The D2C model, between traditional methodology and new content platforms

As part of the 2019 edition of the Nextv Series Colombia event, the leading conference that took place on June 27th at the JW Marriott Hotel in Bogotá, the ‘D2C and new platforms for content’ panel was developed. Ernesto Carreño, Head of Marketing at DirecTV Colombia, José Luiz Ribeiro, Regional Sales Director Latam at Alpha Networks, Luis Redondo, CEO of Globalplay, and Diego Carvajal Galeano, Regional Digital Director of Discovery USH / Latam at Discovery were part of it. Some of the topics debated were the movement towards the Direct to Consumer model (D2C), the exclusivity of content, the role of pay TV operators with linear content and the VOD integration, the new ICT law in Colombia and the crisis of the traditional model.

When asked about how Discovery is focusing on the movement towards D2C, Carvajal said that ‘beyond having content by categories (such as D2C, B2B2C, and others), what is happening is that there are certain niches where people have the option to consume only them’. The executive said that ‘the offer is not available in Latin America, but there are important efforts in Europe, through specific niches. ‘That is the definition of D2C’, he said. According to Carreño, ‘we know that the exclusivity of content is a competitive differential, and it generates an attraction from our clients, as long as they can deploy itf’. Carreño said that DirecTV is mainly committed to sports, and pointed out the events currently available on the DTH operator, such as the World Cup, the Copa America and the Spanish League, among others. ‘We know that people prefer us for sports, and being able to complement that content from any device also makes a difference’, he said, to conclude that ‘the differential and exclusivity in content is what will make the difference in the coming years’. 

Regarding the pay TV operators linear content compared to the arrival of D2C, Carreño expressed that ‘DirecTV offers both linear and on demand content. The linear and live content continues to leave a very open door, especially in sports. People want to watch the matches live, not when they are over’. In addition, Carvajal said that ‘we are beginning to handle Discovery Kids’ digital strategy from Latin America for the global level, and new formats are being developed, but not designed for B2B or B2B2C, but focusing ourselves on the format. Then, we will think about the distribution’. The executive emphasized the development of interactive stories, where children will be able to determine what they want to happen in the each content plot. ‘More than thinking of exclusive formats, we think on formats compatible with the digital world and new trends, and then we see that they can be distributed in the possible channels’.

From the technical point of view, Ribeiro said that ‘operators should be a content hub, and integrate a unified experience to survive in this market’. The executive expressed the need to ‘have the necessary tools to promote specific content for specific audiences, and also integrate live catalogs and VOD’. Regarding streaming content, Carreño said that ‘in a first step, DirecTV wanted to give our customers the ability to watch the content live’. In this regard, he stressed that ‘today people ask for multi-cameras, statistics and 4K, attributes that generate a differential, but the important thing is to give the main content. Today we are doing it in digital formats, an option in audio, and in the future we will be thinking about placing the multi-camera’, he said.

With regard to displaying local content within the platforms, Redondo said that ‘we have found an opportunity in local content, in niche contents, in contents that are regionally attractive, and in the OTT platform we have seen that Boyaca products, Casanare and other regions are watched in many places, because we have many Colombians outside the country where they wish to see those contents. We are producing informative and timeless products, which allow us to show very specific issues of tourism, culture, gastronomy, economy, production, and these contents begin to be attractive in those specific niches of the market’. In relation to the new ICT Law available in Colombia, the executive said that ‘it has an important added value, which will allow the Internet to be developed, the way to reach content. By having a greater diffusion capacity in bandwidth, in which the consumer has greater ability to drag content, it will present an opportunity for all of us’.

“Using technology to promote content is a key thing. Today’s is a round-trip world. There is a lot of information that clients can send, and operators can have key information to increase revenues and have an optimized operation’, said Ribeiro. ‘Alpha Networks is focused on studying the analytical phenomenon, because the traditional methodology is in crisis and there is another world that we have to be adapted’.