Multiscreen’s 4 biggest challenges of 2015

Multiscreen is maturing at a rapid rate thanks to increased operator competition and consumer adoption. However, there are still challenges to overcome before we reach true TV Everywhere:

1. Secure high quality delivery to multiscreen, in and outside the home

As well as overcoming the challenges of a consistent user experience (UX) on multiple devices, operators need to ensure that their multiscreen services offer high quality content catalogues to attract and retain subscribers. To achieve this, they need to comply with the content industry’s stringent security requirements and ensure the high quality of service that consumers expect. Home gateway solutions that can ‘trans-crypt’ multiple types of Conditional Access and Digital Rights Management systems on the fly enable operators to deliver any type of content to any screen within the home, reducing the investment into cloud infrastructure. This also increases quality of service by using the in-home network, while limiting the risk of that content being accessed or streamed illegally over the Internet. Content can also be downloaded in the appropriate format to companion devices such as smartphones and tablets for viewing when away from home.

2. Knowing the user and reacting to changes quickly

Consumers have more choices to consume content than ever before, whether OTT or alternative pay-TV providers. Operators need to provide the highest quality of content and service in order to attract and retain consumers. It is highly critical for operators to better understand the consumer requirements and detect any change in subscriber behaviour. Better understanding of how consumers use the service will enable operators to make the right decisions in a timely manner. This will help reduce subscriber churn, increase subscriber satisfaction, improve the operator’s service and gain new subscribers.

3. Seamless experience on all devices

The proliferation of devices and systems used to access content means that operators have to deploy solutions that support multiple browsers, operating systems, screen sizes, device type and interaction method. A key requirement for every operator consists in creating a familiar UX across all supported devices. For the consumer, the ideal solution is a seamless service spanning linear and catch up TV services, OTT, multi-room, PVR and other personal content. Solutions that support HTML5 and Encrypted Media Extensions (EME) and Media Source Extensions (MSE) help operators deliver a seamless UX on all screens.

4. Monetization

Providing the best experience and offering the best content catalogue everywhere is crucial to retain subscribers, but operators need to ensure that their multiscreen services are profitable. For the past fifty years, advertising has been the TV industry’s main means of increasing revenue and it’s unlikely that this will change in the near future. To ensure that advertisers also see a benefit from multiscreen, operators must offer data analytics on subscriber behaviour, devices used to watch content and more. This in turn helps advertisers tailor their campaigns to deliver them to the right audience at the right time and on the right screen.

2015 will see operators launch effective business models based on advertising and high quality content catalogues to consolidate the multiscreen market. Aggregating and analyzing consumer data will be pivotal in enabling operators to offer a successful multiscreen experience. This business intelligence data will be particularly crucial as pure OTT players and broadcasters start fighting head on for multiscreen supremacy.

The 2015 International CES is focusing on integrating CE devices in with the multiscreen mix, and taking TV Everywhere a step further by deploying it in smart cars. This demonstrates that once more, technology plays a crucial role in enabling the industry to refresh and create new personal stories that will resonate with all audiences, in every location and on every device.

This blog was originally published on IP&TV News

IHS Screen Digest report puts multiscreen monetization under the microscope

At ACCESS we are producing solutions to drive the success of multiscreen deployments. We are also aware that the business models to drive multiscreen are not yet solid – so to help drive multiscreen monetization debate forward we asked IHS Screen Digest to look at the issues surrounding monetization. The result is a white paper ‘Unlocking and Securing Multiscreen’s Monetization Potential’, now available at http://mediapilot.access-company.com/screendigest.html.

The IHS Screen Digest paper sites ‘insurance’ as the main driver of present multiscreen deployments, with monetization some time I the future. IHS Screen Digest states this as follows: “Pay-TV multiscreen is not a reaction to eroding subscription bases, or revenue loss in the present. It is a form of insurance, and secures the future where consumers continue to purchase high-value pay-TV subscriptions.  … In pivoting their extensive content offers beyond the set-top, operators can protect the future of the subscription income stream, place subscriber acquisition on firm footing, and monetise wide- reaching content distribution in proactive, incremental fashion.”
In addition, the report identifies the three following technologies as key to driving multiscreen success: DLNA, HTML5 and security.

Key findings of the report include:

  • OTT has so far had little or no discernible impact on subscriber numbers (see graph below)
  • OTT is not affecting marginal revenues from operators’ advanced services
  • Consumers content spend is still predominantly on Pay-TV subscriptions
  • DLNA, HTML5 and security are the three key technologies key to multiscreen success

IHS_graphic
Our work in producing DLNA and HTML5 solutions and our collaboration with CAS/DRM partners means that we’re playing a key role in all three technologies that IHS Screen Digest identifies as at the heart of enabling the multiscreen revolution.

Although the report finds little hard evidence of OTT yet hurting the TV operators, when I’m talking to customers they are pretty sure that Pay-TV VoD buy rates are lower when a consumer has OTT. Our research also suggests that OTT ARPU is in almost all cases considerably greater than incremental Pay-TV VoD ARPUs.

Putting together what the report says with what I’m hearing anecdotally it’s clear that Pay-TV operators are in a strong position. However, it’s critical that they guard against OTT chipping away at their customer base and VoD revenues. The best way to do that is by deploying powerful DLNA and HTML5 powered VoD, OTT, multiroom and multiscreen services that at least match their OTT rivals in terms of both usability and content breadth. If they can do that their natural advantages of existing strong content relationships, scale, QoS and customer care combined with the cross marketing and discounting they can offer to cross-sell VoD and OTT services to their existing customers will ensure that Pay-TV operators will continue to prosper relative to their OTT rivals.

 Joerg Eggink
Global Product Director, Connected Home
ACCESS Europe GmbH

Introducing the Multiscreen Blog

I would like to introduce you to the ACCESS Multiscreen blog here at http://nord.themultiscreenblog.com.w01d64c1.kasserver.com/. We think there are a number of reasons why this is a really great time to launch a blog looking at the business and technical issues surrounding the monetization of multiscreen. Most operators agree that they want and need to deploy multiscreen services and consumer demand is clearly there for access to content on all devices and at locations. But there are a number of issues – and it’s these we want to talk to you about.

Almost every operator is thinking very carefully about the business models of multiscreen – we asked IHS Screen Digest to look into this, if you would like to know more please visit http://mediapilot.access-company.com/screendigest.html. Security is another issue that isn’t going to go away anytime soon. Multiscreen needs security that’s widely available, doesn’t interfere with the way consumers want to share consume content and is secure enough to satisfy the content studios’ understandably high security requirements. We call this ‘studio confident’ security and we’re working with CAS vendors to be able to provide the market with highly functional multiscreen solutions that combine the power of DLNA, HTML5 with the security of CAS.

I hope you decide to sign up for our blog, which you can do simply by subscribing at the bottom of the page. I look forward to me and other team members writing blogs moving forward and I want to stress that we really do want to have a dialogue rather than just telling you what we think. So if you would like to respond to our blogs or say something else about multiscreen, please do get in touch by writing your comments in the box below. I look forward to hearing from you.

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Best regards,
Dr. Neale Foster
VP Sales, Marketing & Strategy for TV
ACCESS

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