Revenue is the greatest challenge for pay-TV, telco and streaming operators, according to new research conducted by Caretta Research for Irdeto.
The State of the Video Entertainment Industry Report finds that for 53% it’s tackling subscriber churn, 48% cite declining average revenue per user (ARPU), and 39% are focusing on innovation in monetisation, such as launching new services and investing in ad tech.
“To address the challenges faced today requires a holistic approach; a combination of innovative technologies, strategic partnerships, and continuous investment in infrastructure, and software platforms,” says Andrew Bunten, COO of Video Entertainment at Irdeto. “By taking an informed and proactive stance on tackling these industry challenges, content distributors are better positioned to effectively monetize their content, drive revenue growth, and scale their businesses, while continuing to securely deliver compelling viewing experiences to audiences worldwide.
Among other themes explored, the research looks at how operators are investing in technology to enhance operational scale, efficiency, and monetisation, amidst tough market conditions. The biggest drivers for making those technology investments are adding new features (59%), scaling up the platform (46% of operators), reaching new devices (39%) and launching in new territories (21%).
A focal point of the study is the ongoing evolution of super aggregation platforms. While many operators are prioritising content aggregation and a unified user experience, the research exposes that the journey toward super aggregation is still a work in progress for a significant number of platforms. From Irdeto and Caretta’s research, 56% of the survey respondents include third-party apps in their service offerings.
The survey data uncovers a shift in operators’ strategies, moving beyond video-centric offerings to include a diverse range of services such as smart homes, gaming, music, connected IoT devices, health and fitness apps, and even innovative advertising models. This strategic diversification is aimed at cultivating additional revenue streams from the expanding customer base, although as financial pressures continue, almost 40% of respondents highlighted the challenge of innovating and diversifying their revenue.
A survey was conducted of 143 participants in January and February 2024.
