No changes were made to existing STB configurations during the deployment, which harnesses the Appstage application framework within the 24i Mod Studio streaming platform from 24i. This solution is pre-integrated with playout solutions provided by Amagi, a FAST solution leader known for its cloud-based SaaS technology for broadcast and connected TV. “The app was configured to perfectly align with Virgin Media’s UX, facilitating a seamless integration of channels into Virgin Media’s EPG,” the two vendors point out.

Srinivasan KA, Co-Founder and CRO at Amagi says: “Our achievement in integrating multiple FAST channels into Virgin Media’s STB environment through a unified gateway has significantly enriched user choice and paved the way for incremental revenues.”

Donald McGarva, CEO of 24i and its parent company Aferian plc, adds: “This has been a real team effort to give Virgin Media’s customers access to a range of exciting new streamed content with a great user experience. The successful and seamless roll-out to a variety of device models already in the field is a testament to the powerful and flexible combination of 24i’s Appstage Big Screen client, cloud-based Backstage content management system, and Amagi’s unrivalled FAST solutions.”

Amagi provides a complete suite of solutions for channel creation, distribution, and monetisation. Amagi’s clients include ABS-CBN, A+E Networks UK, beIN Sports, Curiosity Stream, Cinedigm, Warner Bros. Discovery, Fox Networks, Fremantle, Gannett, Gusto TV, NBCUniversal, Tastemade, and Tegna, among others.

Virgin Media was one of the first Pay TV providers in the world to onboard Netflix as an app, kicking off the ‘super-aggregator’ era, and is now pioneering the integration of FAST within the Pay TV user experience. Earlier this month it announced the arrival of NextUp – the comedy SVOD that combines a catalogue of stand-up shows with livestreamed events – as a FAST channel, with the adventure sports and entertainment provider EXTREME as a facilitator.

“Partnering with EXTREME and Virgin Media O2 to bring our live comedy content to new audiences enables huge growth, not only for the channel but the acts, agents and venue partners who we work with,” said Sarah Henley, Co-Founder and Co-CEO of NextUp. Mark Dodd, Managing Director Media Network for EXTREME, added: “NextUp LIVE Comedy is one of the most exciting producers of programming we have encountered in ages and alongside Virgin Media O2, as a major player in the entertainment industry, we can soon offer millions of Virgin Media O2 homes the best live comedy has to offer, all at no extra cost.”

The new Android TV service was developed on the Netgem Entertainment platform for use on a ZTE set-top box (integrated by Netgem as a ‘Google Operator Tier’ certified partner). Netgem says it can help any operator introduce Operator Tier and promises that its cloud-based aggregation platform and hardware partnership will deliver Capex and Opex savings.

Emmanuel André, CEO of Zeop, says: “We are committed to delivering the best entertainment, always with a super-simple experience. We can rely on Netgem’s expertise and its ability to deliver a full service to our customers.”

Jianbo Wang, CEO of ZTE France & Benelux, adds: “We are very pleased to work with Netgem to launch a new generation of TV and streaming services across our range of Android TV set-top boxes and dongles. This combination of services offers great opportunities for telecom operators to differentiate with innovative TV devices, cost-effectively.”

Wang adds that ZTE will be building on its partnership with Netgem to make the joint proposition available to more Pay TV operators in Europe.

The app would also provide the means to subscribe and unsubscribe to the third-party hosted streaming services, with the Pay TV provider being the universal subscriptions manager – a core future Pay TV operator function that Bandeira believes should also appear in all Deutsche Telekom’s consumer touchpoints.

“This is a clear part of our vision,” he revealed at Connected TV World Summit this spring. You can read where this multiscreen super-aggregator app fits into the wider Deutsche Telekom Pay TV and CPE roadmap in our separate report, here.

