Findings of Pay-TV Innovation Forum Disclosed by NAGRA and MTM
NAGRA and MTM have disclosed the findings of the 2018 Pay-TV Innovation Forum, a research program that brings together leading pay-TV and TV network executives to explore the challenges and opportunities facing the industry. The priorities uncovered during the event include managing the roll out of a more diverse range of video products, unlocking the full potential of advanced TV advertising, transforming the end-to-end customer experience, leveraging customer data, investing smartly in infrastructure and combating streaming piracy.
There was general consensus from executives the industry faces significant challenges, as pricing pressures intensify and subscriber losses from traditional pay-TV services accelerate. With consumers migrating to skinny bundles and Subscription Video on Demand (SVOD) services, the pay-TV industry is becoming more diverse, with a broader range of paid-for video services competing for consumer spend. However, virtual Multichannel Video Programming Distributor (MVPD) offerings remain challenging for the industry, with low margins and limited differentiation.
As a result, major pay-TV businesses are committed to diversification, with broadband and other services compensating for declining revenues from pay-TV services. This decline in pay-TV revenues creates challenges for cable networks and other programmers, pushing content owners to look for new monetization opportunities, notably in direct-to-consumer offerings and advanced advertising services.