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How can service providers better drive video revenues?

By December 8, 2017 No Comments

The video consumption landscape has seen profound change, with viewers now demanding a seamless multi-screen experience across a myriad of devices and access types. Whether it be Linear, IPTV, VOD or OTT, content is being consumed at a greater rate, and in a more disparate manner, than ever before.

This fragmentation of audience has resulted in a marked increase in the complexity and volume of data on the network – Currently amassing to terabytes and continuing to mount. Bridging the data gap is proving a significant challenge, where operators are struggling to stem the tide and meaningfully extract value from the deluge of viewership data now at play.

The high costs associated with delivering a video service present a considerable challenge for operators, where it is not uncommon for the mere cost of data storage to prove prohibitive, let alone the cost of content acquisition. On top of the cost of building out a TV platform and the associated operating costs, the most onerous expense incurred is that of the content itself. In fact, in some cases, this cost can exceed that of launching the actual service.

So how to turn this around and more effectively drive video revenues? Firstly, it is imperative to reduce costs and the reliance on stagnating data lakes by extracting the value from the data as it is in motion, through real-time streaming analytics. This provides value two fold, providing both an understanding of actual viewing behaviours and preferences to enhance personalization as well as providing accurate measurement of viewership data and engagement levels for specific content. In turn, this lends to better empower the operator to get the best deal when it comes to content negotiations.

As evident in 2017, operators are looking to re-define the playing field when it comes to content agreements, which have traditionally seen operators locked into standing contracts for as long as 3 years. When Vodafone UK decided not to proceed with the launch of their OTT service in Q1 of this year, they found themselves in a difficult position when attempting to exit a lengthy content agreement already in place.¹ It is clear that things need to change.

The availability of more comprehensive viewership data, collected, analysed and presented in real-time, brings about a significant opportunity for operators to monetize such data through advertising. One such opportunity for new revenue presents itself in the form of Dynamic Ad Insertion, which allows operators who are uniquely furnished with real-time viewership insights to enable dynamic ad placement to live and on-demand video services. Real-time analytics optimizes the value of the data to 3rd Parties, while also enriching the end viewer experience with the most relevant content at the most relevant time.

To best position operators to capitalize on video services, it is imperative to have a centralized, open-integration approach in order to both reduce costs and unlock new revenues. Where multiple data sources and formats are at play, a single platform provides the ability to reduce the current complexity and realise the full potential value inherent in the viewership data on the network.

¹ ‘Vodafone wastes millions on thwarted pay-TV ambitions’, The Telegraph, 24th April 2017

Learn more by downloading our white paper How to Make Sense of Monetizing Video