Cloud UIs: Show me the money!
When it comes to advanced navigation, Cloud UIs have taken center stage. Ziggo is bringing cloud-based TV services to unmanaged devices without a set-top box, Charter is breaking new ground with its Guide-in-the-Cloud trial in Texas and other major operators in the US and abroad are advancing cloud-based strategies. But no matter how much the cloud catches the eye by reshaping user experiences and reducing total cost of ownership by 83%, here’s the key for pay-TV providers, online video providers and CE manufacturers: Show me the money!!
So when a story entitled “Ziggo gains ARPU from the cloud” popped up in my Inbox, I zeroed in on it like a Tinseltown mogul checking out the latest “Gravity” haul. From all accounts of the growing Ziggo deployment—
- 230,000 set-tops activated;
- Increased VOD sales; and
- A year-over-year increase in ARPU by almost 6 percent
—delivering television services from the cloud has box office mojo for pay-TV operators.
Ziggo, in fact, already has a sequel in production. TV services from the cloud directly to LG, Samsung and Philips televisions. More than 250 models, in all. No STB, just CI Plus 1.3 conditional access modules. As they say in show biz, “Sweetheart, this is gonna be big!”
What the Ziggo results tell us is that the Cloud UI edge extends beyond the TCO savings and time-to-market advantages. Cloud UI can bring real and measureable revenue gains to service providers by:
- Enabling increased service velocity by bringing television services and apps to market at web scale;
- Accelerating time-to-market that can allow video providers to be the first to offer differentiating services; and
- Providing consumers with a consistent, branded experience on any device.
What’s more, Cloud UIs have the ability to extend revenue opportunities to a television advertising ecosystem that has changed little from its debut in 1941. The same cloud-based software platform that is being used by Ziggo and Charter and others can bring existing web-based ads to television over managed or unmanaged networks, eliminating the cost and time to market of writing ads hundreds of times that have made targeted, interactive TV ad campaigns prohibitively expensive.
In the weeks and months ahead, we’ll be talking more at seminars, conferences and here about how software platforms such as CloudTV™ can drive not just efficiency, but also new revenue for service providers, online video providers and CE manufacturers.
Can Cloud UIs show you the money? You can take that to the bank.