Looking at the effect of OTT and cord-cutting on modern TV consumption.

1. Is Cord-Cutting and
the rise of OTT the
death of traditional
TV?
By Lucy Peters
Image by Pawel Kadysz (Unsplas)h Link: https://unsplash.com/search/television?photo=yKPj4oi9m74

2. The rise in OTT services and the practice of cord-cutting
will not lead to the end of traditional television although it
will change the way television is produced and delivered
Image by Ed Gregory (StokPic) Link: http://stokpic.com/project/casual-business-woman-typing-on-laptop-whilst-in-bed/

3. Cord-cutting =
individuals
cancelling cable
television
subscriptions and
turning to "over-
the-top" services
Strangelove, Michael. Post-TV: Piracy, Cord-cutting, and the Future
of Television. N.p.: n.p., n.d. Print.
Image by Pablo Garcia Saldaña (Unsplash) Link: https://unsplash.com/search/television?photo=jtyIeXi1Goc

4. OTT (Over the
top) = delivering
content over the
internet instead
of through cable
pipes or satellite
signals
Poggi, Jeanine. "THE CMO'S GUIDE TO OTT; How marketers can prepare for
cord-cutting." Advertising Age 13 Apr. 2015: 0026. Academic OneFile. Web. 17
Oct. 2016.
Image by Asi24 (Pixabay) Link: https://pixabay.com/en/youtube-tv-internet-computer-video-1614709/

5. “The goal of OTT
is to reach the
approximately
10 million
broadband
subscribers who
do not also have
pay TV
packages.”
Poggi, Jeanine. "THE CMO'S GUIDE TO OTT; How marketers can prepare for
cord-cutting." Advertising Age 13 Apr. 2015: 0026. Academic OneFile. Web. 17
Oct. 2016. Image by Splitshire (Pixels) Link: https://www.pexels.com/photo/person-apple-laptop-notebook-1171/

6. “From 2003 to 2008, the
average household
allocated an average of 8
minutes a day to using
the Internet for leisure.
By 2011 that had
increased by 50%, to
over 12 minutes a day.”
Prince, Jeffery, and Shane Greenstein. "Measuring Consumer Preferences for
Video Content Provision Via Cord-Cutting Behavior." Journal of Economics
and Management Strategy 25.2 (2016): n. pag. Web. 17 Oct. 2016.
Image by Geralt (Pixabay) Link: https://pixabay.com/en/girl-child-youth-teen-face-head-908168/

7. This increase in internet use websites like Netflix
and Hulu became successful at streaming TV
Image by Picography (Pixabay) Link: https://pixabay.com/en/notebook-laptop-work-pc-computer-405755/

8. Netflix allows for
more mobility and
choice
“we are moving into a
world in which only
worthy programming can
survive.”
“Viewers must seek out
programming in order for it
to thrive, or even survive.”
Sapan, Josh. "Outside Voices: The Death of Indifferent TV
Viewing." The Wall Street Journal. Wsj.com, 06 May 2015. Web. 17
Oct. 2016.
Image by William Iven (Unsplash) Link: https://unsplash.com/photos/OP2EQ5g-Zkw

9. Mark Malkoff’s Netflix experiment
“demonstrated that he could watch
Netflix titles on a variety of devices
and in multiple locations, at one
point watching St. Elmo's Fire
(1985) on his iPhone while actor
Andrew McCarthy pulled him along
in a wagon through Central Park.”
Tryon, Chuck. On-demand Culture: Digital Delivery and the Future of
Movies. New Brunswick, NJ: Rutgers UP, 2013. Print.
OTT services allow
consumers to watch TV
anywhere
Image by Picography (Pixels) Link: https://www.pexels.com/photo/laptop-notebook-working-outside-4778/

10. These changes in
consumption patterns
changed the way millennials
view of TVs
“To me, [a TV is like] a blender, I
may need one one day; it might be
nice to have one. But it’s by no
means essential.”
“I watch it more for the social
experience, to have something to
talk and joke about, than for the
content.” Ms. Taylor, 25
Williams, Alex. "For Millennials, the End of the TV Viewing Party." The New York
Times. The New York Times Company, 7 Nov. 2014. Web. 17 Oct. 2016 Image from Kaboom Pics Link: http://kaboompics.com/one_foto/849/man-using-
stylus-pen-for-touching-the-digital-tablet-screen

