Pay TV executives are increasingly relaying that no one-size-fits-all approach to tackling piracy exists, and instead say that successful anti-piracy efforts need a combination of new technical solutions, improvements to pay TV service offerings, and deeper collaboration across the industry.
That’s according to a new “Global Pay TV Innovation Forum 2019” report from content protection and multiscreen TV solutions provider NAGRA, which sees pay TV companies looking for new anti-piracy services to confront the problem.
The report found that 60% of executives calling piracy a “major challenge” to their business, and 65% saying that piracy impacts their ability to generate a return on their content and tech investments. Nearly half (48%) said piracy will lead to greater pressures on the industry over the next five years.
“The conclusions of the 2019 program, in its fourth season, show that the sustained growth of OTT SVOD and sports services is paving the way for super-aggregation opportunities across the pay TV and video industry,” said Simon Trudelle, senior director of product marketing for NAGRA. “With shifting demographics, competition from new forms of entertainment and mainstream piracy, rights holders, broadcasters and pay TV service providers are under intense pressure to evolve their business models to adapt to the new market dynamics. This program provides the new compass required to successfully navigate this new landscape.”
The report also found that 70% of executives say the rapid growth in OTT consumption will have a positive impact on their business, and that retaining tier-one sports is a critical component, with partnerships with emerging sports streaming services looking to become very valuable to pay TV providers seeking to aggregate content.
Many executives said new standalone direct-to-consumer services will not pose a significant threat to the pay TV industry, instead proving to be complimentary.
“This year’s findings illustrate the ongoing need for transformation, as the pace of change across the industry accelerates. The wave of new OTT offerings entering the U.S. market are causing considerable anxiety, but the industry remains confident that it can continue to thrive,” said Jon Watts, managing partner of MTM which helped NAGRA with the study. “Pay TV providers will have to continue to innovate, developing better offerings and services that deliver what consumers are looking for. Faced with ever-growing competition, increasing fragmentation, and fast-paced innovation, pay TV businesses will have to decide which opportunities to pursue and which investments to prioritize.”