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RESEARCH, ANALYSIS & TRENDS
Prospects of the video industry
The digital media and entertainment industry continues Amazon experiments with sports content:
to be in constant change. New streaming offers will hit Amazon has reportedly spent $50 million on
the market, merge or even disappear, and some will streaming eleven NFL games this season.
break new ground in their efforts to engage audiences. Compared to what Amazon could spend this year,
All this won’t be without consequences but affect the these are just peanuts. The Internet giant sets out
entire media industry, says Jim O'Neill, principal analyst, to shake up the sports content business. In 2018,
Ooyala, and gives some predictions of what he thinks the broadcasting rights for the British Premier
will happen: League will be reassigned. Last time, almost six
billion euros were due and this time the price will be
even higher. Supposedly, Amazon is considering
Mobile video views continue to grow: In Q3 2017,
58% of videos were viewed on mobile devices, rising bidding on the rights.
for the sixth consecutive quarter. This year this
percentage will hit the 60% mark as more mobile Data, Artificial Intelligence (AI) & Machine
operators offer OTT content. Their offer includes Learning come out on top: More and more
both subscription-based models and display-based devices use voice control to deliver conteno users.
formats and the development is supported by the Apple's Siri, Google Home and Amazon's Alexa all
fact that mobile data volume is becoming cheaper use AI and Machine Learning to find what viewers
and cheaper worldwide. want to see without having to type in their titles,
names or genres. Not only will AI improve content
discovery and recommendations, companies will
OTT will continue to grow and the competition see the results of targeted advertising on mobile
for Netflix gets bigger: Although Netflix is seeing a
large increase in its subscriber numbers, other OTT devices that are not only used at home.
providers are growing unnoticed, too. Especially,
subscription-based streaming services with a niche VR & AR will finally have their breakthrough
offer (that Netflix just does not have) are expanding, moment: Augmented Reality (AR) will get off the
with local content as well as sports and event news. ground this year thanks to investments made by
Apple (ARKit), Facebook (Camera Effects Platform)
and Google (ARCore), besides getting a push from
The slow downfall of traditional advertising: The the Olympic Winter Games and involved Virtual
advertising industry has finally realized that the
future lies in interactive advertising and sponsored Reality (VR) technology.
programs. Soon, we will see fundamental changes in
the consumption of advertising, which means less More mergers in the media industry: The
advertising on ad-funded websites, better targeting, telecommunications giant AT&T just completed its
and more engaging campaigns using data and new takeover of the media empire Time Warner, but that
technologies. won’t be the only mega deal this year, since the
merger of 21st Century Fox and Disney seems to
happen soon, too. These deals are likely to be
The cost of content will reach dizzying heights: followed by further mergers to satisfy viewers'
Netflix plans to spend $8 billion on content in 2018,
Amazon around $5 billion, and HBO $2 billion. Apple insatiable appetite for new content. ◊
is ready to spend at least a billion dollars, just like
Facebook. If one includes sports content, the By MediaBUZZ
numbers could even get higher. Expenditure on
content will continue to increase and be further
intensified by competition among providers.
MediaBUZZ Pte Ltd - Independant ePublisher for Asia
