Pay-TV subscriber numbers are dwindling. In this blog post I look at the current trends causing cord cutting and how operators can challenge this epidemic and prevent it from significantly impacting their revenue.
Beyond the Basic Reasons, Why Cord Cutting is Growing
Many pay-TV operators still rely on premium content as their differentiator, but it is becoming clearer that subscribers want something more. Research firm eMarketer predicts an overall decline of 4.3 million pay-TV customers by 2019 and an increase of 8.6 million non-pay-TV households in the same time period.
To deal with this, pay-TV operators need to take a deep look at the changing viewing habits of today’s consumers, including the effect that mobile devices have on viewer expectations for the main TV screen. Multitasking between multiple screens and an expectation for deep, immediate, and relevant data is becoming a common requirement today as consumers demand a more personalized and engaging TV experience with relevant data available in real-time.
Recently, TiVo revealed that 99 percent of people multitask while watching TV, with 53 percent multitasking every time or almost every time they watch. This study is one of many that shows viewers are increasingly turning to second and third screens while they are viewing TV on the main screen. Beyond the need to socialize while watching TV, viewers are also looking for additional relevant content and/or data related to the show they are watching.
The Solution is in the Habits
What if pay-TV operators could provide the ultimate TV experience on one screen? What if the data that consumers were searching for on smartphones and tablets was only a “remote control click” away? What if TV watching became as personal to viewers as their mobile phone experience?
With a growing number of TV services based on home broadband connections, all of this is possible. It’s up to operators to invest in innovative TV platforms that infuse the TV experience with the full power of the Internet, bringing in relevant information, data, and social activity, from a variety of online sources, that is contextual to viewers and content.
By choosing a multiscreen TV platform with technology that offers subscribers advanced services such as participation, pedia contextual data, social, and commerce capabilities, operators can increase personalization, and improve engagement on every screen. This will enable them to keep up with subscriber viewing habits and offer a TV experience that boosts revenue while preventing subscriber churn and cord cutting.