How Do OTT Services Influence Traditional Television?

How Do OTT Services Influence Traditional Television?

According to data from Kantar Media in 2019, traditional television consumption is lower in households with a subscription to OTT services. It is clear that both types of services are in competition, but the long-term implications are not yet clear.

To find out what top pay TV managers think about these trends, Nagra in collaboration with the consultancy MTM has published the European edition  of the 2019 Pay TV Innovation Forum . These are its main conclusions:

  • The traditional pay – TV channels will reduce its number as the smaller will become unsustainable as they continue to grow the popularity of OTT services. 94% of managers surveyed believe that by 2024 the main platforms in European markets will have 20% fewer linear pay TV channels than today.
  • Pay TV providers will become content “super aggregators” incorporating OTT services into their offering. 79% of those interviewed consider that services such as Netflix or Amazon Prime Video can be valuable as part of the pay TV offer.
  • Senior pay TV executives are  optimistic about the future of the sector, with only 26% believing that the growth of OTT services will have a negative impact on the European pay TV industry.
  • Content piracy is still seen as one of the biggest challenges in the sector, with only 7% of those surveyed believing that the proportion of European consumers who illegally access content will have halved by 2024.

The Main OTT Services On The Market Today

1) Netflix

Netflix has become synonymous with relaxation at home, and it is one of the best-known OTTs in the world. In addition to distributing third-party content and movies, Netflix also has its own content production, some of which have been a great success. Today, Netflix has 158 million users worldwide.

2) Amazon Prime Video

Amazon Prime Video is an OTT service available to all Amazon Prime customers. This means that the service is available to 150 million users, but it is estimated that only about 96 million people use it.

Like Netflix, Amazon Prime Video also produces its own highly successful content, such as The Man in The High Castle or Modern Love

3) HBO

HBO arrived in Spain in 2016 and currently has 140 million users worldwide. Its catalog includes many highly successful productions, such as Game of Thrones, The Handmaid’s Tale or Westworld. It has three different applications: HBO Go, HBO Now and HBO Max (with extra content and functionalities).

4) Disney Plus

Disney Plus is the latest addition to the world of the great audiovisual OTTs, since it arrived in Spain in March 2020. Its catalog includes content from Pixar, Marvel, Disney, Star Wars and National Geographic, as well as all seasons of The Simpsons. His big bet on original content has been The Mandalorian, the Star Wars action series.

5) Spotify

Spotify is the world’s most popular streaming music service, with more than 250 million users. Of these, an estimated 100 million use the paid version, which allows you to enjoy content without ads and offline.

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