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He then made it clear that while the set-top box is the essential device for supporting these aims today, Deutsche Telekom will have to take a position directly on the glass [television set] itself, eventually, with less reliance on HDMI inputs. The company will have to enable a virtual STB scenario in collaboration with Smart TV makers – meaning an operator app replaces the STB, and this app is the default content and UI experience that someone sees when turning on their Smart TV (if that home is a customer of the Pay TV provider). If this cannot be achieved, DT will need to follow Sky’s example and launch their own Smart TVs.

Throughout his presentation, Bandeira spoke on behalf of Deutsche Telekom, outlining its plan and thinking. But this felt like his vision for an industry, too. His belief that a Pay TV provider must be present directly on the television glass chimes with the philosophy at Sky, which has already taken matters into its own hands with the revolutionary Sky Glass (a Sky OS/UX embedded into a private-labelled Smart TV designed and retailed by Sky). But where Sky moved directly to ‘building’ its own televisions, Bandeira made it clear that DT wanted to avoid this if, possible, and would first seek the Smart TV partnerships that would support the virtual STB model.

Bandeira began by outlining the challenges a Pay TV provider like Deutsche Telekom faces. “We are still in the middle of a transformation cycle that involves a shift from linear to non-linear consumption and also a very important change from service provider centric to content centric. Content brands that used to have us in the middle, as a broker, try to go direct-to-consumer to deliver their services.

“This is a fundamental change and something operators must be aware of as we prepare our TV services for the future.”

He outlined one all-embracing principle and three pillars that will underpin the future of Pay TV. First, the principle: “We must deliver an unbreakable service with the best video and audio quality. We must do a lot of background work to support this.” Then he moved onto the pillars.

“First and foremost, aggregate, aggregate, aggregate – and when you are tired of aggregation, aggregate some more! We must have the content [that consumers want] available. This is fundamental – it is what differentiates us from the other guys who do not have that content.” He added that content is king, and today some popular content may be hosted by one streaming service, and tomorrow it could move to another. It is the Pay TV provider’s responsibility to keep track and provide the access.

“Then you need to aggregate the subscriptions, enabling ‘subscribe’ and ‘unsubscribe’ [for the multiple subscription streaming apps that are onboarded as part of the super-aggregator role]. It is one thing to have the apps [the streaming content services, within your UX] but lots of people have them, so what is your real value, because over time that [having the apps] will not be enough. You need to put smartness into your aggregation.

“In the same way that someone can subscribe [to an app] in one click, they should be able to unsubscribe in one click directly on your TV service. It is very important that we give simplicity to consumers with one single billing relationship. We should be the main touchpoint with consumers who want to take those services. We are the middleman, so we must take ownership of this position.”

Bandeira’s third pillar is content-centric discovery. “This is where we can make a huge difference. Discovery should be independent of who is delivering the content. The consumer should not have to think about where the shows are that they want to consume, whether they are in Netflix, Disney or Amazon, and they might not know, anyway, but we have the answer for that.”

He pointed out that Deutsche Telekom’s focus on content aggregation, discovery and personalisation in the UI is not unique, and acknowledged that the quality of execution is key. “We do the fine-tuning based on the data, what is working and what is not working, and that is very important,” he pointed out.

Bandeira highlighted how Deutsche Telekom’s customer premise equipment strategy must align with these requirements, which led to the conclusion that the set-top box is still essential, for now. “The STB is the only place today where we can fully deliver on our vision for super-aggregation and a seamless subscribe/unsubscribe experience. I can’t do this on a third-party device. So, the STB is still central to our strategy today, but it can become less fundamental.”

The typical Pay TV operator app on a Smart TV, as seen today, is not part of the long-term CPE strategy, Bandeira revealed. “We are not happy to be just an app on an interface; I don’t want to be just an app.” He acknowledged that Deutsche Telekom’s Pay TV service (MagentaTV) is available on Smart TVs as an app, of course. [It is available on all Tizen OS Samsung Smart TVs since 2017, Sony Smart TVs running Android TV since 2015 and on all Android TV Smart TVs running Android 7, 8 and 9.] “But I am not happy to continue in this way in the future, as just an app on a Smart TV.

