Consumers want high-speed broadband to watch more video. And they watch more video -- regular pay-TV and over-the-top services -- as their neighborhood broadband speeds increase. But with more than 200 OTT services now available, US consumers are getting video overload.
This could create consolidation or, in some cases, closure for some OTT providers, according to Parks Associates recently released report, "OTT and Pay-TV: Competition and Partnership." It also may lead to more affiliations between once fierce competitors.
"2018 could be the year some OTT services begin to fold under the pressure," according to Parks Associates.
That's partly because the most dedicated OTT-only subscribers already are saturated: There's been only a slight increase in penetration of OTT-only households since 2015, the research firm reported. Most likely this growth is attributable to people moving into their own homes or the relatively few new to cord cutting.
While people can choose to watch content on any screen, that old standby, the television, reigns supreme. OTT viewers sit in front of the TV an average of 4.2 hours per week -- just like their parents and grandparents -- at least 50% more than other platforms, Parks Associates found. By comparison, on average Americans watched 4 hours and 3 minutes of live TV weekly, according to a Eurodata TV Worldwide survey.
OTT is mainstream in the US, with more than two thirds of US broadband households subscribing to at least one service and 38% broadband households paying for more than one, Parks Associates reported. Currently, 17% rely solely on OTT, the research firm said, whereas 52% have both forms of entertainment.
Since they must shoulder the cost and support of broadband without any of the benefits associated with OTT, operators want to partner with these providers. Spurred in part by Amazon Channels' success as a distribution channel and heeding comments by cord cutters, operators increasingly see OTTs like Netflix, Amazon and Hulu as friends, not foes. (See Pay-TV Subs (& Cablecos) Love OTT Partnerships.)
After all, about one third of cord cutters would have stayed true to "their service provider if offered a Netflix-style service bundled with broadcast TV channels," wrote Parks Associates.
Likewise, promotional options such as free or subsidized customer premise equipment could encourage cord cutters to remain with cablecos, the researcher said.
That could all change, however, as younger generations start paying for their own services. Generations reared on Internet videos will want high-speed connectivity, certainly. But who they'll pay and what they'll pay for is up for grabs, and nobody -- not mobile, not pay-TV, not OTT -- has them locked in.
In a flurry of activity throughout the week, Donald (DJ) LaVoy, Deputy Under Secretary for Rural Development at the US Department of Agriculture, and his team spent about $145.8 million in the non-urban or suburban areas of seven states.
Calix reported revenue of $120.19 million – up 4% – in Q4 2019, putting a bounce in the step of company president and CEO Carl Russo and a shine to Calix's ongoing transition from hardware vendor to a provider of platforms enabled by cloud, APIs and subscriber experience.
Looking to curtail e-waste and improve the bottom line, BT will require customers to return routers and set-top boxes, although subscribers will not have to pay a fee when they receive regular broadband equipment.
Deploying DOCSIS 3.1 across its entire footprint gave Rogers Communications the ability to offer speeds of up to 1 Gbit/s,
contributing to a broadband segement that generated about 60% of the Canadian operator's $3.05 billion (US) in Q4 cable earnings.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.