Standalone Apps Outperforming TVE, Don't Require Authentication
In its State of the Broadcast Industry report, Ooyala sees strong growth for connected TVs and VR headsets, but says AR and 360° video has an advantage.
On Roku set-top boxes, standalone apps get greater adoption than TV Everywhere (TVE) services. Yes, TVE has shown year-over-year growth, but standalone apps from premium service still perform better. That's one of the findings in Ooyala's State of the Broadcast Industry 2017 report. Besides the fact that TVE content isn't accessible by cord-cutters, Ooyala speculates that viewers are turned off by the need to authenticate TVE services.
"The ease of standalone app use for consumers trumps issues with TVE authentication, which still plagues TVE adoption," Ooyala says.
The report also looks at how we'll watch video in 2020. The U.S. will have nearly 98 million homes with connected TVs (CTVs) by 2020, it says citing eMarketer data. CTV owners stream medium- and long-form video almost exclusively. In Q3 2016, 93 percent of CTV content was medium- or long-form, up from 73 percent the year prior.
While virtual reality (VR) headsets have their problems—they're only good for solo viewing and are uncomfortable for long-term wearing—the VR headset market is in full gear. The VR/AR market will grow to $80 billion in four years, and to $2.16 trillion by 2035, Ooyala says citing data from a Citi Global Perspectives and Solutions group study. Augmented reality and 360° video use is growing quickly and doesn't require a headset, Ooayla notes.
For more, download the full State of the Broadcast Industry 2017 report for free (registration required).
Viewers will see targeted ads whether they view live or on-demand content, and frequency capping will keep viewers from feeling annoyed.
In September, Ooyala will release AppStudio, which combines app templates with backend tools designed to help distribute and monetize video.
The Q2 report finds big changes in the tablet market: While iPads used to own a large majority of tablet video views, Android tablets are gaining ground.