Here is a continuation of the what I am seeing series. Top three challenges I see:
- Making money-It’s as real paradox; most traditional broadcasters and content providers see OTT platform like Hulu, FuboTV and Netflix taking the growth of new subscribers, but when they try to build deploy and solicit users, they find that they don’t make much if any revenue. Most cord cutters are fickle in their subscriptions, will sign up and then leave so revenue is lumpy. Also, most providers are only as good as their content and there are still bound by legacy content licensing models.
- Embracing cloud– This is really interesting to me; I speak to many big name content companies- Fox, NBC, Scripps, ViceTV and most content providers of that size and scope still do NOT use cloud based services. Most are concerned about the quality and control when you use a multi-tenant cloud provider. Many content providers are concerned that they won’t be able to monetize add with server side ad insertion and capture viewer sentiment with analytics. The irony is that using cloud platforms actually accelerate those value ads.
- Ensuring performance– Similar as above but now you add the unpredictability of http delivered video that as we all know, does not handle performance spikes well at all. I see a lot providers using all the predictive tools and AB testing they can handle to ensure smooth performance.
Next installment of the series will focus on successful characteristics of OTT deployment.