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New Research Reveals Innovation Is a Top Priority for Three-Quarters of Pay TV Executives Globally

Survey finds that 76% of pay-TV operators believe innovation is a top priority

CHESEAUX, Switzerland(24 Jul 2017)

NAGRA, a Kudelski Group (SIX:KUD.S) company and the world's leading independent provider of content protection and multiscreen television solutions, in partnership with MTM, a leading international research and strategy consultancy, today revealed initial survey findings investigating the top priorities and challenges facing pay-TV operators around the world. Delivered as part of the 2017 Pay-TV Innovation Forum, the survey of pay-TV industry executives suggests that 76% of respondents believe innovation is a top priority, citing the launch of new products and services as the best way to maintain and grow their businesses in a highly competitive market environment.
The research surveyed senior pay-TV executives around the world, investigating their views on the main growth challenges facing pay-TV businesses and the most important commercial opportunities that lie ahead.
Increasingly, many operators are witnessing a slowdown in revenue growth, with 46% of respondents reporting difficulties maintaining growth – up from 40% in 2016, with competition from other content distributors (84%) and OTT providers (70%, up by 22% from 2016) as key challenges. Content piracy is also a significant challenge for pay-TV operators, with 54% of respondents agreeing that it will lead to greater pressure on the industry over the next five years and less than a quarter (24%) believing it is a diminishing problem.
74% of those surveyed believe that innovation has become more important to the pay-TV industry over the previous 12 months, and 92% of respondents agree that launching new products and services will be integral to driving growth. Half also stated that building strategic partnerships with content providers will be key to ensuring their future.
Operators are already taking steps to be more competitive, having launched or planning to introduce new services over the next five years, including virtual reality or 360-degree video content solutions (52%), mobile-first TV services (70%) and standalone OTT and SVOD platforms (85%).
“These initial findings indicate that pay-TV providers globally recognise the tough environment in which they operate,” said Simon Trudelle, Senior Director, Product Marketing, NAGRA. “While at first it may appear that they are facing a more competitive marketplace, with pressures from new entrants and pirates, it’s encouraging to see that 76% believe innovation to be a top priority and over nine in ten agree that launching new services will be critical drivers to growth. By developing new innovations, accelerating business transformation and building strategic partnerships with content providers, operators can ensure they are fit-for-purpose into the future.”
“The initial results from this survey and our forums with industry executives around the world confirm the widespread perception that the pay-TV industry is facing increasing competition, not only from legitimate commercial services but also from illegal pirate services,” said Jon Watts, Managing Partner, MTM. “By continuing to innovate through investments in new app-based solutions and OTT services, as well as developing new packaging and pricing options for consumers, operators are investing for the future. Best-in-class providers should be well positioned to grow, but the challenging market environment is set to continue.”
The Pay-TV Innovation Forum’s final research report will be available in September 2017.
NAGRA, a digital TV division of the Kudelski Group (SIX:KUD.S), provides security and multiscreen user experience solutions for the monetization of digital media. The company offers content providers and DTV operators worldwide secure, open, integrated platforms and applications over broadcast, broadband and mobile platforms, enabling compelling and personalized viewing experiences. Please visit for more information and follow us on Twitter at @nagrakudelski.
About MTM
MTM is a leading international research and strategy consultancy, focused on the media, technology, communications and advertising industries. MTM helps companies understand and respond to digitally-driven change, providing award-winning consumer research and industry analysis, strategic advice and support for organizational change.
For more information, please visit or email