In The News
Although over-the-top TV services may be the hot thing for many TV executives, retaining customers could be difficult — after just a few video mishaps, they may leave.
A new survey says one in three OTT consumers will abandon their service at the first whiff of an “inferior experience,” per Conviva, a video research company.
Only 25% will continue to work through an OTT’s streaming hiccups for more than four minutes — with 75% losing patience after up to four minutes of video snafus. Video problems include long start times, picture quality and buffering (stopping and starting) of video.
Looking at the longer term, the survey says 40% will develop negative brand impressions of services that provide a poor experience quickly — just from a “single negative experience.”
Conviva, an OTT video optimisation specialist, is on a mission to “empower” its customers through data driven intelligence, according to the company’s CEO and co-founder Hui Zhang (pictured).
Speaking at an event at the company’s London premises on 12 June, Zhang used the analogy of Uber on several occasions to describe Conviva’s disruptive technology in the online video sector.
“The fundamental principle behind Conviva is that we’re coming from the same disruptive technology that Uber is trying to use to drive their car business or how Amazon is driving their business. We’re using data realtime and making decisions all in a closed loop and in a predictive way,” Zhang explained.
Viewers of OTT video streaming services are now more concerned about the quality of experience (QoE) they receive than how much content they can access.
That’s according to Conviva, which runs a real-time ‘big data’ processing platform that diagnoses and optimises video quality for media companies and online service providers in 180 countries around the world.
“It used to be that the number one thing people cared about was the size of the content library,” says Conviva’s VP of Marketing, Simon Jones. “The dominance of that preference has slipped a little bit to the point where [the research] told us that quality of experience was the first thing they were concerned about.”
We’ve all heard the stereotype that Millennials are entitled and lazy—and according to recent research, these characteristics are true in terms of the digital video they choose to embrace. They have high expectations for marketers, requiring them to deliver high-quality, original video content right to their doorsteps. And with only one chance to make a good impression and establish a connection, it’s crucial for brands and marketers to adhere to Millennials’ high standards.
Spotify, the subscription Internet music service, has implemented short- and long-form video content into its popular platform.
Content partners at launch include digital doyennes like Maker Studios, Rightster and Vice Media, and TV outlets like ABC, BBC, ESPN, NBC, Comedy Central and Turner Broadcasting. In addition, Spotify said it is introducing original content, including a series called A Full English.
The move is a big shift in strategy for the European company, which launched in the US a few years ago to much interest but so far little (or no) profit. There’s a free version that allows a certain number of specific song requests per month as well as a themed radio service, in addition to a paid premium version that allows users to select and play whichever song they choose, on-demand. The addition of video could encourage more users to upgrade to the paid version by adding more value.
As well as introducing a raft of enhancements to its music service, Spotify is adding video clips and audio shows to the music mix. “We know there are times in the day you want to switch between music to catch up on the latest news, listen to your favourite podcast or simply watch something fun. And with a stellar range of entertainment to choose from there’s something for everyone. Spotify will suggest video and audio shows for you to watch and learn what you love,” says the company.
Music streaming company Spotify has announced the addition of video clips to its service, which has the potential to add significantly to the exponential growth in mobile data consumption.
Spotify is currently the leading music streaming service, with the majority of that consumption taking place on mobile devices. While this will already represent a sizable contribution to mobile data traffic, the addition of video to a user-base already accustomed to regularly streaming content on their devices is likely to take data consumption to a new level.
Although the quality of streaming video may be improving at a modest pace, it’s not improving nearly fast enough for the majority of video viewers.
In a new study on the state of video streaming released Monday, Conviva Inc. reported that consumers are notably less tolerant of video buffering delays and other playback problems than they were just two years ago. In one sign of this growing intolerance, the study found that the amount of time lost from a viewing session with a 1% increase in buffering more than doubled from three minutes in 2011 to eight minutes in 2013. This indicates that viewers switched away from videos with buffering issues a lot sooner than before.
A recent report by Conviva has found that 75% of viewers abandon poor video experiences, which include stream interruptions and inadequate picture fidelity, within four minutes and place the blame across service providers, device platforms and ISPs.