This report examines the stages of an OTT service’s lifecycle from the initial concept to subscriber adoption. Key themes include the phases of the OTT service lifecycle, go-to-market strategies, and the evolution of OTT services. It provides a roadmap of strategies and lists considerations that OTT services need to make at different stages in order to be successful. The report includes examples of key players and services in the market today and provides a detailed case study of the evolution of OTT video service Revry, through startup, design, launch, and growth.
Executive Summary
Overall OTT Service Subscriptions (2014 - 2019)
Methods Used to Subscribe to Subscription OTT (Q1/19)
Methods Used to Subscribe to Subscription OTT Among OTT, Pay-TV Subscribers (Q1/19)
Pay-TV Vs. OTT Service Subscription (2018 - 2019)
Market lifecycles commonly have four stages
Both markets and companies go through lifecycles
Key Findings: OTT Video Service Competition
Key Findings: Jumping The Gap
The Lifecycle of OTT Services – Service Evolution: Service Design
An OTT video service’s lifecycle begins with the core elements necessary for its initial design
Capital / Funding
Content
Factors Influencing OTT Service Subscriptions (Q1/19)
Platform
Platform: End-to-End Solutions
Platform: End-to-End Providers
Platform: Smart TV
Platform: Streaming Media Player (SMP)
Platform: Mobile Devices and Browsers
Platform: Game Console
Business Model
Use of Video Services (Q1/19)
Number of OTT Service Subscriptions (2014 - 2019)
The Lifecycle of OTT Services – Service Evolution: Introduction
Segment Targeting
Initial Marketing
Product Iteration / Beta
The Lifecycle of OTT Services – Service Evolution: The OTT Gap
Following the introduction phase, several obstacles can impede growth
Quarterly Subscriber Growth of US vMVPD Services
Adequate Awareness / Attracting Target Users
Compelling Content / Differentiation
Differentiation
Quality User Experience
Indexed Rating of Video Services by Provider (Q1/19)
Adequate Revenue, ROI, or Capital
The Lifecycle of OTT Services – Service Evolution: Growth
Aggressive Promotion
Greater Content Investment
Global Expansion
Feature Enhancement
The Lifecycle of OTT Services – Service Evolution: Maturity
As growth slows, OTT services approach maturity
Partnerships
Strategic partnerships provide added exposure and/or incremental value
Acquisition
Scale
Diversification
Retention Strategies
Innovation
The Lifecycle of OTT Services – Service Evolution: Decline
Services that have exhausted their market potential face a decline in revenues and subscribers
Quarterly Subscriber Growth of US vMVPD Services
Case Study – Revry
Brand Background
Lessons Learned: Design Phase
Lessons Learned: Introduction Phase
Lessons Learned: OTT Gap / Growth
Implications / Recommendations
Executive Summary
Overall OTT Service Subscriptions (2014 - 2019)
Methods Used to Subscribe to Subscription OTT (Q1/19)
Methods Used to Subscribe to Subscription OTT Among OTT, Pay-TV Subscribers (Q1/19)
Pay-TV Vs. OTT Service Subscription (2018 - 2019)
Market lifecycles commonly have four stages
Both markets and companies go through lifecycles
Key Findings: OTT Video Service Competition
Key Findings: Jumping The Gap
The Lifecycle of OTT Services – Service Evolution: Service Design
An OTT video service’s lifecycle begins with the core elements necessary for its initial design
Capital / Funding
Content
Factors Influencing OTT Service Subscriptions (Q1/19)
Platform
Platform: End-to-End Solutions
Platform: End-to-End Providers
Platform: Smart TV
Platform: Streaming Media Player (SMP)
Platform: Mobile Devices and Browsers
Platform: Game Console
Business Model
Use of Video Services (Q1/19)
Number of OTT Service Subscriptions (2014 - 2019)
The Lifecycle of OTT Services – Service Evolution: Introduction
Segment Targeting
Initial Marketing
Product Iteration / Beta
The Lifecycle of OTT Services – Service Evolution: The OTT Gap
Following the introduction phase, several obstacles can impede growth
Quarterly Subscriber Growth of US vMVPD Services
Adequate Awareness / Attracting Target Users
Compelling Content / Differentiation
Differentiation
Quality User Experience
Indexed Rating of Video Services by Provider (Q1/19)
Adequate Revenue, ROI, or Capital
The Lifecycle of OTT Services – Service Evolution: Growth
Aggressive Promotion
Greater Content Investment
Global Expansion
Feature Enhancement
The Lifecycle of OTT Services – Service Evolution: Maturity
As growth slows, OTT services approach maturity
Partnerships
Strategic partnerships provide added exposure and/or incremental value
Acquisition
Scale
Diversification
Retention Strategies
Innovation
The Lifecycle of OTT Services – Service Evolution: Decline
Services that have exhausted their market potential face a decline in revenues and subscribers
Quarterly Subscriber Growth of US vMVPD Services
Case Study – Revry
Brand Background
Lessons Learned: Design Phase
Lessons Learned: Introduction Phase
Lessons Learned: OTT Gap / Growth
Implications / Recommendations
© November 2019 Parks Associates
All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.
Printed in the United States of America.
Disclaimer
Parks Associates has made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.
