OTT VIDEO STREAMING

*The information contained in this report is prepared from data gathered on the publicly available sources in the Internet.
*The report has been prepared for information purposes only and is intended for Sales Strategy Planning Team.
The report must not be acted on or relied upon for any investment decisions or other specific actions without further study.
• OTT MARKET OVERVIEW
✓ Business Models
✓ OTT Market Snapshots (Southeast Asia and Philippines)
• RIVALRY OF COMPETITORS
• IWANT
✓ Content
✓ Marketing
• OTT ISSUES

TABLE OF CONTENT
OTT MARKET OVERVIEW
“Streaming is posing a serious threat to the long-
established cable TV industry. With more people
‘cutting the cord,’ more players are entering the
streaming space.”

OTT MARKET OVERVIEW

 “Around the year 2007, Netflix started to provide ‘on-
demand’ TV or video streaming services. The biggest
factor distinguishing the streaming services from linear
TV is the freedom to watch at your convenience. This
rapid rise in streaming means that people have the
ability to watch on any screen: mobile, laptop, or TV
and have a personalized experience.”

THE RISE OF STREAMING

BUSINESS MODELS
• An Ad-Based Monetization Model which allows viewers to watch a
content for free but at the cost of viewing ads.
• Three categories:
Pre-Roll
Mid-Roll
Post-Roll
• Can attract many users as the content is free and the only sacrifice
viewers have to make is to watch a few Ads.

AVOD
• A Subscription-Based Revenue Model where viewers pay a small
subscription fee for viewing a content.
• Two ways Subscription Payments:
In-App Purchases – Money is collected through respective store from
where the App was downloaded.
Third-Party Payment – Apps is integrated with third-party payment
providers like Paypal and receive payments through them.
• Gives a very steady and predictable revenue stream as most viewers
tend to retain the service once they have started subscribing for the
same.

SVOD
• A Transactional Video-On-Demand Revenue Model where the viewers
buy/rent content on a Pay-Per-View (PPV) basis. This model also employs
either in-app purchases or third-party payments to collect payments
from viewers.
• Two Options:
Rent – The content can be viewed for a predetermined number of times
or is kept available to the users for a specific amount of time.
Buy – Viewers pay to buy a copy of the content so that they can watch it
however and whenever they want it.
• Gives you much higher revenues as the content is either new or of
premium quality.

TVOD
• Give viewers a free trial after which they can subscribe to content.
• If content is a series, the first episode can be offered as free and
viewers can then subscribe to watch the entire content.
• Most of the content on an AVOD model can be offered and then
charge a subscription for premium content.
• The same method as above can also be used, but TVOD element can
be added to it by charging PPV for super-premium or brand new
content.

HYBRID
OTT MARKET SNAPSHOT (SOUTH EAST ASIA)
“The TV industry in Asia continues to be disrupted by a
variety of OTT TV services and is shifting more to online
video. It’s being defined by what the viewers want,
how much they are willing to pay, and what kind of
user experience viewers are demanding.”

- Greg Armshaw, Head of Sales, Asia at Brightcove

OTT MARKET SNAPSHOT ( SOUTH EAST ASIA)

TOP VIDEO APP IN SELECTED MARKETS

https://www.businessofapps.com/data/app-statistics/
VIDEO GROWTH ON MOBILE AND DESKTOP
ON SELECTED MARKETS

https://www.businessofapps.com/data/app-statistics/
HOURS SPENT USING VIDEO STREAMING APPS

https://www.businessofapps.com/data/app-statistics/
OTT MARKET SNAPSHOT (PHILIPPINES)
• Global platforms dominate advertising and subscription. YouTube
and Facebook dominate AVOD viewership while Netflix is the SVOD
leader.
• Strong forecast for advertising. With the Philippines a top 10 global
market for Facebook and more than 85% of online Filipinos
watching YouTube, both platforms are expected to retain their
dominance in video ad spend.
• Many Filipino viewers still see VOD platforms merely as a
complementary viewing tool rather than an outright replacement to
traditional TV.

MARKET HIGHLIGHTS
• Online video industry revenue reached an estimated US$139M or
Php7.089B in 2018, with 53% coming from advertising and 47% from
subscription.
• 81% of total ad revenue goes to YouTube and Facebook.
• Netflix accounted for more than 80% of the country’s total direct
subscription revenues in 2018, driven by its established brand, which
translates to a strong direct relationship with consumers, and its
partnerships with Globe and PLDT.

