SANTA CLARA, Calif., Nov. 21, 2017 /PRNewswire/ — Based on its recent analysis of the over-the-top (OTT) video industry, Frost & Sullivan recognizes CHILI with its 2017 European Entrepreneurial Company of the Year Award for its innovative video-on-demand (VOD) services. CHILI, a European VOD service provider, enables viewers to rent or purchase content from a vast catalog of content from around the world that can be viewed on multiple devices.
2017 European Over-the-Top Video Entrepreneurial Company of the Year Award
The media and entertainment industry in Europe has been undergoing momentous technological and structural transformation over the last 5 years, giving the end consumer many choices in terms of content, price, platforms, and service providers as content consumption shifts from linear to non-linear media. Burgeoning OTT services, with more than 400 service providers across Europe, have resulted in a highly competitive and crowded marketplace. With the addition of global providers such as Amazon and Netflix, native OTT service providers need to develop innovative and competitive strategies to differentiate themselves and win customers over the big name providers.
“Some native OTT providers have chosen to target niche audiences, such as children or expats, in an attempt to avoid competing with global companies. However, this is not an easy route to take because of the difficulty in getting access to premium content, especially new movies,” said Swetha R K, Senior Research Analyst, Digital Transformation team, Frost & Sullivan. “Piracy is an additional concern for smaller providers, as it eats into an already-thinning subscriber base and revenue.”
CHILI has gained success in this market by monetizing its content through a transactional VOD model, thus relieving consumers from the obligation of a subscription. Despite competing with popular names such as iTunes, Netflix, Amazon, and Google Play, CHILI boasts 1 million subscribers as of May 2017. Within 2 years of its establishment in 2012, CHILI has grown to become a leading player in VOD services in Italy in viewership, and has since expanded its services to 4 additional countries: United Kingdom, Germany, Poland, and Austria. In 2016, 4 Major Studios (Warner Bros, Sony Pictures, Viacom and Paramount) entered the share capital of CHILI.
CHILI’s competitive ecosystem comprises both transactional VOD participants (such as Blinkbox, Rakuten TV, iTunes, and Google Play) and subscription VOD participants (such as Netflix,