Over-the-top (OTT) service is increasingly popular as it is more convenience to consumers. This trend pushed many businesses shift to digital platforms to meet the demands of an increasingly digitized consumer. The many options available have prompted consumers to seek out the best OTT content service providers and the trend also brought out the need for a robust recurring billing platform. Learn about OTT monetization solutions: https://www.vindicia.com/solutions/ott-monetization-solutions/

1. 1
The Next
Generation of
Niche Video
Content
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

2. 2
The Next Generation of Niche Video Content
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
The cord-cutting sensation is reaching new heights as the convenience of over-the-top
(OTT) services becomes increasingly popular. The Total Audience Report Q4
2014 published by Nielsen found that 41 percent of U.S. homes subscribe to a
Subscription Video Service on Demand (SVOD), up from 36 percent the previous year.
Further, Digital TV Research has anticipated OTT content revenues will surpass $10
billion in 2020, up 52 percent from $6.85 billion last year. As a result, more and more
businesses have shifted to digital platforms to meet the demands of an increasingly
digitized consumer, and the influx of options has prompted consumers to actively seek
out the best service providers for OTT content, very commonly SVOD content.
Cable providers are putting up a fight against SVOD services by offering bundled and
unbundled packages, single channels, and live programming options in order to stay
competitive alongside the expansion of the SVOD industry. However, SVOD services
aren’t set to slow down anytime soon. What’s more, a new generation of niche video
content is emerging, and it is poised to harness a significant portion of video content
subscriptions.
In a market flooded with options, content is king and crucial to the success of a provider.
In fact, a recent study conducted by Parks Associates found that among the top must-
haves in an SVOD service, consumers seek original content.

3. 3© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
The study also found that services designed to attract consumers with interest in
particular genres, languages or cultures allow industry players to find defensible niches
that they can identify, target and hold against competitors. Niche content, whether it be
cultural, thematic or geographically relevant in nature, is creating strategic opportunities
across the globe for OTT service providers to hone in on the preferences of viewers and
deliver personalized content to any screen, anywhere in the world.
Further, in a study conducted by MTM, industry leaders anticipated that by 2018 there
will be 15-20 niche services attracting over 100,000 subscribers. The study also found
that the niche market is expected to grow strongly by 2018 when compared to current
market revenues. The research indicates that technology costs for subscription video
content providers have fallen significantly, enabling a wide range of providers to enter the
market and causing opportunities for specialist or niche premium offerings to become far
more accessible. Although it is believed that Netflix will retain its market dominance, a
portion of its audience is predicted to fall away to new subscription services, like those
offered by niche content providers.
Millennials are overpowering the digital entertainment market, and convenience and
personalization are at the top of their “must-haves” list for SVOD platforms. Now more
than ever companies have the need to deliver better, more personalized content to build
audiences and find success in a flourishing market. However, while unique features and
niche content might attract customers, how will companies keep those customers
engaged with so many competing products on the market?

4. 4© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
Kris Nagel, Senior Vice President of Worldwide Field Operations of Vindicia, will be
speaking on the topic of niche video content at Digital Hollywood Fall, Oct. 19-22 in
Marina del Ray, California. Kris will be participating on the panel, “Programming the New
‘OVNs’: Online Video Networks: the Next Generation of Niche Video Content,” in which
he will provide insights on the importance of subscriber accruement and retention, and
discuss how it will give niche video content providers the edge they need to thrive in an
overcrowded industry. The panel will take place on Monday, October 19 at 3:45pm.
To attend Kris’s panel session, please register here:
http://www.digitalhollywood.com/registration.html.

5. 5© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
About the Author: Bryta Schulz
Bryta joined Vindicia in 2013 and serves as Senior Vice
President of Marketing. She is responsible for building brand
awareness, creating go-to-market strategy and promotion, and
driving growth. With over a decade of executive level marketing,
product management and PR experience, Bryta has led
marketing teams in enterprise technology and SaaS companies.
Her experience includes heading product marketing at GoGrid,
PGP, RSA and Symantec and business development and
product management positions at Xcert, Thales, and
Persistence Software. Bryta holds a MA in Translation from the
Johannes Gutenberg University Mainz and an MBA from the
University of Reutlingen.
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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.