🇫🇷 MIPCOM24: The Global FAST & AVOD Summit
Highlights from the Global FAST & AVOD Summit
Missed the MIPCOM Global FAST & AVOD Summit presented by
yesterday?Whether you were tied up in meetings, couldn’t make it to Cannes, or just need a refresher, I’ve got you covered!
Introducing Summit Summaries: quick, insightful recaps of the key discussions from yesterday's summit.
Now it’s your turn to turn these highlights into actionable insights for your business ;)
During the MIPCOM week, I offer a special 20% discount on my premium membership TSL+. You’ll join in time to receive my special report “Beyond the Game”, a guide to how streaming is transforming sports in MENA, including a summary of the sports rights available by platforms. To be released on October 31st.
AVOD & FAST Insights
Global advertising and video subscription trends
Maria Rua Aguete discussed the significant growth in online video advertising, highlighting platforms like YouTube and TikTok. Despite some complaints, she emphasized the need to include these platforms in analysis.
The conversation touched on the division of online advertising into categories like social media and selective advertising. Maria questioned the definition of premium content, pointing out that premium online media advertising may be overstated.
TikTok's Dominance and Global Market Insights
Maria highlighted TikTok's impressive $30 billion revenue in 2029, positioning it as a significant player globally. TikTok is the second-largest platform after Meta, with a strong presence in China and globally.
She emphasized the importance of content creators making money, noting that certain content is more profitable in specific countries. The US leads with $9 billion in revenue, followed by Europe with $1 billion.
“Five channels account for 25% of all viewing on Pluto TV in the US” - Maria Rua Aguete, Head of Media & Entertainment at Omdia|
Content Focus and Market Challenges
Maria stressed the importance of focusing on high-demand content that attracts viewers. Data showed that five channels account for 25% of viewing, with 20 channels covering 50%.
Channels like Star Trek and sports are highly successful, and library content remains crucial. She emphasized the need for quality content appealing to a broad audience, including older viewers.
Partnerships and Subscription Models
Maria discussed the power of partnerships, particularly with telcos, which contribute to one-quarter of Netflix's subscriptions.
She highlighted the popularity of platforms like TikTok and Netflix in markets like Brazil and the US. Understanding viewer demographics is key, with platforms like YouTube and TikTok attracting users across different age groups.
Consumer Behavior and Device Usage
Maria explained that 90% of FAST users also subscribe to SVOD services. She shared data on device usage, including smartphones, Smart TVs, and set-top boxes.
Understanding where viewers consume content is vital, with platforms like YouTube and Netflix popular on connected TVs. She also debunked the myth that younger viewers only use small screens, emphasizing the use of larger screens and set-top boxes.
“90% of people who watch FAST also subscribe to an SVOD service. It's not just they don’t want to pay, they just want to watch content” - Maria Rua Aguete, Head of Media & Entertainment at Omdia|
Advertising and Retail Media Opportunities
Maria discussed retail media's potential as a major revenue source, with companies like Roku expected to generate $30 billion in Europe by 2029.
She noted that while companies often lose money on TV hardware, they profit through advertising. Understanding the advertising landscape and the growth potential in retail media is crucial.
Scaling Success: Innovative Content Partnerships
Genesis and Evolution of the Partnership
Samuel Harowitz explained that Tubi began as a licensed tech stack and transitioned to building its own library eight years ago, now amassing over 250,000 movies and TV series. David Decker emphasized building long-term relationships and curating content thoughtfully. The partnership with Warner Bros. Discovery has evolved through openness and trust.
Focus on Customer and Data-Driven Decisions
Tubi's content decisions are driven by customer preferences using first-party data, aiming to provide immersive viewer experiences. Warner Bros. Discovery also values audience feedback and curates content accordingly.
"Free streaming is now part of the windowing strategy, not just a library windowing strategy" - Samuel Harowitz, Senior Vice President, Content Acquisition and Partnerships, Tubi
Building Strong Partnerships and Curating Content
The partnership between Tubi and Warner Bros. Discovery is characterized by mutual trust, creativity, and adaptation based on audience feedback.
The collaboration has shifted from bulk licensing to more customized, multi-touchpoint relationships.
Adapting to New Business Models and Consumer Preferences
Flexibility and client understanding are key to building strong relationships. Tubi tailors licensing deals to new platform needs, and face-to-face interactions are crucial for deeper partnerships. Curiosity and asking the right questions lead to successful collaborations.
Optimizing Content and Consumer Engagement
Tubi uses machine learning to match content with viewers and has launched FAST channels as a complementary experience to AVOD. The focus is on high click-through and completion rates for seamless consumer engagement.
