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DEG Forms New Committees, Defines Terms for Direct-to-Consumer Market

DEG: The Digital Entertainment Group’s D2C Alliance Steering Committee Feb. 25 released a list of industry terminology endorsed by its members to help standardize communication about the various digital streaming models and services and to align the messaging regarding their features and benefits.

The Alliance-adopted terminology spans linear, transactional and subscription businesses:

  • AVOD: Ad-Supported Video-on-Demand services are usually free (no subscription fee) or discounted with the inclusion of advertising.
  • DTC: Direct-to-Consumer services deliver single- or multi-channel content to consumers directly from a network or provider.
  • DTO: Download-to-Own digital content is purchased or licensed from platforms like Amazon Prime and iTunes (similar to EST).
  • EST: Electronic Sell-Through enables standard or premium digital content to be streamed or downloaded by consumers for a fixed one-time fee over an extended period of time across multiple delivery points and devices.
  • FAST: Free Ad-Supported Television linear channels are delivered over the internet and available from third party platforms (e.g., Pluto, Tubi).
  • Linear TV: Linear TV refers to live or prerecorded television programs that are distributed in real time, rather than on-demand, by cable (e.g., Comcast), satellite (e.g., DirecTV), telco (e.g., Verizon Fios) or broadcast OTA (over-the-air) networks, as well as internet-delivered digital program distributors (e.g., Hulu + Live TV, YouTubeTV, SlingTV).
  • MVPD: Multichannel Video Program Distributors offer a variety of different linear content channels from multiple providers over cable, satellite or telco services (e.g., Comcast, DISH, DirecTV, Verizon Fios) on a subscription basis. Virtual MVPDS (vMVPDs) offer channels through internet-delivered services (e.g., Hulu + Live TV, YouTube TV).
  • O&O: An abbreviated way to reference a broadcast station that is “owned-and-operated” by the network or company that it’s affiliated with. NBC 4 Los Angeles, for example, is owned and operated by NBCUniversal.
  • OTT: Over-the-Top services bypass traditional cable, broadcast and satellite TV platforms and use the internet to deliver or “stream” video directly to viewers. Netflix, Apple TV, and YouTube are all examples of OTT services.
  • PEST: Premium Electronic Sell-Through for a one-time fee offers a specific piece of digital content to be purchased or licensed earlier than its traditional release “window.”
  • PVOD: Premium Video-on-Demand services permit limited-time access, for a one-time fee, to a specific piece of content earlier than its traditional release “window.”
  • SVOD: Subscription Video-on-Demand services require a periodic fixed fee (most often monthly) for accessing and viewing content an unlimited number of times while a subscriber (e.g., Disney+, Netflix, HBO Max, Peacock).
  • TVOD: Transactional Video-on-Demand services charge a one-time fee for viewing a specific piece of content for either a limited rental period (typically 24 or 48 hours), or an extended collection period (EST).

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The DEG’s D2C Alliance is focused on identifying the issues pertaining to both SVOD and AVOD services, including (but not limited to) definitions and standards; uniform messaging; activation and adoption; research and data analytics; consumer consumption patterns; improved quality of service; and generating greater overall awareness about the direct-to-consumer experience.

To this end, the Alliance also recently activated two new committees: TV & Connected Devices and DTC Targeted Services.

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The members of the TV & Connected Devices committee include Amazon, Google, LG Electronics, Microsoft, Samsung, Sony Electronics, TiVo, Verizon and Xfinity. The TV & Connected Devices committee seeks open communication with platforms and services as a way to improve the overall consumer streaming experience.

The DTC Targeted Services committee is comprised of specialized content companies, such as A+E Networks, AMC Networks, BBC Studios, FilmRise, National Geographic, The Great Courses, PBS Distribution and ScreenHits TV. The goal of the DTC Targeted Services committee is to ensure that the perspective of specialized services is represented in the key industry issues outlined above.

DEG’s D2C Alliance is guided by a group of Steering Committee executives, including Matt Strauss, chairman direct-to-consumer and international at NBCUniversal, as chair; Ron Lamprecht, director corporate business development at Amazon Prime, as vice chair; and Jonathan Zepp, M&E global partnerships, Google Platforms & Ecosystems, and Dan Cohen, president, ViacomCBS Global Distribution Group, as board officers. The officers were elected by the full D2C Alliance Steering Committee.

“Establishing accepted industry terminology is an important early step in both industry relations and consumer outreach,” said Amy Jo Smith, DEG president and CEO, in a statement. “This is an important milestone for the D2C Alliance as it moves forward with a strong base of support across platforms and services, device makers and content owners and distributors.”

Also Feb. 25, the DEG is presenting “The Maturing D2C Landscape,” an event to provide more insights about the emerging DTC ecosystem. The virtual event features experts from across the industry speaking about the targeted services landscape and the role connected devices play in consumer experience.

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