AACI M3

Linear TV + example

Traditional real-time broadcasting where programs are scheduled and aired at specific times.

Example: Watching a TV show at 8:00 PM as it airs

Non-linear TV

Viewers select and watch content on-demand, deciding what and when to watch. This includes services like VOD (Video on Demand).

Example: Watching a Netflix series at any time.

What is OTT

Over-the-top, streaming services delivered via the internet, bypassing traditional broadcast methods.

Examples: Netflix, Hulu, Disney+.

What is MVPD?

Multichannel Video Programming Distributor

Service providers offering multiple channels, usually through subscription (e.g., cable or satellite TV).

Examples: Comcast Xfinity, DirecTV.

OTT and MVDP →
Linear and Non Linear →

OTT and MVDP → delivery methods
Linear and Non Linear → viewing styles

What is VOD?

Video on Demand

Content accessible anytime after its release date. Can be found on set-top boxes, OTT devices, or mobile apps.

What is SVOD? Examples + challenges

Suscription Video on Demand
A model where users pay a fixed subscription fee (monthly, quarterly, yearly) for access to a catalog of content

• Examples: Netflix, Disney+, HBO Max.

• Challenge: High prices without sufficient value can lead to customer churn.

What is TVOD + types + examples

Transactional Video on Demand

Pay-per-view model where users pay for each piece of content, either to rent or purchase

Examples: iTunes, Google Play.

• Types:

  • EST (Electronic Sell-Through): Permanent access.

  • DTR (Download to Rent): Temporary access.

What is AVOD + examples + challenge

Advertising Video on Demand

Free content supported by advertisements. Viewers "pay" by watching ads instead of a subscription fee.

Examples: YouTube, Pluto TV.

Challenge: Balancing ad frequency (too many ads frustrate viewers, too few ads reduce revenue).

What is PVOD + examples

Premium Video on Demand

• Content available for a premium fee, typically before its wider release on other platforms.

• Example: Disney's Mulan on PVOD before general release.

What is Hybrid VOD + examples

Hybrid Video on Demand

A combination of VOD models, such as Freemium (free basic content with ads, premium upgrades for exclusive access).

• Example: Free content with ad-free upgrades.

What is FAST + examples

Free Ad-Supported Streaming TV

• Streaming services where viewers access linear TV content for free, supported entirely by advertisements.

• Examples: Pluto TV, Tubi.

What are the main trends (among the 15) shaping the future of the OTT platforms?

1. Fierce competition.

2. Growing audience fragmentation.

3. Increasing production of original content.

4. Evolution of algorithms (data and personalization).

5. Rise of FAST streaming channels.

6. Churn as a major challenge.

7. Global expansion.

What are major challenges in TV advertising and measurement?

• Ad-Fraud Issues: Invalid traffic affecting campaigns (IVT), whether direct or programmatic

• Brand Safety: Ensuring ads appear in safe contexts. This is critical for marketers to confidently plan and measure their campaigns across different platforms.
  

• Cross-Channel Measurement: Tracking fragmented audiences across multiple platforms.

What would make consumers upgrade their TV sets?

• The need for cross channel measurement

• Concerns Over Valid Views: Ad Fraud Issues

• Concerns Over Brand Safety: Ad Fraud Issues

Why is Netflix's decline significant for the OTT industry?

Netflix experienced its first subscriber drop in Q1 2022, losing 200,000 memberships after a decade of uninterrupted growth.

How did the COVID-19 pandemic impact OTT growth? What and why are there challenges?

The "COVID boost" created short-term inflated growth but masked long-term challenges for platforms.

These include:

High household penetration, increased competition, and account sharing are slowing momentum.

What is Netflix’s future strategy?

Monetising over 100 million households engaged in account sharing.

Give me 5 of the trends shaping the future of OTT platforms

Blend of consumer behavior, market competition, and technological innovation. These need to be adressed to achieve long term success:

• Competition pushes platforms to innovate.

• Audience Fragmentation challenges platforms to unify their audience data.

• Algorithms make personalization a critical advantage.

• Hybrid models expand accessibility and revenue.

• Churn forces platforms to rethink retention strategies.

