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The Video Trends Shaping APAC

The Video Trends Shaping APAC

The Video Trends Shaping APAC
Anshul Jaiswal
Pre-Sales Manager, Asia
 November 2019

This month, Accedo will be at a number of events across APAC. Starting this week with the Asia Video Summit, next week we will be heading to Bangkok for the Android TV Summit. The week after the team will be in Bali for APOS Tech. With so many events happening around APAC, we thought it would be a good time to highlight some of the trends that are shaping the video industry across the region:

1. ​Dawn of the ‘Super App’

Over recent years, we have seen an exponential rise in the number of users having multiple content subscriptions. At the same time, however, consumers are getting frustrated with multiple applications and the need to constantly switch between apps to find the content of their choice. This would result in potential reduction in the number of subscriptions owned by a user in due course of time. Pay-TV operators are in a unique position where they can act as an aggregator, adding 3rd party content to their own content library, offering a service that can cater to the needs of every user segment in a household. It is not surprising therefore that we are seeing many operators looking to adopt this marketplace approach to drive content consumption and user stickiness.

We have some great success stories of recent services built for our Android TV customers integrating third-party apps such as Netflix, Amazon Prime, and others. This trend is likely to continue over the coming months.

​2​. AVOD gaining momentum once again

OTT advertising is growing at a rapid rate in the Asia Pacific and brands are shifting focus to online targeted advertising. In Southeast Asia, advertising is forecast to contribute 74% to online video revenues by 2024 versus 75% in 2019​ while if we talk about APAC market as a whole, SVOD will take 39% of OTT revenues by 2024, with an advertising revenue contribution of 52% We are seeing the broadcast channels dominating the market in terms of ad spends by brands, however, the positioning will change in the coming years for OTT with a forecast of attaining US$ 30 bn mark by 2023.

In APAC we already have many service providers whose revenue model is completely advertisement driven. We believe the number will increase in the next couple of years.

3. Leanback experience is making a comeback​

While the small screen device segment is topping the list of most used devices and will continue to do so in APAC region, the lean-back ​experience provided through the big-screen platforms (smart TVs, consoles, Android TV, dongles, etc) is also making its comeback.

Lean-back viewing for long-form content consumption is still a preferred choice for many user segments and this segment is expected to grow in the coming years. Google’s Android TV OS based Operator Tier Launcher has been the focus of Pay TV providers since the beginning, enabling them to build customized user experiences to bundle their hybrid offerings to cater to a more diversified audience.​

4. Shifting focus on delivering the right user experience than features

The market focus is slowly shifting towards putting the user at the center of the entire OTT ecosystem. Video providers are increasingly looking to deliver the best experience for the users and developing a better relationship with them using a variety of means. This includes robust support systems and loyalty programmes, as well as delivering innovative user experiences and using data-driven design to evolve the user experience according to trends and preferences. All of this is helping provides to attain the best possible user engagement and ultimately reduce churn.

​5. Voice commands

Smart speakers have become extremely popular over recent months, with consumers becoming more and more accustomed to using voice interactions for a variety of everyday tasks. It is therefore only natural that voice has been a big focus in the Android TV domain. For TV, voice can improve content discovery, but also, with the right integrations, is envisioned to provide a true smart home experience.

Coupled with the right design, advanced voice commands can provide a superior user experience and have the potential to change the way in which viewers interact with video services. Using voice on TV was the subject of a whitepaper we produced earlier this year. You can download it via our whitepaper page.

6. Sports is driving investment in OTT

Sports have always been a massive driver for innovation in the video industry. That has never been truer than it is today, with so many new entrants vying for sports video rights. Increased competition means sports video providers are more keen than ever to keep users engaged. Luckily, there are a plethora of ways to do that, which really lend themselves well to the sports environment, from providing enhanced information via Augmented Reality to using AI to improve the fan’s user experience.

Earlier this year, we announced our Accedo Sports Solution, which enables sports service providers to launch OTT and Direct-to-Consumer services featuring Live, Catch Up and On-Demand video to all major platforms. Our Director of Innovations, Niklas Björkén, recently wrote a blog post about the potential of AR for sports and a project we undertook with France Télévisions.

Thanks to many years of experience helping our customers across the globe launch video experiences, Accedo is well suited to help video providers address all of these trends. Book a meeting with us at AVIA,Android TV Summit, or APOS Tech. Or get in touch to discuss.


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