October 18, 2015 | Authored by: Vindicia Team Blogs
The Next Generation of Niche Video Content
The cord-cutting sensation is reaching new heights as the convenience of over-the-top (OTT) services becomes increasingly popular. The Total Audience Report Q4 2014 published by Nielsen found that 41 percent of U.S. homes subscribe to a Subscription Video Service on Demand (SVOD), up from 36 percent the previous year. Further, Digital TV Research has anticipated OTT content revenues will surpass $10 billion in 2020, up 52 percent from $6.85 billion last year. As a result, more and more businesses have shifted to digital platforms to meet the demands of an increasingly digitized consumer, and the influx of options has prompted consumers to actively seek out the best service providers for OTT content, very commonly SVOD content.
Cable providers are putting up a fight against SVOD services by offering bundled and unbundled packages, single channels, and live programming options in order to stay competitive alongside the expansion of the SVOD industry. However, SVOD services aren’t set to slow down anytime soon. What’s more, a new generation of niche video content is emerging, and it is poised to harness a significant portion of video content subscriptions.
In a market flooded with options, content is king and crucial to the success of a provider. In fact, a recent study conducted by Parks Associates found that among the top must-haves in an SVOD service, consumers seek original content. The study also found that services designed to attract consumers with interest in particular genres, languages or cultures allow industry players to find defensible niches that they can identify, target and hold against competitors. Niche content, whether it be cultural, thematic or geographically relevant in nature, is creating strategic opportunities across the globe for OTT service providers to hone in on the preferences of viewers and deliver personalized content to any screen, anywhere in the world.
Further, in a study conducted by MTM, industry leaders anticipated that by 2018 there will be 15-20 niche services attracting over 100,000 subscribers. The study also found that the niche market is expected to grow strongly by 2018 when compared to current market revenues. The research indicates that technology costs for subscription video content providers have fallen significantly, enabling a wide range of providers to enter the market and causing opportunities for specialist or niche premium offerings to become far more accessible. Although it is believed that Netflix will retain its market dominance, a portion of its audience is predicted to fall away to new subscription services, like those offered by niche content providers.
Millennials are overpowering the digital entertainment market, and convenience and personalization are at the top of their “must-haves” list for SVOD platforms. Now more than ever companies have the need to deliver better, more personalized content to build audiences and find success in a flourishing market. However, while unique features and niche content might attract customers, how will companies keep those customers engaged with so many competing products on the market?
Kris Nagel, Senior Vice President of Worldwide Field Operations of Vindicia, will be speaking on the topic of niche video content at Digital Hollywood Fall, Oct. 19-22 in Marina del Ray, California. Kris will be participating on the panel, “Programming the New ‘OVNs’: Online Video Networks: the Next Generation of Niche Video Content,” in which he will provide insights on the importance of subscriber accruement and retention, and discuss how it will give niche video content providers the edge they need to thrive in an overcrowded industry. The panel will take place on Monday, October 19 at 3:45pm. To attend Kris’s panel session, please register here: http://www.digitalhollywood.com/registration.html.
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