i3 - November/December 2018 - 54

Business

By Gary Arlen

C S PAC E

Streaming: It's All About Connections

A recent report by real-time streaming
platform Phenix, The Streaming Wars,
found that more than half of viewers
abandon a poor-quality stream in 90 seconds or less. The report found about 27
percent of streaming customers "don't
think 'live' is worth paying for" if there is
consistently poor quality.
Another analysis by Limelight
Networks concluded frequent buffering
interruptions make viewers abandon a
program. It found two-thirds of viewers

will stop watching a video after two rebuffers - crucial in programming such as live
sportscasts. Limelight's State of Online
Video report found that 60 percent of
global consumers are more likely to watch
live sports online if they are guaranteed
not to experience viewing delays.

It's about Content and Competition

The big-buck commitments of Netflix and
Amazon to produce original programming
will keep viewers tuned into the subscription video-on-demand (SVOD)
channels. Netflix has commissioned more than 250 new programs, says Ampere Analysis;
27 percent of streaming
doubling the 229 original shows
customers "don't think 'live'
on the company's servers.
is worth paying for" if there is now
Amazon Prime Video has about
consistently poor quality.
105 original titles and is expected
to create an equal number of new
shows and series, Ampere says.
Audience and program segmentation
is also important. Netflix's new shows -
largely comedy and science fiction - are
aimed at young audiences, while 29 percent of Amazon's new titles will be drama
series that appeal to older viewers.
Ampere also found that YouTube,
Apple and Facebook are boosting
their original show distribution. The three stalwarts
have a total of 65 shows
in their pipelines. "All
the major players
are expanding
the number of
original
commis-

54

NOVEMBER/DECEMBER 2018

sions in the face of an increasingly competitive market," says Ampere analyst
Richard Cooper.
But, streaming video faces several hurdles, notably audience fragmentation.
Concerns include capabilities, such as second-screen access, that distract viewers
and make it more difficult to break
through the clutter. Two-thirds of the adtech respondents in a Viant study say ad
clutter is now a major barrier.

Data Deluge on Streaming Media

One factor stands out: steaming media is
immensely popular. The Limelight study
found in the U.S., young binge viewers
watch nearly three hours of programs (two
hours 56 minutes) during a session; well
above the global average of two hours
seven minutes). In contrast, online viewers above 60 years old watch just one hour
seven minutes at a time, Limelight says.
As technical challenges are resolved,
and programming proliferates, price may
become a more dominant factor in
streaming. More than half of streaming
customers say price increases would be
the major reason to cancel an SVOD service - slightly more than the percentage
of cable customers who will cancel based
on price increases. Today most SVOD customers also are (for now) cable TV subscribers. The Limelight study found that
cable customers are supplementing, not
replacing, traditional TV with online
video. Cable subscribers pay for an average
of 1.2 streaming services, while non-cable
subscribers buy just 0.7 services.
And that's why quality differentiators
are now so important. The Phenix study
- with its bias toward live programming
concluded that nearly one-fifth of customers who use a streaming service "would be
likely to switch platforms if there were an
alternative with a better 'live' option."

2019

CES 2019 Experience the latest
technologies related to advertising
and marketing analytics at C Space.
I T I S I N N O VAT I O N

iStockphoto/Getty Images

 A 

s streaming video accelerates its juggernaut into homes
worldwide, its role in the media economy continues to
shift. Although mobile and dedicated over-the-top
receivers will continue to play a significant role in fulfilling
viewers' appetites for streamed programs, the growing adoption of smart TV sets is very important. One reason is the
increased demand for reliable quality of the signal.


https://www.ces.tech/

i3 - November/December 2018

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