New research from Heavy Reading is predicted that the continued uptake of connected TV will give a boost to operators wishing to offer over-the-top (OTT) video along with their regular pay-TV services.
Yet even though the analyst predicts that combined OTT and pay-TV bouquets are necessary to help push video service providers maintain service revenues, the migration path to so-called hybrid video is at present uncertain. Indeed the report, Connected TVs Will Help Drive Big Changes in Video Services, considers whether connected TVs threaten to derail service innovation or will propel the established pay-TV community to faster incorporation of OTT content into their managed services and app stores into their front-end design.
What the report does stet clearly though is that even though connected TVs offer a simple alternative to other device-based OTT video consumption, it actually poses a real threat to pay-TV service provider revenue.
The analyst warns that pay-TV service providers cannot afford to ignore the impact that connected TVs will have on their business and that solution vendors must consider connected TV makers as a new route to market for their technology.
It adds that IPTV and other pay-TV providers must speed up their development of hybrid services, learning both from the experiences of those innovative operators that have launched such services and from the success of connected TV manufacturers' services and those of their platform providers
"Connected TVs clearly will have an impact on the pay TV world and IPTV in particular," explained Danny Dicks, research analyst with Heavy Reading Insider and author of the report. "The big question right now is how disruptive connected TV will be to the established business models of pay TV providers and their ecosystem of suppliers, and to what extent connected TV will spur innovation in service design and delivery in what is already a very dynamic industry."