Multi-Screen Video Services Can Help Service Providers Increase Revenue, Reduce Churn

Next Generation Communications Blog

Multi-Screen Video Services Can Help Service Providers Increase Revenue, Reduce Churn

By Beecher Tuttle

The recent influx of innovative communication and entertainment technologies has increased user demands to new levels. Today's consumers want access to highly interactive, personalized multimedia content on man y and any device – including televisions, smartphones, tables and PCs – all with the same quality of experience obtained via traditional TV viewing.   In other words they want video portability, and service providers need a multi-screen video services platform that can accommodate this need and capitalize on the opportunity.

Needless to say, the accelerating pace and pressure of user expectations have put unique demands on service providers (SPs), who now for competitive reasons, i.e., keeping customers on their basic connectivity services, need to be able to quickly launch video services across multiple screens. However, this is not just about urgency, it is about opportunity.  SPs, if they get it right, will be able to differentiate themselves from the competition (including not just physical network providers but also OTTs) and create/cement a position of centrality in evolving application and content value chains.   They will also be better positioned to promote and cross-sell other fixed and mobile service offerings.

Under the catchy title, “I Want My M(ultiscreen TV!”  Alcatel-Lucent revealed research results whose goal was to quantify multiscreen video service market behaviors and opportunities.  The major finding, and good news for service providers, is that the level of interest in multi-screen video is very high.

Researchers discovered that:

  • 38 percent of consumers who currently do not bundle multiple services from their provider would do so if multi-screen services were included in the package at no additional charge.
  • Nearly 50 percent of those who currently pay for double-play or triple-play services would upgrade if multi-screen offerings were available.

Other good news for service providers is that younger, more tech-oriented consumers had the highest level of interest in multi-screen services, implying that the market for such technologies will only grow in the coming years. Among these younger users, the three most sought after features were time shifting multi-screen video, multi-screen video on demand and mobile smartloading.

The researchers also found that multi-screen video services could have a significant impact on subscriber churn rates for service providers. An astounding 63 percent of respondents said that they would or at least consider switching to another provider that offers multi-screen services. As with the initial finding, younger, tech-oriented consumers felt the biggest draw toward multi-screen services.

An analysis of the data also revealed that incorporating multi-screen video services into bundled offerings can help service providers decrease subscriber churn by as much as 50 percent in the short-term and obviously also has a considerable impact on mitigating potential cumulative revenue losses due to churn over a five-year period.

It is no surprise that upgrades associated with multi-screen services can have a profound impact on a service provider's bottom line.  Alcatel-Lucent estimates that the market for multi-screen video services will total $88 billion in the next five years alone.

Alcatel-Lucent's Multiscreen Video Platform can help cable operators and telcos maximize their positions in this potentially explosive market. The scalable, modular solution is capable of delivery live scheduled TV, video-on-demand and ‘TV everywhere’ services to a variety of screens. It can be deployed via a hosted, local or hybrid model and has been proven to increase loyalty and boost media revenue.

In fact, the solution recently won the TelcoTV Vision award in the “Innovation in Consumer Viewing Experience and Interactivity” category.

"Connected devices with multimedia capabilities give consumers new and compelling ways to access video content," said Derrick Frost, Senior Vice President of Global IP Video Solutions at Alcatel-Lucent.

"As a matter of fact, this is nothing less than the next big opportunity for service providers to capture consumer interest," he added. "This TelcoTV Vision Award for Alcatel-Lucent’s Multiscreen Video Platform Solution strengthens our firm belief that we are on the right track to making multi-screen a reality for our customers – telcos and cable operators alike."

With the number of personal devices that can display quality streamed as well as interactive video exploding every day, for individuals as well as for shared household use, users’ expectations are, as Alcatel-Lucent says, that they not only want but are going to demand their multi-screen TV.

Fortunately, there is a platform available that can help service providers not only meet the demand for such services but also enable them to meet or exceed user expectations and do so in a quick, adaptable and profitable manner. 

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