By Adam Nightingale, SVP International, Accedo
Last week, I had the pleasure of spending time with Accedo’s talented Asia team in Singapore during the industry’s biggest trade show in the region – Broadcast Asia. For me, it was the perfect opportunity to not only reconnect with our customers and prospects – the biggest, brightest and most ambitious operators, broadcasters and studios in the region, but to also earn from the challenges and opportunities they are seeing in their markets.
It is imperative for all of us working in this constantly evolving television and video entertainment industry that we keep abreast of market trends, both globally and on a regional level. Asia is a hectic, vibrant and dynamic market with enormous potential and diverse dynamics. Here is my brief take on a few of them.
The SVOD vs AVOD battles rages
Only last week, our Regional Director for SE Asia, Chris Hampartsoumian, told us why he thinks the future of the Asian market lies with Advertising Video On Demand (AVOD). During a conferencesession hosted by Brightcove, Chrysann Sutton from Cleeng, an OTT payment platform provider, fought hard for the case of SVOD and TVOD content in the region. The reality is that it will be a mix, but we are certainly seeing increasing demand to help steer our customers’ AVOD business and technology strategies. The main point to note is that Asia does not have the spending power of many other markets, bank accounts and credit / debit cards are less common and there is a perception that content should be free. My personal opinion is that SVOD will attract perhaps 20% of the Asian market, whilst the remaining 80% will consumer content predominantly funded by advertising.
Who will be the Netflix of Asia?
The short answer is Netflix will. Netflix is pretty unique and with a steady price point around $5-8 globally will attract a finite share of the Asian market. However, there will be plenty of business left for everyone else. We are already seeing some of the incumbents operators partnering with Netflix and this trend is likely to grow across other providers and territories.
Content Consumer Data is King
The industry often talks about content being king. Not any more. In today’s world,consumer data is the supreme ruler. Understanding the most crucial component of the ecosystem – the end consumer – is paramount. The data we can gather from our products, combined with our partnerships with companies such as JumpTV, is critical in making sure that services and consumer experiences adapt based on what works, not just for a homogenised market, nor even for demographics within that, but at a granular, single-consumer level. Chris Hampartsoumian’s recent article in APB discusses just this point and how we need to make the multiscreen experience applicable to consumers. That can only be achieved if we have the right data. No wonder then that our own data-driven UX vision is resonating well with our contacts at the technology product and boardroom level.
Our CEO, Michael Lantz also discussed the data driven user experience as part of his interview with InBroadcast during BroadcastAsia.
The end of a busy week, the start of new relationships
Much as we all often moan about long days standing around at trade shows, you really cannot replace that instant feedback they give us. It was especially great to get some brilliant comments from existing customers on the quality of our people, our products and our vision. Confirmation, if we needed it, that we must be doing something right.
If you want to see for yourself why customers such as Astro, Sony India, StarHub, Telkomsel, Telstra and Fox Sports call us a “best-in-class company”, get in touch to talk to one of the team today.