A large portion of TV viewing is on Connected TVs and Devices; the audience continues to migrate to these CTV platforms rapidly over the five years. As consumers continue to wield immense influence over the trajectory of entertainment consumption, the CTVerse transforms into a thrilling journey. The evolving tastes and expectations of viewers dictate the evolution of platforms. The landscape is fluid, mirroring the ever-shifting desires of an audience hungry for innovation, diversity, and immersive experiences.
The ONLY TV viewing devices that experienced an increase in usage in 2020 were internet-connected TV Devices (“smart” TVs, connected, and dongles).
The media and entertainment ecosystem is changing speedily. It’s zoom-in on a region of the Media Universe, be it film, gaming, or TV, advertising spending an increasing share of their time. Want to know which platform is going to win the race in today’s mapping of the CTVerse? Before that, let’s explore what CTV is, its benefits, and more.
What is OTT?
Stands for “over the top”, in which video content is served to viewers over the traditional television system. With OTT, users don’t have to pay a cable or satellite company to enjoy the video content as the streaming content is served through the internet.
Benefits of OTT Advertising
Brand safety with ads delivered on-demand or live TV; viewers are reached across top-tier networks and popular content. It ensures the safety and 100% viewability that enables viewers to view the content on the full screen, showing 100% view pixels, eliminating the below-the-fold ads of media vehicles. Viewers are enabled to watch the ads through the end; the average completion rate is around 98%.
What is CTV?
Connected TV, or CTV, is a TV set used to stream video content over the web. These are often videos that are streamed through apps that are downloaded. A device that is classified as a Connected TV device is:
Smart TV: TV with a built-in media platform and internet connection. This means no additional equipment is required to stream videos on the TV.
Gaming Consoles: Xbox, Playstation, and Nintendo Switch are acting as connected devices with built-in app stores for video streaming content to the television.
Connected Device: Termed as an OTT device, these are devices that plug into the TV and are connected to the internet, which enables video streaming apps to be used on the television, the TV itself is a smart TV. For Example, Apple TV, Roku, Amazon Fire Stick, and Chromecast.
Benefits of CTV Advertising
With Connected TV advertising, you can easily reach TV viewers that advertisers can not reach without traditional TV commercials. And this is where CTV (Connected TV) comes into the spotlight.
With CTV, audience targeting becomes easier; you can ensure your marketing dollars are going toward the most targeted and valuable viewers. Programmatic channels let you measure the results of the Connected TV campaigns with traditional or digital metrics, including video completion rates. With the growing percentage of cord-cutting, it’s a smart option to choose this option.
Different CTV Advertising Types
Mainly there are two types of ads:
- Client-side
- Server-side
On the client side, the streaming media viewport loads ads before movies or episodes are shown. Whereas server-side ad insertion doesn’t enable you to block ads as they are seamlessly integrated into the media frame. Moreover, supporting server-side ad insertion is relatively uncommon, as it’s a much more technically challenging task.
Different Ad Formats You Can Consider
There are six types of CTV ad formats to the standard video ads through which marketers can serve ads to users within the CTV ecosystem. These include:
Dynamic Overlay: The video content is leveraged, personalized, and “overlay” for the viewer.
Choice-based: Viewers are empowered to an ad they want to view. Often a message such as “Which ad experience do you prefer the most?” is shown with two options.
Actionable and Shoppable Video
These ad types are interactive and connect users to the brands and products within the ads. They can provide external links, educational content, and click-to-by capabilities within the ads.
Sequential CTV Creative: Instead of one shot, a whole story is represented over a sequence using more than one ad.
Voice-integrated Video Ads: Users can use their voice by speaking into the remote to push users’ engagement and follow on-screen prompts.
End Cards and Creative Extensions: These types of ads are in short-form content served after or before the CTV creatives. However, if you’re looking to measure the ad impact, incorporating a QR code is the smart way.
CTVerse Map: Have a Quick Look Over!
The current CTV ecosystem is very chaotic for everyone, including advertisers, programmers, and consumers. Besides conventional wisdom, there aren’t dominant players in the device space. Samsung sells most TVs and covers 75.5% of the market share. Samsung has sold around 14.85 million TV units, which has increased by 39% year-over-year.
