Pay-TV operators embracing OTT to combat cord-cutting

As cord-cutting rages on, more and more pay-TV providers are exploring options to either launch their own OTT platforms or seek out partnerships with standalone OTT players. The integration will provide customers with the freedom to watch shows from anywhere and at any time. 

This is synonymous to the findings by GlobalData that an increasing number of consumers in Asia prefer on-the-go video options. ChungHwa Telecom, a classic exemplar quoted by a Pay-TV Market Trendsstudy, offers add-on packages to cater to the preferences of the consumers, ranging from content to pricing. For instance, the operator offers its on-demand services with an array of pricing per channel from US$0.16-$4.98. The approach helps the companies to compete with lower-priced OTT platforms.

With growing price competition, OTT players are struggling to provide their services at lower price points than pay-TV packages. Furthermore, booming markets such as China and India are still the largest pay-TV markets in the world, with 415.6 million and 177.2 million subscribers respectively — and increasingly more subscribers are consuming their content on the go. The convergence of OTT and pay-TV will consequently result in a win-win situation for both operators and consumers

Although mobile devices, laptops and tablets provide convenience, the advent of smart TVs will play an effective role in offsetting the effects of cord-cutters and promote the convergence of OTT and pay-TV platforms.


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