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New Over the Top (OTT) Video Study: Trender Research Predicts 7 Percent of Households Will “Cut the Cord” on Pay TV Subscriptions by 2012
Full announcement here: http://www.trenderresearch.com/page/ott-video-report
Thanks to everyone who provided data and perspectives for this report. I think you will find this the most comprehensive analysis of this fast-moving industry.
Westford, MA, — Trender Research™ Inc. (www.trenderresearch.com), a consumer technology market research and consulting firm that combines expert analysis with the voice of everyday people, announced a new strategic analysis of the over the top (OTT) video industry and its impact on the Pay TV market. The report, entitled “Pay TV and the Growing Over the Top Video Threat”, analyzes the major trends of online video consumption and how they are changing the business models for cable, satellite, and IPTV service providers as well as the video rental market. The study provides a strategic analysis of major OTT players, looks at current and potential Pay TV responses to the OTT threat, and predicts likely winners and losers. The 80-page report also includes a model for estimating the percentage of households that will “cut the cord” from their Pay TV subscriptions based on limited, realistic, and aggressive adoption scenarios. Based on the realistic scenario, Trender Research predicts that 7 percent of households will forgo their Pay TV subscriptions by 2012 in favor of some combination of OTT services and free over-the-air (antenna-based) television.
“The good news for Pay TV service providers is that the 80/20 rule applies in the case of OTT video,” said Trender Research CEO and Principal Analyst Brian Mahony. “The vast majority of consumers will not consider abandoning the familiarity, comfort, and content of traditional television until several obstacles to OTT adoption are overcome.” Among the OTT obstacles highlighted in the report are limited live TV, sports, and high definition content, and the relative complexity of setting up and using OTT devices and networks. “However, the OTT market is moving fast,” continued Mahony. “Judging by the rapid growth of online video consumption on sites like Hulu, and the plethora of enabling devices such as Roku, Xbox, and a range of new HDTV models, our projection may be conservative.”
* Pay TV has some cards that have not fully been played, including price reductions, bandwidth caps, and hybrid solutions (e.g. TV Everywhere; Project Canvas)
* But... Pay TV is definitely on the defensive, suffering "a thousand cuts" as content moves online and more and more devices enable the bridging between the Internet and home TVs.
* The big question is: how fast will mainstream consumers adopt technology and services that may seem foreign to them right now?
* Our "aggressive" scenario, which assumes certain market events fall into place, predicts a much larger "cord-cutting" trend over 3-5 years (you'll have to read the report to see our prediction and assumptions)
Partial list of companies and technologies mentioned in the report:
3-D TV, ABC, ActiveVideo Networks, Amazon, Amimon, Apple, AT&T, Blockbuster, Broadband Network Systems, BBC, Boxee, Cables to Go, Canoe Ventures, CBS Interactive, Comcast, Cox, Crackle, DirecTV, 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, 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
The cost of the report is $2,499 for a department license and $3,999 for an enterprise license.
Contact Tim Fedish for a study synopsis or ordering information (bmahony@trenderresearch.com, 774-262-4222).
Thanks to everyone who provided data and perspectives for this report. I think you will find this the most comprehensive analysis of this fast-moving industry.
Westford, MA, — Trender Research™ Inc. (www.trenderresearch.com), a consumer technology market research and consulting firm that combines expert analysis with the voice of everyday people, announced a new strategic analysis of the over the top (OTT) video industry and its impact on the Pay TV market. The report, entitled “Pay TV and the Growing Over the Top Video Threat”, analyzes the major trends of online video consumption and how they are changing the business models for cable, satellite, and IPTV service providers as well as the video rental market. The study provides a strategic analysis of major OTT players, looks at current and potential Pay TV responses to the OTT threat, and predicts likely winners and losers. The 80-page report also includes a model for estimating the percentage of households that will “cut the cord” from their Pay TV subscriptions based on limited, realistic, and aggressive adoption scenarios. Based on the realistic scenario, Trender Research predicts that 7 percent of households will forgo their Pay TV subscriptions by 2012 in favor of some combination of OTT services and free over-the-air (antenna-based) television.
“The good news for Pay TV service providers is that the 80/20 rule applies in the case of OTT video,” said Trender Research CEO and Principal Analyst Brian Mahony. “The vast majority of consumers will not consider abandoning the familiarity, comfort, and content of traditional television until several obstacles to OTT adoption are overcome.” Among the OTT obstacles highlighted in the report are limited live TV, sports, and high definition content, and the relative complexity of setting up and using OTT devices and networks. “However, the OTT market is moving fast,” continued Mahony. “Judging by the rapid growth of online video consumption on sites like Hulu, and the plethora of enabling devices such as Roku, Xbox, and a range of new HDTV models, our projection may be conservative.”
* Pay TV has some cards that have not fully been played, including price reductions, bandwidth caps, and hybrid solutions (e.g. TV Everywhere; Project Canvas)
* But... Pay TV is definitely on the defensive, suffering "a thousand cuts" as content moves online and more and more devices enable the bridging between the Internet and home TVs.
* The big question is: how fast will mainstream consumers adopt technology and services that may seem foreign to them right now?
* Our "aggressive" scenario, which assumes certain market events fall into place, predicts a much larger "cord-cutting" trend over 3-5 years (you'll have to read the report to see our prediction and assumptions)
Partial list of companies and technologies mentioned in the report:
3-D TV, ABC, ActiveVideo Networks, Amazon, Amimon, Apple, AT&T, Blockbuster, Broadband Network Systems, BBC, Boxee, Cables to Go, Canoe Ventures, CBS Interactive, Comcast, Cox, Crackle, DirecTV, 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, 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
The cost of the report is $2,499 for a department license and $3,999 for an enterprise license.
Contact Tim Fedish for a study synopsis or ordering information (bmahony@trenderresearch.com, 774-262-4222).
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