Friday, October 2, 2009

Over the Top (OTT) Video Study: Trender Research Predicts 7 Percent of Households Will 'Cut the Cord' on Pay TV by 2012

Over the Top (OTT) Video Study: Trender Research Predicts 7 Percent of Households Will 'Cut the Cord' on Pay TV by 2012

Westford, MA (PRWEB) October 2, 2009 -- 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 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.

Westford, MA (PRWEB) October 2, 2009 -- 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 broadcast 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."

The report profiles many of the leading OTT and emerging video industry players, including content sites such as YouTube, Hulu, and Netflix, and hardware such as AppleTV, Roku, Vudu, TiVo, Xbox, and Vizio. Enabling products are examined including video browsers Boxee and Zinc, home video distribution technologies including WiFi, WHDI, and MoCA, and supporting middleware, widgets, and applications. The report also looks at the response of Pay TV service providers, such as the TV Everywhere and Project Canvas initiatives, and the efforts of cable channels such as ESPN and Discovery to implement their own online video strategies. Vendors that scored high on the Trender Dashboard™, which measures appeal to mainstream consumers, include Hulu, Netflix, TiVo, and Roku.

"Pay TV and the Growing Over the Top Video Threat" is authored by Principal Analyst Brian Mahony with contributions by Directing Analyst Patti Reali and Contributing Analyst Robert Clark. The study is based on interviews and questionnaires with over 40 companies or organizations and analysis of another 50 using public records. The report also includes feedback from a Trender Panel focus group of everyday consumers. The cost of the report is $2,499 for a department license and $3,999 for an enterprise license.

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, 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, Myrio/NSN, 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 Dust, 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

For a report synopsis or ordering information, contact Tim Fedish, Director of Client Services: 774-262-4222

For media interviews or consulting inquiries, contact Brian Mahony, Principal Analyst: 508-479-7254

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Contact Information Brian Mahony

Trender Research

http://www.trenderresearch.com

508-479-7254



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