Pay-TV, broadband ops put faith in customer journey management | Media Analysis | Business
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Warning that such companies are facing a rocky road ahead for their core offerings, triple play operators are having to weaponise customer care in order to keep a hold on their revenues with traditional OSS/BSS offerings not up to the job, according to a report from Rethink Technology Research.
Virgin Gig1 4Nov 2020
The Pay TV and Broadband Place Their Last Chips On Understanding The Customer study found that in response, operators will flock to customer journey management (CJM) solutions which, focused on improving QoS and customer experiences with household-level analytics, will likely grow to be worth $24.6 billion by 2026 across the broadband and pay-TV segments. Moreover, Rethink believes that such technologies will save operators over $10.5 billion in churning revenues over the forecast period.

Rethink regards the growth of CJM offerings as being rooted in wider market pressures that are fuelling rising churn rates. In pay-TV, the analyst said that the rise of OTT, and subsequent wave of cord cutting, has made understanding customer content needs essential, in order to retain their interest. In the broadband sector, the study found that the widespread availability of the service, with ever more entrants into the market, has rendered it a utility where prices get competitive quickly. Ensuring a high quality of service is the best way for operators to retain customers Rethink advised.

With increased exposure to more data points, Rethink predicted that AI-assisted CJM offerings will see increasingly better impressive. By 2026, CJM offerings will likely have reduced pay-TV churn by 12.61%, a saving of $1.6 billion globally. This reduction is said to be even greater in the broadband sector, where CJM offerings will reduce churn by 26.26% in 2026, saving operators $1.9 billion.

Investigating the intrinsic value of the CJM solutions market, the Pay TV And Broadband Place Their Last Chips On Understanding The Customer study observed that the cloud-based and modular nature of such offerings meant that they were generally priced flat across the world, and as such said Rethink, the market’s monetary value was in stark contrast to many forecasts in the triple play world. Populous regions with low ARPU, such as Asia Pacific, were predicted to likely see operators spend the same on CJM offerings on a per subscriber basis, meaning that by 2026, Asia Pacific will have spent $11.8 billion of CJM revenue, representing 48% of global spend.