Impact of OTT on Content Distribution & Advertising

The industry has seen steady growth of Over-The-Top (OTT) video solutions in the last few years. Predominantly, these solutions have offered a wide selection of on-demand video content. Live linear video content has not been largely available from OTT offerings - until recently. For many years, live video has been a closely held asset of the broadcast networks and pay TV operators, influenced by long-standing and lucrative retransmission and carriage agreements. However, the pay TV business model is changing as video delivery capabilities are being developed by broadcasters and others who are launching direct-to-consumer live video solutions. Analyst studies and press interviews document acceleration of this trend, causing decreased operator revenues from cord-cutters while placing growing bandwidth strain on operator broadband pipes.

The advances in mobile, broadband speed, and wireless technology have enabled the consumption of video content anytime, anywhere. To compete against companies like Netflix, Cable and Telco operators had to invest in their video network to retain customers. This led to developing TV Everywhere (TVE) technologies, Content Distribution Networks (CDNs), and IP Multicast Distribution networks.

What other effects will the growth of OTT have on the industry? Download the following white paper for a deep dive on the current state of OTT and its surrounding trends.

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