Over-the-top may lift legacy broadcasters and distributors more than pure plays
TMT Media Predictions 2013
Deloitte predicts that in 2013, in markets where services are available, two of the top three over-the-top (OTT) TV program and movie services are likely to be provided by existing broadcasters and distributors.
A note from the authors
OTT services use the Internet to distribute TV and movie content to homes. Any company can provide OTT TV and movie services and many do so, including TV broadcasters, device manufacturers and fast food vendors. Pure play OTT providers and OTT divisions of larger companies not in the TV industry are likely to enjoy growing market share and take up, but in most markets their active paying subscriber base will probably account for less than ten percent of households. The market will be dominated by existing players.
Deloitte expects that in 2013 all OTT players are likely to continue to grow, at least in usage terms, but there is likely to be significant press coverage of the progress of pure play OTT companies and OTT divisions of larger companies that are not broadcasters or content producers. Broadcasters and pay TV companies should analyze and contextualize these headlines and react commensurately. Read the report to explore more.
Deloitte predicts that in 2013, mainstream broadcasters’ strong brand image and customer loyalty will put them in poll position to grab market share in the growing over-the-top space in 2013.
Duncan Stewart, Director of TMT Research, Deloitte Canada, and co-author of TMT Predictions.
Paul Lee, Head of Global TMT Research, co-author of TMT Predictions.
Stephen Heasley, Global Online Communications, Deloitte Touche Tohmatsu Limited