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Innovation a priority for pay-TV

12 September 2016

A study from the Pay-TV Innovation Forum, released at IBC, says that the industry has entered a period of change. “This is creating challenges, and opportunities, for pay-TV operators,” says the report, adding that 83 per cent of executives recognise that competition will get fiercer as pay-TV players compete with telcos and OTT providers.

The survey, conducted by Nagra along with MTM, says that these pressures mean that innovation is more important, and urgent, for the sector. As well as being one of their top three strategic priorities, 78 per cent of respondents believe that service providers will have to innovate strongly over the next five years.

Pay-TV platforms will have to go beyond traditional services by focusing on multiscreen/TV everywhere (76 per cent), new types of content (74 per cent), and new content pricing and packaging strategies (73 per cent). Just over half of executives also see opportunities in advance advertising and data (54 per cent), as well as standalone OTT services (53 per cent).

North American providers saw significant commercial opportunity in new forms of content that appealed to millennials and generation Z such as digital-first short-form content, on-boarding of third-party OTT services, virtual reality, and gaming.

Some European and Asia Pacific pay-TV service providers also see value in providing OTT or gaming services on their pay-TV platforms, particularly through partnerships.

Only a smaller number of large scale operators currently address business adjacencies such as advanced advertising and Internet of Things (IoT).

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