Pay-TV Innovation Forum 2018: Executives expect competition to increase over the next five years

Content protection and multiscreen television solutions provider Nagra (Kudelski Group) revealed the global findings of the 2018 Pay-TV Innovation Forum, which are based on extensive regional research conducted in Europe, North America, with a special focus on the United States, Asia-Pacific and Latin America.
The third edition of this programme highlights that 84% of pay TV executives expect competition for paid-for video services to increase dramatically over the next five years. In turn, an increasing number – 90% of executives – believe that pay TV providers will have to innovate strongly to remain competitive and relevant, up from 85% in 2017, said the company in a press release.
The research – conducted in partnership with MTM – highlights how the pay TV industry is converging towards a platform-agnostic model, and as a result is transitioning into a paid-for-video market, spanning a variety of offerings including standalone OTT and direct-to-consumer services. This shift is another reason why 77 % of pay TV executives consider innovation to be one of the top three strategic priorities for the industry.
In addition, the study revealed that content piracy remains a concern, with executives agreeing that the industry is experiencing a significant threat to the longterm sustainability of pay TV and OTT businesses. In this context, 47% of 2018 respondents believe that piracy will lead to greater pressures on the industry over the next five years, in line with 2017 findings.
According to the company, this year’s research brings into focus the six key innovation areas in the industry: continued investment in next-generation pay TV services, more diverse multiscreen pay TV propositions, the next wave of aggregation – super aggregators, converging pay TV/OTT offerings, moving beyond the set-top box and growing focus on diversification, particularly connectivity.