With the launch of Showtime’s video service, it’s official: over the top is the place to be. It’s almost hard to keep track. Ooyala, Vindicia, and Parks Associates recently collaborated on a study that looks at how OTTs are differentiating themselves from each other and staying in the game.
Their research shows that the main issue is content, as cord cutters know. It has to be good, recent, and plentiful. From their report:
Over 70% of consumers state that they subscribe to these services due to specific titles available through the service, and over one-third of consumers do so in order to access original content. The size of the video library and the amount of recent content are also important factors.
The service also has to be available across devices. And while mobile viewing is up, consumers still choose the largest screen available.
Ease is also a factor, and not just in content discovery or video quality:
A less frequently considered but important revenue issue is the user experience related to monetization. Consumers do not evaluate an OTT video service only on the viewing or discovery experience. Instead, users assess the entire experience, including payments and advertising. Problems in processing payments can end a user’s interest in a service before they can watch a single video, and errors in billing may have a more negative impact on retention than problems with video quality.
So, the customer should always be right. With the amount of OTTs launching — from the big guys, like Showtime or Sling, to the smaller ones like the MLB, it’s all about mixing up the right potion of good marketing, quality content, and consumer retention. You can see the full report here.