The Trends Have Shifted There’s no doubt about it – the mobile handset has taken center stage! Not just that but a customer’s usage patterns has undergone a paradigm shift! For instance, no longer is usage confined to voice-based services and peer-to-peer or group chatting. In fact, the so-called “Generation Z” and millennial has access to all media imaginable and here are some facts highlighting their consumption pattern:
- Content access for 5-6 hours a day on mobile handsets
- Over 80 per cent have data enabled on their smartphone
- OTT services contributing 59 per cent of their video consumption
- Around 60-70 per cent of them have streaming services subscription
- Around 30 per cent of movies and around 25 per cent of television programmes are watched on smartphone
Presenting a Holistic Picture
So, any reason that why the mobile handset has emerged as an important medium to access content? The factors accounting for this trend are several, but the most vital ones include; the widespread proliferation of these devices, around-the-clock accessibility, the plethora of data packs available today, and arguably the most important- the privacy and personalization offered by the device.
Are these Factors Adequate Enough to Propel Uptake?
Well, could be!! Having said that, however, the most important factor fueling the change in a customer’s behavior is the vast amount of content available-both in terms of quality and price. Needless to say, this includes stored content (such as movies, user generated content, etc.) or live content (concerts, matches etc.). This brings us to the next point-content delivery.
Innovations Driving the Change
Survey results suggest that 30-40 per cent of customers give up when the connectivity isn’t flawless or the site they’re visiting isn’t user-friendly. The rate at which technology is undergoing change is, naturally, positively impacting the customer’s experience. These include (but aren’t limited to) capabilities that include, auto-detection of the format supported on the handset before the content is delivered, transcoding the content to ensure it remains available in different resolutions, and artificial intelligence-based capabilities like image content search. It doesn’t end there, of course! Equally important is personalized recommendations based on a customer’s consumption patterns. The bottom-line? An enhanced customer experience, of course!
Opportunities for Digital Services Providers
There is no doubt that the content ecosystem involves multiple stakeholders. The point of this piece, however, is to focus on the platform and technology partners. These range from start-ups to seasoned players. These players are not only developing content but forging partnerships to sustain the customer’s demands. The method of packaging the offering, imbibing technology into the products and making the products innovative and easy to use; these are just a few vital points on every player’s checklist.
Collaboration and Partnerships
Of course, there exist a plethora of opportunities for these organizations to provide innovative content- based services and platforms, in partnership with operators. The idea is to monetize the under-utilized data pipe available after upgrading to 3G and 4G, increase the average revenue per user through increased data consumption and ensuring customer retention. An increasing number of offerings are available today, such as live content streaming, et all.
All in all, the content based services are changing customer behavior and, indeed, the very content itself. It is, of course, a very crowded space, as the number of players has increased significantly. All in all, a plethora of opportunities for all!
Manish Jain, Assistant Vice-President and Head of Engineering and New Product Development