New data shows that the global over-the-top (OTT) video market is growing fast: It hit about $97 billion in 2017, and Allied Market Research predicts that revenue will reach more than $330 billion in 2025. The smartphone segment, Allied says, is one of the key contributors to this growth.
Mobile video trends show that our thirst for video is insatiable. More than 90% of videos posted to Twitter and about 50% of all videos are consumed on mobile devices. We want videos that entertain, educate, and engage. We share them with friends and family, and we want to see them from brands.
The combination of our never-ending demand for video and our well-documented addiction to our mobile devices has created an opportunity that content providers should now be racing to seize, and many are.
Companies like DirecTV, for instance, have recognized that giving customers easy access to content across all platforms is still a competitive advantage because not many have been able to do it well — at least, not yet. The AT&T subsidiary launched DirecTV Now in 2016 and has steadily developed the mobile capabilities of its subscription streaming service.
As of third-quarter 2018, DirecTV Now had earned more than 1.8 million subscribers, but there’s still plenty of room for newcomers. Some companies, such as video startup Quibi, are pursuing a “mobile-only“ strategy, for example. Carriers, cable, and streaming providers looking to capitalize on mobile video trends, as DirecTV and Quibi have, should consider starting with these three strategies:
- Focus on agility.
For both content providers and consumers, agility means choice. The best mobile platforms give customers options, from pre-subscription through cancellation. Make it easy for new users to sign up with multiple bundle and payment options. Throughout the relationship, target them with regular promotions to keep them interested, and ensure they can access your content and pay via their preferred method. Test offers in various markets and customer segments. A user who signs up on a mobile device should be able to turn on Apple TV or Roku, for instance, and seamlessly interact with your platform on those devices and pay via “contactless payment” options.
- Build a content management team.
Make no mistake: In order to capitalize on the data being generated by users consuming mobile video content, you’ll need a team. The 125 million subscribers who send their hard-earned money to Netflix each month do so not because the company offers superior content, but because Netflix offers a superior customer experience. The team of managers and analysts at its disposal can understand what viewers like and don’t like and can then ensure those viewers get served recommendations that will keep them coming back for more. You need a team who will do the same. Big data is powerful, but it takes a team to harness that power and turn it into revenue.
- Work to reduce churn.
It must be easy for customers to sign up for your service, but you also shouldn’t make them jump through hoops to unsubscribe. Instead of making cancellations difficult, manage churn through proactivity. When your content team recognizes that a customer hasn’t logged into your service after a certain period, they should be able to initiate a dialogue with that customer to offer incentives to return to your platform. In addition, your team should be able to customize recommendations and promote newly added content to all of your subscribers, enticing them to stick with you for the long run. Oh — and consumers should be able to do all this via mobile.
Mobile video trends indicate that the medium is growing with no end in sight. While competition in the space continues to grow, there’s no reason for content providers not to experiment with offering mobile video content to customers. If you need a helping hand to get started, reach out to us today to find out how Evergent can help you get your content to consumers.