As more subscribers opt for over-the-top (OTT) services, pay-TV providers must develop a strong multiscreen business model in order to retain and grow subscribers, according to a new report from Pyramid Research.
OTT Growth Sparks Innovative Multiscreen Video Business Models examines the growth of OTT video services and the impact on the traditional pay-TV market. Pyramid Research discusses the opportunities for pay-TV providers and telcos to monetize the growth of multiscreen video and how telcos can adapt their network and service strategies to the multiscreen world. Five multiscreen business models are presented, as well as the advantages and disadvantages of each. This report presents case studies from BT, Sky, AT&T, Turk Telekom and TotalPlay and examines how these different operators seek to develop successful business models for multiscreen video. The report concludes with some recommendations.
"The growth of OTT video services is disrupting the traditional pay-TV market and is dramatically driving traffic growth," says Pyramid Research Analyst Daniele Tricarico, "but more consumers are watching video on multiple screens, opening up for new opportunities for pay-TV providers and telcos to implement multiscreen business models." Everywhere and multiscreen services are helping cablecos and satellite providers to increase customer loyalty and reduce churn. Multiscreen IPTV is helping telcos to increase loyalty and to generate new revenue by boosting migration from lower-value packages to higher-value multiplay bundles, including high-speed Internet, which is needed for better quality video. "All pay-TV providers also have the option to launch their own OTT-like video services and extend their reach to non-customers, thus generating additional revenue beyond the existing customer base," he adds.
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