“If I am just an app on a Smart TV, then over time I will lose engagement with consumers because they will spend less time with me on my experience and more time with all the other apps that are available in the same UI. I can only replace the STB if I can replicate the STB experience without one, and that means I have to be the main app on the [Smart TV] ecosystem, where I contain the other apps [e.g. Netflix, Discovery, local broadcasters] in my app, as seen in my STB.”

Bandeira continued: “Being the aggregator that manages the subscribe and unsubscribe [across multiple third-party apps] is also fundamental, but this is very difficult if you are just one of the apps in the ecosystem. You have to control the experience, like you do today on the STB.”

This brought the Deutsche Telekom executive to his future CPE roadmap, because he made it clear that despite these reservations, his company does want to look beyond STBs. “Aggregating directly on the TV panel, without an STB, is the Holy Grail, and we need to do this. UIs in Smart TVs are becoming better and better. As an industry, we had a head-start on Smart TV makers, but they are catching up, and some UIs are becoming really good.

“These [Smart TV] guys are becoming our competitors with regards to aggregation, and they are well placed for this role because they have the [television] display in the customer home.”

So, how do you work around this, Bandeira asked the audience before answering for them. “We are working on two possible paths simultaneously, A and B. Either we will be successful with A, or we move to B,” he told the Connected TV World Summit audience.

“Path A is where you can broker a deal with TV providers in which you become the [primary] app. When someone buys the television, it asks if they are a Deutsche Telekom customer or if they take their Pay TV service from named competitors. If you are a Deutsche Telekom customer, you then get the Deutsche Telekom experience. We become the [primary TV] app. This is the path we would like to follow because doing [making, private-labelling, retailing] TVs is not our core business.

“But, if we are not successful on this path, we might need to go the other route, and ‘do’ televisions, in a similar way to Sky [with Sky Glass]. That is the only way you can continue to be relevant [as a Pay TV operator] in that case [where virtual STB on third-party branded Smart TVs is ruled out].”

Finally, Bandeira declared that Deutsche Telekom’s vision to be the super-aggregator and the subscriptions manager, as well as the primary content discovery agent, should not be limited to the STB today and the Smart TV (virtual STB or ‘DT Glass’) in the future. He is interested in mirroring this Pay TV role across multi-screen devices too, which requires a promotion for the classic operator TV Everywhere mobile/laptop app.

Noting that multiscreen devices are especially important to younger generations, he asked: “Why not apply the same vision to the smartphone or tablet, with an app that aggregates other apps? Of course, you can’t be the super-app on ecosystems that Google and Apple control, but you can still recreate the concept of an app that can aggregate other content apps and provide [unified] discovery and subscriptions [management]. That will give you service continuity between the experience you offer on a TV set and the experience you offer on these other touchpoints. This is a clear part of our vision.”

The DT executive concluded: “Our vision [for the role of Pay TV operators in future and the CPE that underpins it] puts us on a long path, and one we started a long time ago, but it is fundamental to the sustainability [economic] of the TV business, because we feel the TV ecosystem is going to become more and more challenged unless we do this. There is risk, but there is opportunity to capitalise by doing things that others cannot.”

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Tim Pearson, Vice President, Solution Marketing at NAGRA (a long-time specialist in Pay TV and multiplatform TV provision, UX, business analytics and content protection, among other things) flagged the importance of packaging and curation to make content discoverable. “We are seeing content start to fragment, but consumers still need direction and good navigation to help them find the content they are looking for.” That means editorial as well as automated recommendations.

Viewing behaviour insights underpin discovery and also content marketing, “giving you the opportunity to shape packages and propose new consumption approaches,” he stated.

Packaging and promotion are seen as key value-adds for any aggregator (and one where Pay TV can leverage its experience and strengths). Mary Ann Halford, Partner at Altman Solon (one of the world’s largest global strategy consulting firms with an exclusive focus on the Telecommunications, Media, and Technology (TMT) sectors), noted the power of free or discounted introductory offers on streaming services.

