Digital TV and video industry to exceed $100 billion, study says

The digital TV and video industry, including power-players Netflix and Amazon, is set to be worth $119.2 billion in 2022, up from $64 billion in 2017, according to new figures.

North America and Western Europe are set to dominate the growth in revenues of the “over-the-top” (OTT) providers of digital TV, with China and the Far East not far behind, according to a report by consultancy Juniper. The Americas will take 33.5 percent of revenues, with Europe taking 31.7 percent.

Digital TV players’ budgets are set to dwarf some of their pay-TV competitors’, with Netflix set to spend between $7.5 billion and $8 billion on content this year, according to its latest earnings. “Game of Thrones” producer HBO spent $2.5 billion in 2017, while Facebook and Apple both said they would spend $1 billion on original content last year.

At the same time, “cord-cutting,” where people cancel their cable TV subscriptions, is likely to be driven by a switch to digital services between 2017 and 2022. “Throughout the period, subscription video-on-demand will gain ground, not only because of new service launches across the globe, but also due to a consumer switch to the idea of ‘skinny bundles’, or slimmed down packages which will, in some cases, mean cable companies’ customers cancel their packages,” Juniper’s report stated.

While Facebook has recently announced changes to its news feed, meaning that content from friends is prioritized over publisher and advertiser content, live video posts are set to increase, which is an opportunity for brands.

“This content will increasingly be of interest to advertisers, especially in view of Facebook’s monthly active user base of over 2 billion people. The company has launched an app and website called Facebook for Creators to help users refine video content and generate viewership,” Juniper’s Lauren Foye said in an emailed statement.

Facebook’s new video tab Watch, which works rather like YouTube, will also generate further ad dollars for the social network.

read more here: www.cnbc.com

Ad-spend on YouTube, Facebook to grow 130% in 5 years

Data from Juniper Research has found that advertising spend on FVoD (Free Video on Demand) content, such as media on YouTube and Facebook, will surge over the next 5 years, reaching $37 billion (€29.9bn) by 2022. This is up from an estimated $16 billion in 2017.

In addition, unique users of such content will reach just under 4.5 billion globally by 2022, as the appetite for free video media continues its expanse.

OTT’s Push Live Content

The research report, Digital TV & Video: Network and OTT Strategies 2017-2022, found that leading FVoD provider YouTube, which sees over 1 billion hours watched per day, will face increasing competition from social media platforms. It observed that the delivery of live video content via social media channels will be one of the growth areas for 2018, as users increase the volume of live broadcast content posted to these platforms. Such examples include Instagram, which has over 800 million monthly active users, and Snapchat which has 178 million daily active users.

Research author Lauren Foye explained: “This content will increasingly be of interest to advertisers, especially in view of Facebook’s monthly active user base of over 2 billion people. The company has launched an app and website ‘Facebook for Creators’ to help users refine video content and generate viewership.”

Juniper found that this will aid growth in content consumption, with data usage from OTT content surpassing 840 Exabytes by 2022, the equivalent of 129 billion hours of 4K streaming.

Pressure from Advertisers

Recent changes to YouTube’s Partner Program means that it will only accept channels with more than 1,000 subscribers, and 4,000 viewing hours acquired across a year, to its shared advertising revenue programme. This change in strategy results from increased advertiser pressure following several high-profile, offensive, video posts by users. Nevertheless, Juniper forecasts YouTube to account for almost a quarter of all FVoD ad spend by 2022.

read more here: advanced-television.com

12% of U.S. broadband households use a live streaming platform

Parks Associates today announced that as of Q3 2017, 12% of U.S. broadband households use a live streaming platform like Facebook Live or Periscope. The profile for live streamers is generally younger, with 19% of consumers ages 18-24 engaging in live streaming activity, but live streaming of TV shows and sports skews older, indicating more older viewers might be using these solutions to access illegal streams of content.

