Telcos are focusing on content

I have often talked about the future for telcos being more focused on the content they provide rather than the number of free texts they offer to customers and a recent move by EE appears to be moving down this exact path.

EE has announced a TV service for all broadband subscribers, but they have decided to just offer content that is freely available in the UK rather than any premium content. I am not sure how attractive this service will be to customers.

There is a reason that people are prepared to pay up to £100 per month for a subscription TV service. It’s because the content is great and services such as live sport or catch-up for US TV channels are not going to be replicated in the very basic plan that EE is offering.

In contrast, Vodafone has already signed a deal with Netflix for their TV service so the free channels option from EE doesn’t appear to match up to others even at the time of launch.

I believe that the direction of travel is correct, even if the execution appears to be lacking here. If EE can evolve this strategy so additional premium channels and services are available – and also available on mobile devices rather than just in the home – then they will have a much stronger proposition.

The battle over content is only just beginning, but it’s already clear that offering a few free-to-air channels is not good enough. What’s your view on the network providers moving to a content strategy? Leave a comment here or tweet me on @simondillsworth.

Forgotten television

 

Photo by Autowitch licensed under Creative Commons

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