2015/12/24 Strategy Analytics: Strong Ambition and Asset Alignment Fundamental to Operator Success in Content Distribution

Localized & Exclusive Content Also Key Success Factors

Boston, MA - December 23, 2015 –Strategy Analytics report “The Evolving Role of Mobile Operators in Content Distribution,” has identified strong ambition and alignment with operator assets, as two fundamental requirements for operators to successfully define their position in the evolving digital content distribution landscape. Additionally, evidence from successful operator initiatives, particularly those from Japan and Korea, indicates that targeting consumer appetite for local or regional content, and the acquisition of exclusive rights to compelling content both as significant for success.

AT&T’s acquisition of DirecTV, Bharti Airtel’s launch of music and video streaming services, Singtel’s video-on-demand service HOOQ, and Verizon’s launch of Go90 highlights a recent significant shift in operator ambition with respect to digital content distribution, particularly related to video.  

Operator Content & Service Strategies

Source: Strategy Analytics, Wireless Media Strategies

Nitesh Patel, Director, Wireless Media Strategies, noted “Strong demand for video content, particularly on mobile devices, has prompted mobile operators such as AT&T, Bharti Airtel, T-Mobile USA, Singtel, and Verizon, among others, to seek a more aggressive position in digital video delivery, despite previous failed efforts in content distribution. However, T-Mobile USA’s Binge On signals an alternative enablement approach, leveraging network assets to provide optimization and zero-rated access to video content streamed over its network. Either way, operators must align their content strategy with both their ambition and assets.” 

Strategy Analytics report “The Evolving Role of Mobile Operators in Content Distribution,” provides examples of success and failure of operator efforts to shift beyond connectivity from operators such as Bharti Airtel, NTT DoCoMo, KDDI, SK Planet, Singtel and Telefonica, among others.     

David Kerr, Senior Vice President, added “We believe there are important lessons to be learned by examining the mobile content initiatives of operators in other markets. Meeting the needs of local content distributors and app developers to reach mobile users, while simultaneously addressing consumer demand for local or regional content, has helped Asian operators build and maintain a position in mobile content distribution as device ownership has shifted from feature to smartphones. 

Source: Strategy Analytics