The Survey Says.... Viva Entertainment Group (OTTV) is Going to Do Great
Netflix, Inc. (NASDAQ:NFLX) may be the name to beat, but the data says an up-and-comer like Viva Entertainment Group Inc (OTCMKTS:OTTV) could easily prove to be trouble for the entrenched giant.
BY MATTHEW BRIAR
Jan 6, 2017 6:22:30 AM PST | No Comment(s) - Post a Comment
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Most consumers broadly, vaguely know that so-called over-the-top television services like Hulu and Netflix, Inc. (NASDAQ:NFLX) are slowly chipping away at traditional cable television service providers. But, the full extent of this paradigm shift may not have been fully appreciated until Paywizard published some jaw-dropping statistics about just how fast the OTT sliver of the television market was growing. Perhaps even more compelling to current and would-be owners of Viva Entertainment Group Inc (OTCMKTS:OTTV) is how possible it was for an unestablished name to break into the over-the-top television market and steal business before Netflix and Hulu even get a chance to win it.
As suggested, Viva Entertainment Group is an OTT play, but not in the conventional sense. In short, Viva Entertainment Group will allow anyone to get into the subscription-based IPTV game with their own customized version of an over-the-top service if they don't have the technology necessary to create their own over-the-top service. See, Viva Entertainment Group is the name behind Viva Middleware... a white label app that any third party can utilize as a means of selling OTT, IPTV services to their crowd of users as a means of generating revenue.
There are multiple advantages to this platform and arrangement, including a custom-built product that can effectively target a particular demographic. Case in point? In August, OTTV entered a joint venture with Oi2 Media to create an OTT product catering to the Latino market. Oi2 Media is the United States' biggest distributor of Latino-centric digital content, offering both music and television. It's the name behind CNN en Espanol and ESPN Deportes Radio, just to name a few. It wouldn't be out of line to call the joint venture something along the lines of a Latino Netflix, but with a variety of channel broadcasts -- some live -- along with the digital broadcasts of hundreds of Latino radio stations.
That degree of customization also underscores one of the key shortcomings of over-the-top television choices like Netflix or Hulu.... what you get is what Netflix and Hulu decide to give you. Neither offers music or network programming, and each user only watches a small portion of the programming available to him or her. It's a waste of content, opportunity, and money. But, it's been the norm simply because organizations haven't had the ability to custom-create a product. With Viva Middleware, they do, including an option that allows for pay-per-view right within the OTT interface.
Potential markets include universities that want to offer students a low-cost, slimmed down cable package (perhaps with some university programming), hotel chains that no longer want to be beholden to local cable companies, television channels that know they're facing an uphill "cutting the cord" battle, phone companies, media companies that want to sell a highly-targeted service like a kids-programming OTT service, and more.
And Paywizard's telling statistics? As of December, the proportion of global consumers with over-the-top subscriptions grew from 25% to 45% in just 12 months. The research also suggest that despite the dominance that brands Netflix and Amazon Prime enjoy, alternatives like Foxtel Play in Australia, Maxdome in Germany and Now TV in the UK show strong potential, with 32%, 22%, and 19% respectively of first-time subscribers saying they planned to sign up to these services this past Christmas.
Paywizard's Chief Marketing Officer Bhavesh Vaghela commented "The research provides powerful evidence that the pay-TV sector is a dynamic and rapidly changing marketplace, where incumbency is no guarantee of future success and challenger brands remain on the rise. There is still enormous potential for new and local OTT players to carve their own niche and attract both first-time and multi-service subscribers. The findings make clear that in pay-TV, there is still everything to play for."
In other words, yes, Viva Entertainment Group has a great chance at carving out a piece of the market, which is expected to be worth $20 billion by 2020.
Go here to learn more about Viva Entertainment Group.
Matthew Briar is a paid contributor of the SmallCap Network. Matthew Briar's personal holdings should be disclosed above. You can also view SmallCap Network's complete Disclaimer and SEC Rule 17b Disclosure.
