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Industry ‘optimistic’ about responding to OTT disruption

A majority of TV executives believe that OTT subscription services, such as Netflix and Amazon Prime Video, can be a valuable part of their pay-TV offering.

According to a new report from content protection company NAGRA and research consultancy MTM, 79% of executives feel that these rapidly growing OTT services present a major opportunity to become ‘super-aggregators’ of content.

The report, the European edition of the 2019 Pay-TV Innovation Forum, is a global research programme for senior executives designed to explore “the biggest challenges and opportunities facing the pay-TV and content industries at a time of unprecedented change”.

Elsewhere, the report claims that execs are also optimistic about the industry’s ability to reinvent aggregation models in response to the rising popularity of OTT services and an anticipated decline in the number of linear channels. 

A staggering 94% of participants believe that, by 2024, major platforms in European markets will carry 20 percent fewer linear pay-TV channels than today.

The report also looks at digital transformation, with 57% believing that legacy platforms present a major operational challenge. It also highlights the persistent challenge of content piracy, with little optimism about its decline. 

Simon Trudelle, senior director of product marketing at Nagra, said: “The growth of OTT services is undoubtedly having an impact on the pay-TV and content industries and digital transformation is emerging as a key priority. It is exciting to see that while challenges exist, focus is on creating opportunities for growth and in the end, delivering services that will delight consumers and keep them engaged. The next few years will prove to be pivotal in this regard.”

Jon Watts, managing partner at MTM added: “After nearly two decades of growth, we’re starting to see the signs of a very different industry – with a greater focus on the network, a broader offering of products and services, and new approaches to aggregation and content retailing. 

“It’s encouraging to see signs of optimism and widespread interest in these new approaches, as the industry looks for the next wave of growth opportunities that will see it into the 2020s.”