OTTs Expand Internationally
OTT players are poised for huge international expansion, according to a recent report from Market Research. As partnerships with both content providers and service providers are formed with players like Hulu and others, global online TV advertising revenue is predicted to reach $21.52 billion in 2016. But the slice of advertiser OTT revenue will shrink from 63 percent in 2010 to an estimated 46 percent in 2016 as pay-TV revenues skyrocket which means that even advertisers are being forced to adapt as more customers opt for subscription-based services over the next five years.
If anyone still doubts the pull of IPTV for customers, please note Exhibit A: Netflix. Between its colossal Qwikster fail and difficulty securing Starz content, Netflix lost an obscene 800,000 subscribers in the third quarter of 2011 alone. Those little red envelopes that brought down video titans like Blockbuster are no match for customers' growing hunger for on-demand premium content streaming. But pricing and the lack of availability of premium content on Netflix have proven to be real deal-breakers with customers. If your subscribers can't find or access what they want, whenever they want it, they will leave, in droves.
BSS/OSS in Real Time
Offline support systems that don't react in real-time aren't going to cut it in the IPTV market. The business and operational support systems (BSS/OSS) will become part of the operator's product offering and relationship with customers. The ability to interface anywhere, anytime with your customers in real time can give any provider an edge and the ability for providers' to support multiple on-demand and subscription based billing models will be a necessity. According to Banerjee, there are few, if any, providers with a complete BSS/OSS system in place to do that.
"Product catalog, Intelligent Offer Management, Order Management, Advanced Analytics, embedded catalog, and policy management with BSS systems will play critical roles," Banerjee adds.
Zero Sum
While the development and deployment of quadruple-play services and Anywhere TV will look vastly different for each provider, the stakes couldn't be higher. It's a zero-sum game. Service providers have got to optimize converged networks to interface with any device, from anywhere. That will require real-time reaction to customer needs and the ability to personalize the experience for each subscriber. While that might sound like a tall order, but the penalties for not rising to the challenge are even greater.
"At the end, service providers need to listen to their customer, see what they want and then provide services which appeal to their lifestyle," Banerjee adds. "It might sound cliché, but winners will be service providers who can provide personalized experience for end users. One size does not fit all so service providers need to move away from a mass market approach to a more personalized one."
