TV was a curiosity when it was first introduced in the early 90s. It took a lot of technological progress in terms of amplitude, phase, and frequency to bring the analog watches to the public.
Fast forward to today, digital media has taken over the market, and viewers have grown more selective with subscription-based billing. The strain on Pay TV service providers to stay competitive in the media environment got even more vital as the internet’s rising popularity brought additional turmoil and change.
Why is the Number of Pay TV Subscribers Dropping?
Finding a balance between subscribers and content is crucial for customer retention as more providers strive to expand revenues from pay TV streaming services.
Some of the most common reasons for the customer churn are:
- New competitors such as OTTs are emerging, posing a threat to the existing system
- Consumers don’t want to pay extra for the channels they don’t watch
- Media corporations are experimenting with delivering their own streaming services
- Consumers prefer the convenience of switching between devices such as computers, smartphones, and wearables
What Could Retain the Pay TV Subscribers?
- Cost and Content
While content reigns supreme, the cost has taken over as the new ruler. Content generation is quite costly in the media industry with enormous expenditure by apex acquirers, especially for elite tales and services.
In addition to growing and venturing into other niches, the effective solution is to focus on content generation as well. Although pay TV subscription is generally low, user acquisition is quite expensive, and broadcasters have yet to attract the ad revenues which have bolstered pay TV. Consumers are bound to choose pay TV if they are receiving the finest content at a reasonable price.
- Constant Investment in Pay TV Services
Nearly half of pay TV service providers enhanced their catalogues last year, focusing on building core offers and modern set-top boxes with sophisticated functionalities. Third-party applications, customized suggestions, and accessibility to 4K video are just a few features.
To keep people interested in their services, pay TV companies must constantly invest and improve their offerings.
- Broader Range of Multiscreen Pay TV Options
In the coming days, delivering a smooth, personalized user experience will be paramount, particularly in light of rising churn and cable-cutting.
Catering to evolving client demographics and consumption habits will play a role in this. Meanwhile, advanced data analytics will increasingly assist pay TV firms in improving client retention and lowering turnover. It offers customized experiences and appropriate advertising and assists with generating leads, product development, and automating customer care services.
- Combined Pay TV and OTT Offerings
It’s pretty known that OTT subscriptions are growing at a dizzying speed while conventional pay TV is dropping. As a result, pay TV operators are trying to offer a combination of programs and service methods to attract long-term consumers with their non-traditional watching patterns.
The new landscape creates an enormous potential for service providers willing to become ultra-aggregators, combining the services of pay TV and OTT into a single subscription. Customers will find it difficult to turn down a flexible offer in such a competitive market.
- Connectivity and Diversification
Adjacent services, such as mobile and fixed-line connections, offer tremendous prospects for the business, allowing it to become more deeply established in customers’ thoughts. Home automation, intelligent ad solutions, and subscription billing solution show great promise, with around 40% of CEOs identifying these categories as strategically significant.
In a Nutshell
Service providers need to use a mix of data analytics, innovative packaging techniques, brilliant content selection, subscription based billing, and anti-piracy methods to compete as we enter the age of active content commercialization. It will be crucial for them to transform their business strategies by providing the comprehensive digital solutions that today’s viewers want while also allowing for innovation.
If you’re having trouble navigating the changing subscription and media industries, we can assist you. In the long term, our subscription billing software can help you in smoothing out your path.