×
You will be redirected back to your article in seconds

The OTT View-niverse: A Map of the New Video Ecosystem

Watching TV used to be so simple, or at least it seems that way in retrospect. First there were just a handful of networks. Then broadcast TV gave way to cable. But even as the number of channels multiplied exponentially, it was all still easy to understand, not to mention incredibly profitable: The combination of advertising and affiliate fees delivered approximately $90 billion annually to a small group of content companies.

That was then, this is now: Advertising revenues and multichannel subscriptions are endangered by significant ratings declines across the cable TV landscape as audiences — particularly younger viewers — get bombarded by a dizzying array of cheaper programming choices delivered over the Internet. Some, like Netflix, charge viewers a monthly fee; others, like many of the ventures pitching advertisers at this week’s NewFronts presentations in New York, are as free as broadcast television.

Many of these ventures are backed by the biggest companies in the tech sector. Which isn’t to say the incumbent entertainment conglomerates are simply sitting on the sidelines while the challengers eat their lunch. To the contrary, Hollywood’s participation in the likes of Sling TV and HBO Now is something akin to baby Kal-El launching out of planet Krypton in “Superman”: A culture facing the threat of extinction is seeking to find life for itself elsewhere in the solar system.

With so many varieties of programming life to be found, there’s no small degree of confusion on the part of consumers and those in the industry alike as to how to make sense of all this chaos. That’s why the maps below should help (see in one large map or in separate pieces).

Subscription VOD (SVOD)

Subscription VOD is the catch-all term for any streaming service allowing subscribers to watch as much content as they want in exchange for a recurring fee, typically monthly and/or annually. Note in the two smaller circles, at right, that traditional content companies are entering this space as well, in pursuit of the 10 million or so broadband-only homes that represent TV’s last remaining growth market. But if they’re not careful, these services could run the risk of inducing cord-cutting among the 100 million pay-TV homes.

Ad-Supported VOD (AVOD)

Ad-supported VOD provides consumers free-to-access content in exchange for viewing ads. AVOD video tends to be shorter in length and less often premium than SVOD, though there are lots of exceptions. There’s a great diversity of brands in this sector, all looking to ride the wave of advertising dollars flowing into the space. Spending on video ads is expected to reach $7.8 billion this year. That represents 30% year-to-year growth. But to achieve the scale of linear TV would require siphoning dollars from that platform.

More Digital

  • Alibaba Buys 8% Stake in Chinese

    Alibaba Buys 8% Stake in Chinese Video Platform Bilibili

    Alibaba has purchased an 8% stake in the Chinese online video platform Bilibili, the official Xinhua news agency reported. Bilibili is one of China’s top video streaming and entertainment platforms, with about 92 million monthly active users and 450 million page-views per day. Founded in 2009, it was listed on the NASDAQ last March. Alibaba’s [...]

  • Clevver-Logo

    Hearst Magazines Buys Clevver's Pop-Culture YouTube Channels After Defy's Demise

    Hearst Magazines has snapped up Clevver, a network of female-skewing lifestyle and pop-culture news YouTube channels that had been owned by now-defunct Defy Media. Clevver was left homeless after Defy’s sudden shutdown in November; its principals said at the time they were looking for a new home. Hearst Magazines sees a digital fit with Clevver’s [...]

  • "Brother" -- Episode 201-- Pictured (l-r):

    CBS Interactive's Marc DeBevoise on Streaming Boom, Content Strategy, and Apple

    Not everyone wants or needs to be Netflix to succeed in the streaming space. And not everyone sees Apple’s enigmatic new service as a threat. Even as rival streaming services offer gobs of content, CBS Interactive’s president and COO Marc DeBevoise sees the company’s targeted original programming strategy continuing to attract viewers to its All [...]

  • Rhett-Link-Good-Mythical-Morning

    Rhett & Link's Mythical Entertainment in Talks to Acquire Smosh (EXCLUSIVE)

    Smosh, the YouTube comedy brand left stranded after parent company Defy Media went belly-up, may be about to get a new business partner. Mythical Entertainment, the entertainment company founded by top YouTube comedy duo Rhett & Link, has been in talks about acquiring the Smosh brand, sources told Variety. Multiple potential buyers came forward to [...]

  • Pokemon Go

    Proposed 'Pokémon Go' Lawsuit Settlement May Remove Poké Stops, Gyms

    A proposed settlement in the class action lawsuit against “Pokémon Go” developer Niantic could remove or change a number of Poké Stops and Gyms in the popular augmented reality game. The proposed settlement was filed in a California court on Thursday and applies to anyone in the U.S. who owns or leases property within 100 meters [...]

  • Skyline of Doha at night with

    Qatar's beIN Rallies Support From U.S. Companies Against Pirate Broadcaster beoutQ

    Qatari powerhouse beIN Media Group has rallied support from American sports and entertainment entities, including Discovery and Fox, behind its request that the U.S. government place Saudi Arabia on its watch list of top intellectual property offenders. The Doha-based broadcaster, a state-owned spinoff of Al Jazeera news network, accuses the Saudi government of harboring pirate broadcaster [...]

More From Our Brands

Access exclusive content