Conviva Report: Buffered into the Public Enemy of OTT Audience Number One

Conviva's third annual viewing experience report pointed out that the challenges faced in establishing a stable OTT service are increasingly daunting given the expansion of the audience and the potential increase in subscription revenue.

Overall, the initial video playback failure has been reduced by nearly half, only 2.6%, reaching a record low. The problem of buffering and low resolution has not improved since 2013. The interruption of video playback is still a serious problem: every 1% of interruptions will reduce the user's viewing volume by 14 minutes.

Multi-screen viewing has set a new record high, while image fidelity has also gradually increased. In 2014, image fidelity increased by 30% worldwide. With the increase of image fidelity, the viewing time of users is also increasing.

Conviva's CEO Hui Zhang said: "In the past, as long as the video can be played, users will be satisfied with the OTT service, but this is not the case now. Users now need a multi-dimensional experience that requires excellent image fidelity, With zero-resolution fluctuations and television-like viewing quality, they will also abandon the bitstreams that cannot be properly transmitted. OTT operators need to use an iterative publishing process to ensure the best user experience."

In addition, Advanced Television cites Juniper Research's research report that, by 2019, OTT subscription revenues from suppliers such as Netflix and Amazon Prime will increase from less than $8 billion in 2014 to $31.6 billion.

From 2014 to 2019, IPTV revenue will more than double due to the influence of network operators on triple-play services and four-in-one business investments. By 2019, OTT subscriptions via Internet TV will account for 84%.

In the next four years, the market in Western Europe and North America will continue to grow. A number of major OTT operators will emerge in the Far East and Asia Pacific region, ushering in a surge in OTT subscriptions.

The report pointed out that the rapid growth of OTT subscriptions will bring more competition to pay TV operators. Distributors such as Sling TV can provide users with cheaper and more personalized options than cable TV, which has also promoted the trend of “stinging” (ie, unsubscribing subscribers to cable services).

At the same time, major operators such as Netflix and YouTube have already launched 4K services, but so far, users have been slow to accept Ultra HD content. Juniper predicts that this situation will change in the next two years. Last year, Netflix added 4K content to its highest-priced package, reflecting the confidence of users paying for quality content. At the same time, the price of 4K TVs has gradually become popular, accelerating the popularity of hardware.


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