Over The Top (OTT) Homes Top Cable by 2013
BIA/Kelsey forecasts that by 2013, over-the-top homes will exceed the number of cable homes.
“Over The Top” video refers to a group of Internet-based technologies and business models that provide linear and nonlinear television services over a third party’s bandwidth to connected television sets.This includes both free (ad-supported) and pay (subscription, video on demand, etc.).
For example, a new Sony Bravia set can be connected to Verizon’s FiOS Internet service to get to the Roku Channel Store for on-demand viewing of broadcast network news — all without subscribing to the basic or premium FiOS TV service. Similarly, Hulu provides access to prime-time network programs.
Companies interested in local broadcasting need to pay attention to the trend as it is on a fast trajectory and will have an impact on local television station business models.
2 Comments
What is the break down – real numbers / percentages – of free v. paid subscribers?
Our forecast is for total homes using any form of over the top video. At the moment, there simply is not a wide choice of OTT video services available on a subscription basis. We can look to popular services such as Hulu and how their new $9.95 model or on a smaller but growing basis, services such as Roku’s premium channel store to inform this. It also matters whether we build into the forecast VOD homes as “premium” or recurring subscriptions. OTT may be platform to support the a la carte video world not accessible to cable, satellite or telco video subscribers.
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