Roku has almost 51% of the streaming box market in the US; the company has around 30% of the market for streaming sticks. Fire TV and Roku are huge; however, they are relatively small when you zoom out worldwide. More than 21% of users use Roku, while 23% use Fire TV.
The battle between the content streamers who make CTV devices like Google, Amazon, etc., and device makers known as programming channels like VIZIO, Roku, and Samsung, as well as game console makers with installation bases & access to IP and capital, including Microsoft, Sony, etc.
There is a tremendously underserved and potentially lucrative market for Connected TV; it represents 42% of the CTV market. The global war for eyeballs is for dominance for the under-discussed as well as unsexy part of the ecosystem that is The CTV Operating System.
Titans of the CTVerse: Who Will be Winner?
In the fast-evolving world of entertainment and technology, the battle for supremacy in the Connected TV (CTV) space is reaching new heights. With an array of platforms competing for viewership and market share, it’s an exciting time for both consumers and industry insiders. In this blog, we’ll dive into the current landscape of the CTVerse, exploring the leading platforms and attempting to predict which one might emerge as the ultimate winner.
Roku – The Pioneer
Roku, often considered the pioneer of streaming devices, boasts a diverse range of products and a user-friendly interface. With millions of active users and a plethora of channel options, Roku has set a high standard in the industry. Its neutrality, providing access to various streaming services without bias, has contributed significantly to its success.
Amazon Fire TV – The Ecosystem Giant
Amazon’s Fire TV has rapidly gained ground, fueled by the retail giant’s ecosystem. The Fire TV Stick, in particular, has become a household name, offering seamless integration with Amazon Prime Video, Alexa voice control, and an extensive app library. Amazon’s aggressive approach to content creation and partnerships adds another layer to its competitiveness.
Google/Android TV – The Universal Player
Powering various smart TVs, Google’s Android TV is a versatile player in the CTVerse. Its integration with the Android ecosystem, Google Assistant, and a broad range of supported apps make it a universal choice for many users. The recent rebranding to Google TV and improvements in user interface design showcase Google’s commitment to staying at the forefront of the market.
Apple TV – The Elegance Factor
Apple TV, with its sleek design and integration with the Apple ecosystem, has carved a niche for itself. While it may have a smaller market share compared to some competitors, its dedicated user base appreciates the seamless connection with other Apple devices, access to the App Store, and exclusive content through Apple TV+.
CTVerse: Game of Thrones HeatMap of Power: Who is Going to Win?
The majority of CTVs are made outside the United States; there are billions of people who do not live there but watch TV. The big area of growth for all players on this map comes from regions not known as America. Disney and Netflix have the power to break or make new devices or operating systems.
Netflix refuses to grant access to OEMs who make around one million units per year. However, Netflix’s competitor Disney has a rigorous qualifying process to grant access to the apps. Amazon Prime and HBOMax have rolled out in the direction of their SVOD. Amazon has powerful fingers and leverages many pieces with AVOD, SVOD, CTVs, and electronic sales.
Evolution of Dominance: From Google Chromecast to Amazon’s Fire-Roku Duo
Today’s CTVerse winners might not be tomorrow, as there are companies that can dictate their own fates. Past were the days when Google Chromecast was a winner in the CTV device market with 20% of the market share in the US.
By 2020, Amazon’s Fire combined with Roku will cover 75% of CTV Devices in the US. In 2017, TCL had a 0%Smart TVs market share in the US, but now it has 15% by licensing TV Operating Systems from Google and Roku.
Hisense’s Strategic OS Play: Vidaa Takes the Lead
Hisense had 0% of CTVs share in 2027 in the US, but with Roku TV expansion, it has in the UK, it got a 5% market share. It grabbed the market by licensing OS from Android and Roku. Hisense focuses on their OS: Vidaa, indicating a move away from partnering and battling for their share of the OS market.
Samsung’s Market Leadership: Stagnation Amidst Global Competition
Samsung is leading the market, but it’s not growing; it has 32% of the market share in the US, identical to what the company had in 2017. The company’s share of Connected TV devices sold worldwide has dropped from 23% to 14% between 2015 and 2020. The company was followed by Sony and LG with 12% and 8% in 2020, according to a Statista report on the global Connected TV devices streaming market share.
