Next generation pay-TV providers must pay attention to the unique requirements of each individual viewer. Consumers have more access than ever to content and the freedom to choose what, when and where they will watch their favorite programs.
Consumers have new expectations, which have in part been influenced by the rise of OTT streaming providers. Their creation of video delivery platforms, from the ground up and without the perceived limitations of legacy infrastructure, allowed them to create subscriber centric services. An example of putting the consumer at the center of their service is the use of recommendations based on consumption trends.
By taking advantage of the data about what, when and how consumers are viewing content, these streaming providers have developed algorithms to recommend content based on genre, favorite actors or directors, and other metrics – ultimately giving the consumer the perception of a more personalized video service. Subscribers now expect that same personalized experience across all video services and across all consumption devices.
But personalization extends beyond recommendations. It is about how the subscriber interacts with the video service and how they consume video content. The increase of second, third and fourth screens – mostly mobile – in the home demands a unique experience for each user, in some cases managed through parental controls, but more frequently based on individual consumption preferences. In addition, OTT providers introduced the month-to-month subscription model putting the consumer in charge and make it far easier watch high value content at the time and location of choice without a long-term commitment.
This desire for personalized consumption is exemplified by a survey from YouGov that found 47% of US audiences say that they prefer TV shows where all the episodes are released all at once. This demand was most pronounced among millennials, two-thirds of whom wanted to binge watch content instead of relying on traditional scheduled programming.
What becomes clear is that many consumers feel that OTT services align better with their viewing habits, especially when compared to the pay-TV experience of having to subscribe to channels they don’t want – due to content licensing requirements from content owners – and being restricted to the linear program schedule. Indeed, Hub Research found that, if starting their pay-TV bundle from scratch, 70% of US consumers would want SVOD in their set of services.
While binge-watching entire series and viewing what you want, when you want has become the norm, it is not all bad news for local pay-TV operators. Local news and programming are one area that has helped to tie subscribers to traditional pay-TV providers, with access to regional content that is simply not available through the treasure trove of SVOD services.
Pay-TV providers must remain relevant and capitalize on the opportunity to provide the personalization subscribers want. That may mean:
- delivering both linear and OTT content
- enhancing metadata and applying analytics to deliver meaningful recommendations
- capturing and assessing consumption patterns and trends that may influence content negotiations as well as promotional programs
- giving subscribers to customize/personalize settings and channel line-ups
This is the expectation of TV Everywhere – that subscribers achieve a personalized experience. TV is no longer one size fits all. AminoOS provides operators with the deliver the modern TV experience subscribers expect and the ability to better understand what and where they are consuming content.