There is not a week that goes by without a member of the media commenting on the way that consumers are consuming video content. Much of this discussion is around the threat to the Pay TV industry, changing viewing habits of consumers, and the increase in choice at different cost points. This threat is defined as coming from several areas:
Change is certainly happening within many facets of traditional video delivery and video content and consumption. However, this paper will review what is actually happening and which changes are potentially disrupting the Pay TV industry. We will explore how the Pay TV industry is best positioned to still be the aggregation point for the home video experience.
Consumers are always looking for ways to save money. They are much more likely to cord shave if, and only if, the overall Pay TV package is not good enough. It is this “not good enough” equation that this paper will explore to ensure that all the must have factors of the Pay TV package are not only present but strengthened going forward. This “total package” will keep consumers happy (or at least not wanting to change) with their overall home video entertainment experience.
How much is good enough to circumvent the desire for lower cost for all home services? This paper will propose suggestions for the strategy to retain and potentially grow the subscribers for Pay TV services. It will show that this strategy revolves around 5 key tenets and in particular the control point the STB gives the MSO to effect these tenets.