Video services focusing on professional long-form content, such as Hulu, Lovefilm and Netflix, saw tremendous growth in subscribers and revenues over the last few years.
These services are called Over-the-Top (OTT) as they focus on the service component and piggyback on a broadband provider’s network for delivery.
OTT video can be Linear (e.g. live streaming of current broadcasters’ channels or new “online only” linear channels) or On-Demand (e.g. ad-funded, transaction- or subscription-based access to a library of movies and TV shows).
Over-the-top video offers of both hardware and services are evolving very quickly, made possible by ever-faster broadband.
From the perspective of incumbent pay-TV providers, OTT video is a potential threat – but for telecom operators and rights owners OTT video is an opportunity.
Furthermore, they allow for a disintermediation of traditional TV broadcasters and could accelerate the decline in physical media sales volume.
However, launching a market leading service has many challenges and the race to scale has started, shaping the future TV and film entertainment industry.
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Arthur D. Little has deep industry knowledge of the telecoms and media sector, based on extensive client work, addressing market analysis, strategy and performance improvement for Pay-TV and telecom operators, as well as broadcasters and content providers