February 12, 2016
By George Bokuchava CEO, Tulix Systems
Spotlights

Tulix Systems: 2016 Online Video Industry Predictions

The adoption of streaming as a primary means of content consumption is in full swing. This past year, we saw HBO, Showtime, and other major content providers launch their standalone OTT services. We witnessed the first ever NFL game streamed for free around the world through Yahoo. We saw numerous companies launch services to replace cable/satellite offerings entirely, such as Sling TV.

Though these shifts are a step in the right direction, many of the world’s largest content owners and TV networks continue to resist the transition of the marketplace towards streaming. But consumers aren’t waiting on them to adapt. They’re turning to the content that’s readily available to them on their connected devices, where there’s something for everyone—mobile platforms favored by younger users and easy-to-use OTT set-top-boxes for the generations that grew up with traditional TV.

Thanks to the growth of streaming technology and the decline in the cost of video production equipment, content creators with limited budgets can now create and deliver their own live/linear channels or VOD platforms with relatively small investments, and compete for the eyeballs of viewers with the larger networks and content providers.

The mess that is content licensing will continue to stall the major content houses from making serious transitions to OTT delivery. However, we will likely see an explosion of growth in new content in 2016, especially now that ad-based, subscription, and transactional monetization models for OTT content have matured and proven themselves to be viable.

Meanwhile, viewers will continue to migrate to new platforms that offer them more content, more convenience, at lower costs relative to traditional media, which will hopefully be the wake up call to the stragglers that they need to adapt or risk becoming marginalized.

See the rest of 2016's Executive Predictions in "Related Articles" below, or you can download the entire batch as a PDF.