Glimpsing the Future of Video at NATPE 2020

The National Association of Television Program Executives (NATPE) held its annual marketplace and conference in Miami last week.

The event has traditionally attracted content producers and video companies and has focused primarily on negotiating content rights. But technology has increasingly moved into the spotlight, and consequently, the NATPE trade show and conference has become an important event for any company that wants to play a significant role in the world of video in both the North American and Latin American markets.

 

 

The OTT side of TV everywhere has had a strong presence at the show for several years now. This year the cutting-edge trends that everyone in the industry is following closely are the D2C services and various initiatives launched in both Latin America and the USA.

The industry is currently in full throttle with major market players betting big on direct consumer services and making significant investments on buying and producing content. Participation from high-profile businesses makes these events all the more important.  Notable examples include Disney +, Apple +, HBO Max, Quibi, and Peacock.

Some TV industry news..

Peacock

This year, Peacock was on everyone’s lips. The NBCUniversal subsidiary has managed to aggregate all its properties into a single advertising-based service with the goal — almost requisite for survival in the industry — to be the first in the sector to successfully apply the traditional broadcast monetization model to OTT. This is something that CBS has been working on for some time and will certainly be emulating together with Viacom in a joint initiative, which is yet to be defined; we’ll soon see. The powerful broadcast industry worldwide will also be watching because it’s in their interest to deploy similar models or create other alternatives given the fact that the traditional linear advertising model is set to be adopted by streaming services sooner rather than later. This is forcing traditional broadcasters to launch direct OTT advertising-based services.

 

Quibi

Quibi is another of the big unknowns among the new service launches, having invested more than $1 billion to launch its short form content service, a subscription service that is only available on mobile and is set up to compete with YoutTube and Instagram, targeting the millennial generation and younger segments. The market is eager to see how this type of model works given how innovative it is compared to what is currently available. In this particular case, the challenge lies in getting young people to pay for the service — something the industry sees as a risk because generally these demographics are used to free services.

 

DAZN, Eleven Sports, and beIN SPORTS

Worthy of special attention are the D2C OTT services in the world of sports: services like DAZN, Eleven Sports, and beIN SPORTS have hit the live event streaming world with force. They face challenges that are even more complex than those of the traditional VOD space, first and foremost like how to stay on top of an exceptional user experience when it comes to competing with traditional cable operators. Other challenges include the arduous process of negotiating for content and exclusivity windows, which are generally controlled by the major channels who will not shy away from the upcoming battle over the streaming of major live events.

The industry is in the throes of dynamic transition, and we should keep a close watch on what both the established incumbents and the upstart challengers do and if their different competitive strategies work or not.

Are you joining us at our next event?

 

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