Pay TV and the Growing

Over the TopVideo Threat

  • Focus:
  • How OTT video trend is changing the business models for Pay TV and home video
  • Strategic analysis of major OTT players
  • Pay TV response to OTT video threat
  • OTT video trends and predictions
  • “Cord cutting” scenarios and predictions
  • OTT winners and losers
  • Authors:
  • Lead Analyst: Brian Mahony
  • Supporting Analysts: Patti Reali, Robert Clark
  • Research Methodology:
  • Discussions and questionnaires with over 40 companies— analysis of another 50 using public records
  • Strategic analysis by senior analysts
  • Feedback from ordinary people represented by the Trender Panel
  • Trender Dashboard™ (quick-view of appeal to mainstream consumers)

•Partial list of companies/technologies:

  • 3-D TV, ABC, ActiveVideo Networks, Amazon, Amimon, Apple, AT&T, Blockbuster, Broadband Network Systems, BBC, Boxee, Cables to Go, Canoe Ventures, CBS, Comcast, Cox, Crackle, DirecTV, Dish, Disney, Discovery Channel, DOCSIS, EchoStar, EBIF, enableTV, Entone, Espial, ESPN, EZGear, HBO, HDMI, Hillcrest Labs, HomePlug, Hulu, Intel, IOGEAR, Jaman, Klickable, LG, Metacafe, Microsoft, MLB.TV, MoCA, Myrio/NSN, NBC Universal, Netflix, NFL, Nintendo, Overlay.TV, Panasonic, PeerTV, Popcorn Hour, Powerline, Project Canvas, Pulse-Link, Qwest, Redbox, Research in Motion, Roku, Rovi, Samsung, Sezmi, SiBeam, Silicon Mountain, Sky, Sling Media, Sony, Thomson, TimeWarner, TiVo, Toshiba, tru2way, TVAnywhere, TV Everywhere, TVBlob, Ultrawideband, Verizon, Vizio, Vudu, WHDI, WiFi, Wireless HD, Yahoo, YouTube, ZeeVee, ZillionTV
  • Cost:
  • Department License: $2499
  • Enterprise License: $3999
  • Overview

This report includes extensive strategic analysis of the Pay TV and evolving Over the Top (OTT) video markets, based on interviews and questionnaires with industry leaders and notable emerging players. It also includes feedback from a Trender Panel of everyday people. Some of the strategic questions discussed include:

•What is the state of progress in the traditional Pay TV and IPTV markets? What is the basis for competition? What are the variables accelerating growth? What are the barriers holding the market back from its full potential?

•What is the state of progress with the Over the Top (OTT) video market? What are the variables accelerating growth? What are the barriers holding the market back from its full potential?

•In the battle between traditional Pay TV and OTT video, what strengths and weaknesses exist? What factors must be overcome before the mass market fully embraces OTT?

•Looking ahead 3-5 years, what are the likely scenarios that will emerge for the Pay TV and OTT video markets (or hybrid models)? Who will be the likely winners and losers? What percentage of consumers will “cut the cord” from Pay TV in favor of OTT? What major factors could dramatically change the market’s course to a different likely scenario?

Contents

0.Introduction

1.Executive Summary

2.Pay TV Market Overview

2.1.Pay TV Snapshot

2.2.Triple Play War Recap

2.3.Weapons of Triple Play War

2.4.Changing VoD and Video Rental Landscape

2.5.Trender Panel Feedback

3.Over-The-Top Threat

3.1.OTT Overview

3.2.What are the Stakes?

3.3.OTT Trend Proof-Points

3.4.Benefits of OTT Video

3.1.Limits to OTT Adoption

3.2.Trender Panel Feedback

4.OTT Video Vendors and Strategies

4.1.OTT Content Sites

4.2.OTT Hardware: STB-Based Devices

4.3.OTT Hardware: Computer-Based Platforms

4.4.OTT Hardware: Video Game Consoles

4.5.OTT Hardware: Internet-Enabled TVs

4.6.OTT Hardware: Media Adapters and Dongles

4.7.Home Video Distribution Technologies...... 43

4.8.OTT Video Browsers...... 46

4.10.OTT Applications...... 49

4.11.Trender Panel Feedback...... 52

5.Pay-TV Response to OTT Threat...... 55

5.1.Traditional Defenses...... 55

5.2.Advances in Pay-TV Features...... 57

5.3.Interactive TV and Applications...... 60

5.4.Hybrid Pay TV/OTT Strategies...... 62

5.5.Mobile Video...... 65

5.6.Bandwidth Caps and Price Increases...... 66

5.7.OTT Response Strategies of Major Players...... 67

5.8.Definition of Ideal OTT Video Solution...... 68

5.9.Trender Panel Feedback...... 78

6.What Will Happen...... 80

6.1.Major Trends...... 81

6.2.“Cord-Cutting” Scenarios...... 85

6.3.Summary of OTT Video Winners & Losers...... 87

7.References...... 89

7.1.Explanation of Trender Framwork and Trender Dashboard...... 91

*Due to ongoing revisions, the actual report may vary from this Table of Contents*

  • For ordering information, contact Tim Fedish, Director of Client Services:

, 774-262-4222

  • For media interviews or consulting inquiries, contact Brian Mahony, Principal Analyst:

, 508-479-7254