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As more subscribers opt for OTT services, pay-TV providers must develop a strong multiscreen business model in order to retain and grow subscribers, according to a new report from Pyramid Research.
“The growth of OTT video services is disrupting the traditional pay-TV market and is dramatically driving traffic growth,” says Pyramid Research Analyst Daniele Tricarico, “but more consumers are watching video on multiple screens, opening up for new opportunities for pay-TV providers and telcos to implement multiscreen business models.” Everywhere and multiscreen services are helping cablecos and satellite providers to increase customer loyalty and reduce churn. Multiscreen IPTV is helping telcos to increase loyalty and to generate new revenue by boosting migration from lower-value packages to higher-value multiplay bundles, including high-speed Internet, which is needed for better quality video. “All pay-TV providers also have the option to launch their own OTT-like video services and extend their reach to non-customers, thus generating additional revenue beyond the existing customer base,” he adds.