A world with thousands of TV apps is coming
Throughout its existence, Television has been constantly evolving. When someone talks about the state of television today and the future of TV, I find two very different theories exist. The first, is that the cable box will be no more — content will be curated in just a few apps that are, in a sense replacing the cable package that you know today. The second theory posits that the app stores on your Apple TV or Roku are simply getting started and there are thousands more niche and branded content applications to come.
Before we begin, I want to cover two terms that I think are often confused, the first of which is “TV Everywhere”. In my opinion, TV Everywhere is more closely aligned with the first theory; that a few major players will exist and that’s where you will access all of your content. This is the simple idea that between Comcast, Time Warner, and Verizon, all content will be accessed in apps that are provided as part of a cable subscription, and that all content will need to be created by or licensed through one of these apps. One interesting thing to note here is the rise of “skinny bundles” which is generally an effort by these companies to reduce the price of their offering by allowing users a smaller subset of channels. This allows them to to target customer segments who are unwilling to pay the traditional high priced monthly cable subscription fees.
The second term is OTT (Over the Top) which refers more to the latter theory which is that content creators will be able to bring their content directly to consumers by launching their very own branded apps. This theory assumes that we will have thousands upon thousands of applications existing in each respective app store as opposed to a few apps that aggregate all content.
Now I do think that there is room for both of these theories however, I think it’s foolish to think that we will simply replace our cable box with a Roku or Apple TV and then be happy with a small amount of applications available. Take a minute and think about the web when it first came out… Today, you would call me insane if I told you that there would only be 10 or so web pages, and that all web content would be aggregated inside of those 10 pages. It’s no different for the OTT space, and currently all of those media websites with large followings are prime for tapping into the world of OTT. They would have an avenue to create a direct relationship with their viewers on any device.
An interesting trend worth looking at is the phenomenon of cord-cutting which refers to people cancelling their cable subscriptions. While this trend isn’t likely to scare cable companies anytime soon, what should is that one in four millennials are never signing up to begin with. I personally have Sling TV, which is in a sense a Skinny Bundle that allows me to watch some of the shows that I like, as well as sports, that I love.
I also think that content creators are just now realizing that a new marketplace is developing that can allow them to bring their content straight to the consumer. Roku has an app store with over 3000 apps which puts in question the theory that there will only be a few aggregator apps. There are countless numbers of apps emerging on a daily basis as well one’s that we have created at Odd Networks. Also, hundreds of brands that we have spoken to recently also plan on making the jump into OTT in the near future.
Here are a few industries that I believe will create hundreds of apps in their own right.
Newspapers and Magazines
The print journalism world is changing by the day. They are seeing a new age that does not consume or wait for their content to come in a morning paper or monthly magazine. They have embraced the web and some are probably seeing growth in overall reach. In addition they are starting to embrace video and this is where it could play in the OTT world. By providing a subscription to the news through their video site and throwing in a paper or vice versa they can now engage their users in a new way that keeps them relevant. The talk radio and podcast industries have already embraced this innovation and are seeing new apps launched almost daily.
Niche Content
A few very cool sites that I know of like Flo Sports and Poker Central have content that is appealing to a large number of people and even have the potential to one day be in one of the cable apps. They give wrestlers who still want to watch the ability to still view their favorite sport long after their HS or collegiate careers are over. Poker Central appeals to an even larger audience, those that love Poker. Poker Central in full disclosure is a client of ours and is constantly looking to not only expand their reach into more platforms, but also to push the limits.
Celebrities
Now this one hasn’t really taken off yet, but simply seeing how brand engagement has emerged, I think it’s the future. Imagine how many fans would pay to watch reality TV like app for whoever their favorite celebrity is. Or even watch random clips and content from their favorite singer, like a Justin Bieber.
So long story short, I believe that there will be the few apps that aggregate the current known channels as well as sports, but there are more to come. Content creators are already joining the OTT space and thousands are going to join in the coming months and years.
Let me know what you think?
