Dona Alampioska, marketing executive at TV Connect media partner ASI (Alternative System Integration), looks at the changes fundamentally changing the pay TV arena.
The internet transformed the Television. As more and more content is delivered online, there is no line between the video on demand (VOD) and the over the top (OTT) content and the linear television, or the line is blurred.
Consumers today have high interest for VOD and OTT content. According to International research consultancy MTM, the percentage of pay TV providers that offer VOD is 88% in Europe and 100% in North America.
According to a PWC survey, the multiscreen environment allows consumers to view wherever and whenever. 46% admitted to watching TV while at work. 36% admitted to watching TV in the bathroom. 29% admitted to watching TV while commuting.
Personalisation sits at the heart of user experience. Today’s viewers expect that they can personalise the services they use. In the same way that they personalise what news to read first thing in the morning, they want to do the same thing with which TV program or series to watch after work. It is the same story with ads. Some of the viewers like them, some of them do not. They expect advertising to be more targeted and relevant to them.
So, OTT together with VOD is becoming the industry standard, especially because pay TV providers are now adapting to new customer expectations and experiences. According to a white paper by Cisco, Cisco VNI Forecast and Methodology, 2015 – 2020, the internet traffic for video will reach 80% of all consumer traffic by 2019.
This figure helps us understand why more and more pay TV operators have started or are planning to start to offer OTT and VOD services.
So, rather than looking for a solution within the traditional telecom business model and value chain, operators must ask themselves how they can capture a larger share of the value pools being opened through new technologies and business models in a variety of industry verticals. In doing so, they need to think carefully about the role they can best play in this fast-changing environment.
When talking about fast-changing environment, we must mention couple of factors:
- Content: With OTT, the delivery of content is becoming crucial in a way that the content should be delivered on different devices.
- Ad replacement: Not everyone wants to watch ads and not everyone wants to watch non-dedicated ads. So this challenge needs to be covered.
- Usage of stable networks: The usage of multiple networks for CDN enables more reliable delivery of the content.
- 4K & HDR: 4K is quite rich and it looks bright and vibrant. So streaming 4K content is both technology and business problem, especially because of the fact that it is costly to shoot, edit, store as well as stream 4K.
No matter what direction these trends go, the powerful platforms that already exist on the market are more than ready to process the content.