OTT (Over-The-Top) services are expanding rapidly, with some major programmers recently making big announcements that they will be moving into the area. Everyone is looking to find ways to upgrade and evolve the aging television media content delivery platform, trying to keep their content relevant and in front of the consumer. Change is on the horizon, and many have ideas about how it will play out, vying to become big players in the new emerging market.
Ariel Napchi, CEO of HIRO Media, has an informed view on the OTT service. As CEO of one of the leading companies in online video content delivery, he understands how video content being delivered via the internet is completely different to the old way of thinking.
Ariel Napchi says OTT services must learn from the mistakes of the past and take a leaf out of online video marketing’s book if they are to succeed in this emerging market.
What Content to Watch and When to Watch it
The most successful online advertisements target specific individuals by their interest, purchases, inquiries, etc. Online ads have proven very successful when strategically placed on sites that target specific consumers, and OTT services look to be next to take this road.
OTT services allows the viewer to be targeted for their interests, in comparison to traditional television which has virtually no provision for personalization. The consumer is traditionally offered content in a regimented fashion, with little choice of what content to watch and when to watch it.
OTT services, on the other hand, can now offer content that the viewer will be very likely to be interested in, increasing their engagement and helping to ensure that they stick to that marketing channel. When the end-user is invested in and interested in the content supplied – revenues from advertising can go through the roof.
HIRO Media’s Ariel Napchi suggests that industry giants like Viacom – who are now entering the OTT market with Nickelodeon – need to be wary about following their traditional routes when it comes to delivering content through these new channels. Often, such companies are reactionary, using their tried-and-tested methods in a new format, hoping that they will translate across.
This invariably fails. It happened when radio made the move to television, and it is happening as new media opportunities are becoming apparent. OTT providers need to realize that this process is revolutionary, not evolutionary.