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Pay TV Could Find a Silver Lining in the Looming OTT Cloud

July 27, 2014

The video content industry long has relied on pay-TV services as a significant revenue source, but digital technologies -- namely over-the-top, or OTT, services -- are impacting pay-TV rights and revenues.

Nearly two-thirds of U.S. broadband households now own one or more devices capable of delivering online content to TV sets, and younger viewers have altered their video consumption habits in response to these new technologies.

Live/linear broadcast TV accounted for just 51 percent of all video consumed on a TV in early 2014. More people are using an Internet-connected streaming video service like Netflix or Hulu to watch TV shows and movies. Millennials, in particular, consider online video to be the most important source for finding and viewing video content. Very soon, linear TV will be in the minority of all video consumed on a TV set.

This rise in popularity of OTT services is forcing several pay-TV providers and networks to rethink their current strategies and offerings.

From the article "Pay TV Could Find a Silver Lining in the Looming OTT Cloud" by Glenn Hower.

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