Discovery and Measurement Challenges For Content Producers In The SVOD Era

The 20,000 Foot View:  Streaming video consumption continues to accelerate, still adding users in more mature markets and expanding at pace in emerging markets. Though the mix of value propositions and business models is diverse, the unifying theme is that power is shifting from traditional stakeholders to new players. Rule books are being rewritten as quickly as relationships are being redefined. 

As with any consumer technology growth phase, audiences have unprecedented choice due to new entrants competing fiercely for their attention and spend. They are providing them with new ways to discover and consume, which in turn is changing viewing behaviour. 

In stark contrast to the content choice given to audiences, streaming services are highly protective of their data to ensure they retain the upper hand in negotiations. This often means measurement has to be rethought from the bottom up. Meanwhile, just as streaming services start to acquire a degree of industry familiarity, messaging apps are fast emerging as the next big audience engagement platform, threatening to rewrite the just-rewritten rule book.

Key Findings

• The subscription            on demand (SVOD) unbundling effect            that consumers have to navigate            services, user experiences and billing           
• The proliferation            Over The Top (OTT) services            led to the paradox of            TV consumer having a surplus            choice
• Streaming services            a central, coordinated discovery experience,            the tech majors could fix            by becoming meta services 
• Apple and            have already made moves towards           
• As users            more time with streaming services,            gradually shifts from lean-forward to           
• Algorithms and            will continue to do the            lifting for streaming discovery, but            opportunity exists for a bigger            component
• Streaming video                       of total viewing time, rising                       for pay-TV subscribers and            for            users
• Audience fragmentation            with streaming services’ tight control            data is creating an existential            for audience measurement
• Lack of            gives SVOD services negotiating leverage
• Remnant linear            are increasingly skewing towards specific            of viewing, while SVOD services            acquiring viewing time of the            engaged viewers
• Netflix users            index for Comedy, Action &            and Horror, but under index            Wildlife, News and Sport

Companies and brands mentioned in this report: Amazon, Apple, Facebook, Google, Netflix, Nielsen