Future Pay TV growth will need to be driven by innovative products and new business models as demand for traditional pay-TV declines, according to a study by Neotion and SmarDTV.
The ‘STB is dead… long live the STB’ report describes over-the-top television as both a challenge and an opportunity, with Pay TV operators responding to new TV viewing habits and increased competition by adapting their offers with broader product and service portfolios.
Outlining its “bottom line” findings, the report says that Pay TV bundles are expected to be a key driver for growth during the next five years, with the Pay TV industry optimistic about their role as super-aggregators, despite often maintaining costly legacy systems.
Neotion and SmarDTV highlighted Android TV as “currently the most effective solution to get OTT offers on a STB and cope with the proliferation of offers direct to the consumer.”
However, it also said that replacing all STBs in order to add new features or services is “hugely costly,” claiming that its SmarDTV X-Over offering can provide viewers with access to OTT services via legacy set-top boxes.
“SmarDTV Global is the trusted partner to ensure connectivity, quality of service, continuous software upgrading, maintenance and development throughout the STB life cycle in a private and dedicated operator environment,” said the company.
Overall, the report cites a number of studies and research findings and focuses on a number of areas, including: the expected growth of Pay TV; key smart STB market figures and growth rate; media consolidation; and the viewer experience as a “key driver”.
Neotion is a French technology company that has been providing digital TV solutions since 2000. Combined with SmarDTV, the company claims more than 100 customers across Western and Eastern Europe, and an enlarged portfolio of CAM, STB and OTT solutions.