Why Operators of all Sizes Must Embrace Streaming

By Erik Bortz, Sr. Director, Business Development

The evolution of consumer viewing habits has presented new challenges for the pay-TV industry. Some operators, especially small-to-midsize ones who may not have the resources or capital to adapt to the changing entertainment landscape, are shifting their focus solely to their broadband offering.

But moving away from video, which can be a tremendous value-add on top of high-speed internet, could be a missed opportunity for operators looking to differentiate themselves in an extremely competitive broadband market.

Provide Customers with a Next-Level, Integrated Streaming Experience

Rather than step back from video altogether, many operators are now looking to partner with companies, like Xumo, that can provide their customers with a robust, end-to-end experience that brings together live TV – whether it be the operator’s pay-TV service or free ad-supported television (FAST), their favorite streaming apps, and content bundles that allow them to stand out in a crowded market.

Xumo Stream Box provides operators with a value-driven platform that delivers streaming entertainment to their subscribers' homes, all packaged with and powered by their broadband service.

What makes Xumo Stream Box unique is that it's not a one-size-fits-all device. Recognizing that each operator has distinct goals, resources, and capabilities, we designed the Xumo Stream Box to adapt to these varied needs. Whether used as a value-add to broadband services or as the primary video device, it offers customers a seamless platform to enjoy both subscription channels and their favorite streaming apps.

Bundles of Joy

A streaming strategy is often about more than just devices, but content too. Bundling internet with discounted streaming app subscriptions offers customers great value and is meeting customers where they are. It can improve customer satisfaction and loyalty and reduce subscriber churn by providing a more comprehensive entertainment package. Bigger operators like Xfinity, Spectrum, T-Mobile and Verizon are doing this today, and smaller and mid-size operators can do it too. And when an operator combines compelling streaming offerings with a best-in-class device like Xumo Stream Box, then the value equation gets really compelling. For example, some of Xumo's operator partners are offering their customers the Xumo Stream Box with six free months of Peacock included. Others are bundling their broadband with Xumo and discounted subscriptions to Max – and these are just some examples of how to add more value to customers.

Reduce Churn and Participate in the Streaming Commerce Revolution

Offering video services to customers can enhance customer retention and engagement and can also unlock new revenue streams for operators.

The "stickiness" it creates helps maintain a loyal customer base.

In the 12 months following Spectrum’s rollout of Xumo Stream Box to new video customers, those who received the device were more likely to stay with the service compared to those that accessed their subscription on a third-party device (such as their Smart TV or a Roku stick, for example).

On the topic of commerce, video viewers are increasingly transacting on their home set-top-boxes and TVs, and we anticipate that trend accelerating. Whether it be purchasing streaming app subscriptions, renting, buying a movie or seasons of a show, or buying products through a QR code or dynamic advertisement, it’s never been easier to spend money via your TV remote.

It's critical for operators to capitalize on this growing trend. This approach not only meets the evolving demands of consumers but also better positions operators as a comprehensive entertainment and commerce hub solution. Once again, standing out in a competitive broadband market is key.

Having a strategy for customers who prefer streaming is a necessity for operators of all sizes. Embracing streaming allows operators to provide a comprehensive and integrated entertainment experience, enhance customer retention through value-added bundles, and tap into new revenue streams through the growing trend of streaming commerce.

The pros outweigh the cons for operators to provide a streaming solution for their customers, especially when they can leverage a cost-effective third-party platform to execute a solution.

If you’re interested in learning more about Xumo’s solutions for operators, contact us here.