Given the surge in mobile internet penetration and improvements in the underlying infrastructure, increasing numbers of people are spending more time consuming media online than through traditional means.
Television Broadcasts Limited (TVB), the major television broadcaster in Hong Kong, recognizes this seismic change in consumer behavior from direct-to-home (DTH) television to the over-the-top (OTT) model – a streaming media service offered directly to viewers via the internet. The company, thus, launched in 2016 the streaming platforms myTV SUPER and TVB Anywhere, targeting local Hongkongers and overseas Cantonese viewers respectively.
“OTT has made possible what traditional media has failed to do, by providing large databases of video content inexpensively, with consumer choice and viewing capabilities across multiple connected devices,” said Lam Kwai Hing, Chief Operating Officer – Business Development of MyTV Super Limited. “Viewers welcome the ability to select and watch a wide range of programs anywhere and anytime via set-top box, mobile phone, tablet or computer.”
Lam said the company has forged strategic partnerships with major telecom operators, such as Hong Kong Broadband Network and Hutchison Telecommunications, in providing a bundling service of broadband and OTT media. To date, the platform has accumulated nearly 9 million registered user devices. “The still rising subscription number helps consolidate our viewership and, thus, expand our revenue base,” he added. “The rapidly rising advertising revenues meant that we were able to break even by as early as December 2017.”
Building on the success of myTV SUPER, the company launched, in 2019, myTV Gold, a premium version with over 55 linear TV channels that comprise a treasure trove of classic and the latest TVB programs that Hongkongers have come to love, as well as acquired programs from overseas. It aims to be the true gateway to family entertainment, and allows users to access the same account among numerous devices. There are also the value-added features of having less disruptive advertisements, and viewing exclusive programs in advance of linear channels. Subscribers are expected to top the 100,000 mark by the end of the year.
To further bolster its subscriptions, the newly-introduced myTV SUPER Original provides the platform’s audiences with exclusive self-produced programs ranging from dramas to lifestyle. “This is another tool to help us corner the market,” said Lam.
Lam pointed out the OTT platform has established diverse streams of revenue. The first is subscription. “Recent years have witnessed many more OTT services operating on a paid subscription basis – the most prominent being Netflix. Rolling out myTV SUPER is in sync with the trend, and enables more audiences to access TVB content.”
Akin to other online platforms such as Facebook and YouTube, the company also derives revenue from advertising. It has, since 2018, started running the data management platform (DMP), an advertising tool used to identify target consumers in different age groups, genders, regions and viewing behaviors. The launch of DMP is a boon to advertisers and agencies to enhance their return on investment, said Lam.
myTV SUPER does targeted advertising focusing on certain traits and consumers who are likely to have a strong preference. These individuals will receive push-up messages and notifications. On top of it, the system also recommends programs customized and tailored to each user’s search and viewing history.
“Advertisers can use this valuable information to reach their target consumer groups, as well leveraging the Ad Booking Manager,” said Lam, referring to the system that facilitates advertisers to place commercials directly and target customer groups.
Also launched on the OTT platform is ‘OK BUY’, a one-stop e-commerce service designed to capture instant consumer appetite. “Free from restrictive television regulations, we have more room to help clients market their products,” explained Lam. “We’re optimizing the shopping procedure so that once viewers see the show-and-sell advertisement, they can purchase the products directly on the set-top box.”
To construe a seamless online transaction, the company is currently in discussion with payment service companies to add payment functions to the remote control of myTV SUPER, expected to be put into use next year. This means after selecting the products on the TV and pressing the ‘OK’ button, users can simply tap their cards at the remote control to pay instantly.
Despite the unparalleled potential the OTT landscape promises, Lam said piracy remains a major issue. “It’s paramount for us to act in concert with the company’s strategies in aligning with audiences’ habit to provide consumers with what they need – whether it’s payment, service, convenience or streaming quality – to get them to stop watching pirated content.”
Lam Kwai-hing, Chief Operating Officer - Business Development of MyTV Super Limited
