Disruption continues in the pay TV industry.
The widespread availability of broadband connectivity both in the home and on the move continues to have a significant impact on the TV industry. In general, new ways of delivering content are a threat to traditional pay TV business models, but the same trends are also providing opportunities for business expansion for those operators that are willing to embrace the change.
Both live and on-demand content can be delivered via the open internet: many operators are launching such services to complement their traditional broadcast business, targeting more cost-conscious consumers, and limiting the damage from standalone OTT competitors. In addition, owing to the control that they have via their managed pay TV platform, operators are in a unique position to be able to aggregate multiple OTT services from different sources and add them to their own content to provide a seamless user experience for the consumer, increasing ARPU and aiding retention.
The same high speed connectivity, when combined with low-cost server capacity in the cloud, is enabling new money-saving techniques for head-end video processing. Similarly, cloud architectures are reducing the cost of service delivery and making data-based features such as search and recommendation more effective. As a consequence, more and more elements of the user experience are now being created and controlled in the cloud, allowing the service that subscribers receive to be more responsive and personalized, increasing customer satisfaction and creating additional monetization opportunities for operators.
To find out more about these and other major trends in TV technology download our ‘TV Industry Outlook’ here.