ONLINE VIDEO INDUSTRY

RIVALRY OF COMPETITORS
RIVALRY OF COMPETITORS
 IWANTTV YOUTUBE NETFLIX HOOQ IFLIX HBO GO VIU

Free, Free
P370/month,
P10/day, P59 for 7 days, Free Free Free
PRICE Free P460/month,
P40/week, P149 for 30 days, P129/month P199/month P129/month
P550/month
P99/month P125 for film rentals

AVOD/SVOD
(The premium
Hybrid Hybrid Hybrid subscription does not
BUSINESS MODEL AVOD SVOD SVOD
AVOD/SVOD AVOD/SVOD AVOD/SVOD entirely remove ads
from the viewing
experience.)

largest selection of
ORIGINAL User-generated and Hollywood, Asian, Sony Pictures and Obtained via
ABS-CBN HBO Korean and Japanese
CONTENT partnerships Local Movies & Series Warner Brothers partnership
teledramas

Web, iOS, Android,

Web, iOS, Android, Smart TVs, Windows
PLATFORMS Web, iOS, Android Web, iOS, Android Web, iOS, Android Web, iOS, Android Web, iOS, Android
Smart TVs 10, set-top boxes,
and game consoles

SIMULTANEOUS
STREAMING

OFFLINE VIEWING

Telco Partners Globe Sky Cable Globe

https://www.thinkwithgoogle.com/intl/en-apac/ad-channel/video/youtube-philippines-most-popular-online-video-platform/
 Here is a list of the top 15
YouTube channels in the
Philippines with their estimated
audience size.

For now, the eyeballs of the next

generation are going to
YouTube. Older demographics
prefer branded content from the
likes of Netflix, HBO, etc., while
teens prefer local and home-
produced content from their
favorite YouTube channels.

https://socialblade.com/youtube/top/country/ph
• At present, only ABS-CBN has developed an in-house app that
leverages its library. iWant is the leading domestic OTT app that
consists mainly of an AVOD service with an extensive library of TV
series and movies, as well as an SVOD layer that grants access to
premium content and a deeper content archive.
• ABS-CBN also develops original content for iWant. They are expected
to be a key investor on OTT content as it develops more original
content and looks to transform the platform’s image from a catch-up
service into an archive of original content, Star Cinema (ABS-CBN’s
film studio) films and restored movie classics.

MARKET HIGHLIGHTS
 MONTHLY
4.9M ACTIVE USERS
(Oct 2019)

112M MONTHLY VIEWS

Oct 2019

APP
5.2M DOWNLOADS
(ANDROID + IOS)
IWANT CONTENT
BOOST ENGAGEMENT RATE AND DRIVE TRAFFIC!
• Personalized recommendation based on user behavior.
• Auto play next episode/video to encourage binging.
• Make good progress with best in class original films portfolio in
different forms.
• Revive famous series from the past.
• Debut local-language titles that are very popular in home
territories (exPH).
• Build out licensing and brand partnership efforts which is
optimizing for subscribers and viewer engagement.
IWANT CONTENT
 “People consume media in many different ways. But
the one connecting feature of all new forms of media is
the story, which is the atomic unit of everything people
consume across all platforms.”

- Allen Lau, Wattpad’s Founder and CEO

IWANT CONTENT
IWANT MARKETING
TAKE MARKETING TO THE NEXT LEVEL!
• Evolve marketing to increasingly focus on launching key titles to
build excitement amongst existing and non-existing subscribers.
• Invest in owned and earned media where we can have strong,
direct relationships with subscribers.
• Enter into a partnership with Sky Cable to integrate iWant into
their new set-up boxes.
• Encourage greater video consumption on mobile by partnering
with local telcos for special data packages designed for video
streaming services.
IWANT MARKETING
 Awareness Superiority Experience Sustainability

How’s the streaming

Tension I don’t know much about iWant. Is it better than other brands? Do I keep watching?
experience?
Make iWant relevant to consumer
Convince consumer of brand’s Give consumer a memorable Show best in class original film
Approach via positioning it as best PH VOD
superiority over others. video streaming experience. portfolios.
platform.

Facebook Video Google Search Google Search

YouTube Ads

Platform Sampling Event FB Remarketing

FB and IG Ads

Facebook Reach and Frequency

IWANT ANALYTICS
• MOM and YOY User Growth
• Video Streaming Hours
• Buffer Rate
• Retention Rate

IWANT ANALYTICS
OTT ISSUES
VIEWING SENTIMENTS
• Global (Netflix) and regional (Hooq and iFlix) platform leadership
• Dependence on Internet Service to watch more
∙ Philippine Broadband speed is slowest in Asia
∙ Lack of infrastructure to launch 5G services
∙ Internet data capping
• High incidences of online piracy and signal theft
• Filipino’s strong appetite for Hollywood content
• Low credit card penetration

OTT ISSUES