Individualised video poised to radically disrupt pay-TV
Michelle Clancy
| 03 September 2014
IDATEAs over-the-top (OTT) options for video continue to proliferate, there have been dramatic changes in viewer behaviour and industry structure, and stakeholders' roles in the equation continue to evolve over time. IDATE predicts that individualisation will be a key driver in future.

"The television industry is having to contend with a major game changer, namely increasingly individualised viewing," said IDATE's deputy CEO, Gilles Fontaine, in a blog. "This change is upending the industry's longstanding mass-media model, but is also paving the way for new business models and a new period of growth."

He said that personalisation in TV viewing represents a dual opportunity: to transform the household market into individual markets, and to capitalise on the shift from mass advertising to more relevant targeted advertising.

However, it remains to be seen how that plays out: younger viewers, for instance, find targeted ads intrusive.

IDATE has developed three scenarios to describe and quantify the potential impact of this tremendous change in video content markets. The first is a growth scenario: the new golden age where the increasing individualisation of video consumption and Internet access leads to the creation of a market for individual subscriptions, and where video both linear and on-demand becomes a medium of choice for advertisers.

A second scenario is one of stagnation: it will be business as usual, wherein pay-TV plans remain largely monolithic, where on-demand products hold little appeal and TV's ad revenue suffers from advertisers moving a portion of their spending over to the Web.

And finally, a negative scenario of commoditisation is possible, characterised by an accelerated migration from a paid to a free model, and TV losing its relevance as an advertising medium.

"This growing individualisation is part of the 'cloudification' of the technical chain that makes it possible to better serve multi-network and multi-device behaviours, and of the process of adapting services to find the right interplay between linear and on-demand TV, to re-monetise catch-up TV, and to develop the SVOD and electronic sell-through (EST) markets," said Fontaine.