Wednesday, April 23, 2014

Young viewers are key segment to target for the OTT video market

New Industry Report Examines Current Trends in Video Content Licensing Ecosystem

Following OTT and content licensing announcements at NAB and the Aereo, Inc. case before the Supreme Court,Parks Associates today announced a new report Trends in Content Licensingthat analyzes television and movie licensing trends and the impact of multiscreen, time-shifting, and the demand for exclusive content. The firm reports pay-TV penetration remains fairly steady at around 85% of U.S. broadband households but over-the-top (OTT) video use is increasing on multiple devices, particularly with younger viewers.

"Pay-TV subscriptions remain high among Millennials, but at the same time, nearly 40% in this age group consider online video the most important source for video content," said Glenn Hower, research analyst, Parks Associates. "As consumers diversify their viewing resources, the licensing process becomes more complex. Additionally, the Supreme Court case in ABC v. Aereo could drastically reshape the licensing environment for retransmission. A win by Aereo may set legal precedent for a method to rebroadcast without compensation.”

Parks Associates analysts note the cord-cutting threat hasn't materialized for pay-TV providers because consumers found the experience was too fragmented to get the content they want. This finding underscores the important role of content in retaining subscribers.

Trends in Content Licensing also examines the impact of "original content" as key players such as Yahoo, Amazon, and Netflix develop OTT strategies to reach out directly to viewers with content options exclusive to their respective services.

“From carriage fee battles between operators and networks to uncertainty in advertising dollars for multiscreen video, the market is experiencing growing pains,” Hower said. “The new report provides Parks Associates’ recommendations for entertainment companies, networks and broadcasters, pay-TV providers, and OTT providers.”

The report includes perspectives for all players in the licensing ecosystem, including content creators, studios and production companies, networks and motion picture distributors, consumer video providers, and intermediary players and new entrants. Information for the report is drawn from several sources, including Parks Associates' quarterly consumer surveys of 2,500 to 10,000 U.S. broadband households. Other research reports from Parks Associates include:

  • Online Video & Internet TV Services: Global Outlook
  • Digital Media Distribution: Market Update
  • Monetization of Multiscreen Video: Content Owner Strategies 
  • Online Entertainment: The New and Noteworthy
  • Evolution of the Mobile Content Market
  • OTT in a Pay-TV World

Glenn Hower studies entertainment content and delivery services at Parks Associates and will moderate the session "Cracking the Window: New Trends in Content Rights" at the upcoming CONNECTIONS™: The Premier Connected Home Conference, May 13-15, San Francisco. The session examines strategies to balance content protection with consumer demands for flexibility and features executives from Irdeto, Discovery Digital Networks, Synacor, and thePlatform.

Follow Glenn Hower on Twitter at @GlennatParks and on the Parks Perspectives blog http://www.parksperspectives.com.

Trends in Content Licensingis available for purchase at http://www.parksassociates.com/report/content-licensingfor $3,200. 

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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