OTT + IPTV Shift: A Necessity for MSOs
Updated: May 25, 2022
As high-speed internet becomes more affordable, viewers seeking high-quality content prefer IPTV over traditional television systems. According to Media Partners Asia, India's IPTV market will grow at a CAGR of 7% between 2020 and 2025, with overall industry revenue estimated to reach $12.3 billion by then. India's over-the-top (OTT) video streaming industry is expected to grow at a CAGR of more than 20% over the next decade to reach $13 billion–$15 billion.
According to TRAI, the Cable TV business lost over 18 Lakh, active customers, to the ISPs who offer OTT+IPTV Services with the internet, between September 2020-2021 and the trend is on. The overall active subscriber base of nine MSOs and one HITS operator fell to 4.55 Crore in September 2021, down from 4.61 Crore in June 2021.
MSOs' present business infrastructure is becoming obsolete. This has resulted in operational difficulties since consumers no longer want to watch channels that MSOs push upon them. MSOs are technologically trailing, which is posing challenges. For example, the present distribution system's analog head-end has limitations in telecasting. With the present content distribution strategy, MSOs are facing the heat of reduced average revenue per unit (ARPU) and a significant investment in equipment and transportation.
IPTV and OTT Solution is the need of the hour
Multiple System Operators (MSO) should modify their content and distribution capabilities to capitalize on changes in market trends. They must be prepared to deal with unanticipated and ever-increasing amounts of new content, new devices and formats, new IP distribution tactics, and new consumption patterns.
MSOs must use the IPTV+OTT platform to provide more value addons for their clients while expanding their ability to monetize their content. IPTV+OTT along with the Internet delivers a higher ARPU, and the cost of equipment and transportation is reduced because there are no such constraints. It is a fantastic opportunity for MSOs to benefit from current market dynamics while also embracing new-age possibilities through a partnership with IPTV and OTT solution providers. It will enable businesses to remain competitive and provide their clients with a one-of-a-kind value proposition.
MSOs have to embrace an IPTV & OTT distribution strategy by doing the following:
Increasing broadband speeds.
Leverage IPTV & OTT device platforms.
Integrate unified IPTV & OTT with the internet service.
As a result, it will market itself as a broadband-centric service provider. Furthermore, this technique has potential advantages as it allows cable MSOs to capitalize on the ongoing content revolution while utilizing their current network infrastructure.
Benefits of IPTV and OTT to the MSOs
MSOs must leverage this trend to reap benefits such as generating multiple streams of income, increasing profitability, scaling company growth, and providing higher customer satisfaction. They can also obtain additional benefits like:
Improved branding with your own white-label OTT Platform
Revenue from local advertisement and content injection and cater to diverse geographies
Acquire, engage, and retain partners by offering greater value.
Enhanced brand visibility and gain a competitive edge in the market.
Effect of changing preferences on MSO
MSOs at all levels have come to the same conclusion as a result of increased demand: follow the trend or lose everything.
There is fierce competition from large players like Jio TV and Airtel Xstream, who are rapidly gaining market share. To combat this, smaller MSOs have started merging their operations with the bigger ones to avoid becoming obsolete.
MSOs have begun to provide IPTV and OTT services packaged with internet connections to suit the expectations of consumers. Everyone is working hard to utilize their existing infrastructure and take advantage of low-cost internet connectivity to be a part of the IPTV and OTT revolution. MSOs are giving comparable choices to keep their existing clients from leaving. They will ultimately be able to convert new clients and experience a variety of benefits such as multiple income streams, enhanced branding, satisfied customers, and higher profitability.
MSOs are reconsidering their business strategies to avoid becoming obsolete. As the market size is growing each day, there is a huge potential to derive profit from the emerging market. Big operators such as Tata Play, Jio TV, and Airtel Xstream, have been aggressively acquiring the market share with the IPTV and OTT packages. As a result, the market for unified services is growing. Innovative IPTV and OTT solution vendors are assisting MSOs in entering the expanding business. Only a few businesses, such as Infynect Labs, are revolutionizing the market with cutting-edge technology and end-to-end IPTV and OTT solutions, ensuring that MSOs have nothing to worry about.
So, what are you waiting for? Join us today to revolutionize your business and be ready to capitalize on market prospects.