11. Williams, Alex. "For Millennials, the End of the TV Viewing Party." The New York
Times. The New York Times Company, 7 Nov. 2014. Web. 17 Oct. 2016
Another way millennials
save money is through
password sharing
Password Sharing = The process of
using other people’s log on
information to access OTT services
“There’s an intimacy, a social
protocol. You would never ask
someone for their Netflix password
unless you were very close to them.”
Image from Pexels Link: https://www.pexels.com/photo/girls-women-laughing-secret-29593/

12. TV providers were forced
to change their tactics for
marketing their shows
“Old tactics don’t work. For
decades, TV networks found that
scheduling a new show after one
that was already successful was a
form of guaranteed sampling, if
not outright success. That just isn’t
the case anymore.”
Sapan, Josh. "Outside Voices: The Death of Indifferent TV
Viewing." The Wall Street Journal. Wsj.com, 06 May 2015. Web. 17
Oct. 2016.
Image by Geralt (Pixabay) Link: https://pixabay.com/en/update-upgrade-renew-improve-1672363/

13. These changes
worried TV producers
as they saw some
sudden drops in TV
subscriptions
Image by Ed_Davad (Pixabay) Link: https://pixabay.com/en/bus-stop-bus-waiting-john-cleese-391242/

14. Hagey, Keach. "5 Things to Know about Cord-Cutters." The Wall Street
Journal. Dow Jones & Company, Inc., 12 Apr. 2015. Web. 17 Oct. 2016.
“The 13 largest pay TV
providers in the U.S.,
representing 95% of the
market, lost about
125,000 video
subscribers in 2014.”
From 2013 to 2014 the
number of broadband
only homes in the US
increased by 10%, from
9.9 million to 10.9
million
Image by Ed Gregory (StokPic) Link: http://stokpic.com/project/womans-hands-with-jewelry-typing-on-laptop-sitting-on-a-bed/

15. “90% of Netflix subscribers,
90% of Amazon Prime
subscribers, and 88% of
Hulu customers also
maintain pay TV
subscriptions.”
Samit, Jay. "OTT Video Is Creating Cord-Extenders, Not Cord-Cutters."Harvard Business
Review. Harvard Business School Publishing, 17 July 2015. Web. 17 Oct. 2016.
These fears that the end
of traditional TV was
near have not played out
Image by Jens Kreuter (Unsplash) Link: https://unsplash.com/photos/ngMtsE5r9eI

16. “OTT is growing the
overall pie, not slicing it
up. According to Magid’s
latest research, instead of
fighting over crumbs, OTT
is akin to having a second
helping.” – Harvard
Business Review
Samit, Jay. "OTT Video Is Creating Cord-Extenders, Not Cord-Cutters."Harvard Business
Review. Harvard Business School Publishing, 17 July 2015. Web. 17 Oct. 2016.
Image by Burak Kebapci (Pexels) Link:
https://www.pexels.com/photo/space-grey-ipad-air-
with-graph-on-brown-wooden-table-187041/

17. 0%
10%
20%
30%
40%
50%
60%
DOES INTERNET VIDEO OFFER ENOUGH TO
CANCEL CABLE OR SATELLITE
SUBSCRIPTION?
60%
50%
40%
30%
20%
60%
10%
60%
0%
"What Do You Mean, 'cord Cutting'?" Entertainment Marketing
Letter 22.16 (2009): n. pag. Web. 17 Oct. 2016.
As of May 2009 very few
US adults who had TV
subscriptions had
cancelled or had even
thought about cancelling
their TV subscription
Graph by Lucy Peters

18. However Netflix
became popular at
the same time as the
great recession in the
US causing some
people to question
the necessity of
having an expensive
TV subscription
Image by Geralt (Pixabay) Link: https://pixabay.com/en/stock-exchange-world-economy-man-921606/

