Pay-TV service strategies for targeting young consumers

The problem

A pay-TV broadcaster in Asia–Pacific approached us because it wanted to improve its strategy for making young people aware of its services, with a view to influencing this demographic when they enter the workforce and become purchase decision-makers. However, young people are difficult to reach and seem to spend less time watching TV than this age group did in the past, leaving the company wondering if it not only needed new content, but also new distribution platforms.

The solution

We identified an array of both start-up and proven media businesses, which we examined in-depth for an understanding of the current landscape and possible trajectories for the next few years. In parallel, we conducted a segmentation of 15–25 year olds according to specific device ownership, connectivity access and consumption patterns. Using these two pieces of information, we defined a series of product and service propositions across the key platforms for young people: TV, mobile, online and live events. We then outlined the supporting distribution, content and marketing plans as well as a number of potential business partnerships needed to simplify and strengthen market entry.

The result

The proposition was presented to the operator's content department and discussed in significant detail. The project is in the implementation phase and is expected to be completed by the end of 2012. Our team has since been brought back in to assist the operations and finance team, in addition to the content department, in a larger set of market-wide strategic initiatives.

The team

The project drew on Analysys Mason's strengths as a global leader in telecoms, media and technology (TMT) strategy as well as our local presence in Asia–Pacific to create a world-class value proposition tailored for the intricacies of this market. Our deep understanding of the changing media landscape helped the team devise business models that maximised the company's strength as a TV content provider while providing new channels of growth in the platforms where young consumers are spending an increasing amount of their time – online and on their mobile phones.