From hybrid to true convergence…
In fact, the strong hybrid trend can be seen as a pragmatic precursor to full convergence of networks and devices and combining broadcast and broadband is just one essential step in bringing multiple delivery conduits and devices together.
Indeed, the combination of multiple delivery networks (satellite, terrestrial, cable, DSL, mobile, etc), the diversity in media consumption devices (TV, PC, mobile, portable players, etc) and a rapid evolution of on-demand business models clearly presents a great opportunity for converged services.
The final goal of such convergence is true multi-device and multi-location media consumption with large and small screen entertainment naturally co-existing in one seamless digital entertainment experience.
By the same token this very trend also presents a significant challenge to service providers in how to maintain a consistent media experience to its subscribers.
The more converged the services become, due to cross-selling of content, evolution of new business models and multiple delivery networks and devices, the more ‘experience consistency’ will become the essential differentiator for successful pay TV service providers.
The complexity that potentially arises from all these possible network/device combinations in fact calls for a high degree of pragmatism to translate all this into a viable commercial offer. Most convergent business models will essentially rely on a combination of two basic concepts
- Commercial bundling of related media assets across devices and networks (e.g. a mobile video snack, full feature movie, game, ringtone, soundtrack mp3, etc sold as one discounted media bundle.)
- Propagation of content between consumer devices. This entails that within the boundaries of what is legally possible, end users shall have the possibility to port content or parts thereof to other media devices than the device they initially used to acquire the content. The proliferation of media-capable devices and the digital life style that is rapidly developing around it simply calls for this flexibility and it is likely that it will evolve into a crucial churn avoider for service providers.
True convergence
