January 1, 2020
The home entertainment industry’s two trade groups are aggressively courting streamers, but they remain focused on the transactional side of the business, as well.
Both Amy Jo Smith, president and CEO of DEG: The Digital Entertainment Group, and Mark Fisher, president and CEO of the Entertainment Merchants Association (EMA), believe both branches of the home entertainment industry can thrive.
“We know that 4K Ultra HD Blu-ray is the premium choice for viewing content at its best,” Smith says. “And buying content allows fans to collect their favorites and watch at any time. SVOD and AVOD services offer an exciting way to access all types of content, from award-winning originals to genre specific catalog titles to episodic television series.”
“There are some movies that consumers are waiting impatiently to see on their home screen,” Fisher adds. “These movies generally won’t be available on subscription streaming services until much later. Consumers may not fully appreciate the benefit of this window and that titles are available much earlier.”
Looking ahead at 2020, Smith says, “DEG will continue to support transactional businesses for content while also looking to support DTC services. We will support the studios in their work with retail partners to bring content front and center. For DTC, our work involves aligning messaging so that consumers understand the opportunities for them in the burgeoning DTC environment. We also want to make sure the experience of discovery and viewing is optimized. It’s a very exciting time for both consumers as well as the industry providing and delivering content.
Fisher said the EMA in 2020 will “formally, fully embrace the broad spectrum of OTT delivery, including SVOD and AVOD, while continuing to support TVOD. We plan to contribute significantly to supporting the ecosystem surrounding OTT including platforms, channels, content providers and service providers by expanding many of our already successful programs as well as launching new ones. This includes connecting companies for efficient business negotiations in events like our popular OTT.X business exchange, gathering and sharing valuable business insights and industry research in our conference sessions and facilitating the development, evangelization and education of industry best practices such as the digital supply chain work we’ve been doing over the last decade.
“We’re also excited to be launching our Leadership Development Foundation, dedicated to supporting recent entrants into the home entertainment workforce and providing professional development opportunities for women and underrepresented minorities.”
What’s in store in 2020 on the transactional side of the business?
“We’re still digesting the learnings from the industry-wide Ultimate Media Weekend promotion that we coordinated last year, anticipating another round this year,” Fisher says. “We’ll be examining every aspect of the program from timing to whether the program should be price-point based or not, to whether it should focus on VOD or EST or both.”
“Obviously,” Fisher adds, “this is the year that consumers will be navigating direct-to-consumer options. More consumers than ever before will cut their relationships with their cable TV providers and use OTT services. Consumers will want to append their costly DTC SVOD services with less-costly SVOD specialty channels and especially with ‘free’ AVOD channels and platforms to supplement their viewing selection.
“The challenges will be to get noticed above the loud noise of the larger studios and existing leading services, and to make the consumer experience as friendly, reliable, and easy as we’ve gotten used to with our cable TV experience — both in functionality and in search and discovery of content.”
Fisher says he’s got “one more point for next year and the future — any launch of a new format or window needs to be coordinated across industries — physical and digital retailers and services/content providers/consumer electronics companies. Lack of consistency in timing, in promotion, and in terminology have confused the consumer and slowed adoption. We can do better, and we’re looking forward to supporting the industry as it continues innovating.”