Page 10 - AeM_May_2019

RESEARCH, ANALYSIS & TRENDS

Recasting traditional TV’s role in the age of

OTT video platforms, AI and VR/AR

From the live black-and-white broadcast of Neil business models, networks and devices that are forcing
Armstrong’s first step on the Moon to the World Cup traditional television players to reexamine their role in
Final in ultra-high definition, television has stood the test the modern household.
of time often co-opting inventions that threatened
disruption such as VHS, cable networks and the Internet. One key trend is the ubiquity of high-speed internet, as
well as the rise of OTT and mobile video platforms
Yet despite its enduring dominance, television’s viability which are fundamentally changing the way people
is at a critical juncture due to the rise of Over-the-Top watch. This has had profound impacts on audience
(OTT) video platforms, which stream content directly to viewing and spending habits.
audiences via the public Internet.
Compared to the traditional pay TV model that offers a
Last year, OTT streaming services such as Netflix and bundle of channels at a relatively high price for long
Amazon Prime overtook pay TV subscriptions in the U.K. commitment periods, online and mobile audiences
for the first time, with average daily broadcast TV enjoy the freedom to pick and choose from a variety of
viewership continuing its decline, down 38 minutes since services often at low-to-no cost with availability across
2012. multiple devices.

Additionally, OTT’s unabated growth saw its revenue While television broadcasters have been quick to adopt
total $13 billion in 2018 in APAC and is projected to OTT and other video-on-demand (VOD) models, many
more than double to $32 billion by 2024, increasing $4 have struggled to compete effectively against the native
billion in 2019 alone. digital video platforms. The most successful
broadcasters are using online and mobile television to
In the present era where audience expectations continue amplify their traditional offerings and to cater to the
to evolve, traditional television as we know it faces evolving demands of audiences and advertisers. For
severe challenges unless it reinvents itself…once again. example, by offering previous seasons of a series
online in the lead up to the start of the new season on
A crowded marketplace broadcast TV, while offering targeted, cross-platform
advertising campaigns across broadcast, OTT, and
While the television has grown to become a mainstay in mobile for a single buy.
most households around the world, its reign in the living
room is being challenged by the evolution of content, Remaining competitive in today’s landscape demands
more than just the newest technologies or the best

10 May 2019 - Artificial Intelligence (AI) & Chatbots in Marketing