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Appointment Viewing and the Future of Streaming Monetization

Learn more about streaming monetization at Streaming Media East.

Read the complete transcript of this clip:

Mike Woods: We power over 1,200 channels in this space. And we've got a viewpoint kind of across a wide array of things that we see out there. And as we look across the ecosystem and evaluate what's happening in streaming TV, in this digitally based version of television, that lets us do new, cool things in it, one of the things is that from the, from the video service side, we can now launch thousands of parallel channels, almost infinite channels, because these are no longer being wired down the cable pipes and each one taking up bandwidth. Now we've freed the channels of those proprietary pipelines, and we're steering them over the open internet. So we can laterally scale the ecosystem essentially to infinity. So every type of format out there is capable of now being delivered as a stream to viewers.

From the video service side, it's about creating an experience that enables viewers to find the content that they want effectively. And that discovery is really key, and a big challenge out there. But I talk about the Three Horsemen of the streaming apocalypse are news, sports, and live events. These are the pillars that make people come for appointment viewing. These are the things that you can't do on SVOD. You can't record those and make them super-appealing later on. Sure, there are replays that particular fans will come back for, but these are the pinnacles of appointment viewing, and you want to experience those live. I believe that these are important factors moving forward. Niches that have sizable, hyper-attentive viewers are going to do well, particularly as the video services evolve in this space, and we build out the discovery tools and really make this viewership available.

So, things like cycling. There's a rabid fan base of cycling. That's something that likely has legs. And as we expand out the service and can build out on what Elizabeth talked about with choice and personalization and make those really active and available into the viewer base into the audience, then you can set those up and be able to tune in to those cycling events that you want to see on the TV set.

We're in the shift out of app stores where the owned and operated comes into play. But app stores are really only viable for very small handful of companies. Those are the ones with the brand names that can drive people to go hunt down their apps. To work with an app, you have to be really focused. You have to really want that content. You have to go find it, you have to download it. You have to go subscribe to it and you have to activate it. And then you've got to come back and watch it again and again and again, and each time you come back to your Roku, you've got to go back and go cycle into that app. And without the brand name support behind that without massive marketing massive brand name, massive desire on the consumer side, individual owned and operated apps are extremely challenged.

We're seeing the space head more into YouTube-ization. Better search engines, and better discoverability are coming into play, and we'll start making this stuff available. And then you can line up on your own. You can personalize your TV experience. But in a content-forward format, apps are going to disappear outside of a few majors. Then we'll have a collective content environment.

But absolutely, sports, news, and live events. Those are the Three Horsemen of the Streaming Apocalypse.

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