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Viewing report
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OTT Video Services & Forecast—2008-2012: Best Practice, ROI, & ISTB Analysis
Multimedia Research Group, Aug 2009, Pages: 138
As video content on the Internet (or OTT/Over-the-Top Video) grows in popularity and also increases in quality, the burning questions become: How can IPTV, Satellite and Cable Service Providers (SPs) benefit from this? How and why will these services play out in North America, Europe, Asia and Rest-of-World Markets? What business models work best for the SP in both the short-term and long-term, and why? What platform works best for consumers in North America, Europe and Asia? How does the OTT service differ from the hybrid service model described in MRG’s earlier report Hybrid IPTV Set-top Boxes — Global Market Forecast & Strategy Critique: 2009-2012 (June 2009)? This report aims to answer these questions or at least to provide the tools necessary to answer them. These answers are especially important in an uncertain economy because Service Providers must find new services that can be deployed quickly, with low cost, and with some predictability about ROI.
What is Over-the-Top Video (OTT) Compared with IPTV?
There are many answers to this question. The answers tend to vary depending on what type of company is involved and by its region of operation. One definition relates to how content gets to the TV set, and with what kind of quality. In this report, OTT is a video service delivered over the unmanaged Internet to the TV set. IPTV, on the other hand, is video distributed (mostly to TV sets) over a managed IP network, complete with QoS (and sometimes, QoE) built in. In this report, OTT service includes at least one STB (called an “ISTB” or Internet STB) and at least one TV, connected to the Internet.
In this report, use of the term “unmanaged” network refers to an unmanaged video network. In this report, therefore, a “managed network” refers to a managed video network such as the configuration described above for IPTV. While OTT video typically is on a “managed IP network” (the Internet), the network has not been controlled by the same video test, measurement and monitoring technology used in IPTV networks.
In the U.S., a Cable MSO or IPTV Operator looks at OTT as an addressable source of content at a certain price. After all, most consumers don’t really care if content is coming over the Broadband connection or their video connection. Smaller MSOs may look at OTT as a possible way to add VOD using a different, pay-as-you-grow, business model. The “standalone” or “independent” OTT Video Service Providers look at it as a way to gain entry into the video market and compete with the traditional Operators. In this report, use of the term “standalone” or “independent” refers to an OTT service that is delivered over a Broadband connection without a formal business (shared revenue) arrangement with the host ISP or Operator. ISPs themselves are also looking at OTT as a way to enter the video market. Retailers also are looking at OTT as a way to increase revenues in tough economic times and to extend their brand more fully with consumers.
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