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Four in five pay TV execs fear ‘dramatic’ increase in competition
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Some 83% of pay TV executives believe that overall competition is set to increase “dramatically” between now and 2020, according to the findings of a new study by Nagra and research firm MTM.
The research – which was presented during Nagra and MTM’s Pay TV Innovation Forum event at IBC over the weekend and is available now as a white paper – found that pay TV execs believe pressure will intensify in the coming years as telcos and over-the-top (OTT) service providers compete for subscribers.
‘The global pay TV innovation landscape’ report found that 58% of executives agreed that the increasing availability and quality of online video content on services like YouTube will make it harder to grow pay TV industry revenues.
Some 71% said they thought competition for premium film, TV and sports content will intensify dramatically with a greater number of companies seeking to acquire the most attractive rights.
Meanwhile, 48% of those polled agreed that competition from subscription OTT services like Netflix will have a negative impact on the pay TV industry, pushing down prices and increasing customer churn.
A 57% share of executives agreed that pay TV service providers in their own country will struggle to grow their business over the next five years, while 78% of agreed that pay TV providers will have to “innovate strongly” in the next five years in order to grow.
In line with this, 82% of executives ranked innovation as one of the top priorities for the industry for the coming years.
“As broadband becomes more ubiquitous in several markets, competition from streaming media platforms intensifies and consumer TV and video journeys evolve, it is clear that the industry needs to innovate at a faster pace to satisfy its customers and remain relevant,” said Simon Trudelle, senior product marketing director for NAGRA.
The findings of the white paper were reached between March and September 2016 and based on MTM research and engagement with pay TV industry executives from around the world.
The Pay TV Innovation Forum is a global research programme for senior pay TV executives, developed by Nagra to explore and spur on innovation across the pay TV industry.
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