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08-Apr-2010
by John Moulding
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Only 10% of channels will add value to Pay TV
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Content
NBC did a great job with the US version of Office
Between 80 and 90 per cent of Pay TV channels will become irrelevant when it comes to adding value to the subscription business within two years, according to Laurent Dumeau, Vice President of Global Affiliate Sales for Universal Networks International. He argues that with so much free content available everywhere, Pay TV operators have to work harder to justify their monthly bill and present a clear contrast to free-to-air services. And this requires more investment in quality content, rather than quantity, and stronger ‘must-have’ channel brands.
Dumeau is responsible for the international expansion of Universal’s channels on Pay TV, with 70 channels available today. These have been categorized into five key brands as the company looks to stand out from the crowd. “We want to be part of the 10% of channels that will remain relevant and continue to add value in the Pay TV environment,” he told delegates at the IPTV World Forum in London recently.
Dumeau’s presentation continued a recent trend for major content owners to throw their weight behind the Pay TV business model. Pointing to the easy and ubiquitous availability of content today, he suggested that the industry no longer relies on a gatekeeper in the form of a technology platform that sits between the content and the viewer. “The way forward is to partner with Pay TV operators and together become the trend setters and the taste makers. That is the way to add value,” he declared.
“Consumers have become very sophisticated and they want content from ‘must-have’ channels and must-have brands. The consumer wants channels and brands they can trust and that is what we offer.”
Dumea said the key for Pay TV is not to provide more channels and more and more VOD content, because we already have infinite choice. Instead, innovation is a big part of how Pay TV and its channel providers can differentiate themselves. Exclusivity for Pay TV is also an important part of the mix.
“There is an urgent need for quality over quantity and that is what we are discussing with Pay TV operators and why we are focusing on exclusive brands that people will pay a premium for,” he explained. “We actually think Pay TV operators will start dropping poor quality channels that don’t add value. They will free resources to reinvest in a few select content providers and work with them to create new services including catch-up TV and VOD.”
Universal Networks International believes the whole Pay TV industry is now leaning towards fewer channels and fewer brands and that only the best will thrive. This explains its heavy investment in content and brand rationalisation. “We want to be a partner with Pay TV and for us that means competing against the free-to-air offers and content that is everywhere but has no value attached to it.”
About the author
John Moulding joined Videonet as editor at the start of 2010, having spent over 10 years writing about digital TV and the various technologies that have simultaneously disrupted and enriched the television business. With Videonet he is focused on the unstoppable march towards multiplatform, connected and personalized television. John was editor of Cable & Satellite International (now CSI) for six years before helping launch New Video Technology, and helped develop the IPTV World Series conference programmes from 2006-07. At home, he takes a Sky triple-play bundle, watches around one-third of content time-shifted, enjoys BBC iPlayer on television through the Wii, and eagerly awaits the arrival of YouTube on his own TV (the killer TV application for late on a Friday night). He is still loyal to channels - but can also remember when TV shut down after lunch.
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