WaveLength Identifies Growth Drivers for Consumer IPTV Services
A tier 1 service provider made substantial investment in offering new IPTV services and needed to know why some areas had better service uptake than others. WaveLength used internal monthly reports on subscriber numbers, VHO and corresponding service area zip codes and consumer demographic data. Analysis identified the key predictors of IPTV adoption as Existence of Children under Ten Years and Income. Armed with this information, this service provider created marketing campaigns to appeal to young families that boosted service uptake.
Problem: Need to understand market penetration and adoption drivers by Video Head Office (VHO)
After making a substantial investment is IPTV, service adoption per video head office was highly inconsistent. Some local geographic markets were clearly doing than others and this Tier 1 service provider needed a deeper understanding of service uptake and what drives it.
Key info that could change business: What are the differences between higher service subscribing areas compared to lower ones?
Best data sources: internal data, third party data, & service launch press releases
High-value information: Income and existence of children under ten in household drives service adoption
Once the data set was assembled, since we now had both the number of subscribers and number of households per VHO, we created market penetration rates per VHO and changes in market penetration per VHO. Finally, we performed a series of regression analyses on drivers of adoption by both VHO and all VHO numbers together. The conclusion was that the existence of young children under ten years old in a household was the strongest predictor of service uptake, and income was the second strongest predictor.
Results: Focus marketing on young families
The service provider refined its focus on young families, and marketed it as a good entertainment value because of it high quantity and high quality content for children. With WaveLength’s in-depth knowledge of the consumer Internet, TV, and telecommunications market together with its data analytics expertise, WaveLength was the right partner to assist in the creation of a new marketing strategy.