Turn HD video into an opportunity by offering unlimited data, HD video binge, and data savers plans, enabling subscribers to choose their own experience.
The HD Data Monetization Story
Subscribers just love to binge watch HD video. HD data can put the network under significant pressure, particularly at peak times. This often results in congestion, video buffering, and unhappy customers. We believe HD video and data should be embraced as an opportunity. Savvy operators have already found effective ways to turn unlimited binge video into a real advantage without breaking their networks. T-Mobile USA, the “Uncarrier,” shook the foundations of the industry when they launched their now infamous “Binge On” all-you-can-eat video service. It was immensely successful because it solved a huge customer pain-point with a simple, well-targeted proposition, one that customers happen to love. The video plan enabled the operator to grow their subscriber base and reduce the amount of video on their network. In short, brilliant! Following the launch of Binge On, operators in the US and around the world have followed suit, implementing their own version of the much-loved all-you-can-eat video plans. Many operators are also generating bonus revenue by charging an additional upgrade fee for HD video.
In emerging markets, HD video has also been a significant cause of friction between operators and subscribers. Subscribers that upgrade from 3G to faster 4G networks take the opportunity to indulge in HD video and, as a result, many are experiencing early data-bundle exhaustion. The subscriber feels shortchanged – they were encouraged by the operator to upgrade to a faster network, and now they are being asked to pay more for the same experience they just left behind. As a counter measure, many subscribers try to manually avoid HD content or worse, they configure their mobile to stick to the 3G network, which causes additional investment in 3G legacy and slows down migration to LTE.
To alleviate the obvious frustration and regain subscribers’ trust, operators in emerging markets are implementing optimized “data-saver” bundles to help stretch the customers’ data cap for the whole month. This results in subscribers enjoying the benefits of LTE, while not being overwhelmed by early data-bundle exhaustion. Many operators generate additional revenue by offering a premium upgrade to consume HD video.
HD Data Monetization allows operators to limit the impact of HD traffic on their network resources by: