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The Industry in 2020: The Rise of Personalisation

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In five years, the video service offering will be significantly more personalized than offerings available in the market today. Personalization in the user experience, advertising, and discovery are important first steps. However, in the future, the services and content offered to consumers will be smart, adapting to the interests and desires of consumers in a way that maximizes both use and monetization. Several trends that impact the TV industry today will drive this shift.

  • OTT video services will increase competition for video service revenues, forcing pay-TV providers and other market players to adapt offerings in order to capture or maintain market share and revenues. Not only will consumer-paid revenues be part of this shift, but companies will increasingly compete for advertising revenues as the volume of Internet video viewing continues to increase.
  • Because of increased competition, OTT video services will increasingly target niche audiences in order to remain viable and capture a defensible market segment. This move will draw advertisers that are eager to reach these niches. It will also allow consumers to self-aggregate content, building their own bundle of content that appeals to their unique interests.
  • Personalization technology will allow consumers to more easily discover content options from new video service market entrants, further opening the video service marketplace. Likely, new services will arise that will bundle payments for consumers, allowing them to make a single payment that is then distributed to various video services. New aggregated interfaces will provide discovery of content options across various video services.
  • Pay-TV providers, faced with this new threat, will create new types of offerings that will allow greater personalization. Initially, new offerings will include smaller packages or an ability for consumers to choose among a limited set of options within a channel package. Some operators will partner with OTT services, bundling third party services with their own offerings and seeking to own the user interface and experience. In five years, many operators will still be experimenting to find the right blend of bundling and personalization.

So, the future for the TV industry will be far more customized and adaptive to consumers in discovery, experience, and content. Which video services would I choose? Well, that’s personal.

- Brett Sappington, Director of Research, Parks Associates

 

Check out the complete eBook presenting 2020 predictions and the blog post:

 

Topics: OTT, TV Everywhere, Content Discovery, Content service providers, Events, Industry, Internet TV, Pay TV, pay TV operators, personalisation, predictions, TV, TVLS 2015, User Experience

Brett Sappington

s a director of research at Parks Associates, Brett Sappington leads Parks Associates services research team, including access and entertainment services, digital media, OTT, cloud media, video gaming, and technical support services. Brett is an expert in worldwide television and broadband services. His personal research focuses on the activities and trends among operators and the market forces affecting their businesses. Brett is a regular speaker and moderator at international industry events. Brett has spent over eighteen years in the industry as an analyst, executive manager, and entrepreneur. Previously, he founded and served as vice president for Teligy, a software company specializing in software for wired and wireless communications systems. Brett established new divisions for networking and audio/multimedia software for Intelligraphics. He has also been involved in the development and marketing of early-market products for 802.11 wireless networking, VoIP, and other technologies. Brett holds an MBA from the University of Texas at Austin with a concentration in high-tech marketing and a BA in physics from Baylor University.
 

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