There’s no denying there are momentous changes afoot in the Global Pay TV market. With a seemingly infinite volume of video being delivered to a wider range of devices, owned by increasingly demanding customers, Pay TV is being forced to become more consumer-centric. The old adage of “Content is King” is still relevant when it comes to creating a service, but the consumer is in charge when it comes to the success of any video service.
The media industry is clearly in a disruptive cycle. OTT video services have changed consumer expectations. Pay TV operators must respond, yet 50% of all operators still need to deal with legacy systems. Content owners are actively pursuing direct-to-consumer services, yet they are dependent on their traditional revenue streams. TV platform companies are many and varied, so differentiation is difficult. One certainty however, is that disruption is creating positive market conditions with high growth rates and valuations. Most of the opportunities are “brownfield” and UX is a big part of this.
We have seen the market shifting away from video delivery across closed, managed networks to operator owned and distributed devices where OTT devices are a second-class add-on and home media gateways are used for in-home distribution. The new world is one where location-independent, consumer-owned devices are used to devour streaming content. Consumers have embraced new user interfaces, presenting content options in new ways and providing levels of personalization not found in legacy EPGs. Consumer expectations have changed. They are in control. If operators cannot provide them with the perceived flexibility they receive from OTT providers, subscribers will churn.
The focus on user experiences is changing the whole value model and competitive landscape of Pay TV. Evolving technology means that users have the choice of a range of devices, each with different characteristics, to take them through their daily journey as media consumers. Whether their devices are shared or personal, interactive or immersive and the content short or long form, operators and distributors now have to consider how to ensure the consumer experience is relevant, easily-accessible and consistent.
The TV industry is undergoing a fundamental shift from broadcast and hardware to streaming and hosting video platforms in the cloud. Stakeholders must evolve to drive growth and reduce churn. But which services are really important, and what will people pay for? Are there age and gender differences? The future of TV is dependent on understanding the answers to these questions and in providing services that adapt to consumer requirements.
I believe that data-driven, configurable UX is the future – this will pave the way for a move from professional services, to Platform as a Service in helping broadcasters, Pay-TV operators, OTT streaming services create engaging, compelling subscriber experiences. This is why Amino is expanding its market reach, to align with these shifts in the market and provide customers with more than just a STB. Operators need to have smart devices capable of delivering the modern user experiences that we know consumers need.
With the acquisition of 24i we can now provide an end-to-end platform development and delivery of multiscreen video delivery and UX or TV app development. When considered in conjunction with our AminoOS suite and our Amino VU products, Amino is positioned to deliver solutions to content owners, aggregators and distributors – all of whom must acknowledge that the subscriber is now in control.