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2013 Online Video Executive Prediction: Digitalsmiths

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Revenue growth is becoming more and more challenging for today’s Pay-TV providers. In addition to competing with each other, providers must contend with a growing army of online alternatives as well as rising program licensing fees.

To insulate their bottom lines from these trends, Pay-TV providers need to find ways to simultaneously deliver superior value to subscribers and drive revenue.

When consumers sit down in front of the TV, only 4% know what they’re going to watch.  Also problematic is despite paying for hundreds of channels, most subscribers only watch 4-8 channels, eroding the perceived value of Pay-TV services.

Digitalsmiths predicts Pay-TV providers can increase VOD and premium content purchases by 2x, 3x or more by removing the walls around their content libraries and pushing relevant titles to their subscribers through personalized search, recommendations and browsing. Personalized discovery experiences also help subscribers rediscover the full value of Pay-TV services by making it easier for them to find TV shows and movies they’ll enjoy.

By leveraging a cross-catalog personalized video discovery platform, similar to Digitalsmiths Seamless Discovery®, it becomes easier and faster for subscribers to find, and therefore purchase, revenue-generating content enabling providers to reduce attrition and increase ARPU exponentially.

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