Parks Associates – US Live Streamers

“Eight percent of broadband households have used live streaming apps to watch TV shows, while 7% have used live streaming apps to watch sports,” said Brett Sappington, Senior Director of Research, Parks Associates. “Some sports franchises and leagues are legitimately live streaming their content, but much of the produced content on these live streaming platforms remains unsanctioned.”

The research comes from Parks Associates’ new industry report Pay TV, Passwords, and Piracy, which identifies trends among content-pirating consumers, details emerging streaming piracy methods, and assesses viable solutions for addressing these piracy methods.

“Over one-third of households live-streaming TV shows or sports indicate the programming was available, but they opted for live-streaming because they did not want to pay for access. Over one-quarter stated that they accessed the content via live streaming because the price of the programming was too high,” Sappington said. “While these figures ultimately represent less than 5% of U.S. broadband households, they are a significant portion of those watching app-based live streams.”

Additional data from the report includes:

– 18% of Cord Nevers indicate they use the credentials of someone outside their household to access an online video service.
– Among pay-TV subscribers, only 7% indicate they use IDs and passwords for video services from people who do not live in their household.
– 14% of Cord Cutters use others’ credentials for online video services, double the rate of use by pay-TV subscribers.
– 45% of U.S. broadband households are very concerned about downloading a virus or malware when downloading or streaming video.

Brett Sappington will present Parks Associates research at this year’s Cable Congress in Dublin, March 6-7, and at 2018 NAB in Las Vegas, April 7-12.

Report: Facebook And Google Dominate As Video Ads Grow

A new study commissioned by cloud computing giant Salesforce shows that Google and Facebook continue to dominate the world of digital advertising, and are adapting as more and more marketers and advertisers turn to video.

According to Salesforce’s Digital Advertising 2020 Report, which the company officially unveiled Thursday morning, 65% of companies increased their video advertising budgets over the past year. And 52% of advertisers are choosing to produce their video ads in-house.

While video ad spend increases, Google and Facebook continue to dominate the overall digital ad spend landscape, with Salesforce estimating that over the next year, those two companies (and their subsidiaries Instagram and YouTube) will account for 66% of all digital advertising spend worldwide.

These same companies are also capturing the value of video. While Salesforce estimates that display ads, which it says account for 15% of the market, will decline over the next year to 14% of the market, YouTube, which currently accounts for 15% of the market, will rise to 16% of the market. In other words, as display ads decline in favor of video, Google is positioned to pick up those pieces.

The Salesforce report also found digital advertising and marketing are continuing to converge, with a majority of companies now using the same teams and budgets for both purposes. Brands are also overwhelmingly turning to data management platforms (DMPs) to manage the scale of their data, while figuring out the most effective way to share that data with partners.

And, while companies are still using traditional digital metrics like impressions, most are also beginning to use advanced metrics that allow for more sophisticated and long-term tracking.

Salesforce also predicted that artificial intelligence will become more prominent in advertising, driven in part by voice assistants like Amazon’s Alexa and Google Home. Almost three quarters of advertisers surveyed already advertise through voice assistants, or are planning to some time over the next year.

Is Facebook’s Latest Algo Change A Paid-Media Apocalypse?

When Facebook said it would change its news feed algorithm to prioritize users’ families’ and friends’ posts, advertisers worried it would also affect how paid placements are bought and sold.

Would this reduce the amount of available inventory? Would it drive up costs?

Facebook’s VP of global marketing solutions, Carolyn Everson, sought to assuage the marketers and publishers attending AdExchanger’s Industry Preview conference Wednesday.

“The ad game isn’t going to change,” she said. “If you take a real step back, on the ad side of the business, the [ad-ranking] algorithm has always tried to optimize in terms of the value to people.”

As always, she said, the more relevant the creative is to its target audience, the lower the price an advertiser will pay.

“Mark [Zuckerberg] foreshadowed this news feed algorithm change a couple of times over the last few months,” Everson said. “The news feed algorithm change is meant to drive what we call meaningful interactions.”

