12 Things to Watch in Streaming Video in 2016 – Part 3

While CBS launched CBS All Access in 2014, NBC expands its OTT strategy beyond Hulu with a new genre-focused service. Virtual Reality and 4K, both which expect to be hot topics at CES 2016, are both poised for continued innovation to attract mainstream consumers in addition to early adopters. Domestic passengers will also soon see more options to entertain them during personal and business travel.

Below is Part 3 to complete 12 Things to Watch in Streaming Video in 2016.

9. NBCUniversal’s SeeSo

Despite being among the three owners of Hulu and having a stand-alone NBC App, NBCUniversal has launched a comedy-focused subscription service SeeSo. NBC sees an opportunity to provide a genre-specific service at a fraction of the subscription cost of Hulu and Netflix. SeeSo’s distribution will be interesting to monitor in an environment where Hulu and Amazon have stated their interests in add-on services. Additionally, will NBC explore any other content verticals in 2016 or will they wait until they have enough data to assess from SeeSo?

My Prediction: SeeSo will be available through Hulu and Amazon in the first half of 2016 in conjunction with a methodical rollout across the top connected TV streaming devices including Roku, Apple TV, Amazon Fire TV and Chromecast.

 10. 4K Streaming: Live Events, Expanded Offerings & New Devices

Unlike the flop that was 3D TV, 4K is poised to take off as prices of 4K TVs continue to decline and appeal to the mass market. 4K content, however, is still very much a work in progress but opportunities present themselves in 4K to be appealing the masses. The home video release of Star Wars Episode 7: The Force Awakens could inspire users to test 4K for the first time this spring. Consumers can already pre-order Episode 7 on services such as Vudu, Google Play, iTunes and Amazon Instant Video, however 4K TV owners may be willing to pay more for better video quality.   DirecTV currently offers a catalogue of 4K content and could see increased demand with the home video release of the latest Star Wars. Unfortunate for many, Disney’s new output deal with Netflix, that kicks off in 2016, will not include The Force Awakens given its 2015 theatrical release date.

Following BT Sport's live 4K broadcast of a match between Chelsea and Arsenal in 2015, which sports property will move the ball down field? The International Olympic Committee has already ruled out 4K for the 2016 Summer Olympics, preventing a mass appeal live event test case for a global audience (Imagine the opening ceremony in crisp 4K resolution). Though Super Bowl 50 will take place in Silicon Valley, the NFL and CBS will not present the game in 4K.  

However, DirecTV recently said they plan to deliver live events in early 2016. Will a US sports league and network partner for a similar test or will an international property like Euro 2016 or UEFA Champions League take the next step now that live 4K broadcasting has already been proven in soccer.

Meanwhile, Netflix and Amazon Instant Video will continue to offer their original programming in 4K, but how long before HBO, Showtime and Hulu test the waters? Cult shows including Game of Thrones and Homeland could be a hit with viewers, but extremely costly to the networks given how each show is produced.

On the device front, Roku 4 and Amazon Fire TV’s latest set-top-box release include 4K functionality while their streaming sticks and preceding models do not. Will Apple TV and the gaming consoles join the 4K party in 2016?

My Prediction: DirecTV, CBS and Turner Broadcasting will partner to deliver select games of the NCAA Tournament in 4K including the Final Four and the Championship game. AT&T is a long-time corporate sponsor of March Madness and DirecTV is now owned by AT&T. CBS and DirecTV will execute a test prior to the 2016 NCAA Tournament.

Not to be outdone, ESPN will experiment with a 4K broadcast for a regular season college basketball game (UNC vs. Duke), a regular season college football game (likely featuring Notre Dame) and if all goes well, will roll out 4K for the 2016 season college football playoff semifinals on New Year’s Eve, Rose Bowl and College Football Playoff Championship game.

11. Virtual Reality

Many expect the 2016 Consumer Electronics Show in Las Vegas to introduce new breakthroughs in VR content. 2016 will also see the commercial release of Oculus Rift, HTC Vive and PlayStation VR to join Samsung Gear VR and Google Cardboard. Recent reports have put somewhat of buzz kill with the Oculus Rift team postponing the release of the Oculus Touch controller until the second half of 2016. In unrelated news, Nvidia, the leader in graphics chips, revealed thatonly 1% of current PCs in market (13 million worldwide), were capable of handling VR content to be consumed by devices such as Oculus Rift. Conversely, Sony has sold over 30.2 Million PS4 consoles before the most recent holiday period (Sony’s PS4 is required to use its upcoming PlayStation VR device).

Though gaming will present much of the early content, 2015 saw the NBA experiment with a live VR broadcast of a Golden State Warriors game, and theNew York Times introduce a VR app to tell stories as only the New York Times can. Will 2016 allow consumers to attend virtual concerts, sporting events, award show red carpets or galaxies far far away?

My Prediction: PlayStation VR will beat both Oculus Rift and HTC Vive in units sold in 2016. PlayStation 4 sold over one million consoles in its first day on the market and with an install base of over 30 Million devices worldwide, early adopters will fight to be among the first to test out the new VR kit when it is released later this year and not be constrained by PC graphics chips limitations.

12. More Streaming content from 30,000 Feet

Gogo internet customers have been warned prior to purchasing their in-flight internet access, Gogo does not allow for the use of Netflix, Amazon Instant Video or HBO Go while airlines like Delta provide their own streaming options through products like Delta Studio. In 2015, Virgin America partnered with Netflix and Spotify while JetBlue partnered with Amazon to offer video and music content.   Will 2016 bring more exclusive partnerships in the skies bringing consumers Hulu or YouTube?

Gogo’s 2Ku satellite rollout is expected to allow video streaming to hundreds of aircraft, and will most likely be available on Delta. Will this new service offering be priced at a premium tier above the current service and what other airlines will be early adopters?

My Prediction: Hulu will strike a distribution deal with a domestic airline in the first half of 2016.