Infographic: Traditional Pay-TV Model Vs TVaas Model?

Published on 21/09/2018

Category: Economics


There’s no shortage of acronyms and specialized jargon in Pay-TV. Understanding what these all mean is a basic requirement for anyone working in the industry to adequately perform their jobs.

But what of TVaaS? SaaS? IPTV? At Espial we live with these terms day in and day out. But every now and then it’s important that we step back and confirm that you understand them as well.

This is especially true in times of disruptive innovation, when a slew of new acronyms are redefining how you deliver your services and rewriting your very business model.

Let’s start with the basics:

  • SaaS (Software-as-a-Service): Think of this as the opposite of “on-premises.” Rather than buying the software outright, the SaaS model lets you “rent” its capabilities, usually on a month-to-month basis. Rather than install the software on your own servers, you access its capabilities through the vendor’s cloud. Pioneered by disruptive innovator Marc Benioff (creator of Salesforce.com), most enterprise software companies now operate on the SaaS model.
  • TVaaS (Television-as-a-Service): Also referred to as Cloud IPTV, TVaaS is a fully managed video services model. Rather than delivering content from an on-premises infrastructure, the TVaaS model sees you outsourcing your software, hardware, services, and around-the-clock management to experts. TVaaS is a truly disruptive model, as it allows you to mitigate risks, reduce costs, and cut your time-to-market dramatically. Espial Elevate, for example, is a TVaaS platform.

The next step in understanding new acronyms is how they refer to or compare to the existing vocabulary. A disruptive model, TVaaS is markedly different than traditional Pay-TV infrastructures in terms of the overall investment, technical resource loads, maintenance, and time-to-market.

Below is a primer of the key differences between traditional Pay-TV and TVaaS:

DimensionTraditional Pay-TVTVaaS
Investment modelCapExOpEx
Where solution is
On-premsisesIn the cloud
Who hosts and manages the solutionOperatorSolution provider
Investment size and ongoing costsLarge up-front investment that diminishes until refresh (5-7 years)Low up-front investment that grows with demand and revenues
Effort required to
Operator must manage scale to meet peak demand up-frontSolution automatically scales with demand
Infrastructure elementsSpace, power, coolingIncluded with service
Monitoring effortOperator must conduct 24/7 service monitoring with triage, troubleshooting, and recoveryIncluded with service
Solution maintenance effortOperator must continually update the service as security issues
or vendor lifecycle management demands require
Included with service
Innovation effortOperator must work with internal resources and partners to
implement and deploy innovative new services and capabilities
Included with service
Time to market/revenue18-24 months40-60 days

Increase your ARPU with TVaaS

The new acronyms that accompany disruptive innovation don’t just sit alongside the ones you already know. Over time they reframe your challenges and redefine your customers’ expectations. TVaaS can mean an increase in your ARPU. Isn’t it time you expanded your vocabulary?

To learn the other ways in which TVaaS increases your revenue, download our white paper, The Changing Economics of Video Delivery Services or call us to arrange a demo at 888-4-ESPIAL.

Jaison Dolvane

CEO at Espial

Jaison Dolvane

CEO at Espial

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