In the service provider market, revenue margins are declining. According to Digital TV Research, pay-TV revenues will fall in North America by $12 billion, $566 million in Western Europe, and $28 million in Eastern Europe by the year 2022.
There are several reasons why operators in the telco, mobile, IPTV and cable TV environments are taking a hit in margins. Generally, service prices are getting cheaper, thanks to increased competition and new OTT offerings. In particular, an explosion in OTT multiscreen services has led to the phenomenon of cord-cutting, taking away subscribers from traditional service providers.
Given the challenges that service providers are facing in terms of diminished profit margins, they need innovative ways to increase revenue streams, reduce churn, and attract new customers. Recently, smart home and smart living subscription services have emerged as a game changer, supplying service providers with a new potential source of revenue with minimal risk.
Read more in this White Paper from ABOX42
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