TiVo contacted me to speak at their upcoming Pay TV Executive Summit. They wanted me to discuss the reemergence of Video over Broadband, and if done well, how it would help operators grow their business. While this is important, it is only one slice of the pie when it comes to growth in an increasingly saturated streaming TV marketplace.
Competition is continuing to increase in the streaming marketplace, which while it is no longer new, is still a young and a growing market. However, while it is growing, increasing competition makes it more difficult for every player.
TiVo found customers use average of nine streaming TV competitors
TiVo has found their customers use an average of nine different streaming TV competitors.
Think about all the streaming television services like Disney+, Apple TV+, Hulu, DirecTV stream, Amazon Prime Video, YouTube, Netflix, Sling TV and so many others.
TiVo also wants to become one of the key players in this relatively new space. A tall order for a comparatively small company without the same high-level brand name recognition as Disney or Apple.
Then again, every huge competitor got started at one point in time. So, it is achievable. Just think about Netflix success as one example.
TiVo still on growing side of streaming TV services growth wave
This is an admirable goal and gives them a target to shoot for and try to achieve.
Knowing the direction that you are heading and what you want to achieve are two key secrets to success for any competitor in any space.
All streaming service competitors are on the same growth wave. This growth curve has three sides. The growing side, or the top where the wave crests, and the falling side.
TiVo and other streaming TV competitors are all still on the growing side of this growth curve.
Streaming TV services growth curve has three parts
Yesterday, it seemed the traditional cable TV marketplace was the only place the average customer went to get pay TV. Then as the Internet grew, new IPTV competitors entered this space.
Little-by-little these new competitors have been transforming the pay TV industry and carving off market share from the dominant players.
Over the last decade or two, traditional pay TV offerings like cable television has seen its market share top off then drop, as it has been doing ever since.
This is the wrong side of the growth curve and is impacting traditional cable TV services offered by companies like Comcast Xfinity, Charter Spectrum, Altice Optimum and all the smaller competitors as well. That’s why they are also moving in this new IPTV and streaming direction as well.
Streaming TV services are on similar growth path as wireless industry
Streaming TV services is thought to be the next step in the pay TV journey. It is still a young, fast growing and always changing segment.
Today, every competitor is trying to both capture and grow market share. This is where the competitive battle is being fought right now.
This is much like the wireless industry was 20 or 30 years ago. Back then, there were many smaller wireless competitors. They operated in smaller, geographic regions. None of them were big-time, heavy hitters.
Then, over time they merged and grew. Today, there are fewer, larger wireless providers. Today, they all have strong brand names.
Over time, the wireless marketplace has completely changed. And we can expect that change to continue moving forward.
TiVo wants to be long-term leader in streaming TV services
Going forward the streaming TV services marketplace is taking the same path as the wireless industry.
This is the industry segment TiVo wants to lead. If they are focused on growth, that goal is achievable. The only question is, can they continue to grow and build market share with so many brand name competitors.
Just like it was impossible tell which companies would lead in wireless a couple decades ago, it is too early to determine who the real streaming leaders will be years from today.
If you recall, years ago AT&T tried to acquire T-Mobile, but failed. Sprint also wanted to acquire T-Mobile, but also failed. Ultimately, years later, it was T-Mobile who eventually recovered and acquired Sprint.
The next big step in the streaming TV industry will be the consolidation wave. Companies will merge. Competitors will go from many, smaller companies to fewer, larger ones.
Today, it is too early to tell which streaming TV service competitors will be the leader’s years from today. That being said, TiVO wants to be one of the key players. Let’s see if they have what it takes.
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