Content : time to mix it up and start again?

A look at the most popular streaming services in the UK in 2023 reveals an interesting development in what consumers want. Paul Skeldon takes a look at how the content market needs to be about more than just, well, content – and how that is driving mVAS explosive growth

Content is indeed king, but as consumers demand more and more of it, content alone is no longer enough. In fact, the content needed to drive VAS and carrier billing is increasingly relying on a complex mix of lengths, formats and channels to create a value proposition that consumers are prepared to pay for.

Take a look at the digital streaming market if you want proof. A study by Digital Climax out in May has shown that Amazon was the most popular streaming site in the UK in 2023. Netflix was third. No surprises there – but the report does contain something quite telling. Fourth and fifth in the rankings were The Daily Express, a newspaper, and Radio Times, a TV listings magazine.

So, the top five most popular streaming sites in the UK in 2023 contains two ‘old media’ players and a retailer and shows that, increasingly, the content market isn’t just about the kinds of content that streams. In fact, it isn’t just about TV and movie content in the streaming world, it is about way more. And that is symptomatic of the broader content market.

Looked at the other way round, what the report tells us, I believe, is that consumers are looking for a multimedia experience. While that may all sound a bit ‘90s (and it does, I was there), it marks an evolution in the content market, certainly in the UK, away from just dedicated TV-like streaming content to something richer and more holistic.

While Netflix is a pure streamer – as is number two in the UK, Sky – Amazon isn’t and nor are The Express and Radio Times. All have other strings to their bows.

Amazon originally used the lure of free delivery through Amazon Prime to tempt users into its streaming business. Today it uses each to temp users to pay a yearly subscription, guaranteeing a massive and steady income from millions of users. The fact that you only get some content for free is testament to how powerful the lure of Amazon is.

Netflix, conversely, has been a focussed subscriptions-based content streaming service and, while it still attracts the users in large numbers, it is having to consider selling advertising and creating a premium level of service to help balance the books.

Much of this has been because it has spent a large sum creating excellent content. Amazon, which has done the same, augments that cost with subscriptions and pay-per-view. Amazon too has a very strong retail media ad business, which generated $47bn in 2023 – and it uses its streaming platform as part of that offering to brands. This also helps it pay for content.

But look at what is happening at the other two in the UK top five streamers. The Daily Express and Radio Times, however, come at this from a very different place. Both are old school media companies – inky publishers, at least originally – and rely on display advertising, banners, sponsored copy, subscriptions to news services and sales of physical publications to bank roll what it does. Its streaming content sits around this and is used to pull people into the site to watch, thus putting them in front of all those adverts and sponsor opportunities.

And this old-fashioned way of doing things seems to be working. The Daily Express had around 103.8 million visits throughout 2023. It had the most hits in January 2023, with 11.1 million visits, and receives an average of 8.6 million web visits per month. The digital platform of the Daily Express and Sunday Express, has online access to global news stories and additional entertainment like puzzles and games. Similarly, Radio Times ranked fifth with approximately 73.4 million visits in 2023. Known for its television and radio programme schedules, the website had the most visits in January 2023, with 6.9 million total visits, and receives an average of 6.1 million visits per month. Radio Times also provides film, TV, and entertainment news and interviews with many of the biggest stars.

So, what does this mean for the content market? As Julia Dimambro, CEO of Seriously Fresh Media attests, the content market is shifting and creating the right content to satisfy what is becoming an increasingly diverse consumer demand is now a big challenge for telemedia companies. There is so much demand, but while many are pursuing just TV and movie quality long-form content, or pushing deeper into shorts, perhaps what is really needed is a more mixed bag of media types, as well as content formats?

With the increasing use of AI, there are increasing ways to create a cornucopia of content, but as Dimambro points out, you still need the human touch. And I think this means looking not just at creating video content, but looking at the whole range of things people consume. Pictures, text, memes and GIFs to create services that encourage visitors and engagement.

