OTT boom inspiring innovation in multiscreen video business models

Editor | 17-11-2012

There is now an increasing priority for pay-TV providers to develop a strong multiscreen business models as over-the-top (OTT) services flourish, according to a new report from Pyramid Research.

The OTT Growth Sparks Innovative Multiscreen Video Business Models cements the notion that the growth of OTT video services is accelerating the development of the multiscreen market and presents new opportunities for telcos to differentiate their services, increase customer loyalty and revenue generation.

It adds that TV Everywhere and multiscreen services are helping cablecos and satellite providers to increase customer loyalty and reduce churn and that multiscreen IPTV is helping telcos to increase loyalty and to generate new revenue by boosting migration from lower-value packages to higher-value multiplay bundles, including high-speed Internet, which is needed for better quality video.

"The growth of OTT video services is disrupting the traditional pay-TV market and is dramatically driving traffic growth," commented Pyramid Research Analyst Daniele Tricarico, "but more consumers are watching video on multiple screens, opening up for new opportunities for pay-TV providers and telcos to implement multiscreen business models…All pay-TV providers also have the option to launch their own OTT-like video services and extend their reach to non-customers, thus generating additional revenue beyond the existing customer base."