A leading analyst has said Multichannel Video Programming Distributors (MVPDs) must evolve into “super aggregators” in order to defend their incumbent positions.
Caretta Research says MVPDs – satellite, cable and IPTV platforms – need to embrace “coopetition” with rival video services to counter erosion of pay-TV subscriber bases.
“MVPDs start with three significant advantages: a billing relationship with, a direct promotional pipeline to, and valuable data on audiences who prioritize entertainment spend,” said Ed Barton, Research Director for Caretta Research. “To maximize the competitive advantages of incumbency, they should consider super aggregating video and digital services differentiated via bundling, video discovery and unique, local content.”
Caretta believes developing MVPD platforms is no longer about near-term roadmaps focused on adding the latest features, but rather through implementation of a strategic, long-term vision of what consumers want and the platform architecture required to address those particular use cases.
“2030’s market leading MVPDs will be built on cloud-native, open architectures enabling strategic optionality and AI-based technologies,” Barton continues. “MVPDs who fail to understand and act on this will be less competitive, will fail to offer superior consumer experiences, and will yield market share to those that do. At Caretta we believe that there will be fewer MVPDs in the 2030s than exist now: those that survive, and thrive, will be those that focus on technology enablement strategies that position them to win now and far into the future.”
Opportunities put forward by Caretta include new advertising revenue streams, such as placements in discovery tools, personalized FAST channels, live events, and more; and integration of IOT, gaming and other digital lifestyle offerings to expand subscriber attraction and retention.
The report was commissioned by Quickplay. It is available at https://www.carettaresearch.com/downloads/how-to-be-a-paytv-market-leader.
