FROM THE INDUSTRY
I would further suggest that content, technology and marketing form a tripod. Without all three your efforts will fall over. The three are equally important. They are also closely interlinked. Obviously, subscribers sign up to get the content they want. So the marketing has to focus on what is on offer, enticing subscribers in. Once signed up, how do you keep them on the platform? How do you keep them engaged? How do you upsell – what opportunities and attractions are there for upselling.
Your content has to compete for its place in the consumer’s wallet. It has to deliver what the audience expects, but you cannot over-promise. Equally, if you invest in good marketing you will know what your potential subscriber base wants and what it is prepared to pay, so you can go back to content owners and negotiate from solid information. You have to invest in marketing to start the audience growth. Once it reaches critical mass then it will probably be self- sustaining, but to go from nothing to a worthwhile audience takes real effort.
Telcos, ISPs and network operators generally see adding streaming television as a natural part of their business. It adds value, potentially increasing revenues significantly. Perhaps even more importantly, it reduces churn as another reason to stay. When looking to create the service, most see two principal requirements: the content – a set of channels and programmes that will attract consumers – and the technology platform, from the servers to the consumer apps. The platform has to manage subscribers and services, as well as providing the streaming delivery. Apps must provide a high quality, intuitive experience familiar to consumers. Taken together, content and technology must come at an affordable price for a viable business. I would argue that there is a third requirement which must be addressed from the very beginning: marketing. You have to invest in marketing to start the audience growth. Once it reaches critical mass then it will probably be self- sustaining, but to go from nothing to a worthwhile audience takes real effort.
Content
It is obvious, but you are nothing without content. But that content has to be available at the right price. You need to understand your local market and manage expectations accordingly. As a simple example, the exclusive rights to, say, the English Premier League football might be $20 per subscriber per month. But if your market cannot afford more than $2 a month, then this is a non- starter.
MARCH 2024 Volume 46 No.1
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