New strategies for FTA broadcasters going OTT open the first Nextv Series Mexico virtual edition

Dataxis is helding the first Nextv Series Mexico virtual edition, a leading conference that is taking place this Tuesday, December 1st and Wednesday, December 2nd. The first panel of the event was called ‘Free-to-air broadcasters going OTT: new strategies’, in which issues related to SVOD, Freemium and AVOD alternatives were discussed; together with catch up and VOD library monetization; as well as multiplatform & social networks monetization and engagement, and other related topics. 

The team of industry experts gathered by Dataxis to develop the panel discussion included Charlie Deane, Director of Sales Latin America at Wildmoka; Rommel Valencia de Paz, Marketing Director and Digital Multimedia Operations at Multimedios Television – Canal 6; and Emilio Aliaga, Digital VP at TV Azteca.

Regarding the agreement between TV Azteca and Tubi, announced in mid-2020, Aliaga reported that ‘we started keeping in contact with Tubi in 2019. One of the things we noticed is that the core of their core business is exactly the same as ours, and it is based on advertising, and it makes a perfect match for advertisers when we offer them all the audience that we have from TV, and an audience of an OTT. We also have new and different users, with whom we can be working together. We started working with them and made the official announcement at the end of January, announcing that we would launch at the end of Q2 and, despite the pandemic, we were on our time’, said the executive. Regarding integration in terms of content, Aliaga expressed that ‘it was a challenge, because, logically, many people were working from their homes, and the bandwidth available in homes is different from that in offices. In terms of content, we were able to send them between 500 and 600 hours. We also made a marketing agreement, through which TV Azteca represents Tubi exclusively in Mexico. It is a promotion, marketing, distribution and content agreement. And it is working very well. We have about 4 million applications downloaded since the end of June, and 80% of the users who have downloaded it have used it in November. Now it is about to come out on Roku’. 

‘The model linked to advertising has been one of our greatest successes’, said Valencia. In addition, he explained that they have experienced ‘an important growth in Roku, due to the fact that we have around 300 thousand views per day; and many people on social networks interact with all accounts and report that they are watching us on OTT platforms, more specifically on the Roku side’. Regarding how social networks are currently being used to optimize marketing opportunities on FTA TV, Valencia reported that ‘at Canal 6 we strongly promote social media strategies. We work with Twitter, Facebook, Instagram and YouTube, in which we do a lot of dynamics and a lot of crossmedia with our traditional media. We have done very specific dynamics (surveys, voting, contests and others), which are born in the digital part and end in the traditional media, and also on the other way. For us, social media is a crucial element for what our audience has been, and to get a greater reach’.

With regard to the distribution of content on social networks and the creation of opportunities, Deane explained that ‘the key thing is based on speed, generating quality content, and tools that are directly in the cloud to ensure that speed. In addition, the content must be designed to be consumed in a multiscreen format. On the other hand, YouTube, Twitter, Facebook and other social networks consider freshness of the content as a key element. Here, speed matters again because the freshness of the content, related to what just happened, is what makes YouTube, for example, put the content as high as possible in the search results, and that directly impacts on the CPMs of advertising’.

‘At present, due to the expansion process that we are living at Multimedios Television Canal 6, as long as we do not have a 100% robust content portfolio and that our users are able to  pay for it, we are not going to exploit the subscription model’, said Valencia, although it does not mean the possibility for us to implement the model in the future. In addition, Aliaga reported that TV Azteca does not plan to focus on a subscription model in the short term. ‘It is very competitive and there are many subscription services that are very worthwhile. We are finding great business in Tubi, which is our large OTT platform and we have four FTA TV channels; and our ‘TV Azteca en vivo’ application is like a small OTT, available for free. We are very focused towards the advertising business. We have other subscription businesses in TV Azteca. Maybe, we will be able to implement PPV projects, but we are not aiming for an SVOD platform’, the executive explained.