Beyond the Bundle: Seamless Multiscreen Video
Heavy Lifting Analyst Notes Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation 8/15/2008
Video content is particularly important because it allows providers to differentiate their offering and link TV experiences across devices and environments. There are significant benefits for service providers if they can enable this effectively, including churn reduction, subscriber acquisition, and deeper brand involvement. There is also the potential for new revenue generation through advertising, pay-per-view models, and the creation of higher service tiers.
Earlier this year, Heavy Reading conducted a comprehensive survey of 120 service providers on multiplatform video distribution, including topics such as attitudes, deployment timelines, and the primary drivers, barriers, and challenges for multiplatform video. The study also looked at favored revenue models, content genres, applications, and key technology and network requirements, including preferred vendors.
Across the board, interest in multiplatform video was extremely high. Significantly more than 90 percent of respondents agreed that multiplatform video distribution would be an important requirement for service providers within the next five years. Nearly 60 percent strongly agreed with that statement, suggesting a very clear opinion among service providers that they need to offer video across device platforms.
Most providers agreed that time-shifting and place-shifting applications would be important for video distribution within the next few years, especially for pay TV services. Interestingly, though, there were significant regional variances on this issue. Service providers' location also affected their attitudes toward mobile video services, as well as revenue models for both broadband and mobile services.
Perhaps the most important finding was the emphasis that providers placed on factors such as "flexibility" and "integration" from their technology solutions. This suggests that service providers recognize the highly unpredictable nature of this market segment. They are torn between an urgent need to deploy new services and drive customer value, and a lack of visibility into the applications and usage scenarios that will be demanded even in the near future.
In this scenario, vendors that can prove their solutions are adaptable, modular, and future-proof will be best positioned.
— Aditya Kishore, Senior Analyst, Heavy Reading