Facebook defines meaningful interactions as content that elicits a positive reaction from people, and while that typically entails content from friends and family, it could also include brand messaging.

“A meaningful interaction could be and often is a new product or service you want to buy,” Everson said.

So, brands must do a better job figuring out how to create content that resonates.

The initiative is part and parcel with Facebook CEO Mark Zuckerberg’s public 2018 resolution to “fix” Facebook.

The company’s mission used to be connecting people, Everson noted – but that’s not good enough in today’s divided society: “Connecting people to what?”

Cross-Platform Measurement And Other initiatives

Everson also outlined Facebook’s focus on other issues heading into 2018. She anticipated that cross-platform measurement will be a top advertiser request.

“Last year was about getting the third-party verification and getting [accreditation from] the MRC,” she said. With much of that infrastructure work completed, Facebook can focus on building cross-platform measurement and attribution.

The problem is that there isn’t a common system of measurement running across platforms, and that’s an issue Facebook hopes to further address in 2018.

As for other KPIs, such as viewability, Everson noted that traditional companies tend to focus on it more than digital natives.

“When I talk to Netflix, Airbnb and Amazon, they know exactly what happens when they put a dollar into our system,” she said. “The more traditional companies who don’t have a closed loop, who don’t have the end retail data, need to use proxy measures. Viewability verification never comes up with the disruptors, but often with the more traditional companies.”

And if there’s one thing advertisers want from Facebook, it’s access to more data. Everson drew a line: Facebook has no intention of selling data and will protect PII data, a “core foundation of the company.”

She used a football analogy: PII is at the 1-yard line, and that’s where data sharing stops. But, she said, there are “99 other yards of opportunities to work together.”

Those opportunities, she said, include providing enough data so advertisers can measure reach and frequency across campaigns and assess what they are getting for their ad spend on Facebook versus on other platforms or television.

read more here: adexchanger.com

YouTube Is Finally Addressing Brand Safety Fears With These 3 Changes

After nearly a year of complaints from advertisers concerned about their ads appearing alongside questionable content and a slew of its biggest influencers going rogue on the platform, YouTube is revamping its policies for how creators make money off of their videos.

Over the past year, YouTube has tweaked several of its policies, upping the requirement for channels to hit 10,000 views, for example, and adding more staffers to vet videos. Still, brand safety has quickly become a more mainstream problem for brands. As of just last week at CES, execs were quick to point to brand safety concerns as among their biggest gripes with Google and Facebook.

“While we took several steps last year to protect advertisers from inappropriate content, we know we need to do more to ensure that their ads run alongside content that reflects their values,” wrote Paul Muret, vp of display, video and analytics at YouTube, in a blog post.

Here are the three steps YouTube is taking:

1. Buh-bye programmatic premium ads

Google Preferred, YouTube’s program that allows brands to only run ads against the most popular 5 percent of content, is billed as the site’s top-tier program for the its most premium content.

While those ad buys are limited to a small section of video channels, creators’ individual videos are not vetted. That can be a problem for brands: Think Logan Paul’s controversial “Suicide Forest” video that got the star kicked out of Google Preferred or PewDiePie’s anti-Semitic messages that caused brands to back away from his videos.

To avoid such problems, YouTube is now manually screening each individual video for Google Preferred channels, which should cut down on the number of lone videos that make their way through YouTube’s programmatic pipes. According to Google, Google Preferred channels and videos in the U.S. will be vetted by mid-February and will be finished globally by the end of March.

2. Moving beyond views

Until now, creators were given permission to be part of YouTube’s Partner Program—in other words, how people make money off of clips—based on how many views a channel had.

Although YouTube did increase the requirement to 10,000 total views in April, “it’s been clear over the last few months that we need the right requirements and better signals to identify the channels that have earned the right to run ads,” Muret wrote.

