Why Sky Glass TV makes sense in the age of streaming

Last week, European pay-TV company Sky launched streaming TV in the UK, along with its biggest marketing campaign ever. Liz Duff, Head of Media and Investments at Total Media, examines how the material is helping to sustain the business.

For many UK households, Sky is considered the home of entertainment with its sports, movies, news and drama packages, but it has faced considerable competition from streaming services including Netflix, Disney Plus and Amazon Prime Video. While these are technically accessible through Sky’s Q Box, the service has not been directly associated with streaming until now.

The launch of Sky’s new smart TV, Sky Glass, last week changed the trajectory of the company. Although on the surface the product looks like a normal television, it is intended to radically reposition the company for the streaming age. For example, unlike its previous offerings, Sky Glass operates without the need for satellite dishes or set-top boxes and is fully connected to Sky’s services via the internet (through the broadband it sells).

If the product becomes popular, Sky will gain more control over the TV ecosystem and make its subscriptions more loyal. Sky Glass could also help the broadcaster capitalize on discussions with content providers in the fight for new shows, and potentially help it become the gatekeeper or aggregator of streaming platforms. However, making Sky Glass a success is easier said than done, and there are still questions surrounding the new product.

Gives meaning

Sky Glass seems like the next logical step for Sky as it tries to diversify its revenue and grow its business. However, while this seems like the natural evolution of the broadcaster’s product line after the launch of Sky Q in 2016, it will be more difficult to get people to switch boxes and satellite dishes to expensive smart TVs. Consumers rarely spend money on big purchases like televisions, and it will be difficult to convince someone to ditch their long-used setup.

However, that doesn’t mean it’s impossible. For example, mastering the fundamentals, such as ensuring a smooth and intuitive user experience, will be critical to the success of Sky Glass. This means focusing on streamlining the Sky Glass signup process and making the user interface so intuitive that there is no need to look at other apps or devices, which currently makes the streaming market cumbersome. Having as few sticking points as possible will shape people’s perception of Sky Glass as the one-stop, easy-to-use destination for their content streaming needs. The smoother the process, the faster people will integrate it into their daily routines.

With cost being a major barrier preventing people from purchasing many subscriptions, Sky also needs to set Sky Glass at the right price. For example, they should highlight their flexible plans in order to appeal to different household budgets. This will ensure that they are attractive to as many people as possible.

Additionally, allowing people to pay for the Sky Glass set on a monthly basis means that it can be made more attractive to customers. Monthly payments make paying for Sky Glass more manageable and better value for money. A powerful tool for selling any product is using behavioral analysis where people tend to overemphasize any amount cited and place too little emphasis on timing when calculating an item’s value. This temporal reframing can be used to change people’s perception of costs. The shorter the time frame, the more attractive the deal becomes and more people are likely to invest accordingly, which is why the focus on a lower monthly cost rather than a higher one-time cost is the way to go. for Sky.

What impact will this have on the future of streaming?

We’re now so used to the dominance of Netflix, Disney Plus, and Amazon Prime that if Sky is to make an impact in the streaming wars, it has to make Sky Glass simple and smooth – and it looks like that’s exactly it. According to reports last week, Sky’s smart TV will learn viewing habits to make tailor-made content recommendations, which audiences are clamoring for. Making it easy to find content has worked well for brands like Spotify, and it’s becoming more and more vital in this crowded TV content market.

With research showing that audiences feel crippled by the breadth of choice over streaming services, helping them make a decision will increase audience numbers and customer loyalty. It will also benefit Sky as it will keep customers locked into the Sky ecosystem, rather than looking for content elsewhere.

Sky Glass is launched at a time when it responds to the demands and changing behaviors of the public. We know that young audiences watch linear television less than ever before and are the generation most naturally accustomed to broadcasting its content. Traditionally, the older generation was loyal to linear TV, but the lockdown has sped up the shift of older audiences to other sources of content, with those over 55 now much more comfortable with using TVs. subscription streaming services, so it’s now a reality. People want to watch their favorite content on the best screen available, and smart TV provides access to a range of high-quality TV content, both on-demand and live, in a relaxed living room environment.

One of the upcoming features of Sky Glass is the inclusion of a 4K camera, which opens up the possibility of integrating video conferencing apps like Zoom, and although streaming through a laptop or mobile is often a Solo viewing experience, this technology opens up a potential future for more group observation and engagement / interaction. Coupled with Sky’s extensive and lucrative sports content and big-ticket programming, it’s a way to prepare for the next evolution of streaming.

Ultimately, the streaming landscape is an increasingly fragmented market, so anyone who can provide an aggregate offering will be in the driver’s seat. There are only a limited number of channels and providers that people can cognitively deal with, so consolidation is inevitable and Sky has played a major role in leading this offering. Nielsen data shows that people watch no more than 15 channels on linear TV, no matter how many they have access to, with a core portfolio of around seven or eight. It is clear and proven that we are creatures of habit – we go with what is easy, and the success of Sky Glass will depend on how well they can meet those demands.

About Hannah Schaeffer

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