1. Monetizing OTT and Mobile Content SATA 2015
Justice K. Ramphethu
HOD-Business and Commercial Strategy, BTCL
4/4/2019
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AGENDA
Introduction
OTT Global Trends and Challenges
Monetization in OTT world
5 Critical Success Factors
OTTs & African Telco Overview
Conclusion
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3. Strictly Company Confidential
Introduction
Consumer demand for Over-The-Top communication is at fever pitch
“How can we capitalize on seemingly insatiable desire for OTT content?”
We have prime opportunity to translate OTT consumption in revenue
While the potential is huge so are the challenges
To achieve this we must understand our audience, partnerships and technology option like never before.
The pressure is also on OTT communication providers to move towards revenue generation model as opposed to high-market capitalisation.
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4. OTT TRENDS AND CHALLENGES
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OTT IMPACT ON REVENUE SQUEEZES
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OTT POTENTIAL REVENUE GENERATORS
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7. Monetization in OTT World:
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8. OTT Adoption to OTT Monetization
OTTs are becoming mainstreams method for viewing content more especially videos.
What’s driving the explosive rate of OTT adoption?
Why are people moving towards watching content whenever, wherever on whichever device they prefer?- below are confluence of forces taking OTT mainstream
Technology Evolution
- Technology changes are fueling changes in content consumption
- OTTs drove paradigm shift from consuming content on TV to consuming content on any device and anytime they need
- Mobile use in particular is a tremendous driver for rising adoption of OTT consumption
Content Availability
- Consumers wants more content because there is massive amount of content available, from TV shows, sports, news, live events etc.
Consumer Behaviour
- Consumers are intoxicated by freedom of choice.
- OTT gives them plenty from which to choose
- With OTT consumers can break away from scheduled viewing of content and enjoy the benefits of accessing content regardless of time, place, device etc.
Powerful Devices and Network
- Devices are more powerful than ever, screens are large, deliver a better viewing experience, and 3G and 4G network investment and growth has boosted content quality and reach
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9. Monetization in OTT World: Critical Success Factor
1. Partnership with OTTs as the key strategic Option
According to Mobilesquared Research of Nov2014:
97.6% of mobile operators will potentially enter into an OTT communication partnership by 2018
The majority of them believe that partnering with OTT providers to charge for data is the clearest OTT Monetization model.
However, 42% believe that terminating IP traffic on to mobile network also presents a clear monetization opportunity.
58.5% would like to provide WhatsApp-like experience to their customers primarily because of its scale.
That being said, just under 40% of mobile operators would like to partner with Facebook and/or WhatsApp.
Source: Mobilesquared Research Sponsored by Tyntec
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10. Monetization in OTT World: Critical Success Factor
2. Embrace OTT
Clearly service providers and content owners face trade-off as they consider their OTT strategies.
Given that time-to-market is critical in this space, content owners and services providers need to wrap their arms around the OTT opportunity- They need to move quickly.
Content owners has been early embracers of OTT, but they have been treading more cautiously because they do not want to disrupt their existing important relationship with services providers.
Service Provider has been embracing OTT as a means of marketing and advertising to increase their customer base and hence revenues.
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11. Monetization in OTT World: 4 Critical Success Factors
3. Conquer all screens and Platforms
As OTT consumption ratchets up, content owners and service providers need to keep pace with an ever-expanding technology universe.
We must conquer array of technologies, devices, operating systems etc.
We must also ensure content protection, deliver a common user experience across all devices with quality and reliability.
Customers wants content without time and location restrictions and more access to content means higher customer satisfaction and satisfaction drive customer loyalty and additional revenue.
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12. Monetization in OTT World: Critical Success Factor
4. Address Technology Challenges
Utilising OTT to deliver content ushers in increased risk in the form of content protection, quality and reliability and increased complexity in form of “how to make money with multi-device OTT delivery”
Content owners and service providers seeking to deliver content to all devices should evaluate technology solutions against following criteria:
Content Protection on all devices.
Quality under any network condition
Monetization of premium content
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13. Monetization in OTT World: Critical Success Factors 4
5. Figure out the Mix
Operators need to figure out the monetization model or combination of models to pursue.
Multiple options are emerging including:
Subscription
Rental
Purchase
Freemium to Premium Conversion
Advertising
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14. OTT & African Telcos - OVERVIEW
Mascom
Mascom MySpot (OTT Video, Messaging, Music, Gaming)
mFacebook, Facebook Zero
Orange Botswana
Orange World (OTT Video, Instant Messaging, Music, Gaming.
Wikipedia Mobile
Facebook USSD, mFacebook and Facebook Zero.
Gmail Chat SMS
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Conclusion
With OTT showing no sign of slowing down, content owners and service providers have a huge opportunity in front of them
We need to take advantage of this opportunity and monetize OTT delivery, we must begin to determine our optimal strategy, working through the technical challenges and fine-tune our business models.
As technology use, consumer behaviour, and measurement, personalized technique continue to evolve, we will be well positioned to reap the rewards
Hence greater customer satisfaction, protection of our subscriber base and increased average revenue per user (ARPU)
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Thank you….
Strictly Company Confidential
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