Vrv offers new distribution model for OTT services

Monday 27 November 2017 | 12:55 CET | Background

On-demand media consumption is leading to fragmentation in the range of video services on offer in the market. In addition to telecom operators and Amazon, Vrv is a new player delivering an 'a la carte' service where consumers can assemble their own package of video services. 

Customers are facing new choices with the ever-growing number of OTT services. Which services to subscribe, how can I get multiple services within my budget, is it enough to end my pay-TV subscription ('cord cutting')? Or are the services complementary, as pay-TV operators and Netflix would like us to think?

Operator and Amazon as super aggregators

The operator, which historically has been the cable provider, acts as gatekeeper for most consumers. With the set-top box, remote control and menu structure, the pay-TV provider can serve up a complete offering, including OTT services. See Deutsche Telekom's recent agreement with Netflix for this kind of strategy. 

Amazon Channels is another alternative, as we've written about previously. Amazon handles the distribution and billing for over 100 OTT services, making it a 'super aggregator'. In addition to the US, Amazon Channels is already available in a few countries in Europe, such as the UK and Germany. 

Vrv: new model

That's not the end of innovation in the market. The US company Ellation introduced in 2016 a new model, under the name Vrv, and the platform already has 1 million active users. Consumers can subscribe on Vrv to a bundle of up to 12 OTT services. The latest additions are Mubi (arthouse films) and CuriosityStream (edu-tainment).

Ellation, which is part of AT&T's joint venture Otter Media, offers consumers a 'freemium' model with a lot of choice. Vrv asks participating SVOD providers to make part of the content available free, with advertising. In addition, customers can choose 'a la carte' from the rest of the services, or take all of them for just USD 10 per month. That compares to a price approaching USD 50 for subscribing to the services separately. 

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

::: add a comment