The music industry was one of the first sectors to be fundamentally disrupted by the Internet. Facing an epic and almost existential battle with piracy, coupled with expectations that music should be free, the record labels have tested many different business and distribution models. With sales of recorded music finally growing again, telcos and their partners can learn a lot from the music industry’s hits and misses.
TeliaSonera’s digital partnership with OTT streaming music disruptor Spotify has worked well when other operator music tie-ups have languished. We investigate how the partnership has helped both companies to target new market segments and develop innovative products, with Spotify benefitting from TeliaSonera’s marketing channels and direct investment, and TeliaSonera leveraging both Spotify’s brand association with youth-oriented digital innovation, and the serious stickiness of the Spotify service.
Partnering is a key competence for building telco digital services offerings, but many past attempts have failed. So what does it take to succeed? In this briefing we review viable strategies, key success factors and barriers, and profile the highly effective approach used in AT&T’s Drive Ecosystem.
Seven predictions and four scenarios for how the industry might play out in Europe in the next 5 years: ‘Digital Renaissance’, ‘Back to the Future’, ‘Commoditised Utility’ and ‘Telco Trainwreck’. Plus what are the take-outs for other markets?
In the first of two reports, STL Partners evaluates how several powerful forces, within and beyond the control of telcos, look set to change the shape of the European market and considers the options for how these forces might develop going forward.
What is ‘agility’ and what makes it meaningful to operators? We explored the concept and characteristics of ‘operator agility’ through 29 interviews with telco senior executives, found three main barriers and five key opportunity areas, and identified some surprising and important conclusions about both what it means and the key steps needed to achieve it.
Netflix’s success in the US and in Western Europe has demonstrated that consumers are willing to change how they watch and pay for TV and movies. As a result Netflix’s OTT proposition is challenging traditional pay TV models and changing how new broadband services are looking at content. For some players Netflix is a threat and for others an opportunity. So, how should content owners, channels, pay platforms and broadband providers respond?
What is disruption, when is it a good idea, and what do you do when it happens to you? We illustrate five principles of disruptive strategy based on our analysis of the telecoms and adjacent markets over the past eight years. The analysis covers both principles of creating and defending against disruption.