Premium Content and Windowing Strategy
The partnership with Warner Bros. Discovery includes free streaming as part of the windowing strategy. "The Curse of the Necklace" was launched as a Tubi original after theatrical and transactional windows, showing the importance of integrating free streaming into release plans.
"We want to help companies like Tubi to grow in other markets" - David Decker, President, Content Sales, Warner Bros. Discovery
Key Metrics of Success and Future Plans
Success is measured by viewer engagement and satisfaction. Trust and transparency are crucial for delivering content effectively. The partnership enables dynamic deal-making and plans to expand into new categories and genres.
International Markets and Future Growth
Tubi is expanding into international markets, using original content to build brand identity. The partnership aims to grow Tubi's presence globally, with a focus on becoming the top service in each region.
Found this article insightful? Don't keep it to yourself, share it with your team and start the conversation!
Emerging Giants: Tapping into LATAM and APAC Potential
Global Market Overview and FAST Services
Sa Eva Nébié discussed the growth of AVOD across all regions, identifying Latin America and Brazil as key markets with strong growth potential. Pluto TV and Samsung TV+ were introduced, highlighting their significant global presence.
"67% of all smart TVs are due to be delivered into APAC by 2026" - Ed Love, Head of Samsung TV Plus - ANZ & Southeast Asia, Samsung TV Plus
Latin America and Brazil Market Insights
Katrina Kowalski provided an overview of the advanced TV market in Latin America, noting high adoption and engagement. An Omdia study predicts that 85% of LATAM AVOD revenue will come from Mexico and Brazil.
Pluto TV has strong engagement in Mexico, Brazil, Chile, and Argentina, supported by partnerships with major sports leagues like Copa Libertadores and FIFA.
APAC Market Entry and Strategy
Ed Love discussed Pluto TV's recent entry into the APAC market, focusing on Singapore and the Philippines, with plans for expansion to Thailand. The importance of Ad-supported models in the region was highlighted, with 67% of smart TVs expected to be delivered to APAC by 2026.
Innovative Partnerships in LATAM
Katrina Kowalski highlighted the innovative partnership with Tinder for the MTV Beija Sapo format, which generated high engagement and revenue.
She introduced the first branded channel with Salon Line, featuring original shows and product integration. The collaborative nature of these partnerships was key to their success in driving content production and user engagement.
“85% of the revenue coming from LATAM was going to be generated in Mexico and Brazil" - Katrina Kowalski, Senior Vice President, International Content Programming and Acquisitions for Pluto TV
Channel Diversity and Localization
The discussion covered the trend of increasing channels on FAST platforms, with a shift towards a more curated approach. The importance of local content and local teams in curating channels was emphasized. Katrina Kowalski pointed out that mixing local and non-local content is crucial for driving engagement.
Leveraging Local Content for Global Reach
Ed Love highlighted the focus on local content in Southeast Asia and its potential to travel within the region. Global platforms play an important role in distributing regional content. There are exciting developments in AI for localizing content, with Sa Eva Nébié raising questions on the impact of AI on personalization and FAST channel distribution.
"It happened to be one of our most revenue generating partnerships of the year in 2023" - Katrina Kowalski, Senior Vice President, International Content Programming and Acquisitions for Pluto TV
Innovation and Future Directions
Ed Love discussed the potential of personalized news channels and their application in general entertainment. Katrina Kowalski emphasized the importance of collaboration and partnerships. The vision for the future includes more collaborative approaches and industry consolidation.
Content Strategy and Advertising: The New Rules of Programming
Content Distribution and Market Strategy
Claudia De Wolff emphasized the need to distribute content across multiple platforms, including over 30 CTV platforms. Jennifer Vaux discussed the Roku channel's presence in various markets and the need to innovate to stay competitive. Jonitha Keymoore highlighted the importance of having a clear market presence and leveraging unique selling propositions, especially with extensive localized content catalogs.
Balancing AVOD and FAST Content
Jennifer Vaux explained the dual approach of offering both AVOD and FAST content to meet different viewer needs. Claudia De Wolff discussed the importance of using data and market insights to deliver localized and engaging content, while Jennifer Vaux noted the significance of providing enough information to content partners for effective decision-making.
“What’s funny is that what's old is new” - Jennifer Vaux, Vice President of Content Acquisition & Programming, Roku
Audience Preferences and Content Strategy
The discussion explored the impact of AVOD and FAST content on decision-making. Jennifer Vaux emphasized catering to viewer preferences, while Claudia De Wolff highlighted the varied ways viewers engage with content.
Jonitha Keymoore stressed audience affinity in content selection and the importance of audience retention for successful programming.
