Alticast

June 23, 2017

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Keeping the impact of cord cutting at bay

No matter which headline you read, the tug of war over cord cutting isn’t going away any time soon.  While some studies point to a willingness by subscribers to explore options and projected declines in industry valuations, there are those who maintain that pay-TV revenue is still on an upswing and that operators are marshaling their innovation, their network resources, and their presence in the home to keep the forces of cutting at bay. 

 

Who’s right?  Our take is that pay-TV has tremendous advantages, and is growing increasingly sophisticated in its ability to leverage them.  While alternative sources of video such as Netflix, Amazon and YouTube have changed the dynamics of how content is viewed, none of those can match pay-TV’s position as the direct link to the consumer.  As Mari Silbey points out, operators are pricing bundles to incentivize customers to retain video services.

 

What’s more, technologies are emerging that can strengthen the bond between pay-TV and subscribers.  Cloud-based user interfaces are enabling operators to deliver the same experience across set-top boxes and mobile devices, eliminating the limitations of legacy STB software stacks. These UIs also allow personalization that empowers contextual search, discovery and recommendations across a vast array of Web, operator-provided and personal content sources. Advanced network protection capabilities are providing proactive network monitoring that can enable home security and Internet of Things (IoT) services.

 

There’s no question that cord-cutting is real, and that it’s impact is being watched closely by the nation’s largest pay-TV operators.  But given the industry’s ability to transform user experiences and service bundles, there’s plenty of opportunity for it to emerge from this battle stronger and more competitive than ever.

 

 

 

 

 

Posted by Jill OToole at 1:17 AM