Existing broadcasters, pay-TV providers to dominate OTT

Joseph O'Halloran ©RapidTVNews | 27-03-2012

Contrary to popular belief of a market whereby companies such as Netflix and Hulu will redefine TV, a new report by Rethink Technology Research has concluded that over the top (OTT) technology will actually be dominated by existing services.
The report, "Navigating OTT Markets in Europe," projects multiple OTT activities — those carried out by broadcasters on specialist TVs and Apps, those carried out by pay-TV providers on PCs and tablets, as well as predicting the penetration rates of what it calls “special high powered super set tops” which can “run their own apps on the social screen” — and states that the pay-TV industry in Europe is in a rush to adopt OTT video technology but is also very confused about how to go about it .

The analyst says that one way or another OTT is coming to Europe and by 2015 will cover 83 million devices not including existing free to air catch up to devices such as PCs and tablets. And extending this point, rethink suggests that OTT will not stimulate new video rivals but will be dominated by incumbents, though mostly be received on devices—such as tablets, smartphones, smart TVs and Blu-ray devices—not supplied by pay-TV operators.
Rethink also makes the bold claim that OTT services will eat into the IPTV industry which the analyst calls “stagnant” and predicts that “the increasingly sophisticated OTT market is starting to make [IPTV] offerings look stale.” Moreover, it describes Microsoft Mediaroom, which make a huge impact on IPTV tier accounts when launched eight years ago as currently “a rotting corpse.”