Our latest pay-TV and video advertising research findings

On Tuesday, we saw the launch of the iPhone 8, 8 Plus, iPhone X (will there ever be an iPhone 9?), and Apple’s 5th generation Apple TV (4K and HDR at last). But we’ve decided to buck the trend and not cover this much-discussed technological event, opting for something we hope is much more useful. After all, as fun as it sounds, how many times do you need to read about the ability to make animated emoji salsa dancers and smiling poos?

Instead, we have collected a handful of the most interesting findings from some of our recently published projects to wow your colleagues with during your next meeting.

We will be at the IBC Conference in Amsterdam on Thursday and Friday – if you’re also attending let us know and we can arrange a catch-up!

Pay-TV Innovation Forum

First, let’s take a look at the pay-TV market. For the past two years, MTM has worked with NAGRA to deliver a global research programme that takes a detailed look at innovation in the pay-TV industry:

  1. The press release describes the findings as “a perfect storm of slowing growth, intensifying competition and business model disruption”. The majority of executives interviewed agree that between now and 2022, competition in the pay-TV industry will intensify, and that service providers will find it challenging to grow within this landscape
  2. On top of this, the industry is facing “three disruptive challenges”: first, cheaper OTT services will become more common (see ‘no-sports- streaming bundles coming soon here); second, changing consumer behaviour and demand; and third, the continued rise in piracy
  3. Innovation is thought to be integral for service providers to compete and grow in this intensifying market. Some of the areas TV executives are most concentrating on delivering are new pricing and packaging models, innovative content propositions, multiscreen TV everywhere and standalone OTT services.

Future of Live and Linear Video

Earlier this year, we delved into the world of live IP-delivered TV (think streaming Wimbledon live on BBC iPlayer) on behalf of YoSpace (industry leader in dynamic ad insertion technology) and uncovered some promising findings:

  1. TV execs feel that live event programming has incredible power to attract concurrent audiences at scale – highly valued by advertisers seeking mass reach. Live content accounts for around 10-15% of total linear viewing on TV sets and approximately 70% of simulcast viewing on broadcasters’ OTT video services in the UK
  2. Given the appeal of live content to advertisers, TV execs expect the major internet media companies to increase their top-tier sports rights investment and other major live events (but it’s uncertain whether increasingly expensive sports rights can be supported by a purely ad-funded business model)
  3. To better compete with the major internet media companies, broadcasters see an opportunity to deploy advanced advertising technology (such as Dynamic Ad Insertion). This would allow them to monetise inventory that currently goes unsold and offer advertisers data-driven targeting capabilities alongside their video content. 

The Connected TV Advertising Opportunity in Europe

We also recently published our research examining opportunities for connected TV advertising in the five largest Western European markets, for SpotX (the video ad serving platform):

  1. The UK is currently the biggest and most advanced market when it comes to connected TV advertising. The research programme showed that £115m of advertising was delivered to a connected TV in 2016 (compared to €50m in Germany and €35m in France)
  2. Industry participants estimated that three quarters of UK households will have a connected TV by 2020, and advertising on connected TVs in the UK is expected to rise to £220m in 2020
  3. Participants in all five countries believe that ad-supported OTT services from broadcasters, such as All 4 and ITV Hub, will increase their share of OTT viewing, as awareness of their services grows, relative to ad-free services such as Netflix. This will further increase the potential for connected TV advertising.

Find out more in the full reports, available to download here:

Pay-TV Innovation Forum

Future of Live and Linear Video

Connected TV Advertising Opportunity in Europe

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As always, if any of our findings have piqued your interest, please do get in touch.

About Georgie Coad

Georgie Coad is a Research Manager at MTM working in the qualitative team. Growing up during phenomenal technological change, with the explosion of social media and the beginnings of OTT, Georgie is excited to research ways that media will continue to evolve and change the way we live.