Communications and Technology Industry Research

Initiated by increasing broadband dispersion and the global expansion of increased connection speeds, over-the-top video has seen exceptional growth in the past few years.

 

A new study conducted by ABI Research (News - Alert), a market research firm focused on the impact of emerging technologies on global consumer and business markets, forecasts the number of viewers who access video via the Web to nearly quadruple in the next few years, reaching at least one billion in 2013.

 

“The rapid expansion of broadband video creates opportunities across a number of market sectors,” comments senior analyst Cesar Bachelet.

 

“A wide variety of actors aim to gain a share of this fast-growing market: not only content owners such as the BBC and NBC Universal (News - Alert), and Internet portals such as AOL and Yahoo!, but also a range of new entrants including user-generated content sites such as YouTube and Dailymotion, broadband video sites such as CinemaNow and Lovefilm, and Internet TV providers such as Apple (News - Alert) and Zattoo,” Bachlelet added.

 

Additionally, in an effort to reduce the pressure on broadband networks, the methods used to deliver this content are changing. These include content distribution networks that cache content closer to the user, peer-to-peer networks which leverage users’ PCs, and hybrid networks which combine these two approaches.

 

This proliferation poses a challenge for traditional pay-TV operators. They cannot afford to do nothing. According to Bachelet, however, “Pay-TV providers should refrain from knee-jerk responses, or adopting defensive measures aimed at discouraging consumers from using those services. That would only produce resentment from subscribers and likely defections from their services.”

 

Instead, Bachelet recommends something of an “if you can’t beat them, join them” approach, aimed at turning the threat into an opportunity. PC-based services can be an ideal complement to their core business, particularly for those who own broadband infrastructure. “They can offer access to content via this increasingly popular alternative platform,” says Bachelet. “They can offer content beyond that available through traditional channels, and they can reach a new set of subscribers.”

 

Providers can also adapt Web content for distribution via their traditional model, and include advertising support.

 

ABI Research’s new study, “Over-the-Top Internet Video Strategies for Carriers” identifies the various strategies carriers can practice to capitalize on the wave of broadband video services, thus turning a threat into an opportunity.