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Hybrid OTT Top Business Model For TV Operators 29 July 2015

OTT Revenue Model

 

TV operators are looking to launch OTT video services to provide multiscreen access and compete with the likes of Netflix, with most favouring a hybrid model, according to research by e-commerce firm MPP Global.

MPP found that 60% of operators said that hybrid OTT, combining transactional and subscription video-on-demand in a single service, was the model best suited to their business.

According to MPP, four out of five operators see changes in how their customers are accessing goods and services, and three out of four are integrating new pricing and delivery models such as SVOD and TVOD. The research found that 86% of operators anticipate that revenue from SVOD and TVOD services will increaseover the next 18 months.

According to MPP, 37% of organisations believe that these new pricing models deliver competitive differentiation, while 32% believe they provide additional revenue opportunities and 32% believe they reduce churn.

The research found that TV operators favour three broad pricing and packaging models. The first is to introduce smaller, tailored or personalized bundles of content and channels users have chosen for themselves, rather than a big bundle.

Second, they are favouring time-limited passes, such as the day, week and month passes offered by Sky for its Now TV service, and third, they are looking to make use of video metering technology to offer freemium services, providing consumers with limited free access to video content, based on a choice of considerations which the operator can define, such as happy hours offering free access at low usage periods.

With the latter model, operators have an opportunity to attract customers by offering free access before asking them to sign up for a transactional or subscription VOD service.

Read the entire story here.

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