Instead of watching linear television, more and more people watch catch-up TV or on-demand video content. They increasingly do that on mobile devices. This offers possibilities to telecom providers who aim to take advantage of the changing media landscape.
More content, more channels and more on-demand platforms create the possibility for telecom providers to differentiate through the content experience they offer. In addition, telecom providers need to decide about which role they want to have in the distribution of video content.
This is what PwC’s media experts Steven Pattheeuws and Vikram Dhaliwal write in their article Video killed the radio star... but it won't kill TV. Pattheeuws: “The potential viewer public of video content is enormous, but in the current globalised world the question is which model will generate the most revenue for smaller national telcos for instance.”
Pattheeuws and Dhaliwal describe three models telecom companies can consider for their video content offering:
"For all these models a wide customer base is essential", says Dhaliwal. “Only this way can telecom providers write off the fixed costs of acquiring and distributing content across a sufficiently big customer base.” Pattheeuws and Dhaliwal indicate that it is important for telecom providers, big and small, to bring together a wide variety of content from different sources and help consumers to navigate this content in a way that is relevant and offers the best user experience.
Pattheeuws: “More and more people consume content on demand. This content is increasingly fragmented over different distribution platforms. For instance, season one of a popular series can be available on a different platform than season two. Telecom providers must invest in smart recommendation engines. These engines should function on all content platforms, ranging from Uitzending Gemist (Dutch catch-up TV portal, ed.) to Netflix or Amazon Prime. To make this happen, telecom providers should enter partnerships with content providers who allow them to include OTT content in their recommendation engine.”
“Further, they must heavily invest in customer analytics skills. One of the biggest challenges for linear TV and on-demand video via TV is being able to distinguish between, on the one hand, viewing behaviour of a household, and on the other hand the viewing behaviour of individual members of a family.”
“This way telecom companies can surpass the recommendation engines of, for instance, Netflix and YouTube”, says Dhaliwal. “And the matter is urgent, because otherwise the global OTT players, but also smart TV manufacturers, will fill this gap. By also adding a context and sentiment specific dimension (location, time, device and sentiment) to the recommendations, telecom operators can have a lead over market parties who are also working on such functionalities.”
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