Onboarding of streaming services is central to the future of aggregation – and for Pay TV operators, super-aggregation is a way to expand the total content offer on their platform without additional content costs to themselves. Joe Nilsson, Chief Commercial Officer, SportsTribal (a FAST specialising in Tier-Two sports with 40+ channels spanning billiards and motor sports to combat sports) made this point and the specific case for the addition of T2 sports as a complement to the Tier-One sports typically found on Pay TV offers.

He believes a curated multi-channel (streamed) T2 sports offer represents a collective that becomes interesting to an aggregating platform. “It is hard to make some of the smaller sports work as standalone propositions but in a bouquet, like with motor sports or combat sports, the categories become compelling, especially if they are free to the operator,” Nilsson argued.

“We [as an onboarded app] are extending the content offering for the Pay TV operator or CE platform,” he continued. “For Pay TV providers, a bouquet like this can provide incremental audience, and for them and TV makers it will help to stop people exiting the platform.”

Expanding on this last point, Nilsson claimed: “FAST drives phenomenal watch times.” He reckons the linear nature of FAST is good for content discovery, as it reduces the decisioning burden on consumers and makes it easy to move from one content choice to another.

Halford noted that streaming services (as onboarded apps) reach different demographic audiences [in the same way that linear channels do]. vMVPD curations in the U.S. (available from Pay TV providers and non-Pay TV challengers) have distinct flavours to the point where they can appeal to different kinds of women (not just to women), for example.

Pay TV has always thrived by providing multi-genre diversity and having something for everyone, so the call-to-action is clear: make sure apps onboarding extends that principle.

Returning to content discovery and packaging, Halford, pointed out: “You have to ensure consumers are not choked with lots of programming services they have no interest in” and that “viewers want the opportunity to be surprised.”

Brigita Brjuhhanov, TV Product Owner/Team Lead at Elisa, summed up the critical nature of content discovery to the future of aggregation. “We have to make sure viewers have something to watch every day, every hour, and they never feel there is nothing to watch.” Elisa launched an Android TV based next-generation TV platform, Elamus, in Estonia last August and demonstrates how smaller operators can stay competitive in the aggregation game.

“You need good personal recommendations that show up content that is new, and which viewers have not seen before, and which excite the ‘local’ viewer,” Brjuhhanov observed – with her final point referencing the need for Pay TV platforms to differentiate themselves from global streamers with local content. “You need a great UX, and the Pay TV service needs to be multiscreen, of course.”

Pearson said Pay TV operators must ensure their ‘brand relevance’, which builds upon long-term subscriber relationships by offering new value-add functions, one of which could be carrier billing for onboarded apps. This is especially valuable in markets where credit cards are less widely used, he pointed out. NAGRA customer Claro adds Netflix to is Pay TV bills in Colombia for example, clearly increasing the potential market for the onboarded SVOD giant.

This webcast, which you can watch on-demand, also considered the degree to which CE device makers (especially Smart TV providers) are a threat to Pay TV in the aggregation space (answer – they are, and this is a view that 25% of the live audience took when asked who is best placed to be the default aggregator people use every day for their TV). You can see the full results of that poll in the on-demand recording.

The ‘Winning the aggregation battle’ webcast, which you can now watch on-demand, discusses how Pay TV operators can differentiate themselves from these CE aggregation rivals. The impact of device strategy on aggregation is explored. There is a discussion about how aggregators can make themselves more appealing than their rivals to a streaming service – and thus ensure they can onboard that streamer. And the importance of original, exclusive or ‘just’ local content, is explored.

The live audience also answered this poll question: ‘Beyond ‘carriage’, what are the most important value-adds a content aggregator (e.g., Pay TV/CE device makers) can give to a streaming content service?’ The results from this poll are revealed.

Watch the webcast on-demand