nScreenMedia: $10B Annually Spent by European and U.S. Operators to Keep Multiscreen Pay TV Working

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New research finds that $7B a year is spent on problems operators didn’t create.

According to new research from nScreenMedia, pay TV operators in Europe and the United States spend $10B annually to provide phone support and in-home repair services. Of that, $2.8B stem from problems that can be traced back to some error on the part of the operator. While some level of maintenance and operations costs is unavoidable, these figures seem likely to grow much higher as consumers switch viewing time from the managed pay TV network to the unmanaged home network.

In the new free white paper The Perils of Multiscreen Pay TV: and the $10B cost of making it all work, nScreenMedia examines four failure modes most critical to today’s pay television provider.

  •     The perils of OTT service delivery
  •     The perils of TV Everywhere
  •     The perils of customer owned devices
  •     The perils of operator CPE maintenance.

In each case, the financial impact of a specific incident is presented drawing on the experience of both European and U.S. operators.

“The definition of pay television service is migrating from a network dedicated to its delivery to one among many software services that run upon that network,” said Colin Dixon, Founder and Chief Analyst of nScreenMedia. “The challenge for operators going forward is figuring out how to contain the escalating costs of maintaining this network and the services using it.”

Containing support costs needs to be a strategic imperative for pay TV operators. According to John Maguire, Chief Strategy Office, TV Technology, S3 Group, sponsor of the research: “The pressure has never been greater on Development and Operations teams of operators to get it right. There is a need to modernize service delivery across the entire delivery chain. This white paper makes it clear that operators need to act now to contain costs of multiscreen service failures.”

nScreenMedia’s white paper, The Perils of Multiscreen Pay TV: and the $10B cost of making it all work, also found that there is a pressing need to help customers with Wi-Fi and connected device problems. Since customers are calling the operator about these issues, even though they aren’t directly their responsibility, strategies to monitor and manage the home network could help reduce support costs. The report is available immediately for free from the nScreenMedia website.

About nScreenMedia
nScreenMedia is dedicated to tracking the media industry as it transitions from single screen to nScreen delivery. The website, reports and newsletters provide commentary on current events, links to deep analysis of market movements, coverage of the important conferences and shows in our business, interviews and podcasts discussing events of our time. The site is a free resource to the industry. Visit http://www.nScreenMedia.com.

About S3 Group | TV Technology
S3 Group is a global leader at enhancing the performance and service readiness of video platforms across connected devices. In both development and production, S3 Group provides unique insights through service validation products and platform integration services for multiscreen deployments. S3 Group has more than 100 customers, across 28 countries, including: Astro, BT, Comcast, Kabel Deutschland, Liberty Global, Mediacom, RDK Management, LLC, Sky, Swisscom, Time Warner Cable, upc cablecom, Videotron, and numerous others. Visit http://www.s3group.com/tv and http://www.twitter.com/S3Group_tvtech for further information.

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Colin Dixon
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