OTT TV – To cut the cord or not: Is OTT ready for prime time?

ott tvOTT TV – To cut the cord or not: Is OTT ready for prime time?

Some cord-cutters are insecure and are considering reconnecting the cord for more programming. Is OTT not enough? Read Samantha Bookman’s opinion regarding her research on this subject.

To cut the cord or not: Is OTT ready for prime time?

January 28, 2014 | By

Last week, NPD Group issued a report that said subscriptions to premium channels like HBO and Showtime were declining while subscriptions to SVOD (subscription video on demand) services like Netflix (Nasdaq: NFLX) and Amazon (Nasdaq: AMZN) Instant Video were growing. The premium channels reportedly disputed those findings and the connection made between subscriber losses on their end and growth on OTT’s end.

NPD kept the report up but sent out a clarification, saying “… upon further examination of the results, there is data supporting the conclusion that individual subscribers are either subscribing to more [premium] channels, or adding channels over time.”

The kerfuffle made it pretty clear that premium content providers are intensely guarding their brands, perhaps more so than in years past–and that online video has become the biggest threat to traditional over-the-air (OTA) and pay-TV services.

What is clear is that content streaming is growing: Conviva, a vendor-agnostic big data processing and video intelligence provider that lists HBO, M-GO, and Viacom (NYSE: VIA) among its customers, said it processed 45 billion video streams in 2013, a four-fold increase in two years, and those streams were viewed on 1.6 billion devices.

Meantime, viewing on linear media is tapering off: “According to a report by media analyst Michael Nathanson at MoffettNathanson Research, we are entering a zero-sum game for TV. The audience is no longer expanding,” wrote Forbes’ Dorothy Pomerantz in a January article. Broadcast viewership fell 10.7 percent in 2013 while cable viewership saw a 1.5 percent drop, the article said.

Pomerantz noted that broadcasters are combating this change by making “the best shows possible,” citing a movement from reality shows and dumbed-down programming to groundbreaking, thoughtful programs like “Breaking Bad.” –Read more:



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