How Cable Can Profit from the Content Wars?

Published on 29/07/2019

Category: Innovation

On July 11th, 2019, in partnerships with Light Reading, we held a webinar where our moderator Alan Breznick (Light Reading) and speakers Mick McCluskey (Enghouse Networks), Candice Mayberry Storsveen (HBC) and Jason Hansen (Conway Corp) explored the ongoing topic of: “How Cable Can Profit from the Content Wars”. With new OTT entrants like Disney, Apple and Warner Media disrupting the market by going direct to consumer, how can cable operators make sure that their current customers see the value in their video services? This topic was explored at length during this thought-provoking webinar and we summarized it by identifying the 4 key takeaways.

Takeaway #1: “Self-Bundling services is a growing trend.”

– Alan Breznick (Light Reading)

As Alan pointed out, currently video content consumers (in the US as studied by Parks Associates) are subscribing to 3 or 4 OTT services to gain access to the content they want to watch when they want to watch it. With the competition growing steadily, where does this leave consumers in this content war? Will they need to subscribe to 5, 6, 7 or more OTT services in the future? Only time will show how much consumers are ready to put up with this self-bundling trend as subscription fatigue is rising.

Takeaway #2:There is no cord cutting: traditional operators have strong relationships with their customers. However, they aren’t delivering what their customers want and that is the problem.” 

– Michael McCluskey, VP of Product Management, Espial

Mick stated that every new entrant on the market has different motivations for entering the video streaming industry (or pay-tv). For Netflix/Disney, they are looking for SVOD global dominance and to own user data. For Amazon, they want to incentivize the use of their eCommerce platform and therefore collect more user data. For Google/Facebook, the incentive is to use the advertisement platform to collect more user data. Data collection is an ongoing business strategy for these content owners and operators need to find a way to act as an intermediate by changing their business model in order to survive the content war.

Takeaway #3: “It’s imperative that we evolve to provide the services our customers are looking for.”

– Candice Mayberry Storsveen (HBC)

HBC is a perfect example of a company who is listening to what their customers want, and they are finding ways of implementing supplementary technologies to effectively address the ongoing digital transformation. By using TVaaS, they were able to work with 2 local colleges to effectively deploy and test streaming TV (IP) as a supplementary service to their wide range of current services. By transforming their business model, they are finding ways to thrive in this very competitive climate.

Takeaway #4: “We want to be the broadband provider of choice and add layered services on top.”

– Jason Hansen (Conway Corp)

Conway Corp is another example of an operator looking to change their business model in a way to thrive during this digital transformation. Jason gave a great example of how crucial app-based service delivery and modern onboarding strategies are to all operators moving forward. Customers want to have access to services within minutes and through their phones. They want to enter their credit card information and have access to video right away. As a technology company, innovating and educating consumers that you are aiming to drive value at an affordable price is important to your success.

During our audience polling, we found out that 70 percent of those who joined have a plan to change their business model into 2020 or has already changed it. What are your plans?  


Want to dive deeper into this topic: Check this out. 

Dipalli Bhatt

Director, Marketing and Demand Generation at Espial

Dipalli Bhatt

Director, Marketing and Demand Generation at Espial

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