- These consumers have made a conscious choice to minimize the use of video media in their lives. They may do so out of a conscious decision to avoid TV, or they may simply be uninterested in the content offered. If they have a TV, it functions more as “background noise” or as a way to occasionally follow news or live events, though they are likely to get the majority of their information needs served by traditional media or internet. They are characterized by a low overall pay-TV spend, but may have either free-to-air (FTA) or basic, low-cost pay TV services. The addition of a spouse or children to this household may however drive this consumer into a different quadrant. The only value to be extracted from a Media Minimalist is through providing low-end pay-TV packages with the lowest possible customer acquisition cost, likely using technology like Irdeto’s Cloaked CA solution to minimize the logistical costs normally associated with smart card swaps.
2. Digital Dabblers
- Much like Media Minimalists, this archetype is not strongly interested in video consumption, but when they are, they demand a fully on-demand experience. They don’t want to waste their time zapping through uninteresting linear TV content, so they seek out traditional (DVD) and new (web, app) content via on-demand channels. They are unwilling to commit to high fixed costs associated with pay-TV because they don’t see the value in it. They will instead use free over-the-top (OTT) services like Hulu to meet their occasional needs for content. With services like Hulu+ and Netflix bringing massive amounts of content to consumers at a reasonable price (~US$7.99 per month), these services have managed to migrate into the Digital Dabbler segment. Pay-TV operators can only effectively address this segment with services that mirror the characteristics of these OTT services: low-cost, on-demand, no/low commitment required. The Irdeto Broadband Solution has been successfully used by several pay-TV operators to offer these kinds of services to non-subscribers, generating additional ad revenue and capture customer information for future marketing efforts.
3. TV Traditionalists
- By far the largest segment, these video lovers have historically been the “happy zappers” of the video world; perfectly content with linear pay television and the myriad of choice, quality of service and exclusive content it offers. Though these customers are also likely also have a broadband connection, they haven’t yet figured out or found the necessity to use it for acquiring and consuming video. Several years ago, pay-TV operators began introducing personal/digital video recorders (PVR/DVRs) as a way to increase customer loyalty in this segment, and this has since become a core part of the value proposition for these customers. The further development of PVR as a platform with new features and services is the key way to promote customer satisfaction and reduce churn. These features can include things like more sophisticated EPGs that incorporate virtual VOD channels among broadcast channels, remote recording functionalities, multi-room DVR and green-button recording. Irdeto’s advanced HD PVR middleware helps operators develop the PVR platform to its full capabilities.
4. Media 3.0 Masters
- This consumer segment is driven by a love for content and a requirement for it to be 100% on-demand – they are the “cord cutters”. Their migration into this archetype was either the result of price sensitivity to existing pay-TV offerings and/or the requirement for a FIPPS experience (Flexible, Interactive, Personal, Portable and Social) not provided by their incumbent provider. They have the technical skills to make it happen – either via advanced pay-TV services, Over The Top providers, newsgroup or Bit Torrent piracy, or some combination of the above, and have a broadband connection that enables them to achieve this as well. In all honesty, only piracy has historically provided these customers with the FIPPS experience they were looking for, but OTT providers like Netflix and Hulu as well as traditional pay-TV operators like Comcast and Viasat have been stepping up to the Media 3.0 challenge and providing this segment with an increasing array of on-demand experiences across a wide variety of devices using solutions like Irdeto Broadband for content management, control and distribution, and Irdeto ActiveCloak for advanced dynamic security on difficult-to-secure open devices and applications for PCs, Macs, OTT STBS, iOS and Android.
This paradigm must be adjusted to take account of regional variations in broadband infrastructure, disposable income and other factors, but in general, it is at the very least an interesting way for pay-TV operators to take a fresh and perhaps different view of their market, and to adjust their product and service offering accordingly. Irdeto can offer pay-TV operators a workshop that explores the different archetypes in more depth as well as providing detailed service and marketing examples from pay-TV and OTT operators around the world. For more information, visit www.irdeto.com Source: http://tveverywhere.irdeto.com/tag/digital-dabbler/