nScreenMedia OTT multiscreen media analysis

nScreenNoise – Top 3 drivers of change in digital video 2015

nScreenMedia Video Podcast

There have been many changes in the world of digital video 2015, but what are the forces underlying these changes  and driving them? Here are my top 3 trends driving change.

Netflix is number 3 on my list of drivers of the industry. It continues to grow strongly, and seems set to continue to do so in 2016. The company says it will be in all 197 countries in the world by the end of next year. The TV industry continues to struggle with how to deal with it. Some content providers are pulling back from licensing content to the company, others aren’t. Notwithstanding anything the industry can do, Netflix looks set to be a major influence again in 2016.

The television industry is also struggling to figure out millennials, making it my number 2 driver for 2015. The young are fleeing traditional media fast, and migrating toward services like SVOD. Howard Horowitz says that 75% of millennials have access to SVOD (versus 56% of the general US population,) and that they are 3 times more likely to have SVOD and no pay TV than the general population. Operators and content providers are hard at work launching new products to try and get millennial media business. Skinny bundles, broadband bundles and mobile video services are three approaches. It’s not clear how successful they will be.

The number 1 change driver in digital video 2015 is big data. The TV industry is moving from a data poor environment to a data rich one, where literally everything is measured. This is having a profound impact on the business. For example, data is powering new approaches such as programmatic advertising, content recommendations, and voice driven discovery. It is also causing conflict between those with data, and those without it. Big data will be reinventing the business of digital video for at least the next decade.

Chapter 1: Introduction (0:20)

Chapter 2: Netflix (0:40)

Chapter 3: Millennials (3:30)

Chapter 4: Big data (6:25)

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