Pay-TV shifts tactics in digital content strategies


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Michelle Clancy

| 29 December 2015




Strong ambition and alignment with operator assets are two fundamental requirements for pay-TV providers to successfully define their position in the evolving digital content distribution landscape.



According to Strategy Analytics, AT&T's acquisition of DirecTV, Bharti Airtel's launch of music and video streaming services, Singtel's video-on-demand service HOOQ, and Verizon's launch of Go90 highlight a recent significant shift in operator ambition with respect to digital content distribution, particularly related to video.

Also, evidence from successful operator initiatives, particularly those from Japan and Korea, indicates that both targeting consumer appetite for local or regional content, and the acquisition of exclusive rights to compelling content as significant for success.

"Strong demand for video content, particularly on mobile devices, has prompted mobile operators such as AT&T, Bharti Airtel, T-Mobile USA, Singtel and Verizon, among others, to seek a more aggressive position in digital video delivery, despite previous failed efforts in content distribution,” said Nitesh Patel, director, Wireless Media Strategies, Strategy Analytics. “However, T-Mobile USA's Binge On signals an alternative enablement approach, leveraging network assets to provide optimization and zero-rated access to video content streamed over its network. Either way, operators must align their content strategy with both their ambition and assets."

David Kerr, SVP, Strategy Analytics, added: "We believe there are important lessons to be learned by examining the mobile content initiatives of operators in other markets. Meeting the needs of local content distributors and app developers to reach mobile users, while simultaneously addressing consumer demand for local or regional content, has helped Asian operators build and maintain a position in mobile content distribution as device ownership has shifted from feature to smartphones.”