New Economics of Pay-TV: An Industry In Change And the Need to Unlock New Capital

As Telcos worldwide go through different phases of digital transformation, one of the main challenges is unlocking capital to support the cost of new strategic initiatives - often to provide more services and greater product differentiation. Consequently, reducing or optimizing the costs of traditional or legacy businesses is key so that capital can be released.

Supporting New Innovation

From a pay-TV perspective, and as our industry continues to find innovative ways to reduce churn, attract new consumers, and stay relevant beyond just aggregation, new themes will emerge that will require investment. These range from innovative topics such as advanced personalization, reward programs, gamification, social features, e-commerce, gaming and new content to support the transition to OTT. This could include extending the reach of live sports or simply supporting an ever-growing list of devices.

As part of their transformation and transition to OTT, operators may also offer hybrid solutions to their subscribers for both linear TV and OTT. This enables operators to stay competitive while automating content access, discovery, and curation across multiple devices. But while operators may wish to focus on new initiatives, and as OTT becomes more financially sustainable, linear TV continues to remain an important revenue source, especially for premium live content:

Why the Right Partner Ecosystem is Key

In terms of optimizing investments for linear TV, flexibility and adaptability have become key success criteria when working with strategic partners. That's why at NAGRA, we believe that providing operators with access to a comprehensive list of options that doesn't restrict choice is vital. This enables support for operators of all sizes to deliver almost any use case. A rich ecosystem of partners, from chipset or device partners to security and wider technologies, provides a full range of off-the-shelf solutions. These are then available at multiple price points - from low-cost to advanced and hybrid devices. This ensures operator strategies and equipment choices are not inhibited by technological barriers.

Moreover, as pay-TV operators look at the best way to combine their linear TV service with OTT through a single unified experience using solution ecosystems such as Android TV or RDK, several technology decisions must be made. NAGRA addresses these by offering both off-the-shelf and a la carte solutions designed to optimize time to market and deliver against an operator's strategic plan.

Get In Touch To Learn More

NAGRA is currently helping Telcos and pay-TV operators globally with their digital transformation programs. Claro Colombia and StarHub in Singapore are just two examples of how NAGRA solutions are redefining the subscriber /operator relationship. If you would like to continue the discussion, we'd love to chat! Learn how we can help optimize the cost of your traditional or legacy PayTV services and support the transformation of your business through our latest The New Economics of pay-TV Ebook. We explore how digital transformation has changed the media and entertainment industry, and how NAGRA is helping drive the transformation of our customer's pay-TV businesses.

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