19. “households often don’t want
to pay for hundreds of
channels they didn’t watch.”
“Paid television
subscriptions can
cost $1,000 per year
or more.”
Hagey, Keach. "5 Things to Know about Cord-Cutters." The Wall Street Journal.
Dow Jones & Company, Inc., 12 Apr. 2015. Web. 17 Oct. 2016.
Prince, Jeffery, and Shane Greenstein. "Measuring Consumer
Preferences for Video Content Provision Via Cord-Cutting
Behavior." Journal of Economics and Management Stratagy 25.2
(2016): n. pag. Web. 17 Oct. 2016.
Image by Stevepb (Pixabay) Link: https://pixabay.com/en/credit-squeeze-taxation-purse-tax-522549/

20. As the economy
stabilized households
stopped cutting out
luxuries in the same
way and cord-cutting
diminished
Image by Breakingpic (Pexels) Link: https://www.pexels.com/photo/woman-girl-remote-
watching-2984/

21. “And many millennials who have
ditched their TVs still actually love
television. They may, in fact, watch
more of it than ever since
unplugging, thanks to the
relatively newfound ability to catch
up on their latest shows on their
phones or tablets anywhere, at
any time."
Television is still very popular
Williams, Alex. "For Millennials, the End of the TV Viewing Party." The New
York Times. The New York Times Company, 7 Nov. 2014. Web. 17 Oct. 2016.
Image by Piotr Łohunko (Stock.tookapic) Link: https://stock.tookapic.com/photos/64152

22. TV is still a shared
cultural experience
“We live in a world of on-
demand entertainment,
where people can consume
programming in many formats
at any time. That makes
shared, cultural experiences
more important than ever.”
Wortham, Jenna. "No TV? No Subscription? No Problem." The New York Times. The
New York Times Company, 6 Apr. 2013. Web. 17 Oct. 2016.
Image from Kaboom Pics Link: http://kaboompics.com/one_foto/618/cell-phone-in-hands

23. Though OTT has changed the
viewing habits of consumers and
business model of the television
industry, television in its evolving
forms is thriving.
Image by Ed Gregory (StokPic) Link: http://stokpic.com/project/open-laptop-on-wooden-desk-with-black-white-screen/

24. Work Cited
Hagey, Keach. "5 Things to Know about Cord-Cutters." The Wall Street Journal. Dow Jones & Company, Inc., 12 Apr. 2015.
Web. 17 Oct. 2016.
Poggi, Jeanine. "THE CMO'S GUIDE TO OTT; How marketers can prepare for cord-cutting." Advertising Age 13 Apr. 2015:
0026. Academic OneFile. Web. 17 Oct. 2016.
Prince, Jeffery, and Shane Greenstein. "Measuring Consumer Preferences for Video Content Provision Via Cord-Cutting
Behavior." Journal of Economics and Management Stratagy 25.2 (2016): n. pag. Web. 17 Oct. 2016.
Samit, Jay. "OTT Video Is Creating Cord-Extenders, Not Cord-Cutters."Harvard Business Review. Harvard Business School
Publishing, 17 July 2015. Web. 17 Oct. 2016
Sapan, Josh. "Outside Voices: The Death of Indifferent TV Viewing." The Wall Street Journal. Wsj.com, 06 May 2015. Web. 17
Oct. 2016.
Strangelove, Michael. Post-TV: Piracy, Cord-cutting, and the Future of Television. N.p.: n.p., n.d. Print.
Tryon, Chuck. On-demand Culture: Digital Delivery and the Future of Movies. New Brunswick, NJ: Rutgers UP, 2013. Print.
"What Do You Mean, 'cord Cutting'?" Entertainment Marketing Letter 22.16 (2009): n. pag. Web. 17 Oct. 2016.
Williams, Alex. "For Millennials, the End of the TV Viewing Party." The New York Times. The New York Times Company, 7 Nov.
2014. Web. 17 Oct. 2016
Wortham, Jenna. "No TV? No Subscription? No Problem." The New York Times. The New York Times Company, 6 Apr. 2013.
Web. 17 Oct. 2016.