Over-the-Top (OTT) Drives Traditional Players to Transform Content Delivery in 2015

14 May 2015

Over-the-Top (OTT) media delivery is driving a paradigm shift in the way consumers interact with content.  Sling is one example of how OTT is reshaping the market for service providers as well as content owners.  Verizon said it plans to launch a “mobile-first” Internet Pay-TV service in the second half of 2015.  The new OTT service will be separate from its existing FiOS subscription TV offering and likely will deliver 20-30 channels for about $20.

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Over-the-Top (OTT) media delivery is driving a paradigm shift in the way consumers interact with content.  Sling is one example of how OTT is reshaping the market for service providers as well as content owners.  Verizon said it plans to launch a “mobile-first” Internet Pay-TV service in the second half of 2015.  The new OTT service will be separate from its existing FiOS subscription TV offering and likely will deliver 20-30 channels for about $20.

The growing numbers of so-called “cord cutting” consumers who are sick of paying through the nose for television are getting a bigger and better menu of options.  One huge example is Dish Network’s new Sling TV, a standalone $20 a month, Over-the-Top (OTT) TV service, that it will launch to customers nationwide in the first quarter of this year.

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Sling TV is designed to deliver a high-quality television experience anywhere a wired, Wi-Fi or mobile broadband connection is available. The service is delivered over an IP-based content delivery system that leverages adaptive bitrate streaming technology to deliver a high-grade streaming experience — regardless of network quality fluctuations or location.

As video platforms like Netflix and Amazon invest in creating their own original content, the result is hotter cross-industry competition. According to market research firm Visiongain, OTT revenue and subscriber growth is on track to spread globally. The consultancy believes OTT media delivery services revenue generated $51.4 billion in 2014.

Leichtman Research Group

Leichtman Research Group

Consumers are interested in these new OTT offerings.  According to Leichtman Research Group, 76 percent of U.S. households have a DVR, subscribe to Netflix, or use on-Demand (VOD) from a cable or Telco provider — with 26 percent of households using two of the services — 11 percent use all three. The survey also found that 62 percent of U.S. households that subscribe to a pay-TV service have a DVR (up from 41 percent five years ago).

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