Transforming Pay TV: Part 1

TV and video lovers have never had it so good! Global Pay TV and OTT subscription revenues are predicted to grow to $228 billion by 2020, fueling a growing demand for entertainment across multiple platforms and devices and increasing the aspiration for tailor-made bundles of linear TV and on-demand video.

 By Simon Leadlay, Director of Pay TV Business Development


At this time, it is only the die-hard video lover who will build their own Pay TV bundle. It’s a daunting task. First, they have to invest the time to navigate the plethora of OTT video apps and Pay TV services available and then subscribe to the chosen few. They then have to invest in a range of retail TV streaming devices to watch. Once completed, there is no ‘one number to call’ for service or assistance when ‘plugging everything together’ and the navigation across devices can be overwhelming too.

Source: Digital TV Research OTT and Pay TV Forecasts report

While not a scalable proposition, or yet a desirable video experience, being able to create custom bundles of linear and on-demand TV, it is something every multi-service subscriber desires.

New research from Ampere Analysis makes this stark: only 24% of global video viewers are classified by Ampere as ‘Content Connoisseurs’, who self-curate multiple services, both OTT and Pay TV. The remainder of the market still prefers Linear TV, and this market includes the lucrative ‘TV Traditionalists’, the 18% of viewers who pay the highest monthly subscriptions and are the most loyal to their broadcast Pay TV operator.

Ampere’s research further indicates that the mass market is not interested in a huge amount of self-curation and self-aggregation across different platforms. Most viewers would prefer a ‘build your own bundle’ solution from an operator that includes both SVOD and OTT content. The research also indicates that a large audience remains for linear TV and for live sports, and that even 76% of the flighty ‘Content Connoisseurs’ still subscribe to a linear Pay TV subscription.

The early OTT adopters have proven the demand for personalized video services, self-directed bundles of live and on-demand content, and for video delivery to mobile and consumer devices. It is now time for the Pay TV operator to deliver this same aspiration as a turnkey, well-managed and fully-personalised solution for the mass market.

Thankfully, the Accedo Studio Pay TV Edition product and powerful Accedo One video experience cloud platform are bringing the excitement and pace of development from the OTT video world into that of Pay TV and helping operators realise the ‘build your own bundle’ dream and transform their video experiences.

Read our Android TV whitepaper – THE ANDROID TV OPERATOR TIER LAUNCHER: Delivering The Pay TV Operator-Driven User Experience – we investigate the opportunities presented by the Android TV Operator Tier for the Pay TV market, and how best-leverage those opportunities to launch a Pay TV operator-driven user experience on an Android TV set-top box.