With VoD on the scene, is cable TV on its way out?

Video on Demand services have been growing worldwide, but how much of a threat are they to our traditional cable/subscriber TV services

Over the past few weeks, there have been news reports about Caribbean telecoms service providers expanding their offering to include subscription television (TV)  in a number of countries across the region.  The two main regional firms, Digicel and Flow, are both eager to be recognised as quad-play providers in all of the countries in which they have a presence – by offering fixed voice telephony, mobile/cellular, Internet, and cable/subscriber TV services. However, while offering subscriber TV could complement their existing services, and would be just an add-on to their existing infrastructure, could the move into that area be too little too late?

In addition to subscriber TV, Caribbean consumers have the option of accessing video streaming and Video on Demand (VoD) services via the Internet. Platforms, such as Netflix, offer thousands of selections from which to choose, and are continually adding new content (movies, TV series, documentaries, etc.) to their libraries.

Today, most of us in the Caribbean access TV services via a cable/subscriber TV package. Free-to-air broadcasting would have been the norm 20 or 25 years ago, when cable/subscriber TV would have been in its infancy in the region, and households would have had an antennas on their roofs, or (rabbit ears) next to their TVs. Today, most Caribbean countries are in the process of formally adopting digital TV, which will be the final nail in the coffin for free-to-air TV transmissions.

Service personalisation

Increasingly, and as has been occurring in the digital space for the past five or so years, there has been a trend towards allowing consumers greater personalisation of product and service offerings. Not only has it allowed firms to distinguish themselves from each other, it also fosters an appreciation of the individual customer, and their individual needs.

Currently, most subscriber TV service providers offer a range of programming packages from which to choose, and they may even allow customers to select individual channels as an add-on to a basic package. However, the degree of personalisation allowed tends to be limited. On the other hand, with VoD, the degree of customisation permitted is considerably greater. Subscribers can select the individual shows and episodes they wish to view, and frequently, the providers also recommend content, based on subscribers’ viewing history and perceived preferences.

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