Current status of pay TV and OTT users
Pay-TV operators can protect their revenue and continue to grow, but they must tap into the growing demand for SVOD and meet the taste of “consumer content†(one of the five “TV tribes†that marketers must now meet). This is the conclusion of Ampar Analyst's research project sponsored by Nagra.
Despite the growth of OTT TV, especially SVOD, pay-TV will continue to be the bulk of paid-video revenue for the foreseeable future.
The global pay TV market is shifting. While the growth of pay-TV subscriptions in North America and the growth of SVOD are particularly noticeable, while emerging markets such as China and India continue to see high growth, more mature markets in Europe and other regions continue to grow, but growth is slower than before.
The United States lost 555,000 pay TV subscribers in the first quarter of this year, but China increased 4.726 million and India increased 1.977 million. On the whole, by 2022, the number of global pay TV subscribers is expected to reach 1 billion, and OTT subscriptions will cross the 500 million mark. Although OTT revenue will grow faster, pay-TV will still be the bulk of paid-video revenue.
Ampere Analytics believes that pay-TV providers must now target five distinct categories of “television tribesâ€: traditional television viewers, super money seekers, dramatakers, digital separatists, and content experts, including content experts and traditional television viewers. important.
Ampere said that in order to combat the OTT threat, pay-TV operators should pay attention to meet the growing demand for high-consumption content hipsters (24% of the market in the first quarter). The group includes young, affluent, high-spending pay-TVs, especially SVOD users, and pay-per-use video services cost US$70 per month.
Content experts are more likely than other groups to unsubscribe from pay-television, but still three-quarters of the groups most likely to subscribe to pay-TV services receive pay-TV services.
Amp said that in order to maintain this market, pay-TV operators must provide "self-stacked content packages" rather than streamlined pay-TV packages. Content experts want to compile their own a la carte services, with TV channels, multiple SVOD services, channel-tagged OTTs, and music streaming media, and want access to new services available. They also want to consume TV on multiple devices.
Another key tribe in the five television tribes is the traditional television audience who form the basis of pay-TV subscriptions. For this group - middle-aged, medium-sized consumers and sports fans, scheduled viewing remains the key. Traditional television viewers accounted for 18% of the market, with an average spending of $60 in the first quarter.
Ampere points out that the most important thing for operators is that they are less likely to be lost than others. In the past six months, only 9% have replaced providers, which is lower than the 33% loss rate of content experts. Let this tribe happy is very important for the protection of stability and recycling benefits.
The dramataker (23%) - who likes TV dramas to spend less, and the super spenders (17%) are high-spending linear TV enthusiasts who talk about their favorite TV shows on social media. Digital detachments (18%) are hard-to-cover elderly consumers who have little interest in pay-TV and content.
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