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nScreenNoise – Netflix, YouTube on STB cuts pay TV churn

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Does integrating Netflix on the set-top box really help an operator in the long-run? Waoo in Denmark was the first operator to do it, and thinks it works so well it is adding YouTube too.

Chapter 1: About Waoo (0:30)

Jørgen Stensgaard, CEO of Waoo, says the fiber operator was started 9 years ago. It now serves 300,000 customers in Denmark. It is a triple play operator providing broadband, TV and mobile services.

Chapter 2: Does Netflix on the STB help an operator? (1:20)

Waoo was an early pioneer of integrating web services. It added Netflix to its set-top box in 2013. Mr. Stensgaard said that the company saw the trend toward online video early on. It took a year-and-a-half to do the initial integration. Four years on, the company sees loyalty is much higher and churn much lower among the Netflix users.

Mr. Stensgaard says customers prefer to use Netflix on the operator’s set-top box because they don’t have to change inputs. Also, as the STB is Ultra HD and HDR capable, users can watch the highest quality video on their ultra HD TVs through Netflix.

Martin Jürgensen, Project Manager at Waoo, said Netflix demanded very strict technical and content security requirements that slowed the integration on the set-top box. However, integration of new services is much quicker now as the Waoo TV platform has been adapted to smooth the integration. .

Chapter 3: On adding YouTube and the importance of UHD (3:40)

This week Waoo announced that it is adding YouTube to its pay TV set-top box. Mr. Stensgaard says he is excited to do this as it will bring a lot more 4K content to Waoo customers. I asked Mr. Jürgensen if he was concerned about all the bandwidth the UHD video would consumer on his network. He said that UHD streams from YouTube consumed 25mbps of bandwidth, which is almost 10-times higher than HD.  He said as they are a fiber operator, there is all the bandwidth they need.

Chapter 4: How the platform for video will change (6:10)

For the future, Waoo is looking to become a broader aggregator of web content. It also wants to continue to improve its video platform to make it easier to add more Internet video services. The company also plans to introduce advanced features like unified search.

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