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Viewing report
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Over-the-Top Broadband Enthusiasts – Who Are They, What Drives Them, and What Do They Want?
The Diffusion Group, June 2009, Pages: 69
This reports quantum theory of media suggests that, as open broadband connections reach deeper into our lives and establish new points of contact, consumers will enjoy greater choice and exert more influence over media. This premise has fueled the “any content, anywhere, anytime, any device” mantra which characterizes the “digital home” and “connected consumer” market spaces.The emergence of alternative home video services such as Over-the-Top (OTT) are early examples of quantum media in action. With a broadband connection to the TV (either direct or via a home network), consumers will have access to the growing array of online video services today enjoyed on a PC monitor.
An all-too-frequent mistake made by both OTT enthusiasts and detractors is casting the model strictly as a “Cord Cutting” phenomenon and thus directly competitive with basic PayTV services. Yes, OTT-as-replacement services are aimed squarely at the undermining the base PayTV service relationship. OTT-as-supplement services, however, can either be competitive or collaborative. They can be competitive in the sense that they can steal high-margin value-added service revenue from incumbents (e.g., Vudu offers a much better video-on-demand service than most cable operators) and collaborative in the sense that can expand an incumbents service offerings (e.g., Vudu provides an excellent way for smaller cable operators to add VOD to their service mix).
This report identifies four non-overlapping OTT-dependent segments (Replacers, Supplementers, Optimals, and Non-OTT Consumers) and analyzes the characteristics that define and distinguish each segment, including demographics, psychographics, TV viewing and subscription habits, technology dispositions, interest in alternative TV services, and a host of other characteristics. The data reveals an emerging market comprised of very different consumer segments with different motivations and service expectations.
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