Video Service Provider Challenges: Facilitating the Transition from Traditional Video Delivery to Digital Apps Part 2

This is part two of our two-part blog discussing the transition from traditional video delivery methods to apps.

January 17, 2024

This is part two of our two-part blog discussing the transition from traditional video delivery methods to apps. Part one addressed key issues like infrastructure, licensing, UX and billing challenges, as well as content discovery and personalization. In this section, we discuss concerns around regulatory compliance, consumer behavior and market competition, and news ways of monetizing:

  • Regulatory Compliance
  • Consumer Behavior Adaptation
  • Competition and Market Saturation
  • Bandwidth and Quality of Service
  • Monetization and Business Model Transition
  • Legacy System Compatibility
  • Content Production and Acquisition

8. Regulatory Compliance: Digital platforms are subject to both the same and different regulations than traditional broadcast services, including those related to content, advertising, and data protection. They must also consider local, regional, and national emergency notification requirements. Navigating this regulatory landscape can be complex and requires specialized knowledge.

9. Consumer Behavior Adaptation: Varying consumer demographics must be considered in the migration to video based digital applications including understanding the needs and behaviors of individuals who are technology centric and those who are not. History shows a varied acceptance factor of new solutions across the consumer spectrum. Educating consumers and facilitating their transition to a new platform can be a significant challenge. As part of the migration program, consumer outreach and training must be incorporated.

10. Competition and Market Saturation: The digital streaming market is highly competitive. There are established players such as Netflix, Amazon Prime Video, and Disney+ but these applications ride on a “network”. The network can be provided by a pure broadband player (e.g. Verizon, AT&T, T-Mobile, Google Fiber, Fios, etc.) or a traditional service provider (e.g. Comcast, Charter, Cox, Mediacom, Altice, etc.) New entrants to the video application market need to offer unique content, superior user experience, excellent customer service and competitive pricing to stand out.

11. Bandwidth and Quality of Service: Streaming high-quality video requires significant bandwidth. Ensuring consistent quality of service, particularly during peak usage times is key to consumer acceptance of video-based applications. Also, it must always be considered if consumers watching video-based application utilize the same bandwidth as their other applications (i.e. email, gaming, social media, etc.) or the provisioning system excludes this applications’ traffic from the purchased broadband tier. Consumers could consider the use of their (paid for bandwidth) service for branded video-based applications to be a “tax” in terms of additional capacity needed. A service provider may need to consider adding and allocating additional bandwidth to the consumer’s allocation to accommodate this additional usage.

12. Monetization and Business Model Transition: Shifting from a traditional subscription or advertising model to digital monetization strategies can be complex. It involves not only technical changes but also a strategic rethinking of how to generate revenue. Ad insertion in a digital (broadband-delivered) model offers the advertiser significant targeting capability for the household and viewer. This enhanced advertising capability will require significant investment in advertising avails slots and playout technologies either directly or through 3rd party service offerings.

13. Legacy System Compatibility: Service providers will most likely maintain a robust set of legacy back office systems for many years both during and after a transition to an app-based video solution. Given these same systems provide services and support operations for broadband and wireless technologies, it should not be assumed there will be a period of migration followed by retirement of those systems. This will have an impact on other resources throughout the organization including engineering, support, customer care, etc.  

15. Content Production and Acquisition: With the move to digital, there's often an expectation of a larger and more diverse content library. Streaming and other distribution rights (i.e. the license to provide content through non-broadcast technologies) have become a major licensing item in the last several years. It should not be assumed that a licensed piece of content currently being distributed via broadcast or QAM-based video technologies contains the rights for other (i.e. digital) distribution methods. Acquiring the rights can be a significant effort and financial investment. Also, acquiring or producing additional content to stay competitive can be a significant investment. One key topic that requires significant technical effort and licensing is the ability to maintain security of the content in terms of unauthorized access and copy protection. This is well understood in QAM based environments but not fully agreed upon in a digital environment.

Facilitating the transition from traditional video delivery to digital apps involves a multifaceted approach that addresses technical, business, regulatory, and user experience challenges. Companies that successfully navigate this transition can tap into new opportunities and markets, but the path is often complex and resource intensive.

Mavsotech has the experience and skills to help you address these topics. Our mission to provide domain expertise to our clients enables us to provide mission critical consulting, engineering, and support services.

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