20587 - SCTE Broadband Feb2020 COMPLETE v3

50 Vol. 42 No. 1 - February 2020 Issue M-ABR advances video head-end processing and content security towards unified and future-proof formats, putting MVPDs on a par with pure play OTT providers. By Broadpeak and Verimatrix Practical Steps to Migrate TV Broadcast to Modern Streaming technical Competitive pressures are intensifying for pay tv In response to competitive pressures from established Pay- TV operators and aggressive over-the-top (OTT) entrants, service providers with a managed network have had to evolve from yesterday’s “appointment TV” to a “TV everywhere” (TVE) experience that is increasingly becoming the norm. Not only millennials, but all subscribers want to get the maximum enjoyment out of a Pay-TV subscription, which means being able to watch their favourite programming at any time, any place and on any device. As a result of the intensifying competition, Pay-TV subscriber numbers are declining in many parts of the world. In the United States, the fourth quarter of 2018 was the worst ever for traditional Pay-TV operators (known as multichannel video programming distributors, MVPD), as nearly 1.1 million homes cut the cord, which pushed the full-year decline to four million, according to research firm SNL Kagan’s Q1 2019 analysis, covering the cable, direct broadcast satellite (DBS) and telco multichannel sectors. The negative trend is expected to continue unless MVPDs take drastic action. This is an increasingly serious challenge since many cord cutters and potential new subscribers are choosing lower-cost services from virtual MVPDs. According to SNL Kagan, virtual multichannel subscriptions from services such as Sling TV, DirecTV Now, Hulu with Live TV, YouTube TV and PlayStation Vue together gained an estimated 2.1 million subs in the first nine months of 2018, compared to a decline of 2.8 million in the traditional MVPD segment. Some traditional MVPDs are now also acting as vMVPDs, and content providers such as Disney are jumping onto the direct- to-consumer (DTC) bandwagon. This, of course, allows them to own the relationship directly with the consumer and gain access to cloud-based video analytics data. With delivery and subscriber behaviour insights, they can shorten the feedback loop not only on quality of service (QoS), but also on where to focus content creation to best align with subscriber consumption. Progressive operators also understand that subscribers will find the content they want in any way possible. Hence