Some 84% of pay TV executives expect competition for paid-for video services to “increase dramatically” over the next five years, according to new research.
The Nagra Pay TV Innovation Forum report, produced in association with research firm MTM, found that 90% of executives believe that pay TV providers will have to innovate strongly to remain relevant – up from 85% in 2017.
The research also highlighted that the pay TV industry is converging towards a platform-agnostic model and is transitioning into a paid-for-video market – spanning a variety of offerings including standalone OTT and direct-to-consumer services.
Among those surveyed, 77% of pay TV executives said they consider innovation to be one of the top three strategic priorities for the industry, while the same proportion said that pay TV bundles will evolve substantially over the next five years.
Meanwhile, 47% predicted that piracy will lead to greater pressures on the industry over the next five years.
“Change is the one constant in the global pay TV industry, driven by numerous pressures from competitors, pirates and subscribers, making it challenging for service providers and content owners to maintain revenue growth,” said Simon Trudelle, senior director, product marketing, Nagra.
MTM managing partner, Jon Watts, said: “It is exciting to see a growing number of service providers embarking on the next stage of innovation, encompassing product and service portfolio improvements, alongside advanced technology platforms and new commercial and operating models.”
“By keeping innovation at the core of their strategies and recognising the need to diversify, service providers can continue to compete effectively and grow revenue.”
To access the full report click here.