Three streaming television trends to watch in 2018
There’s no question: 2017 was the year of the cord-cutter.
The rise of online skinny bundles and the exodus of traditional pay TV customers mean 2018 will be another formative year for Internet TV. Not only will winners and losers be decided, but everyone will be watching to see what, if anything, cable and Internet providers do to drum up sales.
While I can’t predict the future, I believe, with helpful insight from a couple of trusted analysts, that industry trends are pointing to a new year of advertising, programming and bundling options in the Internet TV realm. Ultimately, it’s good-news, bad-news situation for streaming viewers.
Here’s a peek at three trends to watch for in the year ahead:
1. ADS, ADS, ADS AND MORE ADS
Those who rely on streaming media devices to consume TV programming can expect to see more ads in 2018 as advertisers look to the Internet-based entertainment platforms to help them reach viewers who have abandoned traditional pay TV.
“Connected TV advertising is going to be more of a priority for more marketers,” said Paul Verna, an Internet TV analyst with eMarketer. “Up until now, they’ve looked at the world in terms of TV and digital video, and those two are very different. Connected TV is right in the middle.”
By connected TV, Verna is referring to Internet-delivered content viewed on a television set. He anticipates that YouTube TV, Hulu with Live TV and other ad-supported skinny bundle packages will ramp up the number of ads they show to viewers during commercial breaks, especially given that the number currently pales in comparison to those shown in cable and satellite environments.
Even Roku, the most popular streaming media player in the U.S., has signaled its intentions to boost its business with more ads. That means Roku-owned or -operated channels, including the newly launched Roku channel with free movies, will see an infusion of different ad types.
Surely, the thought of enduring additional ads doesn’t sound like an attractive proposition, but there is hope of at least one improvement: less redundancy. The online TV viewer knows all too well the agony of seeing the same commercial played ad nauseam during a single episode. One can only hope that the extra attention being paid to over-the-Internet programming means that providers and advertisers alike will seek to improve the experience and stop the repetition.
2. THE ONLINE PAY TV SHAKEOUT
While we may not see a contraction in streaming live TV services until 2019, 2018 will be the year when winners and losers are made. Of course, I’m talking about Sling TV, Playstation Vue, DirecTV Now, Hulu with Live TV, YouTube TV, FuboTV and other online skinny bundles yet to make their debut.
Given that most existing services have yet to crack the 1 million subscriber mark, analysts expect several of them to double, triple or even quadruple their subscriber bases in 2018 as consumers continue to leave their cable providers in search of a better deal.
“Online pay TV is going to have a significant affect on the television market, and by the end of this year we’ll be talking about both those services that succeeded … and those that did not succeed,” said Brett Sappington, a digital entertainment researcher with Parks Associates. “I think we’re going to see some surprises both in the successes and failures of online pay TV.”
Sappington believes that DirecTV Now and Sling TV both have strong shots of performing well in the new year. The former because of the resources that owner AT&T can pump into the service and the latter because of its extremely affordable price tag. Even Philo, a lesser-known option, can be a standout in 2018 because the Internet TV startup’s offering is even cheaper than Sling’s—starting at $16 per month—and caters to a specific demographic that doesn’t care about sports, he said.
And Verna says to keep your eyes on Google’s YouTube TV, which tipped its 2018 hand in advertising during the World Series. The mainstream marketing push showed Google’s outsized interest in attracting everyday TV viewers—not just millennial cord-nevers.
3. SOCIAL MEDIA PROGRAMMING ON STEROIDS
Don’t anticipate young people to start chanting, I want my Facebook TV, but you better believe that the social network will do everything in its power to push members to tune into its TV-like programming, which is sandwiched inside the company’s “Watch” tab. And, of course, Twitter, Instagram, Snapchat and even Amazon will also vie more aggressively to host the best streaming TV party.
“All of those social venues are going to at least try to be your next (TV) something,” Verna said. “They’re really aiming to get more into storytelling-type programming. And they’re starting to bid for some of the same shows … as streaming services and networks.”
It’s all in the name of grabbing those aforementioned ad dollars, which flow at premium rates to the premium providers.