AMG, Movie Favorites plot mobile OTT service
| 18 June 2014
AMG Services and Movie Favorites have teamed up to create a mobile virtual network that will bring over-the-top (OTT) HD movies to mobiles and tablets.
"On-demand video and OTT are poised for some jaw-dropping growth," said Jack Somerset, AMG Services' CTO. "Streaming OTT videos are projected to surpass DVD consumption by 2016. The associated advertising revenues are also going to go through the roof. It's not an opportunity we'd want to miss."
Movie Favorites' CEO Martha Steinbeck said that the new service will focus specifically on mobile. "In 2013, the US mobile Internet advertising revenue jumped to more than $7 billion, achieving 110% growth in just one year. There's no reason to think that the growth is going to dampen anytime soon," she said.
AMG Services said that it is already negotiating with OTT hardware manufacturers for procuring the equipment required to set up a MVNO, but said that the two aren't ruling out the option of partnering with an existing MVN operator or a telco for the venture.
AMG Services will handle the technology side of the new video network, while Movie Favorites will take care of the media side. The new OTT video service is expected to be available in the US early next year.