Data-Driven Programming and Localization
Claudia De Wolff discussed using heat maps to track viewer retention and optimize programming. Jennifer Vaux highlighted the role of machine learning in curating content and driving repeat engagement.
Localization was also discussed, with Jonitha Keymoore noting the surprising success of some content in international markets, and Claudia De Wolff explaining the creation of localized channels with native programmers.
“We've also found that the content you wouldn't think of actually over performs in some markets” - Jonitha Keymoore, Head of Content, FilmRise
Innovation and Real-Time Feedback
Jonitha Keymoore explained the benefits of owning and operating Apps and FAST channels for testing and gathering real-time feedback. Jennifer Vaux shared an example of a successful FAST channel, emphasizing the importance of breaking traditional mindsets.
The potential for personalized programming and targeted Ads was also discussed, with Jonitha and Jennifer noting the value of unified messaging for brands.
Advertising and Audience Engagement
Jennifer Vaux discussed the importance of maintaining a good viewer experience when integrating advertising. Claudia De Wolff explained the strategy for contextualizing ads for specific demographics, especially in music video content.
The potential for personalized advertising and targeted ads was highlighted as crucial for future audience engagement.
“Your reason for being there has to be super, super clear and really leaning into what your USP is” - Claudia De Wolff, VP, Content and Programming, Vevo
Europe’s TV Markets: Adapting to Local Dynamics
Overview of Streaming Platforms in Europe
Candelaria Balaguer introduced herself as the business developer of BB Media and Data Science, presenting an overview of streaming platforms in Europe. She noted that almost 80% of consumers use streaming platforms, with popular models like AVOD and FAST dominating the market.
“You can get a conversion from Tik Tok to our YouTube channels with the right strategy"- Linette Zaulich, Director Unscripted, ZDF Studios GmbH
Emerging Opportunities in the Streaming Market
Candelaria Balaguer asked about emerging opportunities in the streaming market, comparing subscription and Ad-based models. Linette Zaulich explained that European audiences are accustomed to Ads, making them more acceptable.
Cédric Monnier added that the FAST format continues to offer opportunities due to its flexibility and cost-effectiveness.
The Role of Fast4EU in the Streaming Landscape
Cédric Monnier discussed Fast4EU, a group supported by the European Union to foster digital innovation. The company works with content providers to develop tech solutions that comply with local regulations. Fast4EU aims to promote European culture within and beyond the EU through local monetization and distribution.
"There's always a dilemma when it comes to advertising and FAST. The deeper you go into personalization, the narrower the target audience becomes in the end" - Cédric Monnier, CEO, OKAST.TV
Importance of Country of Origin in Attracting Audiences
Linette Zaulich highlighted the importance of local content in attracting audiences. She noted that some markets prefer subtitles, while others require full localization. The preference for localized content varies by market, reflecting different audience expectations across Europe.
Adapting Strategies to Grow AVOD Platforms
Linette Zaulich confirmed that ZDF is focusing on AVOD platforms like LG TV, where their content performs well. Documentaries, in particular, benefit from AVOD's easier access and lower barriers to entry.
ZDF is not planning to launch another SVOD channel, instead prioritizing AVOD for broader reach.
Personalization in Streaming Services
Cédric Monnier discussed the challenges of personalization, emphasizing the need to balance targeting narrow segments with reaching a broad audience.
Linette Zaulich noted the importance of understanding algorithms and managing personalization to maintain user engagement without overwhelming users with unwanted content.
Balancing Business Models in Streaming
Cédric Monnier explained that hybrid models combining subscriptions and Ads are becoming more common in streaming services. He emphasized the importance of mixing business models to cater to diverse customer needs and maximize revenue and engagement.
Data Analytics in Understanding Audience Behavior
Linette Zaulich and Cédric Monnier discussed the role of data analytics, highlighting the challenges of standardizing metrics across platforms. They emphasized that data sharing and better standardization are crucial for optimizing scheduling, monetization, and improving business outcomes.
That’s all for today, key insights from the Global FAST & AVOD Summit. If you found this breakdown valuable, spread the word and share it with your network!
Throughout the week, I’ll be sharing with you the latest insights coming from the three MIPCOM summits:
Already available
Article coming on Thursday, October 24
Don’t miss my Hot Takes from MIPCOM 2024 during a live webinar on October 29th, with Marion Ranchet from Streaming Made Easy. Register here.
Master Streaming in MENA with exclusive data & analysis for streaming media professionals. Subscribe to TLS+:
Read all the previous edition of The Streaming Lab here.
Download my latest report, STREAMING in MENA - August 2024. Exclusively available to TSL+ Prime members!
Interested in advertising with The Streaming Lab and reach a qualified audience in MENA? Email me.