What is the key to long term success for OTT platforms?

1. Understanding viewer needs

2. providing engaging content

3. fostering innovation across platforms.

What methodologies does Netflix use to evaluate content performance?

• Weekly Top 10 Lists for English/Non-English content.

• Viewer categorization based on engagement (e.g., starters, watchers, finishers).

• Hours viewed over 28 to 91-day viewing windows.

What are Netflix’s key metrics?

• Starters: Watched at least 2+ minutes.

• Watchers: Watched 75% of a title.

• Finishers: Completed a full season or film.

• Total Hours Watched: Combines session lengths and rewatch patterns.

What methodologies does Disney+ use?

• Avoids public sharing of specific title metrics.

• Focuses on Star Wars tentpole content (The Mandalorian).

What is a key limitation of Disney+ metrics?

Lacks partnerships with external rating tools like Nielsen.

What methodology does HBO Max use?

Provides client-specific viewership details that can cloud overall performance.

What is HBO Max’s unique tracking capability?

Tracks combined linear (HBO) and OTT (HBO Max) subscriptions.

What methodology does Prime Video use to evaluate ROI?

Cost Per First Stream (CPFS), evaluating ROI per series.

How does Prime Video segment its audience?

Based on subscription performance.

What are Prime Video’s key metrics?

• Subscription Drivers: High demand, low CPFS.

• Churn Reducers: High CPFS, lower demand.

• Niche Attractors: Low demand and low CPFS.

5 reasons data driven insights skyrocket OTT brands.

1. Boost ROI: Invest in high-performing content based on data insights.

2. Enhance Customer Engagement: Use algorithms to tailor personalized recommendations.

3. Advertiser Collaboration: Use insights for targeted ad placements, increasing revenue.

4. Retention Strategies: Data helps predict churn and optimize user retention efforts.

5. Content Development: Analytics identify audience preferences, guiding future content creation.

North Star Metrics

• Measures the KPI for user retention (e.g., % of retained subscribers).

• Goal: Focus on long-term ROI by encouraging loyal, repeat behavior.

Input Metrics

• Tracks specific actions like app engagement (e.g., how often users interact) or content completion rates.

• Goal: Understand and improve the steps leading to the big goal.

Simplified explanation of the difference between North Star Metrics and Input Metrics

• North Star = The big picture (long-term success).

• Input Metrics = The small steps leading to the big picture.

Give me the first 5 OTT metrics

• Monthly Active Users (MAU):

  • The number of unique users who have opened or engaged with your OTT service in the past month.

• Customer Acquisition Cost (CAC):

  • The total cost of acquiring a new customer, including sales and marketing expenses divided by the number of customers acquired.

• Average Revenue Per User (ARPU):

  • The amount of revenue generated per customer. It is calculated by dividing total revenue by the total number of users.

• Customer Lifetime Value (CLV):

  • The amount of money a customer is expected to spend during their lifetime with the service. It helps in deciding investments for acquiring and retaining customers.

• Conversion Rate (CR):

  • The proportion of visitors who convert into subscribers. For example, if 500,000 visitors result in 125,000 free-trial sign-ups, the conversion rate is 25%.

Give me the 6 left of OTT metrics

• Abandon Rate:

  • The percentage of tasks abandoned by users before completing the intended action, such as dropping out during the free trial process or exiting an app before playing a video.

• Churn Rate:

  • The percentage of customers who cancel their subscription over a specific period. For example, if you lose 5% of customers in a quarter, your churn rate is 5%.

• Engagement Metrics:

  • Measures how users interact with your platform, including the number of times they open an app, watch videos, and take actions within the platform.

• Inactive Users:

  • Users who were once active on the platform but have since become inactive over a defined period.

• Google Analytics and Data Studio:

  • Tools that allow you to connect to various data sources and visualize data through customizable charts and tables to analyze performance.

• Subscription Billing Data:

  • Tracks subscription pricing and customer transactions, helping to manage upgrades, cancellations, renewals, and add-ons effectively for growth and churn reduction.

• Ad Server Data:

  • Tracks ad-related data such as failure rates, ad blockers, and buffering issues to improve ad delivery performance and mitigate fraud risks.