At the Digiday Hot Topic: Future of TV event earlier this month in New York City, we surveyed over 60 media, TV and advertising executives from major companies to better understand the over-the-top landscape. Check out our earlier research on top-performing OTT and online TV services here. Learn more about our upcoming events here.
Quick takeaways:
- Just over half of respondents, 56 percent, think legacy media companies and TV networks will sell or license their content rather than make their own OTT channels.
- Respondents were split on whether multitier subscription plans or low-cost subscription plans with advertising will be the most successful business model.
- Customer acquisition should be the highest priority for OTT services, according to respondents.
Creation vs. selling
The growth of OTT services has sparked a bidding war between Netflix, Apple, Hulu and HBO among others as they all look to spend over $1 billion to fund original shows or acquire licensing rights from other producers. This has put legacy media companies and TV networks in a compromising position. Do they leverage their existing content to create an OTT product, or do they sell or license their content to an existing OTT platform for a fee? According to Digiday’s survey, 56 percent believe selling or licensing content is the better option.

This article is behind the Digiday+ paywall.
The post Digiday Research: Subscriptions dominate ads in OTT revenue models appeared first on Digiday.
Powered by WPeMatico
Like this:
Like Loading...