These are challenging times for the pay-TV industry, as many operators across the country find themselves struggling to maintain stable, long-term revenue-generating strategies. The traditional moneymaker for the pay-TV industry, video subscription service, is struggling to attract consumers as it did in the past. And while broadband Internet service is helping to make up for lost revenue, demand will eventually peak.
Fortunately, as NewBay Media recently pointed out, there is hope for cable providers in the smart home market.
The smart home solutions market is currently booming—and it shows no sign of slowing down any time soon. In fact, the market is expected to grow at a compound annual growth rate of over 14 percent from 2016 to 2022, at which point it will reach over $121 billion.
You may be surprised to hear the words “pay TV providers” and “smart home” in the same sentence. After all, most of the attention in the smart home industry to date has been centered on telecommunications providers and technology companies. But make no mistake about it, the pay-TV industry is building an active presence, too.
For proof, just look at the activity that is taking place among the industry’s largest corporations. For instance, Comcast is now offering the XFinity Home Program, AT&T serves up the Digital Life Program, and Cox Communications and Verizon Communications both have smart home products on tap. Moving forward, you can expect to see a big trickle-down effect as smaller operators follow suit and unveil their own smart home services (like connected automation platforms and intelligent security systems) to subscribers.
This begs the question: What does it take to succeed in the smart home market? First and foremost, pay-TV operators are advised to focus on offering a great customer experience that builds trusting relationships with consumers. This calls for a change, as the pay-TV industry is not known for customer service. In many ways, a smart home offering is more like a consultative service than a product. Pay-TV operators entering this market must be prepared to work closely with customers to make sure their automation platforms are working properly and that they are satisfied.
This requires solutions designed to be technically sound—meaning secure, user-friendly and highly interoperable with third-party devices and operating systems. A home automation platform, ultimately, should allow end users to manage multiple smart home systems (like lighting and temperature controls) right from a single interface or mobile application. If you only build products that support proprietary technologies, customers will run into connectivity issues down the road, which will lead to complaints and possibly turnover.
We’re not advising you to jump into the smart home market. We just wanted to let you know that this is a great money-making opportunity that your business could use to connect with customers and increase revenue streams.