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Consumer Behavior and the Future of OTT

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Read the complete transcript of this video:

Brett Sappington: From a consumer standpoint, there are a few things we're seeing. One of those is the idea of people getting interested in aggregating things, and the diversity of different services and having to find a way to navigate all of that. One of the things we've seen is, when there were just a few dominant services, there wasn't as much demand for everything being pulled together. Yes, everyone wanted to search across different things and to know where it was, but today managing accounts, managing logins, managing when things renew, all of those, things like that, now that you have many, many services and really good quality original content on many of them as consumers are now chasing all of this content, managing that it's much more difficult.

So we're seeing greater frustration among consumers in terms of dealing with all of that. So that's one thing on the consumer side that we're looking at in terms of what's happening with aggregation. There are two things I wanted to point out kind of on the industry side, both of them that Jeff mentioned, which I think are really interesting. One of those is sponsor-driven content creation. So the idea that Old Spice has coming in and paying for a stream. So they're essentially buying that. That's back to the old days of original broadcast TV, when this show is brought to you by Barbasol or whatever it happened to be back then. And so that's really fascinating that that model is now coming back here. The other thing that he mentioned was having different, having a FAST channel, but you have different content for that branded channel potentially on different services. I mean, typically in the past, when you have a brand for your service, that is the same channel everywhere you go, and you go to Comcast, you go to Cox, you go to Verizon, you have the same channel. The ability now for every service to have a unique offering like that, that's really different. That's almost a different level of fragmentation.

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