Successful conversion model
The rapid growth of M7 Group was driven by successfully converting millions of free-TV viewers into recurring pay-tv subscribers in only a few years’ time. The model provides subscribers with an attractive range of additional TV services at a highly competitive market price.
The hybrid TV offering includes key channels as well as film and sports content in state-of–the-art HD quality and innovative interactive services such as restart, replay and on demand TV viewing.
Having started as a satellite TV operator, M7 has now become a platform agnostic TV provider, adding IPTV, DTT and OTT capabilities where that best fits the preferred local way of TV consumption.
Meeting fast changing viewing habits
A leading edge OTT app allows M7 subscribers to permanently access content on any device. Over 300.000 downloads on mobile devices in only 18 months delivered the proof of concept for M7’s understanding of customers’ needs.
In cooperation with leading TV set manufacturers Samsung and LG, M7 developed a smart TV app, allowing consumers to watch both linear and non-linear content on their main screen, without the need for a traditional set top box. Additional partnerships will be closed as the interests for the hybrid TV model app from global leading TV manufacturers increases.
New revenue streams for broadcasters
Both the conversion of free-TV viewers into recurring pay-tv subscribers as well as the hybrid TV app provide broadcasters with an opportunity to create new revenue streams and new ways to protect their viewing shares, in a fast changing market where TV advertising revenues are under growing pressure. M7 provides broadcasters with a means to maintain and grow their viewing audiences in an increasingly fragmented TV landscape.
Differentiating business strategys
As M7 Group operates in an increasingly competitive field with both traditional and new global TV players, it became an unthreatened price-competitive ‘value for money’ and locally driven player. M7 focuses on the acquisition of live local content, news, general entertainment and non-scripted shows. It is complementary to the major OTT premium content providers like Amazon and Netflix, as it avoids investing in financially heavy acquisitions of premium movies, premium sports or premium TV series and does not compete with high-end pay-tv operators.
M7 Group’s average revenue per user increases steadily with a growing number of subscribers upgrading to higher pay-tv packages, combining the benefits of a high quality HD and UHD linear channel offering with attractive interactive services.
Especially in markets with large bases of free TV viewers, M7 defined opportunities for geographical expansion, benefiting from its multi-market operations and creating economies of scale with cost-efficient synergies in the areas of content acquisition, broadcast distribution and reception investments, IT services, branding and call centres.