Well wether or not you are, the way we consume content is rapidly evolving and there’s a race to get as much quality original content on platforms as possible. Currently Netflix is winning the user numbers race in a very crowded market but nevertheless the race is on and by 2022 Pay TV and OTT are projected to reach a combined revenue of 283 Billion dollars. The most stable option is the subscription model which is set to triple in revenue while the ad sales model is projected to decline slightly, however subscription adoption still has a long way to go before catching up to ad revenues.
“With more media companies creating TV-like video content for platforms with big content budgets, the over-the-top video market is exploding with new places to watch video. Subscription and ad-funded video-on-demand services have healthy revenue prospects, but media companies struggle to get their video seen in a cluttered landscape.”
Why it’s hot: “For publishers looking to create OTT content, the three biggest challenges are building new and loyal audiences, discoverability of content and monetization, according to Digiday research.”
With new industries come new challenges. The above challenges will eventually turn into opportunities and several of these opportunities are prime for the advertising world and the brand world to take advantage of as you can see in the chart below: