OTT to push pay-TV says Pyramid Research
Joseph O'Halloran | 30-11-2012

Ending a week that has seen over the top firmly established as a driving force, a new research is suggesting OTT is revolutionising the way video content is delivered to consumers and that now almost anyone can become a content provider.

In its report, OTT Growth Sparks Innovation Multiscreen Video Business Models, Pyramid suggests that operators should not see a threat to their established business models nor that it will subvert their role in the pay-TV value chain and cannibalise revenue. Instead the analyst argues that OTT is serving as an innovation stimulus for the pay-TV market, pushing telcos in particular to enhance their IPTV services with more screens.

Pyramid notes that an increasing number of operators, alongside their managed IPTV services, are directly entering into non-managed OTT environments. The result it says is that that more operators are using the open Internet to offer video services to potentially any consumer with a broadband connectivity, being their existing customers or not.

Explained Pyramid Research Analyst, Daniele Tricarico: "While IPTV remains a premium service, which requires subscribers to purchase more expensive bundles, OTT is more flexible and only requires a good broadband connection. This means that in the more price-sensitive markets, where there is still strong demand for online video, OTT is becoming an attractive option for users. Besides, OTT services are typically delivered over a wide range of screens and at different price points, including smartphones, tablets and gaming consoles, making them more accessible to different consumer profiles.

In the near future, Pyramid Research expects to see significant revenue-generating opportunities associated with video on demand (VOD), catch-up TV and targeted advertising, especially when telcos can integrate their OTT and IPTV offerings with interactive and social media functions.