By Parham Azimi, CEO, Cantemo
The Internet is oversaturated with content. Coupled with video technology and enhancements, this has drastically changed our lives, affecting not only how we consume content, but also how we conduct our day-to-day business, and how consumers engage with, not only broadcast content, but also brands and other content providers.
Throughout 2016, we will see yet more significant increase in both investments and ground-breaking innovation in various areas of video delivery and usage.
In particular, we believe we will see some major innovations in the following areas:
1. Over the Top (OTT) set to explode
OTT is the major buzzword right now, with more and more players looking to deliver content OTT. According to a recent article in IBC Content Everywhere, global video on demand (VOD) revenues are expected to top $263 billion by 2016, which is a 27% increase over the 2014 revenues. Viewing on OTT streaming devices is also on the increase, with a 157% year on year increase, according to FreeWheel.
There is a logic behind all this. The notion of viewers consuming linear television is rapidly giving way to consumers with multiple devices and platforms viewing whatever content they want wherever and whenever. This change in the viewing dynamics presents massively lucrative opportunities for content companies, especially when it comes to pay TV subscriptions and advertising. More on this in point 3.
Of course Netflix is one of the huge players taking the lead in this industry, with market dominance in a number of regions. However, as we move through 2016, we will likely see that cause more and more of a ripple effect, with other players launching or upgrading their services to keep up and compete. But more importantly I believe we are reaching closer to a point of â€œchange or dieâ€ for the traditional pay TV providers. We will see an increased number of OTT services launching from the players who are investing in keeping up with the evolution.
2. Video not just broadcast
We have seen an evolution from the text-centric Internet of the early days, through an image-centric Internet, to the extremely video-centric Internet we have today. We are now at the next step in this evolution and throughout 2016, we will see the Internet even more flooded with videos from a wide range of sources. This information overload is also leading to a generation with shorter attention span, therefore videos will need to get shorter, more attention grabbing, higher quality, and innovative in order to stand out in a world where consumers have access to a massive flow of information and content.
There are also an increasing number of outlets for these to be published into, with many of the social media giants making video an important part of their channels. We are likely to see yet more innovation with the way video is shared and played within social media networks from all of the major players. Increasing audience engagement with videos within those channels will also be a key area for innovation.
3. Video advertising will get clever
Advertising is coming under fire, with OTT making it so much easier for people to skip traditional adverts. We are beginning to see innovative workarounds emerging and we will see more and more advertisers adopting new ways to advertise with video. Brand placement within video content and digital billboards will become much more appealing, enabling advertisers to ensure their ad wonâ€™t simply be skipped.
We also know that the majority of the viewers are multi-tasking while consuming content, whether TV or OTT, and the challenge is therefore how to measure viewing attention and targeting. Therefore, the innovation in advertising going forward should be the ability of personalize ads delicately tailored for the specific viewer. This is again what will help advertisers stand out.
4. Multiplatform viewing on the rise
Consumers are increasingly viewing content on a massive range of different devices. With more devices constantly launching, content providers are having to keep up with that fast pace of change to ensure their content displays perfectly, regardless of which platform it is being viewed on.
The trend for viewing video on devices other than the television is set to continue. According to a report by Ericsson, almost 70% of all mobile data traffic will be from video by 2021. Whilst YouTube still dominates most of that traffic, there will be a growing trend for watching more longform OTT content via mobile devices too.
We will clearly see a great deal of innovation over the coming year, and for all of these areas, the focus will be on delivering a more compelling and engaging experience to viewers, regardless of device. With that will of course come the need for video content to be more organized, therefore asset management systems will become increasingly important, which is of course good news for us!