Will Content Remain King?

This post is by Richard Haddock, Strategic Account Director at Teleperformance UK.

We all know the expression ‘content is king.’ Everyone in media-land uses this expression and the strategy of getting the content right and scooping up customers has transferred itself to the world of telcos.

Sky built their success largely on selling live football. BT is now competing directly with them, copying the idea that you can capture customers who want live sport and then sell them additional services – like their home Internet or a mobile phone subscription.

I know that many telco watchers have argued that content will be the future for capturing customers, it has been argued by my colleagues on this blog, but I think that we should exercise caution. If the regulatory environment changes or the rights packages for certain events are not won in bidding wars then the entire environment could change.

Services like Sky Go and Virgin TV already offer content across all platforms – importantly including online as well as regular TV – and Virgin is already knocking on the door at Ofcom asking them to review the Premier League bidding process. Several enormous companies could be affected if the football rights process is drastically changed.

I believe that content is a part of the answer . Great content encourages customer loyalty to a certain extent, but if the content is compelling enough then customers may in fact just subscribe to several services, which defeats the idea of content being about loyalty.

But the market is changing fast. If the process around sports rights changes just as every big player is trying to develop an attractive quad-play offer. Content alone will not be enough to make a quad-play package attractive.

2016 is going to see some brave and bold decisions. Mergers are taking place, everyone wants to see how quad-play develops, rights processes may well change, and so only the most courageous are going to win this year.

What do you think about the content battle? Leave a comment here or get in touch via my LinkedIn.

LED - Sky Movies Nov 08 6

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Photo by JC Decaux licensed under Creative Commons.

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