Remember when the whole family used to sit around the set-top box watching the same show? While those days are not completely over, they are slowly fading away. A new generation of viewers in Canada’s video market is increasingly moving to online streaming platforms. Why? To watch video on their terms. They have more choices not only on what to watch, but also on where and when to watch it and on which device.
The global video market is witnessing common trends in consolidation and the viewing habits of the next generation. Let’s explore how Canada’s video market is responding to this, and how it differs from others.
Broadcasters traditionally spread the same content to as wide an audience as possible, but this approach can’t please everyone. As television moves toward an IP-based model, it enables them to cater to small, niche audiences. Multiple apps have sprung up, catering to different profiles. This trend comes with a decrease in the use of set-top boxes and calls for companies to evolve and move to a Gen Z audience — an audience whose loyalty is tied to the best quality of experience, rather than to any specific service.
The CapEx Concern in Canada’s Video Market
Meanwhile, another trend is also affecting the industry, as two broad groups are facing consolidation:
- Media/Broadcasting: The acquisition of smaller broadcasters by larger ones has reduced their overall number in general. Shareholders of those larger broadcasters demand higher profitability, so many major projects have been shelved to maintain lower CapEx.
- Cablecos/ISP/Telcos: The acquisition of smaller operators by larger ones has also reduced the overall number of cablecos, ISPs, and telcos. As with media companies and broadcasters, lowering CapEx is also an issue here.
With everyone migrating to IPTV operating costs are reduced, but overall CapEx budget reductions mean headend equipment lifespans are extending. In turn, this leads to more costly maintenance.
What does this mean for video processing/delivery platforms? Operators still need to purchase equipment, but they are extremely cost-conscious. They tend to want less-expensive products; however, they quickly realize their limitations. Either their quality of service will fall, leading to increased churn, or they must purchase more efficient and reliable broadcast-quality equipment.
Opportunities for Growth
To ensure high-quality experiences, bigger operators and broadcasters are beginning to realize they require additional redundancy, and the use of specialized monitoring equipment, throughout multiple networks.
Yet equipment in Canada is very expensive. Ateme is able to work with all media companies to help you reduce the impact on your finances and get them future-ready with advanced technology that offers the quality and options new generations, including Gen Z, demand. MDL Communications is now the distributor for Ateme video products within Canada.
If you are based in Canada and would like to know more about how we can help, feel free to contact us. We’d love to hear from you.