Takeaways from CES 2024 for video service providers
The annual Consumer Electronics Show (CES 2024) always grabs global headlines with eye-catching new gadgets and ever-expanding TV screen sizes. This year was no different, with acres of coverage for LG and Samsung’s new transparent TV screens, the latest virtual reality concepts, and robots that will make you anything from a cocktail to a stir-fry.
But, like the bright lights and razzmatazz of the host city, Las Vegas, the show-floor glitz of CES 2024 is largely a temporary distraction for the video entertainment industry. Behind the scenes, there are serious conversations about the future of streaming. So what were video service providers really talking about at CES 2024?
Magine Pro’s Sales Director, Neil Fender, at CES 2024.
Interest in AI is becoming more targeted
Just as we saw at IBC and NAB in 2023, Artificial Intelligence (AI) continued to be a major buzzword. Our CEO, Matthew Wilkinson, touched on this important topic in his recent blog on Large Language Models and Generative AI. But the partners and customers (both current and future) that I spoke to in Las Vegas are increasingly focused on the practicalities of deploying this constantly evolving technology. They’ve gone beyond wondering how AI might revolutionise the industry in the future, to looking at very specific use cases that will advance their short-term goals, not just their longer-term planning.
With consumers around the world becoming increasingly cost-conscious, churn is a massive area of focus for every streaming service, no matter what combination of business models they’re using. The video services I spoke to are looking for a strong and immediate return on investment for any foray into AI. In particular, they want it to keep consumers engaged so they’re less likely to look elsewhere for content. The benefits of offering personalized content recommendations are the most often-cited strategy for growing engagement, so it was a pleasure to be able to talk about the AI-powered recommendation capabilities in Magine Pro’s end-to-end OTT streaming platform .
I was also happy to talk through some of the tactics that have paid dividends for our existing customers when tackling churn. For example, the “dunning” functionality in our advanced billing engine enables them to systematically communicate with consumers whose payment methods have expired or failed. This proactive strategy prevents passive involuntary churn, minimising customer loss and ensuring a positive user experience. Another proactive approach is to automate “win-back” strategies. This means offering targeted discounts to certain users who have recently churned, or shown signs of being a flight-risk, to help keep them on-board.
We’ll have more about these tactics in our upcoming e-guide on advanced OTT monetization strategies. Register now to be among the first to get the guide, which will also explain some of the reasons we champion hybrid monetization models.
No moving out of the FAST-lane
I don’t think anyone was surprised to find that FAST – another of the biggest streaming trends of 2023 – was still a hot topic at CES. The low barriers to entry mean that FAST channels continue to be the most popular route into the streaming market for content owners, particularly in the US market.
The FAST trend I heard most about at CES, however, was those who’ve dipped a toe into streaming with FAST channels via aggregation platforms like Roku, Amazon, LG, and Samsung and now want their own suite of streaming apps to build a direct relationship with consumers. We had some excellent conversations at CES with technology partners and customers about how we can help them make that ambition a reality with the Magine Pro OTT platform because it’s quick and easy to launch, but also customizable so it can grow with their business.
Want to know more?
If you weren’t able to make it to CES 2024, you can book a meeting with our team to talk about how AI recommendations could improve your engagement, or how Magine Pro can elevate your content distribution and monetization strategies.
Navigating the Future of Streaming: 5 Key Takeaways from IBC 2023
Matthew Wilkinson, CEO of Magine Pro, shares his insights on IBC 2023, highlighting five crucial lessons for navigating the future of streaming.
A month has passed since our participation at IBC 2023 in Amsterdam. This year, the event saw a remarkable surge in attendance and was a real reflection of an industry in constant flux. Beyond the customary customer value demonstrations, IBC remains an event of strategic importance, offering a unique opportunity to gain valuable insights, driving the acceleration of our understanding of market dynamics and customer needs.
With that being said, here our five key takeaways from IBC 2023:
1. Pacing with Technology Trends
The industry’s innovation pace is relentless. Attending IBC to discover new solutions and technological advancements might already place you behind the curve. At Magine Pro, we’ve embraced Large Language Models like ChatGPT to augment our metadata and streamline workflows. The initial allure of this technology might wane, but its implementation promises significant and rapid business impact.
2. Navigating Market Shifts
The past 18 months have seen a profound shift in the macroeconomic landscape, with diminished capital availability and elevated performance expectations from streaming industry investors. This transformation is driving us to innovate swiftly, to prioritise return on investment and realise cost reductions & service. The reins of decision-making have shifted from CTOs to CFOs, who demand improved ROI, especially in content investments.
