TV recommendation engines set to explode

Michelle Clancy | 25-02-2014

Good news for those tired of having 300 channels and feeling there's nothing to watch: consumer exposure to advanced recommendations engines will grow to reach 75% of pay-TV households on multiscreen services and 55% on set-top boxes (STBs) within North America by 2018, up from 20% and 10% in 2013, respectively.

ABI Research said that the growth will be driven by today's highly competitive viewer landscape for pay-TV and over-the-top (OTT) operators. At the core of this are search, recommendation and discovery technologies that rely heavily on rich metadata as well as user analysis and learning.

"TiVo's acquisition of recommendation specialist Digitalsmiths is indicative of the tight relationship between guides, metadata and recommendations," said ABI Research practice director Sam Rosen. "We expect further consolidation moving forward as recommendations move from a wish-list item to a must-have in today's competitive environment. Consumers whose experience is upgraded by comprehensive recommendation implementations routinely show better business metrics, including lower churn, increased ARPU, engagement with new types of content and engagement with VOD platforms."