The landscape of Connected TV (CTV) is rapidly evolving, with the recent Connected TV World Summit in London, shedding light on three pivotal themes: the CTV OS (Operating System) battlefield, the intensifying Streaming Wars, and the critical challenges of Discoverability.
Connected TV OS Battlefield:
The success of CTV platforms hinges significantly on the services they offer through their underlying operating systems. While tech giants like Google wield considerable influence, independent TV OS makers face a unique set of challenges and opportunities.
These independent players lack the retail clout of industry giants, making direct competition difficult. However, their autonomy enables them to foster deep partnerships with TV brands. Through initiatives like the mission 1 joint venture alliance, these partnerships allow smaller brands to share up to 70% of platform revenue with their chosen OS, enhancing their profitability despite thin margins.
In contrast, major tech players entice OEMs with lucrative incentives. Despite this, the industry is witnessing a shift towards collective competition, emphasizing collaboration over individual prowess. This shift underscores the importance of supporting the aggregation game, focusing on efficiency, and shaping subscriber perception.
Streaming Wars:
The emergence of OTT streaming services has transformed how consumers access content, prompting pay-TV operators to innovate to stay relevant. Strategies such as the ‘operator as an app among apps’ and STB-less ‘direct to TV’ models are being explored to navigate the digital landscape.
As the battle for consumer attention intensifies, this is not about shelf-life of a STB; it’s about addressing different consumer needs so the emphasis is on providing quick access to relevant content. Operators are challenged to balance curated content offerings with consumer preferences, aiming to enhance efficiency and subscriber satisfaction. It’s about harmonising broadcast and streaming platforms which means doing more but simpler and that is the real challenge.
Discoverability:
Despite the plethora of streaming options, discoverability remains a significant challenge. Users often struggle to find content tailored to their interests across various platforms. Super aggregation platforms like Allente and initiatives like Freely, described as a ‘superapp’ at the CTV Summit are addressing this challenge by streamlining content discovery and empowering broadcasters with targeted advertising opportunities.
Freely, termed as “Freeview for the streaming age” allows navigation between live and online, making it an added value feature for TV manufacturers to include in their consumer offering. It also means that broadcasters have more opportunity to feed targeted advertising to consumers.
The Future of CTV:
Looking ahead, the convergence of broadcast and streaming platforms will continue to reshape the television landscape. Collaborations between hardware manufacturers, OS providers, and retailers seek to maximize CTV’s share of the advertising budget through data alliances and innovative business models.
Adaptability and innovation will be crucial in this dynamic environment. Whether through proprietary solutions, strategic partnerships, or user-centric approaches, players in the CTV space must remain agile to capitalize on emerging opportunities.
As consumers embrace CTV platforms, the stage is set for a new era of entertainment characterized by choice, convenience, and personalisation. Success will hinge on seamlessly integrating content, technology, and user experience to deliver truly immersive entertainment experiences.
By addressing these themes, industry players can effectively navigate the evolving landscape of Connected TV and capitalize on the opportunities it presents.
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