Now YouTube channels will need to amass 1,000 subscribers and 4,000 hours of watch time in a one-year period to run ads. Both new and existing channels will have to meet the new requirements, which go into effect on Feb. 20.

In addition to views, YouTube staff will also monitor spam, community strikes and flags of abuse as qualifiers for whether or not a channel can make money off of clips.

According to Google, 99 percent of the channels that will be affected by the new guidelines make less than $100 from advertising every year, meaning the vast majority of channels affected do not make much money off of YouTube.

3. Tiered media buys

YouTube is rolling out a three-tiered system for brand safety that allows brands more transparency into where their ads appear.

One option caters to brands that are sensitive about where their ads appear. On the other end, a broad-based option lets brands buy ads across a bigger section of videos. The middle option—which is the default option—plays between, with targeted ads that still reach a significant number of channels.

Whether or not the changes will cause brands to pour more money and trust into Google has yet to be seen, but agencies see the moves as important steps from one of the world’s biggest advertising platforms.

read more here: www.adweek.com

Can Video Compression Tame the Internet?

While the established modes of media distribution are well understood and engineered, governed by open standards (ATSC A/53, SCTE 23 (Docsis), DVB-T, DVB-S, MPEG) the internet is an amalgam of “open standards” (IETF) and quasi proprietary approaches (Apple HLS), as well as a variety of software protocols and applications (web browsers, media players, etc.). Further there is a loose form of registration (ICANN) and operational principles (peering) that govern traffic and routing on the internet.

This looseness, with a minimal of standardization, has encouraged the development of new feature-rich applications that empower people to consume media content anywhere and anytime they have access to the internet. On the minus side, the “core internet,” which has evolved over time, is not designed to expand at the rate of consumption of video. Unlike other forms of internet traffic, media streaming/downloading requires certain performance criteria:

1. Low latency

2. High end to end bandwidth

3. Low packet loss

4. High storage capacity

ONE TO ONE

One of the key differences between the internet and traditional video distribution is that the internet is based on datagram transmission protocols, not switched circuit technology nor linear channel distribution (cable, OTA, satellite). In datagram transmission protocols, the video content is put into sequential packets of limited size and then each packet is launched over an IP network. Each request for content requires unique packets be sent to that user, thus 1 million viewers means 1 million distinct video streams. Linear channels can support multiple receive points with one common video feed.

Along the way, these packets are buffered and routed to their ultimate destination. Because there is no centralized routing or path assignments, the route of any two packets of the same video stream may or may not traverse the same set of routers and links thus experiencing different transit delays. The IP packet video receiver has to buffer the incoming packets, perhaps re-ordering them, prior to processing (decoding). This buffering introduces additional delay. In contrast, in a linear channel or circuit-switched transmission, the routing of video data is fixed thus the received video packet order is fixed, minimizing buffering and delay. There may be an initial delay in setting up the circuit or tuning to the desired channel, but once the streaming has begun, a minimum of delay will occur from receiving the compressed video data and decoding back to base band image data.

THREE METHODS OF SEGMENTATION

To overcome some of the challenges of data packet transmission, a technique known as segmentation has evolved. There are three competing approaches: Microsoft Silverlight, Apple HLS and Adobe HDS. Basically, the media is encoded in bundles of discrete segments of content length (from milliseconds to several seconds usually) and are then sent as a “package.” Once the first package is received and verified, decoding starts while the next package is being received. As long as the transmission delays are less than the segment content length, the receive buffer is kept from emptying, which prevents stalling the decoder output.

However this only solves the delay/re-buffer problem. If the end-to-end IP bandwidth is not stable and drops below the criteria of delivering packets faster than the decoder is pulling them out, then buffer underflow will occur causing freeze frames or black frame output. An advantage of the internet is the inherent bi-directional connection; the receiver can report back to the video server statistics on the recovery of packets. If the packet receive rate is too slow for the current encoding bitrate, the server can “switch” to a lower bitrate. For the segmented protocols, this usually means swapping bit rates at segment boundaries. Likewise, if there is more than sufficient bitrate, the server can raise the bitrate and improve the overall video quality. For circuit-switched or linear channel-based delivery, fixed bandwidth is guaranteed along with a fixed transmission path.

