Operators banking on OTT content

Operators banking on OTT content

OTT Content to driver data consumption
OTT Content strategy

Vodafone UK has just renewed its deal with Netflix as sit strives to be the King of OTT Content.  Vodafone UK sealed the original deal with Netflix last year offering a range of on demand TV shows to its 4G customers. The new deal sees the number of bundles Netflix is available on expanded, while the length of subscription to the Orange Is The New Black producer has also been increased. Vodafone has been serious about content – Netflix sits alongside Now TV, Sky Sports and Spotify.

Cindy Rose, Consumer Director, Vodafone UK said: “We are delighted to once again offer Netflix to our Red Value Bundle customers, as we had brilliant customer feedback from those who took Netflix as part of our previous partnership.

“Thanks to our partnership with Netflix and our strong and ever-expanding 4G network, our customers can be out and about and still catch-up with their favorite films or TV shows.

“Our 4G customers are using four times more data than those on 3G, which shows how popular services such as Netflix are with our 4G customers.”

On the other side of the Atlantic, The CEO of Rogers Communications Inc. says his strategy in launching a streaming music partnership with Spotify was all about encouraging wireless customers to use more mobile data.  Instead of including all-you-can-eat Spotify data with top end plans, Guy Laurence said Monday that he didn’t even consider offering unlimited data usage for Spotify Premium – which Rogers added as a bonus for customers of select high-end smartphone plans at the beginning of September – because the whole point was to encourage subscribers to get comfortable with using more mobile data. (Spotify’s Premium ad-free, unlimited streaming service normally costs $10 per month.)

“I’m investing $49 million per week in building out my networks, both fixed and mobile, with a single point of view that people like you will continue to want to consume more data,” Guy Laurence, chief executive at Rogers, told reporters Monday. “In a lot of plans these days, voice is virtually free, text is virtually free. You got to pay the bills somehow and so we’re paying it through the monetization of data.”

Both Vodafone UK and Rogers are clearly going the whole hog on content.  They are banking on customers’ insatiable appetite for OTT content driving either the top line (customer acquisition) or the bottom line.

More Here [iphoneCa] [24newsCa] [EuroComms]

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