Gonzalo Arrisueño, Content and Programming Manager of Telefónica Hispanoamérica, and Cristián Novoa, Content and Advertising Manager of VTR, acknowledged that pay TV operators are considering the possibility of reducing their content offer, in the panel they shared at the Jornadas event International 2021.
In the first place, Arrisueño spoke of the need to eliminate channels from the grid in order to lower costs, since the high values of the service prevent pay TV from being profitable. “If we want to extend the life of Pay TV, the cost of content has to go down. The operators are not going to pay for the two parties”, he declared. In addition, he argued that “Pay TV is no longer the hiring driver” since “the content is elsewhere“, referring to OTTs and other platforms. “Today, as we see, you don’t need a 150-channel offering. Pay TV will tend to have fewer signals“, the Content and Programming Manager of Telefónica Hispanoamérica added, who will also talk about the topic in the panel “Trends and opportunities in linear and non-linear programming in Latin America”, on the first day of Nextv Content Latin America, to be held on September 28 and 29.
On the other hand, Novoa raised the same problem but within the non-linear market, and explained that even within a VOD catalogue, the user “ends up lost” with such a variety of content. In addition, he said that from VTR they focus on “acquiring relevant content, that makes a difference, that moves the needle”, instead of continuing to add products without any special selection.
Finally, both agreed that the next step for pay TV operators could be to partner with streaming platforms for the commercialization of OTTs. However, they also remarked that even in this sense, it is necessary to limit the offer, and not integrate more than two or three platforms, since excess can worsen the user experience.