Most companies have moved into other areas of revenue like licensing the CTV OS, OEMs, Tizen & other TV brands, but few have met resistance as they face humongous competition from other companies. For example, just like Roku, Samsung has also launched the programming platform “Samsung TV Plus” to generate advertising dollars.
There is a lot of talk around Fire TV and Roku, but do you know that LG is the 2nd largest CTV company? It’s powerful outside the US; the company also has launched a programming platform for ad sales. LG has licensed their WebOS and CTV OS, similar to CTV and OEM brands, which have met much similar hesitation as Samsung and for the same reason.
TV sales are a low-margin business; this is the reason why LG, VIZIO, Samsung, and Roku have moved into the FAST business. Ad sales and data are the most important areas for revenue growth. This is also one of the reasons why OEMs are exploring new partnerships with CTV OS platforms. Amazon is paying around $10 per unit for OEMs to use the Fire OS. Whereas Google does the same for Android TV.
Emerging Trends and the Road Ahead
As technology advances, so does the CTVerse. New players may enter the race, and emerging technologies like augmented reality (AR) and virtual reality (VR) could reshape the landscape. The rise of interactive content, personalized recommendations, and innovative advertising models further add to the excitement.
Ending Note
While it’s challenging to predict a clear winner in the CTVerse, user preferences, content availability, and partnerships will likely play a decisive role. The evolving landscape demands adaptability, and a platform that successfully integrates user-friendly interfaces, diverse content libraries, and cutting-edge technologies may ultimately emerge victorious.
The CTVerse is a dynamic battleground where each platform brings its unique strengths to the table. The winner may not be a single platform but a combination of factors that cater to the diverse preferences of the global audience. As consumers continue to shape the future of entertainment consumption, the race for supremacy in the CTVerse promises to be a thrilling journey. Stay tuned for the next chapter in the evolution of connected television!
For those seeking to not only participate but excel in the CTVerse, Alphanso Technology stands as your strategic ally. We specialize in providing white-label video streaming solutions, live streaming services, and cutting-edge OTT platforms. Our commitment lies in empowering your online presence, ensuring that you navigate the complexities of the CTVerse with confidence.
As the future unfolds and the CTVerse continues to captivate audiences worldwide, consider Alphanso Technology as your partner in innovation and success. Whether you aim to establish a white-label video streaming service, delve into the world of live streaming, or launch your own OTT platform, we are here to turn your vision into reality. Stay tuned for the next wave of connected television, and let Alphanso Technology be your guide in this exhilarating journey.
FAQs (Frequently Asked Questions)
What is the CTVerse, and why is it significant in entertainment?
The CTVerse, short for Connected TV Universe, refers to the interconnected ecosystem of platforms, devices, and technologies that facilitate television streaming and content consumption. It is significant because it represents the evolving entertainment landscape, where users can access a wide range of content through various connected devices.
Which platforms are currently leading in the CTVerse?
Amazon’s Fire TV, Roku, Google/Android TV, and Apple TV are among the leading platforms in the CTVerse. Each has its unique strengths and market shares, shaping the competitive landscape.
How can you assist in navigating the complexities of the CTVerse?
Whether you want to establish a white-label video streaming service, delve into live streaming, or launch your own OTT platform, Alphanso Technology is your strategic ally, guiding you through the dynamic landscape of the CTVerse.
What are the emerging trends shaping Connected TV’s future?
The CTVerse has witnessed remarkable evolution, from the dominance of Google Chromecast to the combined influence of Amazon’s Fire and Roku. Emerging trends include augmented reality (AR), virtual reality (VR), interactive content, personalized recommendations, and innovative advertising models. These factors collectively shape the future of connected television.
How do content providers influence the success of Connected TV platforms?
Content providers, including streaming services like Netflix, Hulu, and Disney+, significantly impact platform success. These services often have preferences for specific platforms, influencing consumer choices. Understanding these content partnerships is crucial in predicting the success of a Connected TV platform.
Do smart TV manufacturers play a role in shaping the CTVerse?
The CTVerse extends beyond devices, with smart TV manufacturers such as Samsung, LG, and Sony contributing to the landscape. These manufacturers often have integrated platforms, adding another layer of complexity to the competitive environment.