Consumer Insights Practice
Market Intelligence on Buyer
Behaviors, Consumer Attitudes, Brand
Preferences, and Emerging Behaviors
UX Practice
Design Guidance and Competitive
Intelligence on User Experiences
and Opportunities for Innovation
Syndicated Services
& Consulting
Insights, Information,
Forecasts, and Consulting on
Companies, Brands, Products,
and Technologies Competing
for the Consumer
AppOptix
Intelligence on
Consumer Activities,
Behavioral Patterns,
and Usage Profiles
through Big Data
Analytics
Strategy Analytics: Delivering insights and recommendations that lead to business actions
November 8, 2016 Strategy Analytics, Inc 2
Traditional Distribution Channel Emerging Distribution Channel
Broadcast Networks
TV Packager
Content Owners/
Producers
Cable Infrastructure
Satellite Infrastructure
Terrestrial Infrastructure
Telecom Infrastructure
Pay-TV Packager Website/App
Broadcast Network Website/App
Third Party Website/App
Content Owner Website/App
STB
TV Set
DVR
Tablet
PC
Smart TV
Mobile Handset
Smartphone
Internet
Devices Delivery Service Packaging Content Aggregation Content Production
The consumer media and technology value chain and the
transition to internet video
Connected TV Device
OTT = New Revenue Opportunities
… $84Bn in 2020
• OTT revenues grew 29% to reach $34.0bn in 2015
– 45% advertising
– 31% SVOD
• Market will grow at 14.7% CAAGR thru 2021
– Ad share will reach 48%
– TVOD (digital rental) share will decline to 6%
OTT becomes TV… which becomes OTT
• Netflix becoming integral to Pay TV operators
– Acquiring and producing content – Partnering with numerous cable TV providers
globally (25+ operators) – Helping smaller operators expand VOD Library – Dish Network – Integrated Netflix as a “channel” in
their EPG – FreeView lists Netflix, Now TV as “Pay TV” options – Becoming more common to see Netflix and other
OTT services as apps in the SP user experience
• Pay TV operators launching OTT services – Sky – Now TV – Dish Network – Sling TV – Comcast Stream, Verizon, Cox, CenturyLink
• Content owners go direct-to-consumer – HBO, Showtime – CBS, HGTV, etc.
Thank you
David Mercer VP, Digital Consumer Practice
STRATEGY ANALYTICS Bank House, 171 Midsummer Blvd
Milton Keynes, MK9 1EB, UK
Direct: +44 1908 423610 [email protected]
Twitter: @DavidMercer_SA