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Simplestream 6 – Netflix Shakes Customer Base

In an attempt to recoup the large sum invested in content creation, Netflix has increased it’s SVoD price by 18% in the US causing a sudden drop in subscribers and generating a significant interest in the potential for a hybrid SVoD and AVoD service among some of it’s customer base. Meanwhile, NLZiet discovers the power of the ‘big screen’ for long form video content.

  1. Netflix Loses 8% of Consumers with $1 Price Increase: Study

If Netflix increases its monthly subscription price by $1, 8% of surveyed broadband users told OTT research company The Diffusion Group (TDG) that they’d quit the streaming service.

Another 8% said they’d downgrade to lower service tier.

This notable information came from a survey of 1,940 adult U.S. broadband users conducted by TDG in December, about a month before Netflix announced actual across-the-board price increases of $1 – $2 a month.

 

  1. Dutch OTT platform NLZiet sees sharp increase in connected TV usage

The usage figures for the Dutch online OTT platform NLZiet show that online viewing time on a regular TV screen increased by 30% in 2018.

With a viewing time share of 57%, the ‘good old tv’ has become by far the most important device for viewing online live television and video on demand. The 57% viewing time can be divided into 31% set-top box (Apple TV and Chromecast) and 26% smart TVs.

Recent studies already show that sales of tablets and desktops are falling. The fact that tablets and desktops are becoming increasingly out of favour is also reflected in the viewing behaviour of NLZiet users. Last year, the share of viewing time on desktops dropped to 19% (-30%) and on tablets to 14% (-22%). The share of viewing time on smartphones dropped to 9%, which is also influenced by the large growth in viewing time on set-top boxes and smart TVs. When streaming via an Apple TV and Chromecast, the smartphone is also often used.

 

  1. UK multichannel investment tops £1bn
  • Multichannel broadcasters invested £1.1 billion in UK production in 2017 – the first time the multichannel sector’s spending on UK content has hit £1 billion.
  • Investment in UK content by multichannel broadcasters has grown by 75 per cent on 2011, yielding an increase in annual investment by multichannel broadcasters of £416m. Investment in UK content by multichannel broadcasters has grown significantly faster than that of Public Service Broadcasters.
  • The majority of investment – £965 million in 2017 – is on new (‘first-run’) UK content.
  • The multichannel sector spent £447 million in 2017 on commissions from external producers (independent producers, non-qualifying independents and co-pros). The remainder was invested in in-house production in such genres as news, sport and animation.
  • Those COBA members that are part of multinational media groups broadcast more than 21,000 hours of UK content across their portfolios of international channels in 2017. This gives UK creativity a global platform.

 

  1. African OTT TV revenues to reach $1 billion

South Africa will account for 40% of the region’s revenues by 2024, with Nigeria bringing in a further 22%. From the 35 countries covered in the Sub-Saharan Africa OTT TV and Video Forecasts report, only 15 will generate OTT revenues of more than $10 million by 2024.

SVOD is already the main revenue driver for OTT TV and video by some distance. SVOD revenues will reach $782 million by 2024; nearly quintuple the 2018 total.

The report forecasts 10.21 million SVOD subscriptions by 2024, up from 3.03 million at end-2018. South Africa (3.46 million by 2024) will remain the leader, with Nigeria (2.56 million) in second place.

 

  1. Spain allocates €50m to DTT migration

The Spanish Government has proposed €50 million in grants in the 2019 state budget to help Spaniards retune their antennas in the second digital migration.

This will be just an initial compensation – since the first DTT migration in 2015 the Administration has granted €289 million. DTT migration is set to begin in February when the new DTT technical plan is finally approved. Spaniards must retune their antennas before DTT transmissions are switched off in the 694-790 MHz band in March 2020. Around eight million homes are set to be affected by the new digital dividend plan that will see the 700 MHz band released for 5G mobile services by March 2020, with a frequency auction before June that year.

 

  1. UKTV updates on demand app

“UKTV Play is focusing on delivering the most personalised viewing experience in the marketplace. Our investment in machine learning, coupled with constant algorithm adjustments, allows our viewers to surface an enormous variety of content that suits not only their interests but their mood too.”

The latest version of the UKTV Play app features increased personalisation, the addition of the broadcaster’s Home channel and synchronised viewing history and favourites across devices. This allows viewers to pause on one device and resume on another. In addition, iOS and Android apps now fully support Chromecast.

Users can browse and discover content by genre and the app will learn viewing preferences and interests to serve a personalised selection of shows, box sets and collections from across UKTV’s selection of free-to-air channels (Dave, Yesterday, Really, Drama and Home).

 

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By |2019-01-25T15:06:59+00:0018 January 2019|Simplestream 6|Comments Off on Simplestream 6 – Netflix Shakes Customer Base
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