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SURE! Blog

How prepaid models are helping Pay TV operators in increasing their revenues?

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23

Oct, 2017

Google

Prepaid Model continues to be one of the strongest growth engines in Pay TV industry with yearly service revenues expected to reach over $200 billion by 2019. It is estimated that prepaid subscribers will account for nearly 80% of the worldwide subscriber base.

Operators understand that the prepaid strategies they adopt today will have a major impact on future profitability. Prepaid Model allows reduction of bad accounts, better cash flow management, predict usage and set up network resources. Prepaid options open up services to a broad range of customers while minimizing the risk involved with serving customers who may be credit-challenged.

Prepaid is driven by high margin, value-add service customers who see it as a convenient method of controlling their usage and spend.

Pay TV operators are offering new types of services to prepaid customers, helping to increase customer stickiness.

Most popular prepaid models:

  • Prepaid Wallet – Customer pays in advance to activate services; consumption of all products and services is deducted from the wallet. When wallet balance is exhausted all products are disconnected unless wallet is topped-up.
  • E-Top Up’s
    • Subscription Top up: Usually this is meant for subscription services; hence this top-up will have specific validity date.
    • Value Top up: This top-up may come with some validity date, but it is not attached to a specific or fixed service. This top-up gives just the value and subscriber can use this value to buy on-demand service or upgrade to a new service etc.
  • Quote based model – In this model customer requests a quote, system generates an event-based quote that states how much the customer must pay to activate the products for a specific period of time. Quotes are sent monthly to remind customer to top up.
  • Prepaid Voucher – Here customer purchases Vouchers that are assigned to a specific Service or Product. Individual product disconnect dates are based on voucher value and product price. The costs of this model are high considering printing and distribution of the vouchers.
  • Prepayment in Advance – Customer pays for services for some period of time prior to being activated and then billed in advance for ongoing services.

 

Key Benefits of Prepaid services:

  • Helps in retaining cord cutters
  • Increasing sales in retail markets
  • Enables to provide real-time services like PPV, VOD etc.
  • Allows to offer specific discounts and prices to target segment
  • Delivers control to customers on subscriptions and usage
  • Use as a differentiator among competitors

The real-time demands of prepaid services need a scalable, real-time BSS platform to manage customers through their entire life cycle.

Prepaid solution from SURE!

Magnaquest has helped several operators launch Prepaid services resulting in increased revenues, churn reduction and better cash flow management.

SURE! a Magnaquest product, is a leading Billing and CRM software. With SURE! Operators can add prepaid services to their offerings along with the streamlined postpaid workflows.

Over the last 15 years, Magnaquest has offered Subscriber Management, Billing & CRM solutions to operators across 30 countries.

For more details about SURE! Prepaid management Contact us.

By : Venu Madhav

Venu Madhav has over 10 years’ experience in Pay TV & Media domain. He has worked with operators globally to help them monetize their services, reduce churn and increase ARPUs. At Magnaquest, Venu heads the Business Development for APAC and MEA regions. Magnaquest is internationally acclaimed player in comprehensive end-to-end Subscription, Billing & CRM Solutions for Pay TV, OTT, Broadband and Cloud Computing businesses.