What's Driving the Growth of Pay TV in Europe?

WHAT'S DRIVING THE GROWTH IN PAYTV A LOOK AT EUROPEAN PAY TV EFFICIENCY 95 25 THE EUROPEAN + 10 MILLION (IN THE PROJECTED LAST ACROSS IN PAY-TV MARKET ADDED OPERATORS COUNTRIES SUBSCRIPTIONS 10 YEARS Pay-TV households will increase by 10.2% to 186 million between 2012 and 2017. PAY-TV 40% - HOUSEHOLD 30% CABLE SERVICES Cable services will decline by 4.9%. 20% - SATELLITE SERVICES Satellite services will increase by 14.3%. 10% - GROWTH INTERNET PROTOCOL TELEVISION Internet Protocol Television (IPTV) services will increase by 35.9%. 0% Over The Top (0TT) video services as a primary pay-TV service will rise sixtyfold from 80,000 to 4.9 million (accounting for only 2.6% of primary tvs) -10% - OVER THE TOP 2012 2013 2014 2015 2016 2017 WHAT'S DRIVING THE GROWTH? GROWTH OF HDTV CHANNELS MULTISCREEN SERVICES COST of Western European pay-TV subscribers have access to operator-provided multíscreen services that offer interaction, user control, and simulcasting across devices [visual: tv, smaller tv, dvr, tablet, smartphone, laptop] IPTV AND SATELLITE SERVICE 1000 941 66% INCREASE OF IS 243% 274 30-50 200 LESS THAN End Sept. INCREASES 2009 2012 USER IMPRESSIONS SERVICE REVENUES DATA USAGE CONTENT SALES AND CABLE ADVERTISING SERVICES COMPETITION AND CHURN THE MOST COMMON REASONS FOR SWITCHING PROVIDERS THERE ARE 95 PAY TV POOR CUSTOMER SERVICE (WITHIN THE LAST YEAR) ●000000000 66% +20% PARTIAL SWITCH NOT RECOGNISED AS A VALUABLE CUSTOMER (WORLD AVERAGE) 55% SERVICES IN EUROPE UNHELPFUL STAFF (WORLD AVERAGE) 47% INTENSE COMPETITION MEANS CHURN RATES ARE AS HIGH AS 35% KEPT OLD PROVIDERS SWITCHED PROVIDERS INEFFECTIVE CALL CENTRES (WORLD AVERAGE) 42% 00000000O TO STOP HOW BUNDLING Cable operators doubled the average number of Revenue Generating Units (RGUS) per subscriber between 2004 and 2010. 5X more likely to switch provid- ers than those subscribing to services. UPSELLING CHURN STRENGTHENING BANDWIDTH Single-play subscribers PROVIDING MULTISCREEN SERVICES аге SOLUTIONS MORE EFFICIENT INFRASTRUCTURE INCREASE ONBOARDING "we see a 10% to 15% increase in [customer service] spending and four to five times increased retention." - Jim Bush, American Express EVP Achieving loyal long-term customers by properly handling satisfaction during an ALL IMPORTANT FIRST 90-DAY PERIOD. BETTER FORECASTING allows better TELCO CUSTOMER ONBOARDING STRATEGY capacity planning -Follow up- to make sure customer is settling in happily -No Bombarding- too much contact turns people off LATENCY CAPACITY PLANNING enough resources, in the right place, at the right time -Reasonable hold-time management (under 300 seconds) -Proper amount of time spent on solutions (under 350 seconds) TIMING AUTOMATED SCHEDULING free up man power LISTENING Match customer needs to products/services available - Courteous appreciation for business and info - Bundle and upsell ROUTE OPTIMIZATION gets resources there on time FOLLOW THROUGH -Dispatchers manage time windows -Customer service correctly fills in appointrn -Technicians deliver on appointments on time dows RESOURCE UTILIZATION MAKE A PLAN AND STICK TO IT minimize cost to -Standardize these steps among employees and enjoy satisfied long-term customérs IIIII the organization LEARN MORE ABOUT HOW CLICKSOFTWARE CAN HELP COMMUNICATIONS COMPANIES IMPROVE SERVICE WHILE REDUCING COSTS visit www.clicksoftware.com/telco for more information Sources: PRESENTED BY http://www.rethinkresearch.biz/paytv/ V ClickSoftware http://www.analysysmason.com/About-Us/News/Insight/Pay-TV-Europe-Aug2012/ http://www.obs.coe.int/about/oea/pr/mavise_mipcom2012.html http://www.accenture.com/us-en/Pages/insight-acn-global-consumer-research-study.aspx http://newsroom.cisco.com/2010/ekits/The_Future_Of_TV_And_Consumer_Expectations.pdf http://www.parksassociates.com/blog/article/ceu-2012-pr5 http://www.solonstrategy.com/fileadmin/dateiablage/Publikationen/englisch/2012_06_Solon_Survey_of_European_Cable Making Service Click DEVELOPED BY _Communication_2012.pdf N NOWSOURCING http://www.accenture.com/SiteCollection Documents/PDF/Accenture-Global-Consumer-Research-New-Realities.pdf http://management.fortune.cnn.com/2012/04/19/american-express-customer-service/ http://blogs.pb.com/pbsoftware/2010/12/06/9711/ ROWTH