Stacking key to survival in overcrowded OTT market | Media Analysis | Business
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Despite the amount of streaming options rapidly increasing across all of 2020, even before the Covid-19 outbreak, research from Imagen is warning that nearly a fifth of consumers now believe that there will eventually be too many options for them to choose from resulting in people returning to traditional TV.
Imagen research 22July2020
The survey of 1,000 UK video consumers from the video management platform found that time spent in video streaming apps globally during the peak week of March and April 2020 grew 30% compared with the weekly average time spent in January 2020. Yet Imagen noted that with consumers now facing an increasing fragmentation of their favourite content, the ideal content package becomes expensive, reflective of the early satellite packages; technology that elevated the consumer experience risks going full circle.

With almost too many streaming services to choose from, almost a quarter (24%) of people surveyed believe that traditional TV will eventually cease to exist, highlighting the fact said that traditional broadcasters must evolve. Imagen said that this indicates that while streaming platforms have proven popular since their inception, their place within the broadcast market is becoming more precarious as consumers are faced with too much choice.

If competing on content alone is no longer winning, Imagen looked at how the over-the-top (OTT) market could survive post pandemic and found that nearly a third (29%) of UK consumers would be more inclined to subscribe to more streaming platforms if they were bundled, suggesting partnerships are key to survival.

With the advent of streaming platforms leading more consumers to turn their back on traditional television, 27% of consumers thought broadcasters would adopt services similar to those offered by streaming providers. Yet despite their growing popularity, 30% of consumers don’t currently have access to any of the main streaming platforms, a figure that rises to 51% among those aged over 55.

Looking at findings of the research, Imagen CEO Charlie Horrell, said that it was critical to streaming platforms’ survival that they respond to consumer demand.

“The OTT market has become increasingly competitive over the last year, with the likes of Apple TV+ and Disney+ launching, therefore, Partnering with other streaming services or indeed traditional broadcasters – like Sky has already done with Netflix and Disney+ – to offer bundles will allow OTT providers to present a more captivating offering and appeal to more customers. While traditional linear TV has seen a resurgence in recent months due to Covid-19 lockdowns, this won’t always be the case. We are already seeing some traditional TV providers forging partnership with streaming services to create a more attractive offering.”