The latest research report of Ampere Analysis divides the current television audience into five categories, and proposes recommendations for pay TV operators on how to generate income for different types of audience characteristics.
Ampere Analysis's research report points out that pay TV operators can continue to maintain revenue growth, but the premise is to accept the growing demand for SVOD, to meet one of the five "TV tribes" - "content connoisseurs" taste.
The report shows that despite the continuous growth of OTT TVs, especially subscription-based video on demand (SVOD), pay-TV still occupies most of the share of paid-video revenue for the foreseeable future.
In the first quarter of this year, there were a total of 555,000 pay-TV subscribers in the United States, 4.72 million in China, and 1.977 million in India. Overall, by 2022, global pay-TV users are expected to reach 1 billion, and OTT subscribers will surpass the 500 million mark.
Global pay-TV and SVOD families (2009-2022)
Ampere pointed out that paying video providers now need to focus on five categories of “TV tribesâ€, namely “traditional TV viewersâ€, “super-defeated viewersâ€, “broadcast episodesâ€, “digital insulators†and “content connoisseursâ€. Among them, "traditional television viewers" and "content connoisseurs" are the most important.
Content connoisseur
To counter the OTT threat, pay-TV operators should cater to high-consumption and growing numbers of "content connoisseurs." This type of audience is mainly composed of young, affluent, high-spending viewers of pay-TV (especially SVOD) who occupy 24% of the total number of viewers and spend an average of US$70 per month on paid video services.
Ampere noted that content connoisseurs are more likely than other types of viewers to change pay-TV, but are still the group most likely to subscribe to pay-TV services (three-quarters use pay-TV services). Compared with core pay TV users, they have little interest in high-end sports content.
Analysts said that in order to maintain this market, pay-TV operators need to provide "optional packages" rather than light pay TV packages (that is, fewer channels, cheaper pay-TV packages). Content connoisseurs want to arrange their own services, “combine TV channels, multiple SVOD services, brand channel OTT and music streaming media†and hope to add new services later. They also want to watch TV on multiple devices. The bad news is that they are generally more reluctant to buy all-in-one packages such as phone, TV, and broadband.
Traditional TV viewers
Another key audience type is "traditional television viewers" who form the cornerstone of pay-TV subscriptions. This type of person is usually an end market, middle-aged sports enthusiast. For them, viewing by program schedule is still the main method. "Traditional TV viewers" account for about 18% of the market, with an average consumption of $60 in the first quarter.
Ampere said that the most important thing for operators is that they have the highest stability. Only 9% have changed operators in the past half year, which is less than one-third of the change rate of the “consumer†community. Satisfying this part of the audience is critical to ensure stability and regenerative income.
In addition, "broadcast pursuit genius" accounts for 23%. They prefer set-top boxes and consume less. "Super-defeated viewers" account for 17%. They are high-volume linear TV enthusiasts who talk about their favorite programs on social media. "Digital Insulators" account for 18%. They are hard-to-reach elderly consumers and have little interest in pay-TV and content.
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