A Compelling Business Case for Partnering with OTTs
Operators increasingly see collaboration as the best approach to addressing the Over The Top (OTT) challenge. There is plenty of scope to differentiate service propositions and increase customer loyalty, but what about revenue generation? So far, the main revenue driver has been to promote data subscriptions, but this has not moved the revenue needle as much as operators would like.
AsiaInfo commissioned Northstream to investigate the impact of new OTT collaboration platforms (such as Veris O²P) on the business case for OTT partnerships. Northstream found that collaboration platforms improve the business case significantly, both by increasing the revenue potential of OTT partnerships and by reducing the costs.
Collaboration – the business case
Independent research consultants, Northstream, quantified the business opportunity for operator/OTT collaboration as enabled by existing IT approaches (non-platform) compared with a platform-based approach. By opening up the operator’s IT systems to enable fast integration and ‘mashup’ services, the collaboration platform adds more value to the partner's services as well as removing many of the integration complexities.
Northstream estimated that the existing 'non-platform' approach to OTT partnerships will generate €160 million in net cash flow over the next three years for operators in Western Europe. A collaboration platform can significantly improve the business case, increasing net cash flow potential by more than €2bn.
The collaboration platform enables faster integration at lower cost, so operators can increase the number of partners they work with and be more flexible in creating 'mini offers' which appeal to a wider range of customer segments.
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