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Has the Age of AVOD Arrived?

Learn more about AVOD, SVOD, and OTT monetization at Streaming Media East 2020.

Read the complete transcript of this clip:

Rob Dillon: We've been talking a lot about SVOD. Especially back towards early summer, and still today, there's a buzz around going retro, with everything going to AVOD. For example, YouTube moved a bunch of their originals to AVOD, instead of SVOD. Why do you think people are looking at that retro model, and which is actually the winner? Is is SVOD, AVOD, or a hybrid? You brought up the hybrid model there. Which one's going to win out? Especially with... Obviously, we know, Disney+ is going to be SVOD, Netflix is going to be SVOD. But what about the other players that are trying to make a dent?

Mike Green: One of the stories you mentioned, Peacock, which is coming out next year, and I think when people heard about what NBCU might do, I think folks probably assumed it was going to be a competing SVOD, because they have, you know, and people mentioned some of the content that's going to be in there. And maybe it can command dollars, but it sounds like that may be more of an AVOD play. And HBO Max, which, obviously, HBO, people think of Premium and SVOD. There's maybe an opportunity for Warner Media to do AVOD stuff. I think that the landscape is fairly open. I mean, through the Brightcove lens, I got customers show up with all sorts of thinking already gone into what their strategy should be and what the, kind of, behaviors of their audience. If it's younger then, maybe, the the wallet is different. And the targetability of the audience is different. So, I think the bar is pretty high to command the types of premiums that Netflix can. I mean, I think we pay $15 or so a month, for that. A lot of these other services, if they've been thoughtful, I mean, Pluto, you mentioned earlier, they're a really interesting story. And Viacom is very attracted to what they've been able to accomplish in an AVOD model, and the distribution they've been able to get to get meaningful scale for an organization that's really good at selling targe audiences. So there's definitely plenty of room for that.

Jim Long: There's pay-per-view, too, right? Some of these guys could start doing that.

Joe Jorczak: I was going to say, I think it's important they have options for consumers. Some consumers are fine with AVOD. Some are willing to spend extra just to have SVOD. I think what's frustrating, and if you're a Sirius XM subscriber, you think it's going to be all music all the time, but it's not. And so you have to be really clear on what is the value proposition. And if you start trying to encroach on the consumer's trust by slotting in things that they didn't agree to-- either prerolls or interstitials, or other things like that-- you have to be careful on the impact of the consumer experience.

Mike Green: A lot of people wondered what Hulu did, right? Which was, Hulu was one of the first to really do the hybrid model well, right? The 10 bucks a month, no ads, or less with ads. And people look for platforms that offer that sort of flexibility, where you can really create offers and packages, and change for certain audiences, and specials. I mean, from a technology perspective, something like Hulu got people thinking and made the demands of a bright coat for other players like us. You know, higher. Because the user expectation is high.

Josette Bonte: So, I'm going to make two comments, and they're going to be somewhat contradictory. I mean, the first one is that, yeah, the time of AVOD has come because of the more refined ways that advertising is being served to consumers. So, more and more, consumers will tolerate advertising if it's more targeted. Now, that hasn't happened as fast as anybody in the industry wanted, because we were talking about that 15 years ago, right? And 10 years ago, when I was at CISCO, also. But it's finally starting to happen. So there is going to be an interesting market to capture, in terms of dollars. So, that's one statement. The other statement is that they know, overall, those services do not really generate that much cash from advertising yet. So, while there is a great improvement in the technology, it's still not quite immediately translatable into revenue.

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