The main challenge of OTT companies: how to stay competitive in a saturated industry?

The main challenge of OTT companies: how to stay competitive in a saturated industry?

The global OTT market is predicted to grow to $83.4 billion by 2022, and OTT growth is second only to virtual reality in the media industry.

Almost half of all households already have some SVOD service and there are tens if not hundreds of providers on each country:

More is not always better

With too many options available, consumers get overwhelmed with the opportunities and are less satisfied with the one they finally pick. Standing out from that pool and leaving the customer satisfied is growingly difficult:

  • 47% of US consumers say they're frustrated by the growing number of subscriptions and services they need to watch what they want

  • 49% of consumers say the sheer volume of content across services makes it hard to choose what to watch

The markets are approaching saturation

The average spending on OTT services has actually stayed flat for the past three years. Even though a majority of US households watch online video, the overall number of hours spent watching video has declined.

As content becomes more and more personalised, people expect nothing less: or at least they’re not willing to pay for it. Two major trends have disrupted the TV industry that boil down to the users expecting more content for the buck:

  • Cord cutting: users cancel expensive (cable) packages in favour of on-demand content and specific networks.

  • Cord shaving: people are not tempted by massive bundles that might include the channel they really want to see. For example, they choose a specific basketball package instead of a huge generic sports package.

The same is happening for the OTT market. There’s only so much an average consumer is willing to spend on entertainment. By some estimation the average US consumer has a price ceiling of $38 a month for SVOD.

Price is also the main reason people cancel their subscription in Asia: 29% of VOD churn is due to high price tag and only 21% say there’s not enough shows.

In April 2019 Disney shocked its competitors with an announcement that the SVOD service Disney+ will cost just $6.99 a month or $69.99 a year. That’s significantly lower than what the competitors have been billing their customers.

All this means that the competition for the consumers’ limited wallets and time is getting fiercer by day. You have to come up with better and better content for less and less money to stay in the game.

Telco partnerships: one way to stand out

One strategy adopted by streaming companies for getting ahead of competition is telco partnerships. In these cases, streaming services team up with telcos either to offer users simpler ways to pay (carrier billing), run cross-promotions to get more users signed up (product bundling) or both.

If you want to learn more about how working with telcos is beneficial for streaming services, download our recent white paper on the topic. Leave your contact details below and you’ll get access to the research immediately.

White paper: TV provider bundling for streaming services

White paper: TV provider bundling for streaming services

This white paper looks at how streaming companies can work together with TV providers on bundling their services. The goal of such partnerships is to achieve user and revenue growth while creating loyalty among customers of both companies.

We give an overview of what companies will benefit most from TV provider bundles and what are the standard models of bundling. We also give an overview of the key commercial and technical challenges streaming companies will face when discussing bundle partnerships with potential partners.

If you wish to learn more about how our Trident Bundling Platform helps streaming services launch bunding partnerships in a scalable manner, we will be at IBC Show in September: get in touch to meet up.

Download the white paper immediately by filling out the form below.

Meet Fortumo at Gamescom 2019!

Meet Fortumo at Gamescom 2019!

In less than two weeks, the biggest gaming industry event Gamescom is taking place in Germany. While hordes of fans will swarm the conference halls for free goodies, we are going there to showcase carrier billing to game developers.

Carrier billing is the perfect payment solution for games for multiple reasons:

  • The gaming audience is relatively young, which means they have lower access to credit cards, but can still pay through their mobile balance

  • In markets where traditional payment methods have low reach, carrier billing gives more gamers the opportunity to pay

  • Carrier billing improves payment conversion due to a simpler checkout flow, especially on mobile devices

  • Consumer privacy is protected as no personal data is transmitted during the checkout process, giving gamers more confidence in making payments

Fortumo provides a global solution to reach new users and earn more revenue through carrier billing, which we’ll be showcasing at Gamescom.

Want to meet up? We’ll be at the event from August 20th to 21st, so get in touch and see you in Cologne!

July summary: biggest stories from the mobile ecosystem

July summary: biggest stories from the mobile ecosystem

With the summer reaching its last stretch and many of you returning from vacations, it’s time to catch up with the industry news. Check out the overview below!

Don’t forget to take a look at our latest research as well. In July, we profiled carrier billing in Western Europe and explained how streaming (OTT) services can work together with telcos on user acquisition and revenue growth.

General mobile


Digital publishing

E-commerce & transportation



Country data-sheet: mobile payments in Norway

Country data-sheet: mobile payments in Norway

This data-sheet gives a detailed look into the mobile payments landscape in Norway.

Norway has a population of 5.4 million people who all have mobile phones. Their smartphone penetration is as high as 88%. At the same time barely 69% of their young adults don't have a credit card.

In this report, we bring out data that helps navigate this region for digital merchants. We hope the report gives you a better understanding of Norway's digital ecosystem and helps you maximize the efforts of your payments strategy.

Enter your contact details below and download the paper immediately!

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