Are Pay-TV Providers Going Down the Tubes?

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"Cable, satellite and telco TV providers in the US are facing a record number of quarterly subscriber losses" [1]

Now, as Pay-TV providers get all shook up after witnessing the worst ever subscriber losses in Quarter 2 [1], we need to put the spotlight on how this scenario has come about, and look at how it will fare in the future.

The Difference Between Pay-TV & OTT

Before we start, let us just compare these two different business models which enable customers to subscribe to TV content. Pay TV companies such as Comcast, which are usually more costly, generally bundle content, and the consumer has to lease a satellite dish, network set-top box, or proprietary coaxial cable. Conversely, OTT platforms such as OONA Global TV, is delivered via a proprietary CDN (content delivery network) over the internet.

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Alarm Bells

Many players within the pay-TV business recognized the loud wake-ups calls long ago. - These began with Netflix, which rapidly hit the heights from a simple American-only DVD mail order service, and then expanded into an extremely popular global video entertainment giant, which is now available in over 190 countries. Further, in 2005, shortly before Netflix started their streaming video service, YouTube was born. This fun diverse platform went on to become one of the most used video websites in the world, shaping and transforming the way people consume video. - And as it bloomed, so did the advertising industry [2].

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On the Warpath

Further, gargantuan online platforms such as Amazon, Twitter and Facebook, are on the warpath to achieve optimum levels of success. Moreover, they are all engaged in broadcasting live sports, a field which was once the exclusive domain of broadcast and pay-TV companies. And on top of this, to add even more competition, in the US, Hulu and Google provide their own pay-TV online services [1].

And now, we have up and coming cutting-edge next generation OTT players such as OONA Free Mobile TV, the highly successful new kid on the block which has taken the industry by storm. - OONA first started out in 2018, by partnering with Telkom Indonesia, and making its unique free AVOD service, which actually rewards viewers for interacting and watching what they love, available to 185 million Indonesians.

Since that time, its has made rapid expansion plans all over the world, with a number of high profile launches including the US, expected this autumn. OONA US will offer its both its Free For Life AVOD service, and its SVOD service, the latter of which can be be accessed for as little as one day, for users who want to watch live sports coverage etc.

The Next Generation

This chart from Park Associates shows, the next generation has the upper hand. - This is because when it comes to their approach to business metrics and data, next generation platforms [such as OONA TV], and conventional pay-TV providers, have substantial differences [2].

Image credit: Park Associates

2019: The Demise of Pay-TV?

"Overall pay TV subscriber losses are on track to see a record 5.5% drop during Q2" [1]

MoffettNathanson's analyses indicates that: during Q2 this year, Comcast, AT&T/DirecTV and Charter, the three leading conventional providers of pay-TV have suffered a total loss of 1.25 million subscribers. Moreover, although the figures are not yet in, it is estimated that compared to Q2 2018, 1.1 million more subscribers have bid adiós from other big name providers [1].

"Freaking Ugly!"

Telling it like it is, the MoffettNathanson report states that: “With Comcast’s, AT&T’s and Charter’s [second quarter] earnings in the books, the early read on traditional cord-cutting is freaking ugly. -The growth of cord-cutting and the continued decline in viewership are weighing on advertising as well, as we forecast flat growth for the quarter” [2].

More About OONA - So What Is the OONA Advantage?

Consumers who download the OONA app will experience exciting free live and on-demand entertainment from hundreds of channels, on-the go, anytime, anywhere; and on their home TV via OONA casting and the OONA Android TV box.

Another OONA TV advantage, is the fact that OONA TV users get rewarded with a virtual currency (tcoins), just for watching the content they love, checking out interesting personalized ads on the free AVOD service, which can save them time and money; sharing on social media, and interacting with OONAbot, the cool genie in the app who is there to serve them, and give them the best possible CX. The tcoins are stored in a personalized e-wallet, and can be redeemed for a huge range of quality branded goods and services, coupons, discounts, free meals and fun days out, telcom products, and exclusive prizes from the daily Bid n'win competition.

Proven Ad Success

In the Asia market where OONA TV was launched in conjunction with one of the world's leading telcoms, Telkom Indonesia, OONA TV has recorded a 21% CTR rate on Video Ads which is a huge 92X (times) higher than the average global CTR recorded by Google.

Unlimited Innovation

OONA's unstoppable drive for innovation, looking outside the box, and putting users in the driving seat, is having an enormous impact on the industry, with various OTT TV platforms all over the world following the OONA model by changing from their SVOD (subscription-based video on demand) to AVOD, or by adding AVOD; as well as emulating OONA by adding live TV, and other unique strategies.

Disruption at its Best

Headed by leading digital and AI strategist, Christophe Hochart, the platform's ethos has been the same ever since he founded it a few years ago: to put consumers first, and give them loyalty rewards; give telecoms, studios and content holders an unbeatable deal, operate in a transparent way; protect users' personal information; and empower billions of people with free access to top entertainment, thereby bringing equality to all, and putting a stop to pirate TV.

Choice is King

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“Options” is the watchword of all savvy consumers. - And this is one reason why OONA TV is so successful. OONA users can easily add the OONA+ to their free AVOD service. -The latter gives them hundreds of top local and international channels, not to mention virtual currency rewards for watching the programs they love, and the ads that interest them, and can save them time and money. The OONA+ SVOD Premium option can be accessed at any time, whether it is for just a day, a weekend, week, month or year.

OONA consumers enjoy a whopping five choices:

Option 1

Viewers do not have to pay subscription or data charges. This is because OONA's AVOD (ad-based live & on demand video service) is largely funded by personalised ads which are regularly updated according to what branded products each individual consumer is interested in at the time.

Option 2

OONA's SVOD (subscription based live and on-demand video service), offers viewers the choice of paying for specific premium content on a daily, weekly, monthly, quarterly or annual basis.

Option 3

OONA's TVOD (transaction-based live and on-demand video service), provides a pay-per-view option. So for example, if a couple just want to enjoy a newly released premium film on the odd Friday night or weekend, then they do not have to sign up for an extended period of time, and be burdened for paying for more content than they really want, like they may have to do with other platforms.

Option 4

Viewers can unlock premium content by using their tcoins (OONA's virtual currency rewards which can be used for telcom products, free phone minutes, branded goods and services, discounts, meals and other fun things). These tcoins are easy to accrue from watching various channels, looking at ads, sharing content with friends and family, and interacting with OONA's AI Genie in the app, OONAbot, who personalizes their content, and ensures that they get the best possible CX. The tcoins are stored in a personalised virtual wallet.

Option 5

Premium pay-TV content can be easily included in the user's telcom data plan bundle.

Exceptional Flexibility

OONA's exceptional flexibility had proved incredibly practical for: families who want to watch special content at weekend get togethers; couples who want a fun night in to enjoy special live entertainment events, or a recent film release; and adolescents' school holiday periods.

Keeping Financial Commitments in Check

It is also an excellent system for when consumers have a temporary change in circumstances, such as unexpected unemployment, or other issues. They can take a break for as long as they like, enjoy everything OONA's excellent free AVOD service offers, and then resume with the OONA+ SVOD add-on, as and when they are ready. And again, this can just be for the odd day for super live sports specials; or for certain weekends, holiday time, and so on.