2022 flew by and will be leaving some trends behind and some will continue to take the world by storm in 2023. As the media landscape is constantly changing due to market saturation, the cost of living crisis, new technologies and more, 2023 will undoubtedly come with exciting fresh trends. At XroadMedia, we believe the following industry trends will be at the top of everyone’s minds this year.
Diversifying in Distribution Models
This one won’t be a shocker. Big names such as Netflix, Disney Plus and Hulu all now offer an extra tier that is lower than their standard but includes advertising. It has become the response to the rise of the cost of living and to help fight the levels of churn that services have been experiencing in the last few years. Deloitte Global has predicted that by the end of 2023, two-thirds of consumers in developed countries will be using at least one AVOD monthly service. As more and more SVOD providers are now offering an AVOD service, it will be interesting to see how this plays out throughout the next few months and if users are willing to watch ads.
FASTer than Ever
As well as businesses turning to cheaper models, some are now starting to provide FAST channels, such as DAZN’s recent launch in Germany. This isn’t new, but this year is set to bring a new phase of a maturing FAST market as consumers will be looking for new developments. Some important areas, such as personalization, are still not being utilized within services, but it would help to increase users’ satisfaction and loyalty.
Growth of CTV Advertising
It has been predicted that CTV ad spend will grow by over 14% this year as traditional linear advertising will drop. With other advertising channels, such as search and social, becoming saturated, brands are looking for alternatives and with more people watching CTV than ever before, it is a perfect opportunity.
Superdata Takes Charge
The more knowledge a service has about its users, the better the experience it can provide; the more you know about a person or situation, the better your predictions about what will happen in the future will become. Superdata will combine all data sources and add a layer of AI automation to provide new types of analytical data points. This is something that will be able to run millions of these simulations simultaneously and provide never seen insights.
OTT Super Aggregation – The Art of Convenience
In a crowded market, subscribers are getting drowned with logins. According to a recent report by Accenture, 86% of consumers want a single app to provide all entertainment services and 41% said they would consider paying for it. This will continue to be a focus for operators and telcos in particular, as they want to keep their platform central to their users’ entertainment universe.
Social Viewing Experiences
Social viewing experiences, also known as “social TV,” refers to the practice of watching TV shows or movies with others, often through a shared screen or online platform. These experiences may involve interactive elements such as chat functions, trivia games, or voting mechanisms and are designed to encourage social interaction and create a sense of community among viewers. This will spark more partnerships in order to be able to deliver such experiences to audiences.
User Experience is Central to Everything
As the fight is on for audiences’ attention more than ever before, user experience has to be central to everything brands do. Whether it is advertising, the platform’s UI or even the content being offered, the user’s experience must be the priority to all decisions made. And, of course, central to the user experience is personalization. If done right, personalization and content discovery can earn users’ trust and helps build a loyal audience.
2023 may be a challenging year for the media industry with the closure of traditional linear channels, for example, but will situations like this be saved by the ever-growing number of mergers and acquisitions that continue to change the landscape? Despite the economic downturn, people will always want to be entertained. With cheaper options becoming widely available, brands will realize that’s where their audiences are and, if smart, will utilize this to their advantage.
If you want to get ahead of your competition by offering the best-personalized experiences, then get in touch with our team today.