NexTV Series South America 2016 gathered on June 15th and 16th at the Plaza Hotel Buenos Aires, Argentina, Pay-TV, film, Free-to-Air TV and OTT executives as well as representatives of YouTube channels, to open the debate on new business models and the relationships between technology and service providers, value aggregators and content distributors.
The Executive Panel “Strategies for Subscription VOD OTTs in South America” asked about the possible death of traditional Video On Demand to the new Pay-TV OTT phenomenon with linear channel packages, the functionality of the transactional model and strategies for devices: VOD set-top boxes (STB) and players, smartphones and Smart TVs.
Maria Laura Ullmann, Director of Selecta TV, spoke about the niche of classical music in Latin America and how the presence of hardware fell in the region, offering them a business opportunity. “Through strategic alliances with producers, we are the only OTT the world to have curated content from all over the world from the best venues in the world, from the hands of the best artists. Selecta’s goal is to attract 30-35 year-old customers and make alliances with schools, since they are not the main target of this style of music. Daily work is done to simplify the interaction with the platform. Most users already had dealings with other OTTs, especially with Netflix, and that helps us. We have alliances with cellular providers and in Argentina we have 3,000 subscribers to the premium service and 2,000 subs to the free version.”
Carlos Hullett, CEO of Vivo Play, said: “We’re not focused on pursuing or competing with anyone. We are focused on doing what we do because we are the only ones to do what we do. Hyper segmentation is the key to success. Our focus is Latin American live content. We are not thinking of VOD libraries. Channels see Vivo Play as an opportunity not go unnoticed as on other platforms. A way to succeed is to not lie in numbers. There is a process of evangelization so that the client understands what we are offering. We have been adopting some content through the transactional model that have been successful. People want to watch in TV something specific live and pay for that day. When the motivation is real, people are willing to pay. Piracy exists because of the unavailability of a product in legal platforms, and the price can help. This new industry does not believe in the window system. This is becoming expired due to globalization. The future of TV is in apps.”
Gustavo Monaco, Head of Distribution at SPI International Latin America, commented: “We are moving in Europe and English-speaking Caribbean through SVOD mode. We have demonstrated the ability to adapt to the operator based first on production. Not all content work in the TVOD model. I believe more in the success of mixed models based in SVOD but with options. Programmers do not have the flexibility to offer complete catalogs. We need to develop successful business models that can mix linear and OTT, TVOD and SVOD. The successful model is listening to the customer.”
Gustavo Castro, Marketing and Content – On Demand Service in Telefonica Argentina, said: “We have a mixed system. People are getting used to SVOD and TVOD is still hard for them. There is some discomfort; many claims confusing new with valuable. There is a constant request from customers for more content. The transactional model is very difficult. There were unsuccessful experiences with sports. One factor that is critical is that we will have to compete with the monsters that produce content and are not going to be able. You have to provide a good deal of curated content; the rest is an empty box.”
Hernán Portugal, CEO of Go Live Entertainment, told: “We are all aiming for the five next years, it is a process. We aim to niches; we are not centralized in the traditional focus of TV. Our strategy is to associate ourselves with larger suppliers. When we started the paradigm was that the Latin American user was not going to pay for digital content. But the problem is on the corporate side and the paradigm is changing. We are implementing the YoPago system in Mexico, which is a pre-paid system. The problem you have is that it is non-recurring, we must encourage reuse. We imagine creating global products. From now to five years we will all be integrated rather than competing.”
Jouari Santiago, Sales Director for thePlatform in Latin America, explained that in countries where there are advanced internet networks video streaming technologies are being pushed. “Our system integrates to all components of the OTT ecosystem. We are mediators of solution components. The important thing is the simplicity to access content, no matter the payment, but if it is too complicated the client is lost. I think the future is consolidation.”
With more than 45 speakers (80% senior industry executives), more than 300 attendees and over 16 hours of networking, NexTV Series South America 2016 offers a unique opportunity to catch up on new trends in the Pay-TV market such as the rise of Multi-Channel Networks (MCN), the boom of Video on Demand (VOD) and the migration of all media (including radio and press) to multiplatform audiovisual format.