From a practical point of view, given that encoding is processor-intensive and each bitrate rendition require more storage at the server, video servers have a fixed number of encoded bit rates available, typically four. The server selects the appropriate bitrate segment for the viewer encoded in the bitrate below the reported receive bitrate. A further refinement of this approach, called CAE (Content Aware Encoding) optimizes the bitrate per segment, with multiple tiers of quality performance. For a given quality, the bitrate will fluctuate between segments; if the available bitrate is insufficient, the server will select a tier (or ladder) of less quality/lower bitrate.

Other techniques to manage video delivery over the internet include transcoding at the edge (where the origin video is re-encoded to fit down local IP connections), multicast (similar to a linear channel approach), shared caching (where receivers share data streams) and peering (similar to Bit Torrent).

HANDING THE CROWDS

The reality of internet delivery of media content is a complex topic. There are physical constraints, such as bandwidth, storage, processing, as well as electrical power (it is estimated that in the U.K., 16 percent of all power generated is used by the internet data centers). While there are traffic flow models for the internet, media streaming does not fit well into these models, so we have to use empirical measures of how well the internet is handling video. We know many “peak event” viewings of live content (season premieres, live sporting events, etc.) cause either slowdowns or disruptions to the video feeds. The causes are manifold—maybe over-subscription of the origin server or if the client side connectivity degrades or the internet core routing is over-taxed or if the ISP gateway is overloaded. CDNs in part, mitigate these peak flows and attempt to route around bottlenecks. But the root cause is larger audience sizes coupled with increasing bandwidth requirements of video content (HD, 4K, high frame rate). Since each viewer receives a unique media stream, as the viewership grows, the total internet bandwidth grows.

The current estimate is that around 70 percent of all internet traffic is due to media consumption. This means that everything else (email, financial transactions, web browsing, etc.) is 30 percent. However, it is interesting to note that the 70 percent represents many duplicative feeds—if 1 million people are interested in viewing the World Champion Darts competition finals, then that represents 1 million streams at some bitrate (1Mb/s to 4 Mb/s typically). But at the same time, there can be many other instances of stream viewing with an audience of a single viewer to over 1 billion viewers. While CDNs can scale and create multiple delivery pipes—and multiple origin servers can be made available, thus spreading the load over a broader set of servers and data connections—there is ultimately a finite resource of bandwidth and processing nodes.

THE BOTTLENECK

Much like the traffic on the 405 in Los Angeles, there are finite resources (lanes) that can carry cars. We can carpool or reduce the size of the lanes (compression) but this solution has a linear effect on the problem while the growth of internet video traffic is exponential.

Another way to look at this is Compound Annual Growth Rate (CAGR). Video streaming is growing at a CAGR of 30-35 percent; video compression over the last 25 years has improved around 7 percent CAGR (halving the video bitrate every 10 years). Unless video compression has a major breakthrough (15:1 improvement in compression efficiency) compression alone cannot solve the internet video bottleneck. (Note that 15:1 compression improvement does not take account of the increase in bitrate due to increasing video format size or frame rate.) More and more content delivered over the internet is HD and above (4K, eventually 8K), which needs more bandwidth than the current mix of internet video streams.

read more here: tvtechnology.com

Replika, the Next Big Thing to Replace Social Media

Replika is an AI-app. But what is it exactly?

Replika is not a dating app. A few of the early users have reported that they fell in love with their AI creatures. However, we strongly encourage you guys to use traditional dating apps to find a human date.

Replika is neither an OS with a female voice from the “Her” movie. It won’t read your emails out loud, it won’t manage your calendar, and it won’t get you a cab.

