As per the report, operators expect a decrease in revenues due to reduction in ARPU as subscribers will opt for cheaper packs
While sales of new set top boxes dropped for 75% of cable TV operators during covid, nearly 84% of operators reported a drop of 84% in collection, as per a survey based study by INTIN. The study also highlighted that 63% cable operators maintained or increased their performance. However, despite cable operators performance, customers did not convert the service delivered into money paid to operators.
“There is neither a drop in performance, nor an increase in complaints simultaneously there is increase in cable TV viewership but there is a decrease in revenues; both in new boxes sold and collections. Keeping this in mind, While increasing average revenue per user (ARPU) may not be feasible, just like payments to societies, railways, electricity, cable collection should move 100% online, in-advance,” the study stated.
According to the report, 41% of operators reported that their subscribers deleted channels from packages while 46% operators saw no change. Out of this, demand for news channels went by 54%, followed by movies channel at 32%. Cable TV and music channel also saw an increase in demand at 16% and 11%, respectively. Meanwhile, with lack of new content, general entertainment channels (GECs) demand declined by 32% and with all on-ground sports cancelled or postponed, sports channels saw 65% dip in demand.
Post lockdown, the study reveals, 77% multiple system operators (MSOs) expect a decline in revenue in 2020-2021. Out of this, 32% of MSO expect the drop to be greater than 25%. Operators expect a decrease in revenues due to reduction in ARPU as subscribers will try to go to cheaper packs. In order to halt this, broadcasters-cable operators should together/ alone launch “targeted consumer offers” using trackable technology.
During covid, over-the-top (OTT) platforms have seen a rise in time spent and subscribers as the platform comes with a vast library which serves as new content to the consumers. As per the study, 54% cable operators anticipate a negative impact of OTT on cable TV business. Sensing the rise in OTT trend, 25% of cable operators have already launched their own OTT platforms. The study states that cable TV operators should launch their own PRIME+ loyalty program to migrate TV subscribers to OTT.