Are you curious about the upcoming OTT trends for 2023? We all are!

In the past decade, the television industry has been disrupted by online video streaming services. And it is not stopping. The following article will provide you with an overview of seven media streaming trends to watch for in the next months. Let’s get started!

1. Content Fragmentation

Content fragmentation is a media distribution strategy that focuses on delivering collections of content designed to match the interests of specific audiences (which explains why you will not find yoga classes on Netflix, or documentary series on Masterclass).

This approach has been happening for some time now, but it has been accelerating in recent years. It is intended to increase the likelihood that every segment of the audience will find something they like, and thus spend more time on streaming platforms.

Content fragmentation carries more monetization opportunities as well as more loyal communities of content consumers. It will be interesting to see how the top OTT players will interpret this trend in the coming year.

2. AVOD

AVOD is still among the emerging OTT trends for 2023. As inflation increases in the world, consumers will seek cheaper ways to watch their favorite TV shows and movies. With the rising number of platforms offering unique video content, AVOD (advertising-based video-on-demand) seems like a gift for those who feel subscription fatigue (as well as to those who are being hit by the rise in prices). As a result, instead of paying with money, users can pay with attention (or time). 

For broadcasters and content creators, this emerging trend is another way of monetization. It also decreases the problem of piracy that is prevalent in traditional pay-per-view models. Advertisers are also happy with this model thus they can reach the target audience in a more efficient way and the cost for their ads is much lower than traditional TV commercials. 

Since viewers don’t have to pay their hard-earned money for watching movies or TV shows – it seems like a win-win-win strategy (for viewers, broadcasters, and advertisers alike) that promises to be a big hit in the upcoming year. 

3. Dynamic product placement 

Dynamic product placement is a new form of advertising that enables brands to insert their products into the content. This type of advertising allows for substituting or overlaying products, billboards, and screens in video content.  

In today’s world, it’s a challenge for advertisers to stand out and make their products memorable. Hence, dynamic product placement is a new way for advertisers to influence customers and nudge them to make a purchase. 

Currently, this technology is most popular in video games, where businesses can display their logo on stadiums and buildings during gameplay. As technology advances, it shouldn’t come as a surprise if in 2023 dynamic product placement becomes as popular in OTT as it is now in gaming. So we can’t wait to see how this innovation will continue to develop.

4. Appointment TV 

There’s no doubt that an increasing number of content providers will strive to maximize their revenue by balancing linear TV and VOD.  

It means that in 2023 certain streaming platforms will introduce a long list of content that runs one after another in succession. As a result, users will be able to watch what is already scheduled for a specific time. For free. 

As you probably heard, Netflix has already been experimenting with this type of content delivery calling it “Netflix Direct”. What’s interesting is that Netflix Direct is only available in France for now. We suppose that the rest of the world can look forward to their railroad in the coming year. 

5. Contextual targeting 

Contextual targeting is a technique that allows the algorithm to recognize shapes and patterns and adjust ads accordingly. So if your favorite movie character leads a healthy lifestyle, the algorithms will show you ads with healthy snacks only. In this case, that means no more epic Coca Cola commercials on your screen. 

This type of targeting is becoming increasingly popular among media streaming trends. There are a number of ways that streaming platforms can implement contextual ad targeting. One approach is to use metadata and tags associated with the content to identify relevant keywords and themes. 

Another approach is to use machine learning algorithms to analyze the content and identify patterns and trends that can be used to target ads. For example, an algorithm might identify that users who watch cooking shows are more likely to be interested in ads with kitchen appliances. More relevant ads mean better campaign results, that’s why contextual targeting seems very promising. 

 6. Omnichannel performance 

Omnichannel performance refers to the ability of a business to deliver a seamless and consistent experience to its customers across multiple channels. It is becoming increasingly important as the OTT industry looks to provide a consistent UX across a variety of devices and platforms including smart TVs, streaming boxes, mobile devices, and desktop computers. 

We all know that user experience must be consistent across all devices – especially when it comes to navigation, user interface design, and content discovery. And speaking about content discovery – it seems that the upcoming year will surprise us with even better-tailored recommendations. Does it mean that in 2023 we will spend less time on movie selection? We hope so! 

7. Sustainability 

Sustainability is the last but the most important position in the upcoming 2023 OTT trends. The media industry has a significant impact on the environment due to the energy consumption and carbon emissions associated with streaming content.

Thankfully, key OTT players are taking steps to cut their carbon emissions. Due to this trend, we can expect to see many companies adopt energy-efficient technologies in the next few months. 

We suspect that the industry will focus primarily on the following two practices: data compression, and more efficient delivery methods. In terms of eco-friendly technologies, the coming year sounds promising, and we can’t wait for more innovations to come. 

Final words on upcoming OTT trends in 2023

While it’s impossible to predict exactly what the future will hold, it’s clear that the media streaming industry will continue to evolve and change in exciting ways. If you are a content creator, a streaming service provider, or simply a media consumer, it is important to stay up to date with OTT trends and developments in order to make informed decisions about your media consumption and distribution strategies. 

As we say goodbye to 2022 and look forward to 2023, we want to wish you a happy and healthy new year. We wish you exciting new developments, great content, and plenty of streaming options to choose from. Here’s to a bright future for the OTT industry, and for all of us who are a part of it. Happy New Year!