- OTT media sector has benefitted from recent COVID lockdown, with subscriber numbers on video-on-demand (“VOD”) platforms rising by 196% YoY in April 2020
- With surfeit of VOD platforms leading to constrained pricing power, platforms have resorted to advertising as tool to further monetize media content
- The Movie Studio has long distinguished itself through innovative measures designed to drive subscriber numbers on its VOD platform – such as its MovieSodes feature
- With advertising growth within OTT platforms, The Movie Studio could potentially introduce new revenue steam to its business model
The over-the-top media (“OTT”) sector, which encompasses audio, video and other media content delivered over the Internet, has witnessed an astonishing surge in popularity over recent months. A recent study carried out by Adobe, which delved into the over 6.6 billion hours of video content viewed on OTT, desktop and mobile phone platforms in the US between January 2018 and July 2020, found that OTT viewing surged by as much as 196% in April 2020 (http://nnw.fm/mlqGn), with viewers opting to stream videos at a record pace during the lockdown. The Movie Studio (OTC: MVES), an independent movie studio boasting a proprietary OTT platform, is a key beneficiary from the trend. However, despite their evident popularity, OTT platforms still present a plethora of untapped potential for both, advertisers as well as platform owners seeking to generate new revenue streams.
For years, pioneers such as Netflix, Amazon Prime Video, YouTube and their ilk dominated the OTT media space; however, a spate of new platform launches in 2019 and 2020 – including the likes of Apple Plus, Disney Plus, HBO Max and NBC Universal’s Peacock have resulted in a veritable glut of platform choices for viewers seeking to consume video content. The sharp increase in competition has translated into pricing pressure across the various platforms – a survey by PC Magazine in late 2019 found that 65% of respondents would consider cancelling their subscriptions in response to price increases (http://nnw.fm/wB6xP). As a result, subscription video on demand (“SVOD”) platforms have been obliged to seek alternative revenue streams to cover ever-increasing content costs.
Platforms have progressively begun to experiment with innovative formats through which to show ads. For instance, over the past year, Hulu has introduced the concept of ‘pause’ ads, with advertisements appearing on screen when a viewer presses pause while streaming content (http://nnw.fm/HR3OM). Meanwhile, the likes of Amazon have looked into monetizing their actual media content. TV shows like ‘Making the Cut’ now allow viewers to purchase the designer products displayed during the show directly on Amazon Prime once the show has aired (http://nnw.fm/kZJDS).
The Movie Studio has long distinguished itself through the introduction of a series of innovative measures designed to boost the popularity of their eponymous OTT platform, such as the MovieSodes feature – which enables the platform’s subscribers to upload virtual auditions of themselves for potential casting consideration in the company’s upcoming film productions. Nonetheless, the advertising model which is currently being experimented on competing platforms provides The Movie Studio with a potentially innovative and lucrative way of driving further monetization of their online video content and grow their revenues going forward.
For more information about the company, visit www.TheMovieStudio.com.
NOTE TO INVESTORS: The latest news and updates relating to MVES are available in the company’s newsroom at http://nnw.fm/MVES
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