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Video Gaming: The new SVOD Oil?
Zooming out within the overall entertainment landscape we see that competing on the “consumer free time” is heating up more as video content players are not alone and they are challenged by other entertainment especially video games. This threat is even more pronounced among the youngsters and particularly millennials, who spend a third of their free time playing video games. International OTT video companies are realizing the growing competition from the other entertainment verticals. The answer here is either to compete or to partner, and many international SVOD companies stated to evolve their long-term strategy accordingly in the attempt to occupy the highest share of time among their audience by tabbing into the Video gaming market. We have seen recently Netflix moving into gaming with the objective of acquiring more customers by making its overall subscription proposition more valuable vs its direct competition like Disney+, HBO Max. Netflix views gaming as another content category for them and it is believed that this serves the more strategical objective to lead in the battle of consumer share of free time. We have also seen other OTT streaming players like Amazon or Apple acquiring or launching their own platforms (i.e., Twitch and Apple Arcade). Win the battle of screen time: Compete or Partner with other media verticals
Video Game could increase value and engagement for SVODs Netflix seeks to extend its customers’ relationships with movies they love into the game world, starting with its IP Stranger Things. A strategy believed to help customers spend more time on streaming services capturing from other games they might play
In the MENA markets, we have seen recently some partnership in this direction with the recent OSN partnership with PUBG mobile. This could be a good start but for this “entertainment consolidation” to be more strategic, regional SVODs should create real value to their main target audience (existing and potential) by having a clear gaming bundled differentiated proposition as part of their content strategy.
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OTT Video Success Path in MENA: How can SVOD be more relevant and create long-term value
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