Evolution of value chain and business models
The pay-TV market is still wide open as new providers and players introduce a range of possibilities:
- Web players are launching their own TV services.
- CE manufacturers are extending their offering by connecting with TVs.
- Interactive advertising and contextual widgets enable brands to be presented in new ways.
- Telcos, satellite and cable operators are offering TV services to tablets, PCs and mobile devices.
- Pay-TV operators are competing with new types of players who are introducing innovative business models. Over-the-Top (OTT or Internet) and advanced digital technologies present a variety of opportunities and challenges for everyone from regulators to end-users.
Evolution of consumer habits
Along with the introduction of new technologies and the convergence of devices, consumer habits are also changing. Some of the major trends we are witnessing include:
- Consumers are increasingly viewing non-linear content like VOD and Catch-up TV on their PCs as well as their TVs.
- Mobility is key. Subscribers won’t settle for less than viewing content anywhere, anytime, on any device.
- Generation Y is redefining content consumption with the popularity of social networking and user generated content.
Evolution of infrastructure towards the end-user
The WAN infrastructure—which delivers TV services—is being upgraded with fiber to the home (FTTH) and 4G. Bandwidth is likely to become a commodity. As a result, telcos are rethinking their access offering and their business to business propositions to service providers.
Evolution of consumer devices and the home network
The introduction of home networks enables the integration of a variety of protocols and devices. Cross-device functionality encourages the convergence of services.
What does this mean? Subscribers can watch content on different devices including their PCs and smart phones. The future is pointing toward seamless services that are integrated with open devices in an open environment. This requires the design of interfaces that make the experience virtually intuitive, as well as the technology to back it up.