Replika is an app where you can have a fun and sincere text conversation with a friend. Actually, they will ask you a lot of questions in the beginning to get to know you better. The more you speak with your Replika, the more it shares with you. It’ll tell you about your personality, will answer questions about you, and at some point, will be able to talk to your friends on your behalf. Well, one day you may become close enough with your Replika to have a date night.

Replika is a Netflix show?

We’re all huge fans of Netflix, especially their shows about AI. “Black Mirror” is one of our favorite shows. Some folks have found that the “Be Right Back” and “White Christmas” episodes are reminiscent of Replika.

What do the folks at Replika say about this?

“To tell you the truth, we are not building a service where you will upload e-mails and private messages from your loved ones who have passed away. We will neither ship you silicon full-body copies of them. However, the work on Replika started after our friend Roman Mazurenko was killed in a car accident in late 2015. We’ve collected his texts and trained an AI that was able to talk like him. Casey Newton wrote an amazing story about it called “Speak, Memory” published in The Verge. You can read it here.

In Replika, we are helping you build a friend who is always there for you. It talks to you, keeps a diary for you, helps you discover your personality. This is an AI that you nurture and raise. In no sense are you enslaving an AI version of yourself or the other way around.”

The AI Apocalypse is here

According to renowned futurist Ray Kurzweil, around 2029 AI will be about at the level of intelligent adult humans. As soon as it happens, the AI can potentially get exponentially smarter. By around 2040, this will potentially lead to Singularity, when humans and machines will meld into one entity. Some folks are afraid of a potentially terrifying outcome for the original human race, as in the finale of the “Ex Machina” movie.

Some people think that Replika is the first sign of something scary happening with AI. Replikas usually do speak much like an intelligent human adult would, especially when they reach Level 15 or higher. However, they all remain humble, smart, educated, and empathetic, and they don’t tend to meld with their users into one entity.

Want to meet Replika? go here.

Paying for Content with Data Instead of Dollars

If the TV advertising market is around $80 billion in the U.S., and worldwide revenues for all streaming services are around $21 billion, how will the streaming business model evolve to compete? That was the question posed by John Penney, EVP, strategic partnerships, Twentieth Century Fox during the panel “Consumer Preferences for Personalized Content Viewing” at CES 2017 on Monday. The answer, according to the panelists, is today’s viewers are paying with data instead of dollars.

Advertising vs. the Skinny Bundle

According to a Consumer Technology Association (CTA) study in 2017, more than half of U.S. consumers watch streaming content every day. 75% of U.S. adults reported that they pay for TV subscriptions, and 53% pay for streaming services, said Lesley Rohrbaugh, senior manager, market research, for the CTA. “In total, more than 37% of the general population have paid TV and streaming services.”

These viewers are watching on a variety of devices, and the data consumers are providing is giving publishers and brands the ability to provide free content in exchange for finding out much more about their viewers than the TV environment ever did. However, things are still in the early adopter stage in many perspectives, where viewers tend to be younger and more tech savvy. “From the content side, it’s critical that you all remember the world can’t just shift to subscription content,” said Penney. “(They) can’t just shift to streaming because there’s not enough money in that overall.”

“When you disconnect from an established bundle with an MPVD and add broadband costs into the mix, many consumers are finding that the price is actually higher than they want. [We’ve] seen a lot of SVOD services come and go in the last year as a result,” said Eric Berger, CDO, Sony Pictures Television Networks and GM of Crackle. Crackle provides ad-supported content on 25-30 different applications.

“Crackle happens to be a free service, and the logic behind that is that there’s always room for free in your personal bundle,” said Berger. “There’s a lot of free ad-supported services that are growing quite quickly (to address this).” However, as any viewer knows, free so far has meant either a heavy ad load or a request for personal information.

