Technology is no longer a choice but a fundamental business strategy that needs to be interwoven in every part of an organization. This paradigm shift is slowly dawning on CEOs and CTOs of every major industry. The age of Digital Transformation is here and it is creating quite the stir. A transformation like this goes beyond the mere investment in new technologies like artificial intelligence, blockchain, cloud software solutions etc. But in fact, to digitize means to have a deeper transformation of products and services, organization structures, development strategies, customer service and corporate culture in a general sense as well. Not to mention, adopting digital transformation enables better collaboration within and between organizations, higher employee innovation and productivity, more personalized ways of customer engagement and more accurate insights from data. These are all crucial factors that help a business grow and give it a better chance of surviving post-pandemic. That is why it is worth noting how the entire media & entertainment industry has paved the way for digital transformations through the medium of video streaming platforms.
When it comes to the digital shift of the media & entertainment industry, it is the traditional cable and TV broadband providers who have been put on their toes. According to a McKinsey report, cable providers account for more than 60 percent of all connected homes in the United States. Key industry players such as Altice USA, Cable One, Charter Communications, Comcast and Cox Communications average an impressive 25 percent return on invested capital (Source is here). When it comes to India, one of the largest digital markets in the world, the cable TV and OTT competition is shouldered on an entirely different landscape. The television market in India stands at a competitive 64%. Television networks such as Zee, Sun and Star offer a wide array of regional content which gives cable TV an edge over OTT platforms (Source is here). But these steady successes, however, risk leaving cable players with a false sense of security as they face heightened expectations and potential long-term challenges in the uncertain era that lies ahead.
Enabling a digital-first customer experience means embedding digital in every aspect of the organization and not just the end-user platform. Though traditional broadcasters continue to enjoy a loyal subscriber base, a growing number of cable customers are expecting the same sort of seamless digital experience that is received from video streaming service providers. McKinsey in its report further mentions ‘Customers accustomed to digital services with precise delivery times have little patience for a cable company’s six-hour window for a home visit. Billing errors are another sore consumer point, with around 10 percent of the base calling about such problems every month. Lastly, about less than 50% of customers attempting self-installs rarely succeed.’
When it comes to Europe, the cable operators have understood the need for a digital switchover. “European cable operators have successfully diversified their offerings into complete bundles of video, voice and internet services. This has positioned them to capitalize on the voracious consumer appetite for broadband” says Maria Rua Aguette, Executive Director of Media, Service Providers & Platforms for IHS Markit (Source is here) This shows that the reward of going digital is worth the redoubling effort.
In conclusion, digital transformation is the new world order. Traditional cable service providers are no doubt facing the brunt of an internet overhaul. But rather than compete with this shift, their best bet is to join it. Cable TV subscribers are still aplenty across the world and the best way to keep them happy is by adopting a business-based digital transformation.
Enveu is happy to be at your service for the same. Its expertise in re-imagining media & entertainment businesses through a digital perspective is a winning formula to turn your digital goals into a reality. Contact us today!