Consumers continue to turn to social platforms, video sharing sites and OTT sites as the place to consume much of what was traditional broadcast-type content. The convenience of accessing content through mobile/hand held devices at the time of their choosing is a large driver for the success of OTT content delivery to viewers.
In response, we should look forward to seeing what was old become new again. The TV industry developed operational models over decades that made the tv industry work. We should expect old-school interstitial advertising business models to make a comeback – particularly over social media. Ad blocking technology will lose out as advertisers, wishing to guarantee revenue, push to “bake-in” ads for online content.
This will be a temporary measure, though, as the infrastructure to target consumers more precisely will still be in its infancy. Looking even farther ahead – 2019 and beyond – we’ll start to see sophisticated micro-targeting and micro-segmentation on a large scale, tied to specific users/profiles. Likewise, we’ll see more organizations jockeying to position themselves to best at walking the line: delivering micro-targeting capabilities for advertisers, but not overtly annoying viewers.
And as long as we’re looking forward, we’d be remiss if we didn’t point out that a major reality check is coming on assumptions about cord-cutting: cord-cutting isn’t an answer for consumers wanting to save money. As people compare the price of cable TV bundles to the price of a video-capable internet subscription, combined with a collection of satisfying, content-rich plans from even just a few companies like Sling TV, Netflix, Amazon, and Hulu, the savings evaporate. And as more OTT platforms continue to invest in original content, consumers will start paying a premium.
As streaming continues its march towards parity with linear television, consumers will demand a quality of streaming experience and convenience that exceeds what linear TV is able to provide. There will be no shortage of opportunities for organizations who are well-positioned to meet those demands. Telestream is working hard to perfect the necessary tools.