Irdeto says 53% of service providers face subscription churn

Among 53% of pay TV, telco and streaming operators are experiencing subscriber churn, according to a report by cybersecurity outfit Irdeto. 

In partnership with Caretta Research, Irdeto has launched its ‘State of the Video Entertainment Industry’ report – exploring the current state of the video streaming market. According to Irdeto’s findings, it highlighted that increasing revenues remain a major challenge for service providers.

The report revealed 48% operators cited declining average revenue per user (ARPU), with 39% focusing on innovation in monetisation, such as launching new services and investing in ad tech.

The study also showed super aggregation was a major focus for service providers, with many of them prioritising content aggregation and a unified user experience. However, super aggregation was “still a work in progress” for several platforms, as only 56% of the survey respondents include third-party apps in their service offerings.

Another key theme were operators expanding their services beyond video-centric offerings to include a diverse range of services such as smart homes, gaming, music, connected IoT devices, health and fitness apps, and innovative advertising models.

“To address the challenges faced today requires a holistic approach; a combination of innovative technologies, strategic partnerships, and continuous investment in infrastructure, and software platforms,” said Andrew Bunten, COO of Video Entertainment at Irdeto. “By taking an informed and proactive stance on tackling these industry challenges, content distributors are better positioned to effectively monetize their content, drive revenue growth, and scale their businesses, while continuing to securely deliver compelling viewing experiences to audiences worldwide.