What to expect in 2023? 7 trends for the Digital TV market
As competition across the Pay TV market continues to grow, there is a need for Digital TV service providers to stay ahead of the latest trends and technologies. Here are the TOP 7 trends and technologies for 2023 that companies should keep in mind:
1. FAST is on the rise
The global SVOD demand begins to flatten, so the service providers have to seek new points of revenue. FAST promises broader audience reach and a potentially profitable ad revenue stream, as well as the possibility of acquiring linear TV viewers. According to Digital TV Research, free advertising-based videos on demand (AVOD) are expected to hit $56 billion by 2024.
2. Global vs local companies
The giants like Amazon, Netflix, Disney, and Apple will continue to enhance their presence in TV, video, and also gaming. Local broadcasters are also maximizing their effort to acquire new revenue streams, using cutting-edge technologies and platforms. Consumers are broadening their demands and the definition of TV itself to include new platforms and formats. In turn, advertisers need to keep an eye on this and invest in different types of premium video content advertising. That means TV service providers should also track the expectations of their audiences and respond very quickly.
3. Market consolidation will continue influencing the industry
Market consolidation has been a continuing trend in 2022, with the formal completion of Discovery and AT&T's WarnerMedia acquisition at a value of $43 billion as the most noteworthy. This merger brought together a vast array of brands, including Discovery Channel, discovery+, Warner Bros. Entertainment, CNN, CNN+, DC, Eurosport, HBO, HBO Max, and others.
4. Growing Preference for Aggregator Platforms
Aggregator platforms are becoming increasingly popular, as they provide an easy way for viewers to access all their desired content in one place. 47% of US consumers, according to Deloitte, say they’re frustrated by the growing number of subscriptions and services required to watch what they want. Viewers have limited budgets and SVOD model services are easy to cancel. These factors make it more prone to churn.
5. AI is beginning to deliver value
Although AI has been widely overused and over-hyped, its practical applications outside metadata automation are beginning to be seen. For example, at the 2022 World Cup in Qatar, 12 specialized tracking cameras were installed under the stadium roof to monitor the ball and up to 29 data points of each individual player, 50 times per second. The ball was also equipped with inertial sensors, and the data from these devices were combined, mapped onto a 3D model, and used to assess offside calls.
6. Better personalization
The more time subscribers spend on a TV service platform, the more personal information they provide. Personalization and relevant targeting are crucial for advertising and content recommendation trends. Specific audiences are created using demographics, interests, devices, location, behaviors, etc. Using all this data collected by state-of-the-art monitoring solutions, TV service providers can deliver video content their viewers want and expose them to more relevant ads.
7. Cloud maturing
Cloud is maturing while TV service market players are getting a better understanding of how they can employ cloud features to get real value. The demand to distribute content globally, rapidly and efficiently while taking away all the infrastructure and solution maintenance needs are all continuing to drive adoption and innovation. You can learn more about Cloud and SaaS benefits in our very recent article.
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