SeaChange International Reports 30% Increase in Streaming Activity in March Driven by COVID-19 Crisis and Changing Viewing Patterns
SeaChange Ideally Positioned to Help Video Service Providers Meet the Increasing Consumer Viewing Demand, Drive Advertising Revenues and Reduce Operating Costs
WALTHAM, MA / ACCESSWIRE / March 27, 2020 / SeaChange International Inc. (NASDAQ:SEAC), a leading provider of cloud and on-premise video delivery platforms worldwide, today reported a 30% increase in streaming activity for linear, video on demand (VOD), and Over-the-Top (OTT) across different platforms and networks driven by the growing consumer demand related to the COVID-19 crisis. The Company expects an acceleration of growth in streaming to continue as countries around the globe implement partial or total lockdowns to help mitigate the spread of COVID-19. In fact, Nielsen, the leading global measurement and data analytics company, is predicting a 60% increase in the amount of media watched.
Impact on TV Operators - Network Infrastructure Stress and Ad Revenue Decrease
As the spread of COVID-19 continues to disrupt what once were relatively predictable viewing habits, video service providers must figure out how to operate under rapidly changing circumstances. Whether customers are signing up for new OTT subscriptions, purchasing premium VOD, or consuming existing video services, the network infrastructure is under high demand. The rate at which these systems need to scale in order to meet the growing demand could not have been anticipated by the operators.
Additionally, advertising revenue has decreased more dramatically during this time. While many associate increasing viewership with advertising revenue growth, the reality is advertising revenue is dependent on supply and demand. With more people staying home, industries such as travel and retail are massively scaling down their advertising efforts. As a result, operators and service providers are finding it even more difficult to fill their advertisement slots.
A recent study from Facebook reported an increase of over 50% more time spent across their apps in Europe since the COVID-19 outbreak, with a reverse impact on the advertising revenue. According to Facebook analysts, ads business has weakened in countries that are actively taking measures to reduce the spread of COVID-19.
The fact is, most advertisers across industries are reducing their spending, including airlines, hotels, and other services impacted by consumer isolation. Sporting events and live shows are being postponed. Seasonal revenue opportunities that once united audiences and drove demand are vanishing. While overall viewership is increasing, the lower demand and the subsequent lack of supply is taking its effect on the advertising revenue of TV operators.
Consequently, with lower video average revenue per user (ARPU) and less overall advertising revenue, both "traditional" and OTT service providers are likely to further optimize their operating expenses.
How SeaChange's Video Delivery Platform Can Help - Flexibility and Budget Control
During these trying times and to prepare for future uncertainty, TV operators and direct-to-consumer service providers require a complete system that offers flexibility, scalability, and budget control. Below is an example of what SeaChange's efficient, end-to-end video delivery platform provides service providers:
- Analytics: Insight on subscriber engagement equips operators with information needed to make business decisions aimed at optimizing retention and monetization. SeaChange's Framework offers an Analytics module that can signal TV operators when they should offer special pricing or discounted packages during otherwise unpredictable times. Targeting certain actions to demographics can help to reduce subscriber churn rate.
- Transcoding/Delivery: Streaming providers are reducing video quality to avoid straining the bandwidth due to increased viewership. With the SeaChange Framework, customers have access to a Content Aware Encoding engine that provides up to 50% bandwidth savings, which significantly reduces content delivery network (CDN) and storage costs.
- Asset Management Optimization: Scalable media asset management coupled with analytics sheds light on crucial information about asset viewership and streaming statistics. By adjusting the library offering based customer usage, operators can use SeaChange's Media Asset Manager in combination with its Analytics module to translate it into cost savings for the video processing and storage.
There is no denying the disruption in the video industry today, but service providers can proactively adapt. By implementing a video delivery solution that is both scalable and flexible, SeaChange customers can prepare for unpredictable circumstances.
For additional information about SeaChange and its Framework solution, please visit www.seachange.com.
About SeaChange International, Inc.
SeaChange International (NASDAQ: SEAC) powers hundreds of cloud and on-premises platforms with live TV and video on demand (VOD) for more than 50 million subscribers worldwide. SeaChange's end-to-end solution, the Framework, enables operators and content owners to cost-effectively launch a direct-to-consumer video service. This includes back-office, media asset management, ad management, analytics and a client application for set-top boxes (STB), Smart-TVs and mobile devices. Framework is available as a product, Software-as-a-Service (SaaS) or managed service, and can be deployed on-premises, in the cloud or as a hybrid. For more information, please visit www.seachange.com.
Safe Harbor Provision
Any statements contained in this press release that do not describe historical facts, including future operations, are neither promises nor guarantees and may constitute "forward-looking statements" as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. Any such forward-looking statements contained herein are based on current assumptions, estimates and expectations, but are subject to a number of known and unknown risks and significant business, economic and competitive uncertainties that may cause actual results to differ materially from expectations. Numerous factors could cause actual future results to differ materially from current expectations expressed or implied by such forward-looking statements, including the risks and other risk factors detailed in various publicly available documents filed by the Company from time to time with the Securities and Exchange Commission (SEC), which are available at www.sec.gov, including but not limited to, such information appearing under the caption "Risk Factors" in the Company's Annual Report on Form 10-K filed with the SEC on April 16, 2018. Any forward-looking statements should be considered in light of those risk factors. The Company cautions readers not to rely on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any intent or obligation to publicly update or revise any such forward-looking statements to reflect any change in Company expectations or future events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results may differ from those set forth in such forward-looking statements.
Gateway Investor Relations
SOURCE: SeaChange Corporation via EQS Newswire
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Released March 27, 2020