Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, December 05, 2018

Peace between OTTs and traditional operators reign with a common goal: monetization

The old dispute between OTTs and traditional operators in relation to the impact of audiovisual content on the network infrastructure as well as the imbalance of regulation and demands for each other seems to have been finally settled. The concern now is to live up to the customs and demands of the youngest consumers without neglecting exceptions and being able to project a profitable business in the long term.

For Nick Montes, Head of Americas & EVP Global Business Development at Digital Turbine, "if the content is king, the distribution is emperor." The position is understood by the focus of Digital Turbine - the distribution of content - although the analysis also makes sense. For the Digital Turbine executive "there will be a consolidation of platforms" and it will be necessary to find a way to monetize all existing content. In this regard, the official said that they are working with AT&T and Verizon to consolidate Warner's content and that this can be done at the time the user consumes it, without having to wait for the consolidation process to end. He also said that "in the United States, OTTs agreed with traditional operators." América Móvil, Telecom and Vivo are some of the players Digital Turbine is working with throughout Latin America.

Gastón Molina, Flow Mobile Product Manager at Telecom Argentina, explained how synergy starts at home. He highlighted the bonuses made to Flow users who consumed data through Personal, although he clarified that these are specific cases that sought to bring the Flow Mobile experience to customers without worrying about the consumption of data and enjoying the content; but he stressed that this is not a long-term strategy.

"The flow of this world will add all the content and all subscriptions," said Federico Llano, director of Planning of Emerging Business at Viacom, to make clear that the company conceives its OTT strategy in the hands of operators. While the greater "aggressiveness" is allocated to the generation of content, Llano explained that they have a whole line of revenue through the companies they have acquired, which are preferably digital natives and the content production plan goes in that direction, with digital studies and products that are monetized through operators.

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