By Jed Corenthal, Chief Marketing Officer, Phenix
The Streaming Wars have been heating up between players new and old, as they all try to figure out how to convince a consumer to spend what limited funds they have available for OTT subscriptions. 2 in 5 Americans are willing to spend between $1-$20 per month on streaming platforms, which equates to a budget for one to three services. With new platforms launching such as Disney+ and HBO Max, the decision will become even more challenging.
The current strategy for platform differentiation is content – original, legacy or classic content – but the cost of acquiring this isn’t sustainable for long term growth. In order to stand out, services must focus on adding live content to appease consumer demand for an element of “destination programming” in real-time and high quality.
The Current Method: Content Battles
Consumers want their classics, like “Friends” or “The Office”, but they are also craving original hits like Netflix’s “Stranger Things” or Amazon’s “The Marvelous Mrs. Maisel.” This content is incredibly expensive and in the long run, likely not enough to maintain a healthy subscription base. Instead, platforms should be focused on adding live content to the mix.
With the growth of streaming sports, esports and even interactive offerings like trivia games, consumers are now craving content in real-time. Take the recent Fortnite World Championship, which was averaging nearly 160,000 viewers or, Super Bowl LIII’s all-time high number of people who live streamed the game (over 2.5m) – there is clear demand for live content, and it is growing.
The only way these integrations can actually be successful will be if content is delivered in real-time without delays or buffering. Unfortunately, many platforms are lacking the necessary technology to accomplish this.
The Difference “Live” Makes
We’ve already seen platforms like Hulu, fuboTV and Facebook all latch on to the promise of live content especially, sports. Yet, nearly three-quarters of sports fans recognize that streaming sports is challenging and unpredictable. They know there’s a chance they’ll see a tweet or push notification about the winning touchdown before it happens on their screen – diminishing the likelihood for consumers to make the full jump to “cutting the cord” without faith that the content will be delivered.
Once services are able to perfect their ability to aptly provide content in real-time, the opportunities for both customer retention and acquisition, are endless. Being able to offer live sports or even live interactive features (for everything from a football game to an award show) is the next step consumers are expecting from their streaming providers and as such, will keep them around for the long haul.
The Challenge OTT Platforms Face
The major challenge OTT services face in differentiating themselves with real-time content is perfecting the technology. Right now, many platforms are delivering “live” content littered with delays – lasting anywhere from 10 to 90 seconds – adding to consumer doubt in streaming services capabilities.
Once streaming providers master the complicated technology behind real-time content and ensure that streams are always coming through competently and consistently, they’ll be a step above the rest in the Streaming Wars.
