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‘Significant’ untapped revenue potential in live IPTV

Live programming still holds significant value among both consumers and broadcasters, and untapped advertising potential of live IP-delivered TV must be realised in the near future in order to counter the threat posed by major internet media companies, according to a recent research programme conducted by MTM.

The research, sponsored by dynamic ad insertion (DAI) company Yospace, looked specifically at the growth of live IP-delivered television in Europe and the advanced advertising opportunities that are being created as a result.

The paper found that live event programming – such as major sports events and reality TV – plays a major role in the popularity of live IP-delivered TV, accounting for approximately 70 per cent of simulcast viewing on broadcasters’ OTT video services in the UK. On a wider scale, live and linear TV accounts for 60 per cent of total video viewing in the UK market.

Tim Sewell, CEO, Yospace, said: “We are living in what many TV executives are calling the ‘golden age of TV’, and this research proves that there is robust demand for a strong supply of high-quality TV content. Although this content is now being delivered in numerous ways, broadcasters still see the incredible power that live, linear TV still has in attracting concurrent audiences at scale as unique.”

The research paper also predicts that major internet media companies such as Amazon, Facebook and Google will dramatically scale up their investments in live TV as they attempt to extend their offerings. In particular, the acquisition of rights to premium live events among these companies is expected to increase significantly.

However, despite the threat of increased competition, most TV executives interviewed as part of the research programme continue to be optimistic about the commercial prospects for linear and live IP-delivered TV. This is providing that broadcasters and pay TV platforms can develop advanced TV advertising capabilities, such as DAI, that leverage first-party data in order to grow their businesses and defend against online competition.

Sewell added: “In order to stave off the competition, broadcasters need to ‘supercharge’ their live IP simulcast advertising with the next generation of advertising technology. Certain broadcasters have already invested heavily in data-driven targeting and DAI technology, and others will probably look to follow suit in order to protect the revenues afforded by live, linear television as it moves to a digital environment.”