What Will It Take To Make “Over-The-Top” Video Successful?

What Will it Take to Make OTT Successful?
Gannon Hall, COO, Kyte

The 360° Video Platform

Over-the-top(OTT, Over-the-top Video) - n. -
def.- Premium video services delivered over the Internet to televisions and other connected devices.

2011– The Year of the Cable Cut

In Q2, 711,000 subscribers cut cable TV
6 of 8 operators suffered worst quarterly losses

Not so fast!
SNLKaganpoints to these factors:
Economic woes
Promotional churn

GROWTH OF MEDIA PLATFORMS
Cable & Broadband
Cable - No & Broadband -Yes
70
60
50
40
30
20
10
0
66.3
61.6
54.8
Percent (%) of Population
% of U.S. cord-cutting homes remains stable
as cable & broadband homes grow
3.9
3.9
3.2
Jan 2008 Jan 2009 Jan 2010
Source: Nielsen National People Meter Sample (Jan 2008 to April 2010)

13%of American’s surveyed plan to cut the cord
Cord cutters are young, educated & affluent
Source: Gigaom / Strategy Analytics, Multiplay Market Dynamics Service

Who? When?

OTT Players and their Hurdles

4 PROS :
Heavy industry support:
Best Buy to sell only connected TVs by 2011
Wal-Mart promises the same by 2012
43 M+ Connected TVs in US homes by 2015*
6 HURDLES :
Consumers: 61%are unaware, and 40%question the value*
Not enough processing power to offer compelling services and UE
Most Connected TVs sold will never be used in connected mode
*Source: Forrester Study 2010

4 PROS :
Apple TV – Good UE and Apple’s muscle
Boxee– Innovative platform / market buzz
Roku – Great content and low price point
TiVo- Great brand clearly now focused on apps and connected features
6 HURDLES :
Consumers don't want to buy another box when cable provides one for free
None of these services provide the same level of content as cable
Most consumers won’t cut the cord for one of these services

4 PROS :
Potentially the most promising player
Offers a stepping stone to OTT : builds on existing TV experience
Provides an app marketplace
6 HURDLES :
Lack of broadcaster cooperation
Complexity
Expensive
No app marketplace at launch

4 PROS :
Massive install base
Easy to use and install
60% of Netflix streaming
6 HURDLES :
Only 6% of Console owners watch streaming video
Lack of content - too little too late

4 PROS :
Netflix is winning here
Play nice with content owners
Available on every Internet TV platform
Account for 20% of the Internet’s
bandwidth usage during primetime
Vudu - Massive library, high quality streaming and the muscle of Walmart
6 HURDLES :
None are a complete solution

Most threatened by OTT
Fighting back with TV Everywhere
Adding OTT services of their own
Deep content relationships getting even deeper (Comcast/NBC Universal merger)
OTT providers will capture the value of their IPTV investments
Adding OTT capabilities to their IPTV offerings
Creating their own pure OTT offerings

What will it take?

Powerful processors
Key Success Factors:

2. Apps marketplace
(like mobile, only bigger)
Support for 3rd party apps
Complete SDKs
Social discovery
Apps will become the new channels

3. Great User Experience
including set-up and ease-of-use

Premium, timely content
live and on-demand

Interactivity to extend
the TV viewing experience

6. OTT business models for
content owners

7. Advertisers sponsoring
interactive experiences

7. Consumer education
and marketing

8. Broadcast networks
need to get on board

9. Single platforms
that have it all
Ad supported free content
Subscription content
Paid VoD from 1 provider

Thanks!
Gannon Hall
Email: gannon.hall@kyte.com
Twitter: @gannonh

http://gannonhall.com	337
http://flavors.me	6
http://feeds.feedburner.com	3
http://www.kyte.com	1
http://69.163.237.120	1
http://www.google.com	1
http://translate.googleusercontent.com	1

What Will It Take To Make “Over-The-Top” Video Successful?

by Gannon Hall on Nov 11, 2010

Accessibility

Categories

Upload Details

Usage Rights

7 Embeds 350

Statistics

What Will It Take To Make “Over-The-Top” Video Successful? — Presentation Transcript