Connected TV is more than just a fancy description for some enhanced, target advertising mechanism in StreamingTV.

Connected TV (#CTV) creates the very lifeline that binds the audience to a streaming service and a main element in their Business Model, if not even THE crucial pillar on which they build their monetisation

Connected TV is the UPSTREAM in Streaming. We all think of streaming too often in terms of its ‘downward’ stream: all the fancy content that is now made available to the audiences and how easily they can access it now thanks to the streaming services.

Connected TV is first and foremost the basic technical requirement that the relevant streaming device is enabled to connect to the internet. The next requirement is that this device is using a streaming service and that usually triggers the other basic factor: the user must indeed be connected, i.e. having broadband access and using the service.

While the consumer browses, selects and enjoys the content a little group of fish swims upstream in this very riverbed, that Connected TV and Streaming provided. These fish are what most streaming service providers are after: the data they can collect about the consumer. What she watches, how long she watches, how often and when and all other data point feed the various algorithms that each streaming services has. Do not be fooled: they might officially say, that they only collect a tiny amount of data. They are stupid if that be true: the richness of data and the usage of sophisticated algorithm allow them to create very detailed profiles of the users. Profiles that they use to target them better – and to monetise on it.

When it comes to using the data that they collect from streaming for monetisation, there are a few distinct business models. Most of the streaming services might use a mix of them. Many focus on one particular area specifically and try to master that one. But in general the business models use data to build monetisation options in regard to

  • better customer satisfaction & loyalty
  • e-commerce opportunities
  • targeted advertising
  • funnelling customers into other services
  • creating a device ecosystem

All these models work and I illustrate them in the below charts, that you can access via the link.

CTV Streaming & Data Business Model

GMC Presentation
  • Netflix uses data relentlessly to improve the content curation and streaming experience: hence creating happy customer who are willing to pay a subscription for that happiness.
  • Amazon Prime is the archetype of using content as a bait: to allure customers and then selling them more. They know you so well that they can easily sway you to make certain purchases that you might not have thought of yourself.
  • YouTube has cornered the market for online video advertising and together with all the Google search data, that the Alphabet Group collects is able to target advertising extremely precisely and at a premium.
  • PlutoTV is the main funnel to provide a constant inflow of new subscribers to other premium services within the Paramount+ world.
  • SamsungTV has mastered the art of building an eco-system of device – or shall we say of ‘screens’ – around your house and everyday life. They use it to collect data and to lock into their service system.

In the above presentation I have put more detail on each of these models.

If you want to learn more how you can use Connected TV, Streaming and Data to enhance your TV and media service, do not hesitate to contact us.