On October 1st, Opera Software announced that a series of video apps, created using their connected TV service called Opera TV Snap, launched on Amazon Fire TV.
According to the official press release:
“Opera TV Snap automatically transforms online video channels into apps fully optimized for Smart TV devices and set-top boxes such as Amazon Fire TV. There is no cost for video content publishers to create an app, which is ready within a few clicks and within a few short minutes. As well as handling app development and distribution, Opera TV Snap enables monetization for content publishers via the leading Opera Mediaworks advertising platform.”
Opera TV Snap is just one example of Video Services available on Connected TV, a market that in just a five-year window is expected to grow by over US$9 billion at a CAGR of 74.73 percent from 2013-2018.
What are Video Services via Connected TV?
Video services on connected TVs are provided by various websites that distribute online content provided by the content developers. These services enable users to order content online, without downloading it, to watch on their TVs. Connected TVs allow viewers to access online content from their TVs without using their PCs or laptops, and the devices used for this purpose include gaming consoles, streaming devices, smart TVs, and STBs.
Fierce Vendor Competition
Vendor performance in the Global Video Services on Connected TV Market may be affected by price wars resulting from competitive pricing by the leading vendors. It may also be affected by national and local economic conditions and demographic trends. The changing economic conditions are affecting the living standards of customers and could also affect vendors’ business.
Vendors in the market compete on the basis of factors such as innovative technological features, price, distribution, and global presence. Currently, the five major players in the market are:
- Comcast
- DIRECTV
- Envivio
- Hulu
- Netflix
With the increasing competition, service providers are continually revising their prices to attract users. They are focusing more on active content mix and enhancing personalized viewing experiences.
By gathering user information from social media and other streaming sites, they are building user interest profile databases. This will not only help them serve consumers better, but also provide accurate advertising targets. For instance, in 2011, LoveFilm announced various subscription offers with low prices and content.
Gaining an Edge in the Market
This is also where Opera Software seized the opportunity to build their brand. By offering a series of video apps via Amazon Fire TV, it “positions Opera TV for the first time as an app publisher for other TV application platforms. This brings the potential for content providers to massively increase their audience reach when generating apps via Opera TV Snap, in addition to distributing their apps via the major manufacturers and pay-TV operators already offering the Opera TV Store”.
Opera Software’s Senior Vice President for TV & Devices, Aneesh Rajaram, said:
“Opera Software has always heralded Opera TV Snap as the fastest way for video content owners to reach millions of new viewers across the globe, and that has been proven yet again with the launch of Opera TV Snap apps on Amazon Fire TV,” said Aneesh Rajaram, Senior Vice President for TV & Devices, Opera Software. “We are excited to offer Opera TV Snap publishers yet another platform for massively increasing their audiences, via Amazon Fire TV”.
What Does Technology Like This Mean for the Market?
Opera Software, along with several other vendors, are helping to lead a trend by trying to integrate over-the-top (OTT) into STBs by exploring new technology and revenue streams. Mobile devices such as smartphones and tablets are able to deliver OTT video services to consumers. OTT apps such as Hulu Plus and Netflix are becoming more popular among consumer groups than TV Everywhere apps. The OTT Video market is expected to grow exponentially in the next five years.
