Third-party, over-the-top (OTT) video services are easy to access over the open Internet and are increasingly popular. OTTs such as Netflix and Hulu are feared by pay-TV providers because they have potential to displace traditional linear cable and satellite, as well as telcos’ IPTV offerings. In addition, telcos have to deal with the exponential traffic growth generated by the OTTs, which is putting a significant strain on their networks. Nonetheless, the growth of OTT video is accelerating the development of the multiscreen market and presents new opportunities for telcos to differentiate their services, increase customer loyalty and generate revenue.
This report examines the growth of OTT video services and the impact on the traditional pay-TV market. We discuss the opportunities for pay-TV providers and telcos to monetize the growth of multiscreen video and how telcos can adapt their network and service strategies to the multiscreen world. Five multiscreen business models are presented, and we detail the advantages and disadvantages of each. This report presents case studies from BT, Sky, AT&T, Turk Telekom and TotalPlay and examines how these different operators seek to develop successful business models for multiscreen video. We conclude with some recommendations.
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