Platform revenue is a relatively new frontier for entertainment companies. Back when MVPDs were the only distribution source for video, they controlled any form of platform revenue: subscribing to a premium cable service, additional sports or foreign-interest cable channels or pay-per-views.
The advent of high-speed Internet has changed that dynamic. Today consumers are free to subscribe to services directly or through a phone, computer, tablet, connected device, smart TV, inside a streaming service or via an MVPD or VMVPD service. These are all platforms competing for spoils in the new media landscape.
MVPDs used to be the only additional source of advertising, typically local ads, in video entertainment aside from networks themselves. Now there’s a host of alternative AVOD and FAST platforms — some owned by media companies and some owned by TV set or connected device manufacturers — that can generate advertising revenue for platform owners.
What’s bad news for traditional gatekeepers is great for digital upstarts. Companies such as Roku and Amazon have seized the bull by the horns, developing interfaces that make it easy for viewers to subscribe via their platform, serving a cut of the subscription as well as building out competitive free streaming services to monetize users by serving ads.
Variety Intelligence Platform’s “Connected TV Competition” report explores the art and science of platform revenue: why more and more companies are competing for it and who is keenly positioned to win in this growth area. We partnered with consumer insights experts Trailer Park Group and Maru Group in order to uncover the potential barriers newer entrants like smart TVs face, how to address those and which are the companies best placed to take a significant share of the market.
Read on to learn about:
Why the connected TV market is a valuable new revenue source for media companies
What consumers view as barriers to subscribing directly to streaming services
Which businesses are poised to reap the rewards of this growing marketplace