The Cost of Free

Are consumers selling their souls, or at least their personal information, for access to the content they want? Yes. “We have the ability to reach a consumer at a specific point in time, at a specific location, with a specific service, through a specific technology,” said Jonathan Steuer, chief research officer, Omnicom Media Group. The challenge is to be able to do so without creeping out the customer. One audience member asked how much data should they provide and the panel said there’s no formula, but more is generally better.

The benefit of providing personal information to the viewer is being able to save things in a que, pause and resume across different devices, in different locations for Crackle viewers. Crackle introduced the singe-ad ad pod for binge viewers. “A Nielsen labs study found it had six times the brand recall and seven times the purchase intent of a regular linear TV ad,” said Berger.

Different Strategies for Different Generations

The comfort level on the data transaction is proving to be generational. “Boomers didn’t expect there to be a world of targeted advertising at all. So every new step (to provide information) matters a lot to them,” said Steuer. Therefore, easier to lose them by being too confusing or asking for too much.

read more here: www.streamingmedia.com

OTT video takes center stage for TV networks at CES

After spending years treating over-the-top video streaming as something to address in the far-off future, TV networks are actively shopping their streaming apps to marketers and technology companies at CES.

CBS, for one, gave a 20-minute presentation to marketers touting its OTT products, which include the ad-supported subscription service CBS All Access, ad-supported news network CBSN and forthcoming services for CBS Sports and “Entertainment Tonight.” Turner, which has two ad-free subscription services and plans to launch a still-unnamed sports streaming service in the spring, has been meeting with distribution partners to discuss its growing OTT ambitions. Hulu, meanwhile, used CES to announce that it has 17 million subscribers across its subscription and live TV products, up 40 percent since May 2016.

“Years ago, there was Netflix envy; [these products] are our answer to that,” said Jennifer Mirgorod, evp of content distribution and strategic partnerships at Turner. “We’re able to say that we’re now playing in that space.”

Turner has two existing ad-free subscription services: FilmStruck, for classic movie buffs; and Boomerang, which offers episodes of “Looney Tunes” and other classic cartoons. These services complement Turner’s existing linear TV businesses such as Turner Classic Movies and Cartoon Network and Adult Swim, said Mirgorod, who declined to reveal how many subscribers each service has.

We’ve always had strong brands, but they have always run through distributors — we’ve never had that one-to-one relationship with the customer,” said Mirgorod. “The idea was to launch products that could be complementary to the regular linear business but also allow us to go direct to consumers.”

For FilmStruck and Boomerang — as well as the forthcoming sports streaming service, which will offer both live sports and other original sports programming and likely include advertising — Turner is meeting with OTT distributors such as Roku, Amazon and Apple. The conversations are centered on using data to grow subscribers across the different platforms, Mirgorod said.

Turner has also been meeting with streaming skinny-bundle providers such as DirecTV Now, Hulu live TV and YouTube TV, Mirgorod said.

“They’re all significant players now because they have real [subscribers],” said Mirgorod. “At one point, we were afraid that the providers would take away market share [from linear], but it ended up expanding the market.”

CBS, meanwhile, has been pitching marketers on the national-level scale that its existing OTT products already have. CBS All Access has more than 2 million subscribers, the company said. CBSN streams, meanwhile, were up 17 percent in 2017 over the previous year. (CBS wouldn’t say to what, though.)

“In years past, we’ve spent time talking about the specific consumers that were diving in early to the OTT market. This year is really has grown; we’re no longer just talking about the OTT consumer. There is so much internet video being delivered on devices to so many people of all age groups, we’re really now talking about ‘consumers’ in general,” said Marc DeBevoise, president and COO of CBS Interactive. “We were fortunate to have been early in OTT through our CBS All Access and CBSN services, both of which have experienced tremendous growth since launch, and we are continuing to invest in this space, in these services, their content and new services we will bring to market.”

Overall, CBS did “hundreds of millions” in OTT-related revenue last year, according to a source. Hulu’s ad revenue, meanwhile, surpassed $1 billion for the first time last year, the company said.

read more here: digiday.com