In 2020, the stage was set for the arrival of 5G. If we revisited the tech predictions from futurists, experts, and analysts last year, I suspect that few correctly predicted how the arrival of a global pandemic would wipe out every major in-person event in the world. Our world has dramatically changed in the last twelve months.
COVID-19 has been credited as a digital accelerant that has fast-tracked the digital transformation of almost every business under the sun. On a positive note, we are now armed with a wealth of valuable insights that will continue to influence trends in 2021. Video streaming remains a key battleground as providers scramble to offer content libraries and product offerings that will attract and retain customers.
However, streaming is just one piece of a very complicated puzzle. How will the events of 2021 contribute to innovating for customer growth in a post-pandemic world? And how will the digital landscape continue to evolve?
#1: The evolution of bundles
The fragmentation in the OTT space is something that we can expect to change in the coming months. Major players such as Netflix, Amazon, Disney+, and Apple TV+ continue to dominate the global on-demand video streaming market. Still, the subscription economy is beginning to get expensive for cash-strapped cord-cutters.
As gamers celebrate the arrival of a new generation of consoles, it's the services and partnerships that are getting all the headlines, rather than the hardware. Microsoft acquired ZeniMax Media and its game publisher, Bethesda Softworks, for an incredible $7.5 billion. Xbox is also adding EA Play to its Game Pass Ultimate memberships at no extra cost, which results in a Netflix of gaming style package.
These recent announcements suggest that we can expect to see more offerings, cross-platform tie-ups, and partnerships between subscription-based media services, including streaming video, gaming and traditional Pay TV. We have already seen traditional pay-tv operators such as SKY getting creative in bundling its services with new players such as Disney+. User experience and overall bundle value will play a crucial role in enabling providers to stand out from the crowd while allowing customer growth and loyalty to grow organically.
#2: Personalization remains king
How we communicate has changed. For digital natives, data is the new currency, not minutes or SMS messages. Today’s audiences expect to have full control over how and when they use media. Spotify, Amazon, and Netflix all enable users to personalize almost every aspect of their experience. These digital experiences have become the standard expectation of every interaction with other services too.
Every customer will be different. The continuation of personalization in Telco’s and OTTs is a key ingredient in minimizing churn across the entire customer experience journey. For these reasons alone, we can expect a much broader range of subscriptions to fulfil the needs of niche and mainstream audiences alike.
Machine learning and AI capabilities will continue to play an essential role in reducing human bias and successfully serving unique and diverse audiences. Unsurprisingly, 84% of consumers want to be treated as an individual than just another number. 80% are more likely to buy from a company that provides personalized experiences, and according to Accenture, an incredible 91% want to receive offers and recommendations that are relevant to them.
95% of companies have already enjoyed 3x ROI after introducing personalization. A combination of leveraging technology and new partnerships will help Telco’s and OTT providers maximize growth by fulfilling consumer demands for more integrated products and services.
Paolo Cuttorelli,
VP & General
Manager,
APAC, Evergent
#3: 5G and Mobile
Apple recently unveiled its first range of 5G ready smartphones as the new high-speed mobile network prepares to become the standard in 2021. But if you look beyond the iPhone 12, it's Apple’s services that are offering the biggest rewards starting with the all-new Apple One bundle which includes access to printed media (Apple News+), streaming audio (Apple Music), streaming video (Apple TV+), and gaming (Apple Arcade), among other things such as cloud storage and fitness. The proliferation of more capable and ubiquitous 5G networks will make similar bundled offers hard for consumers to pass up since they’ll be able to have a great experience on their mobile devices anytime and anywhere.
Apple is just one example of a company positioning itself for a world dominated by the fast speeds of 5G. Once again, it raises the game and desire for higher quality content and more mobile streaming. The speeds of 5G will ensure that mobile devices become the primary source of streaming video content consumption. As a result, Telco’s need to think bigger than their existing consumers.
Cord-cutting and the abandonment of fixed lines will push more users to mobile providers. There are also many areas with underdeveloped fixed-line infrastructure that will be coming online for the first time. 5G will open up a massive customer growth opportunity as new audiences gain access to a wider range of mobile services and bundles.
#4: Breaking from legacy implementations
The last year has made exceptional high-speed internet connectivity, digital TV, and video content a necessity. Most users are now watching movies, concerts and cheering on their favorite sports teams while working from home. These evolving needs represent a huge opportunity for Telco’s that embrace the digital transformation of their traditional services.
Last year businesses were debating the benefits of working from home vs. in the office. Many felt that video conference calls on Zoom or Microsoft Teams were a little awkward. We all know what happened next. Less than a year later, there is now an expectation to work from anywhere and everywhere on any device.
Businesses are moving away from legacy working methods and infrastructure. As the digital transformation of everything gathers pace, most companies are further embracing cloud-based technologies. These trends will continue to reshape our world and the way we work in the coming year.
In the Telco and OTT space, we can expect a combination of emerging technologies and partnerships to create an unprecedented opportunity for customer growth and for digital subscription offerings. Every user, device, and subscription in every location has an evolving set of unique requirements. How will Telco and OTT operators provide consumers with the best content and digital experience? The lessons of 2020 should provide the answers they need to succeed in a post-pandemic world.
