Pay-TV players need shift in strategy

Joseph O'Halloran ©RapidTVNews | 24-11-2011

Telecoms analyst Ovum is urging pay-TV providers to make changes to their overall strategies in order to ensure their continued success and survival as both market conditions and consumer behaviour change.
In its ‘How do Operators Keep Consumers Paying for TV?’ report, believes that these changes are forcing dramatic shifts and an uncertain future for the pay-TV industry., That is, the various new TV platforms on offer from the variety of new players are offering alternative ways to view video that are undermining the established order of pay-TV operations.

The study also warns that that pay-TV subscriber growth is slowing in several markets, with free-to-air digital TV and web-based offerings luring consumers away from traditional pay-TV services.
Said report author and Ovum principal analyst Jonathan Doran: “In isolation, none of the challenges faced by traditional pay-TV operators present an insurmountable barrier. Many operators have demonstrated their ability to fight back against these threats by rapidly adapting to the changing environment and turning challenges to their advantage. However, when combined, these disruptive factors represent an evolution in the TV market landscape that cannot be reversed.”
Ovum’s recommends pay-TV players review existing approaches to content packaging so as to ensure that they are providing choice and quality to consumers and urges them to exploit triple-play opportunities, employ new user-experience enhancements, and emulate and outdo competition from adjacent operators.
Doran added: “To offset the increasing homogeneity of TV offerings, operators must adapt their portfolios through creative and shrewd packaging and pricing initiatives. Service providers will need to continually review and revise their content offerings in order to accommodate consumers’ evolving and increasingly fragmented preferences…Operators should strive to exceed the levels of choice, flexibility, and personalisation offered by their Internet-based competitors. This will involve developing services that resemble open, web-delivered offerings, while at the same time differentiating from over-the-top players based on service quality, reliability, and device interoperability.”