If you read part one of our 2015 OTT predictions blog post series, then you already know what exciting developments our CEO believes are in store for the OTT industry moving forward. Television viewer expectations are shifting away from the realm of the couch potato in favor of personalized content recommendations, interactive apps, and social features on every screen, including connected TVs, set-top boxes, smartphones, tablets, and PCs.
In the second part of the blog post, Dov Moran, Founder and CEO at Comigo, continue to make three more predictions about what’s to come for the OTT industry in 2015.
- OTT operators will quickly adopt HEVC and other compression technologies to lower the cost of content distribution. Television viewers today consider video quality to be an important part of the viewing experience. A recent study by Ericsson found that more than 60 percent of consumers now consider HD quality to be “very important” to their optimal viewing experience and 43 percent already regard 4K/Ultra High-Definition (UHD) in a similar way. Furthermore, the report found that one in three consumers are willing to pay for 4K/UHD-quality services, despite the lack of content currently available in this format. As OTT operators look to deliver additional HD, Ultra HD, and 4K content, I predict that they will begin using the HEVC compression standard, which promises to double the data compression ratio compared with H.264/MPEG-4 AVC while providing the same video quality, or provide superior video quality at the same bit rate.
- We will also see more context-sensitive applications attached to television programming. 30 percent of consumers would like to receive tailored TV and video service offerings in addition to receiving personalized content recommendations based on their personal information, according to a survey done by Ericsson. Already, there are cloud-based platforms available that enable OTT operators to analyze their customers’ viewing habits and deliver personalized content. I believe in 2105, we’ll see operators using these platforms to provide more context-aware apps for the second screen. In the future, more apps will be available for the first screen as well.
- More automated content recognition technologies. Given consumers’ desire for an interactive and personalized television experience, I can safely predict that automated content recognition (ACR) technologies will be included in more STBs and Smart TVs in 2015. ACR technology makes any smart device “aware” of the content that is being watched by the viewer, enabling OTT operators to deliver complementary content to viewers based on their personal interests, thereby improving the television experience.
More detailed insights about trends in 2015 are available on the Comigo blog page!