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The Future of OTT Video Services

June 15, 2012

Written by Patrice Samuels, Research Analyst

There were several engaging discussions on OTT video service at last week’s CONNECTIONS US 2012 conference, hosted by Parks Associates. Panelists spoke at length about the evolution of OTT video as a market disruptor and speculated on the future of the industry. Amidst all the discussion, four key factors emerged as critical for the success of OTT video in the future. These are:

Providing access to compelling content
Matching content to consumers
Ability to deliver content
Having a sustainable business model

Compelling content is, of course, at the core of any video service. It will determine the appeal of the service and will ultimately influence its market share and revenue generating potential. Being able to match consumers to content will necessitate substantial investments in good content discovery tools, but will keep viewers engaged and using the service for longer periods. The issues surrounding content delivery will be include the seamlessness of delivery across devices and also the efficiency of delivery, especially given the ominous threat of broadband caps. Another challenge looming over the OTT industry is that the business models, currently being utilized to monetize these services, are not sustainable due to the increasingly high cost of content. More sustainable business models might involve partnerships, where the cost of content is shared.