Understanding how to serve five specific customer segments is key to succeeding in the TV and video space, according to a new study.

Digital TV vendor NAGRA teamed up with research house Ampere Analysis to argue that providing these “TV tribes” with relevant content, experiences and technology was necessary to remaining relevant and driving new revenues.

The most important group are “content connoisseurs” – young, affluent and tech-savvy early adopters who want everything on demand and are willing to pay for it.

This tribe makes up 24 percent of the global market, according to the survey, but are also the most likely to churn.

Nearly 80 percent of them cite online video platforms as their main source of TV and film content, making them the most likely group to subscribe to pay-TV services.

TV traditionalists are the next biggest tribe, with 18 percent market share, and are defined as a middle-aged group of linear TV consumers most interested in the big screen.

This group is less likely to churn than any other tribe, with only nine percent saying they switched within the last six months.

The three other groups are: “broadcast bingers” – a low-spending group best entertained when binge-watching box sets; the “digitally detached” – an older generation, harder to reach and least likely to spend money on pay-TV content; and “super spenders” – linear TV experts with money to spend to have full bundle access to content.

The report authors said offering the right services for each market segment, leveraging IP and cloud technology to launch new on-demand services, and delivering a multiscreen user experience were actions that providers needed to focus on.

Guy Bisson, Research Director, Ampere Analysis, said: “Successful operators realise that the world of paid content has moved beyond the simplicity of relying only on sports and Hollywood movies to drive subscription and into a business environment characterised by shades of grey.”

Ivan Verbesselt, SVP Group Marketing, NAGRA, added: “A one-size-fits-all strategy will not maximise value.

“Meeting the needs of distinct segments of consumers is the key to attracting and retaining subscribers, and growing revenue.”

The report, Television Tribes, was published on the same day as research from Frost & Sullivan that forecast OTT video adoption in Western Europe would grow at a CAGR of 15 percent until 2021.

F&S analyst Swetha Ramachandran Krishnamoorthi said: “The 450+ service provider ecosystem in the continent is expected to consolidate as price wars and content wars intensify, eventually forcing smaller participants to exit or be acquired by the bigger ones.”

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