TV. It’s been part of our everyday lives. And, now it’s everywhere we are, and plan to be, via our personal devices. I’ve been tracking this seismic shift over the past several years and noticed that consumers are empowered by both their devices and the flexible business models offered by streaming providers.
This presents new challenges for Pay-TV providers who have been the primary distribution channel of TV content for decades. With the definition of TV expanding to include streaming video, these operators in a quandry about how they should, or should not, provide video content to their subscribers. Here at Amino, we’ve noticed that the transition from a linear TV programming schedule to an on-demand streaming experience has provided many benefits to consumers. But, this transition is not without concerns both operators and subscribers.
The pay-TV sector faces increasing churn as subscribers seek less costly, more flexible entertainment alternatives. Yet, these subscribers still have expectations that must be met by whichever provider they choose. Cost is often cited as the primary reason for cord cutting. However, cost reflects concern about more than the actual price of the service, it also includes notions of value and flexibility – meaning that the subscriber has control of what content is included in their subscription and the ability to cancel or suspend the subscription at any time.
Value! We all expect value for the price we pay to access content. Variety has reported that 70% of pay-TV subscribers feel they get too little value for their money and that 56% of current pay-TV subscribers keep their subscription because it is bundled with their home broadband. In a 2016 Total Audience Report, Nielsen noted that pay-TV subscribers only watched 10% of the channels available to them. While this metric is no longer captured in more recent reports, it is a clear indicator that subscribers were paying for content that did not interest them.
The data shows that the number of subscribers to online video services continues to grow, as the number of pay TV households continues to decline. However, even with the increase in streaming, recent reports from Nielsen show that traditional TV usage as measured in minutes still exceeds streaming usage by a ratio of 4:1. The TV I knew as a child, teenager and young adult may be dead, but the business of TV is simply adapting to changing times.
With this in mind, Amino’s goal is to give operators increased agility and flexibility to deliver the content their subscribers want. Our solutions incorporate the technology required by operators for efficient and effective video delivery, while also paying attention to additional features and capabilities that will help operators fulfill subscriber expectations.
The future of TV is all about fulfilling consumer expectations. This means delivering live and on-demand content in both linear and streaming formats to many, many devices. We call this evolution TV X.0 – where video delivery and consumption are driven by consumer expectations. This blog is the first in a series discussing the journey to TV X.0, where the ability to adapt to changing demands is the norm.
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