3. Content, Content, Content
Success in this evolving landscape centres around content strategies and strategic partnerships to reach audiences. Service providers can no longer afford to deploy capital to build and integrate both the technology and invest in content; businesses must be focused on validating the go to market hypothesis, and the “product” consumers demand is content, not the technology behind the scenes. Capital needs to be deployed smartly to drive customer acquisition, engagement and retention – and building a customer technology stack, will not significantly optimise for this much better than outsourced platforms.
4. Embracing Broader Horizons
It is imperative to consider the broader context beyond traditional streaming. Evolving technology consumption behaviours, notably influenced by platforms like TikTok, are reshaping how consumers engage with media and allocate their time. The traditional streaming media market must evolve to align with changing consumer expectations, and proactive innovation can capitalise on shifting preferences.
5. Readiness for Transformation
The industry is poised at a crossroads. As we look to the future, our success hinges on our adaptability and innovative spirit. Prioritising content, leveraging technology, and anticipating evolving consumer behaviour will position us to thrive in this dynamic landscape.
On a last note, I’ll leave you with a quote from a meeting with an industry peer “There’s opportunity for everyone to succeed in the market – we just need to figure out how!”
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If you weren’t able to attend the IBC this year and missed the panel discussion ‘Building an OTT Video Service – Custom Build or Managed Service’, where Matthew shared insights alongside other industry experts, don’t worry! You can catch up on the panel right here.
Want to find out more about navigating the future of streaming and how Magine Pro can help? Get in touch or book a meeting with a member of the team to find out more. We also have some useful insights and resources available on our blog and free to download white papers, ebooks and more.
Sports OTT: A new frontier for Magine Pro
It’s been a busy year at Magine Pro. We’ve attended some of the biggest industry events, including two of the most insightful in Sports broadcast/OTT recently, Sportel in Monaco and the Sports Pro OTT Summit in Madrid. Here are our thoughts on the Sports OTT market after engaging with the industry professionals and thought leaders.
We were delighted to take a stand at Sportel for our first time, and met with multiple rights holders, some who have launched, or dipped a toe in the OTT water, and others who are ready to go. Luke Boyle, Magine Pro’s CCO, noted a distinct move from those below the 1st tier (in regards to either geographic location or content) being ready to take advantage of a direct to consumer offering. He noted in particular how over his years of working in OTT the questions have changed. Questions like, “does it work and how?”, are now, “how do we monetize? what is the best content? which devices resonate greatest?’. He believes there is a more mature understanding of the requirements for OTT and the business positives. It’s not just revenues, but cross-marketing, fan interaction and engagement, new sponsorship activation opportunities, and more.
Sportel itself has changed, as the traditional rights sales market of some 25 years standing, is now much more than that. Conversations abound across the stands about OTT solutions and in particular, how to address the younger viewer (a problem for many sports). Similarly, multiple stands were showcasing their OTT ‘channels’ alongside their content for sale to traditional and OTT broadcasters.
At the more specific OTT event, the SportsPro OTT Summit this year, it was clear from the sheer increase of rights holders in attendance, that this industry continues to develop rapidly. Again many of the 1st tier rights owners and broadcasters were on stage offering best-practice advice. And while incredibly difficult to do, their thoughts on the future. The consensus is that OTT remains a game-changer, and continues to evolve, and live sports, in particular, remains a core driver. The questions are still, will we see aggregation? And if so, by who and how? Will there be global and local services? Niche content alongside premium or separate? AVOD or SVOD? – It seems the US is more ready for the former, while EMEA and most of the rest of the World (outside of huge Asian hubs) plump for the latter.
Conversations and debate around content were commonplace, short-form VOD, short-form or long-form highlights, and indeed live. There is no clear answer, each sport, each market, and each device requires thought and planning. Of course, the beauty of OTT means that analysis of success or otherwise is significantly more readily available. One thing is for certain though and was at the center of every conversation, there is a triangle of success (as we like to call it) – great content, great tech, and strong marketing. The latter is perhaps an oft-understated necessity for a successful OTT platform.
One of the more exciting outcomes to occur over the course of the events was Magine Pro picking up its latest sports client. Recently launched, we will be talking about that much more soon! Sign up to our newsletter now, to stay up to date on our latest news and to find out which industry events we’ll be attending next.
You can also find out more about Magine Pro video streaming services, and in particular how we can help you build your own OTT business, here. Head to our experience page to see our case studies and learn more about how we’ve helped our partners build successful and global OTT businesses.