to question – given that the audience is coming probably from social and places like that – what is a broadcast channel, what is an EPG, what is a channel number?”

Why it matters

OTT has had a huge impact on the delivery of television over the last ten years.

Over the next ten years, it will reinvigorate advertising, deliver new content aggregators, and force us to unlearn habits developed over a lifetime.

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