This has the added advantage of being able to also leverage messaging tech – especially RCS and WhatsApp – to drive traffic, and for carrier billing to micro bill for additional content and access.

Underpining all this, however, is advertising. As we have seen, commerce media – where any consumer facing entity with first-party consumer data is poised to capitalise on selling brand ads, especially as cookies are no more – is a growth market for many and will soon be a key marketing channel for telemedia and VAS companies.

However, for all these streamers – and by that I also include all those content players that make up the telemedia market – advertising based around this content as well as to advertise the content itself is set to explode.

With publishers now coming round to multiple content formats, delivered across multiple platforms, the opportunity to create marketing networks has never been bigger or more ripe.

mVAS set to hit $3.5bn by 2030

As platforms and channels explode – and marketing across those channel also booms – mVAS services are set to also see explosive growth.

In fact, the global mVAS market is estimated to be worth US$880.4m in 2024 and is likely to grow at a 14.9% CAGR through 2034. The market is expected to surpass a valuation of US$3.5bn by 2034.

According to data from FactMR, reduced prices of smartphones due to intense competition among manufacturers have raised the adoption of mobile phones in emerging countries filled with lower-income populations are driving the growth of mVAS globally. Technological advancements including virtual reality (VR), augmented reality (AR) and high-definition video streaming are also critical for growing the market.

Enhanced connectivity, says the report, enables businesses to develop and offer better and more interactive mVAS offerings that elevate user experiences, which in turn is also driving up use.

The increasing use of mVAS by enterprises to streamline communication with clients and customers is also propelling market growth. Furthermore, mobile apps and services facilitate project management, boost employee collaboration and enable data analysis.

East Asia is projected to account for a share of 36.5% in 2024. By 2034, the region is anticipated to acquire a market share of 38.4%. The regional market value is expected to reach US$1.35bn by 2034. North America’s market is estimated to attain a value of US$1.02bn by 2034. The region is projected to be led by the United States.

Underexploited countries such as South Korea and Mexico are also forecast to show a high adoption rate for mobile value added services. Leading players can focus on their expansion efforts in these economies.

Leading market players are emphasising the development of compact and costeffective mobile value added services to gain more customers. Furthermore, active players in the mobile value added service market are attempting to attract additional customers.

In addition, leading players in the market are focusing on inorganic growth strategies like strategic mergers and acquisitions, and collaborations with technology partners to enhance their offerings and reach.

In 2023, Google unveiled a new range of AI-powered features in its translation application at its Paris virtual event. These new features consist of more contextual translation options with examples and descriptions, an augmented-reality translation feature via Google Lens, and a redesigned app for Apple’s iOS operating system.

Deutsche Telekom, Ericsson and Samsung, in June 2021 successfully executed a 5G end-to-end (E2E) network slicing pilot. This trial was conducted on Samsung S21 commercial equipment, which is combined with Virtual Reality headset at Bonn lab of Deutsche Telekom.

The network provider’s market share is poised to ascend, projected to increase from 62.9% in 2024 to 63.3% by 2034, with an impressive Compound Annual Growth Rate (CAGR) of 14.9%. The segment is forecasted to achieve a substantial market valuation of US$2.2bn by 2034.

This growth is fuelled by the escalating adoption of mVAS by network providers, leveraging it to fortify customer relationships, reduce acquisition costs and mitigate customer churn rates, contributing significantly to the segment’s expansion.

Simultaneously, the enterprise segment is expected to experience robust growth with a CAGR of 14.6% through 2034. The surge is driven by a growing number of enterprises integrating mVAS to enhance operational efficiency and customer engagement. Utilising mVAS, enterprises seek to improve communication, receive real-time updates, personalised offers, and transaction notifications.

Moreover, these services play a pivotal role in optimizing internal functions, project management,sfostering employee collaboration, and facilitating data analysis, says the study.