Investment in discovery paying off for subscription VOD players | VOD | News | Rapid TV News
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The trend toward the shift in the time spent on subscription over-the-top (OTT) and video-on-demand (VOD) services from pay-TV firms could be down to investment in recommendation and discovery services, a Digitalsmiths report reveals.

In its Q3 2015 Video Trends Report, the TiVo company and content discovery firm surveyed 3,150 consumers, including several questions on whether they felt it was easy to find something to watch on OTT services, as well as on their pay-TV services.

Subscription OTT services were found to offer the best experience, with 78.2% of respondents saying these services make it easy to find something to watch. This was followed by paid video-on-demand (PVOD) catalogues, with two-thirds of respondents stating they found the discovery experience easy. By contrast only 58.2% indicated that linear TV services made it easy to find something to watch on their pay-TV service.

Explaining the findings in the report, Digitalsmiths said that data was the foundation of success for the likes of Netflix. It noted that the subscription video-on-demand (SVOD) leader was investing ‘an incredible amount’ of time and money into understanding its subscriber base, down to the individual profiles created within accounts.

“The wealth of data Netflix captures, and analyses benefits the company tremendously,” the report stated. “First and most importantly, this data enables Netflix to deliver its subscribers a series of personalised content recommendations, resulting in what Netflix estimates drives 75% of views. Secondly, the data helps with content acquisition decisions.”

Even though it observed that pay-TV providers have years of data similar to that which Netflix is capturing, Digitalsmiths said that such companies’ data seemed to exist in a diverse number of silos, rather than being integrated, and that the data was often difficult to access. Digitalsmiths warned that until pay-TV providers identified and deployed data-driven, personalised content recommendations, the market will likely see Netflix viewing continue to climb while cord-cutting and cord-cheating would also continue to increase.