Earlier this year, a survey of pay-TV providers by the Pay-TV Innovation Forum 2017 found that the majority of pay-TV execs believed data and analytics will be critical to pay TV direction over the next five years.
That April survey pointed to the growing adoption of OTT services by younger audiences as a driving force behind operators examining changing business models. Operators are adapting products, bundles and prices to a new generation of consumers and they’re increasingly using advanced analytics to help them avoid pitfalls created by the major disruption the industry is undergoing.
“This year’s research program shows that the North American industry is moving forward, developing and extending product and service portfolios and addressing new opportunities,” said Jon Watts, managing partner of researcher MTM.
More research out this week points to the crucial role data and analytics play and says the market for pay-TV analytics is expected to more than double by 2022 to $3.7 billion globally, up from $1.8 billion in 2017. The driving force, it says: A need by content providers to find ways to separate from the crowd, making use, for example, of artificial intelligence to provide more relevant video experiences to their customers.
ABI Research’s Analytics Opportunity in Video Services points out that companies using siloed solutions for individual business units will begin to follow the examples set by best-in-class OTT companies, building unified data platforms that centralize data, but also make it available to all segments of the business.
As ABI said, offering an analytics dashboard increasingly is table stakes for technology companies offering any component of a video distribution service.
The differentiator is being able to take that descriptive data and turn it into predictive data that help develop insights into a business’s operations, helping to hone product offerings, better engage with customers and to increase ROI.
Jim O’Neill is Principal Analyst and Strategic Media Consultant for Ooyala. You can follow him on Twitter @JimONeillMedia and on LinkedIn