Clients of pay TV: Maintaining the Market flow
Pay TVs have experienced a big reduction in their viewers in the past few years because of new technologies and modern ways of accessing alternative devices for watching different TV programs. These new alternative ways which can be referred to as Internet TV are streaming services like Amazon Prime, Netflix, or Apple TV. Moreover, some old entertainment companies like Disney and Warner Bros are looking for building their streaming services as well. According to the latest news, Disney has made a platform called Disney Plus. Not only Pay TVs are challenging with these online streaming platforms but also in the meanwhile they are challenging with many different kinds of music, video games, and digital content providers. Under these circumstances, many of the providers are confronting pessimistic views towards the growth or sluggish growth or even attendance reduction. We estimate that it is because of some factors such as:
According to statistics, nowadays people spend less time (1.6 hours precisely) watching TV programs.
Based on the same resources, people are spending more time (2.8 hours per week) dealing with online streaming platforms than in 2012.
The whole number of streaming video platform contributors will increase by 44 percent from 2019 to 2024.
Although Pay TVs are confronting many challenges and problems, still they can have growth by providing low-cost services. These companies are capable of noticing the demands and needs of the clients by doing some quantitative and qualitative inquires. By knowing these needs and therefore developing their programs, Pay TVs can still gain more viewers and play an important role in customers’ entertainment lives.
In the past, organizations used to know their customers by their social demographic traits but nowadays we have understood that the customers’ selections are mostly having the opportunities of using a specific production or platform. This inquiry concentrates on the usage opportunities and their relevant needs.
Recognizing the basic and main demands of customers happened in the oil industry and led to fuel growth in different sections of the industries. This act can be applied to the TV industry as well. Furthermore, it can help the music and gaming platforms.
Indicating requirements area for clients
These requirement areas were used to be some factors like age and salary but recently are assigned by clients’ practical and emotional demands. Indicating the exact requirements needs quantitate and qualitative datums at the same time as explained below:
- In the qualitative stage, we have to provide a situation for the clients in which they can freely choose their preferable pictures, videos, and figurative languages. For example, many young clients prefer to say Streaming rather than Watching TV, while they are using online platforms such as Netflix or Disney+.
- In the quantitative one, artificial intelligence has been used for over 200000 clients to analyze some datums and notice different factors such as textuary, treatments, and tendencies of the customers that make them choose some specific movies and videos out of the thousand different ones. For example, they want to be amused but also in the meantime, they are looking for costs and ease of use and availability. No one can deny that content is still important but our investigation demonstrates that there is a big variation between those clients who say some specific genres play an important role in their choices and those who want to pay for watching movies.
In these years, customers don’t decide to watch some sort of a movie only by particular demographic factors such as age, sex, salary, or education but each client has his demands and they decide based on the conditions and situations. For example, each person decides to watch a particular movie due to his attitudes, like if he is in a good mood or not, if he is happy or anxious, if he is bored or excited, or even if he wants to watch a movie with his lover.
So, TV organizations must try to get to know these factors to be able to attract more and more clients. These factors can be increased up to 60 different variables.
Detecting demand rooms for clients
In so many industries we need buying something and a need of using it. For example, when you need to buy a Coke and then you need to use it (drink it). In the entertainment industry a client might pay to watch a specific program (like football matches) and then when the season is finished, he keeps his subscription for watching other documents or preferable TV series. Therefore, TV companies must know the need that makes customers buy a subscription and then later, the need then make them keep it for a long time. When the emotional and practical demands are noticed then we define some dimensions such as:
The scale of occasions is currently available to different providers according to some features like the number of families that are inside the demand rooms, unities per capita, costs per capita, and market contribution.
Tendencies and preference contents have consisted of the genre that the client chooses, the time expending for watching a specific content by each week, and validity of domestic content in comparison with the international ones.
Media utilization statistics might concentrate on the issue that, the clients may watch TV programs by themselves or with a partner, or they prefer watching life or from the archive or even watching programs on the TV screen or their cellphones and tablets when they are on a trip.
Consider the tips that make the clients pay for the TV channel for quality features in the long-term such as paying to unlock the UHD or 4K screen quality. Branding is an efficient thing to do. Good branding can make a relation with the emotional and functional demands of the customers. Demographic traits are so important. For instance, age, sex, profession, salary, and family members.
Strategy advise for demands of clients
Demand guidance shows the most precious demand room or the ones that have the most growing potentials. Organizations must ponder if their branding is effective and match with the demand room or they need to reform it to be able to develop their fascinations in those spaces. Brands that meet clients’ needs in a particular demand space are better at comprehending that space and gaining the market portion than other brands.
Demand guidance usually donates the organizations and enterprises a root to understand the clients’ valences and preferences in both content and technical specification phases. Although many clients prefer using the most developed technologies, on the other side, still many clients like to deal with devices that are easy to use.
On the bottom line, TV companies and other entertainment firms must be provided with new and different insights that make them rethink their tactics and pursue a competing mindset and appoint some new developing directions. We have to create some approach to help enterprises identify, quantify and track their most hopeful developing occasions. And that can be done by mixing the client-centric perception with hard datum on market chances and functional orientation on the market performances.
Article by Amir Masoud Navidi
Adapted from: BCG.