There is no denying that the emergence of streaming has changed the way we watch TV. How, what, and where we consume media and entertainment content has undergone a revolution in the last few years. Unlike linear television days, consumers are now taking charge of how they want to digest such content.
This has created a challenging situation for cable TV operators. With growing viewers’ demands, cable TVoperators need to pull up their sleeves and focus on developing trends to survive the rat race. The only advantage cable TV operators have on their side at this hour is their age-old loyal customers who are not yet comfortable switching completely to streaming services.
But this may be the final call before potential cable TV customers move totally to on-demand streaming services and put a significant dent in cable operators’ profitability. Thus it’s time to look at the impending long-term cable TV challenges and develop new strategic plans to overcome them.
Newer players capturing market share
The cord-cutting trend is allowing web-based, OTT alternatives to take over linear TV services. Their service-based offering, along with faster networks, high-definition content, and modern infrastructure has already made a massive impact on cable TV revenues. Thus, to stay relevant, cable operators need to provide high-quality content. Moreover, consumers should be able to decide and choose what, when, and where they want to consume content.
Evolution of customer expectation
The rise of customized content delivery has changed customer expectations and they are no longer willing to pay for channels that they don’t watch. They wish to have control over what they want to watch. Thus, to hold on to the existing customers, cable operators need to develop more targeted and smaller bundles.
A sudden outburst of content
The addition of digital set-top boxes generated a rapid expansion of regional and local channels. This led more customers to tune into localised content. But it has become challenging for cable TV operators to continue delivering such content in high quality and high-definition, leading to customer dissatisfaction. To overcome this issue, operators at the regional level can start providing double-play services of cable TV and internet connectivity to consumers. Operators can establish zonal hubs to access satellite content and connect them through a high-speed fibre network to different localities.
Cable TV operators need to invest a huge amount of money in establishing new hubs in every locality including real estate, satellite dish, local ring networks, software, and more. But given the current challenging situation, cable TV operators should focus on the ideal areas for investment and create a competitive advantage.
While these are some of the challenges that cable TV operators need to look at, certain aspects also need to be worked on, the primary one being a digital-first enterprise. With digitization taking over all forms of platforms, it’s time for cable operators to also join the league. To improve customer retention, cable operators can give more control to their customers by allowing seamless self-installation and digitized back-office and customer care services along with omnichannel sales.
Further, cable TV operators should also try to bag the younger crowds. And a great way to do so is to enable binge-released shows as it might get challenging to keep the younger generation hooked on episodes with longer intervals. Besides getting control over how and when they want to digest content, the younger generation also likes to have control over ads. An ad-free subscription option can help overcome these issues.
Even though streaming services seem to rule the future of the media and entertainment industry, cable TV still has a place to evolve and overcome the existing challenges. They just need to update their strategies to meet the need of modern customers. We at Magnaquest can help you develop a customer-first approach for cable TV operationsso that there your business thrives even in this era of streaming services.