- Internet of Everything
- Mobile Devices
- Cloud & Mobile Applications
- Enterprise Cloud Services & Devices
- OTT & Multiscreen Video
- Connected Home
- Connected Vehicles & ITS
- Location Technology
- Cyber Security
- ID, Smart Cards & Security
- Teardowns & IP
- Connectivity Technologies & Semiconductors
- Mobile Device Semiconductors
- RF Power Semiconductors
- Radio Access Networks & Backhaul
- Telco Software, Optimization & Monetization
- HetNets, Small Cells & Femto
- Mobile Carrier Benchmarks & Strategies
- Global Subscribers & Indicators
Contact ABI Research
- Americas +1.516.624.2542
- Europe +44.(0).203.326.0142
- Asia +65.6592.0290
Other Recent News
National Policies for Protecting Critical Infrastructure to Drive Billions in Cyber Security Spending
18 Jun 2013
Qualcomm Powered Devices Attract $189 per Handset More Subsidy than Other Devices
18 Jun 2013
$1.26 Billion in Revenue from Commercial Fleet Telematics in Government Sector by 2018
17 Jun 2013
NXP Tops ABI Research’s NFC IC Vendor Competitive Assessment; Inside Secure, and STMicroelectronics also Well Placed
14 Jun 2013
TV Operators Put $16.8Bn Revenue Stream at Risk as 20% of Consumers Consider Online as Pay TV Replacement
Oyster Bay, New York - 22 Oct 2012
A new ABI Research Technology Barometer study reveals that nearly 20% of online consumers consider online video as a replacement for PayTV – representing significant risk to the traditional TV operator business of as much as $16.8bn in the US.
With the US Pay TV household penetration set to decline approximately 0.5% per year through 2017, ABI Research believes this slow migration will continue even with an economic recovery as consumers have additional entertainment choices like improved online and over-the-top (OTT) video experiences.
To offset this, TV operators should build a business that leverages OTT components. This will be critical and doing so requires an understanding of the current and future customer target. Dish Network acquired Blockbuster with the goal of capturing online market share against Netflix; however, they failed to license adequate content and have admitted this strategy has been a failure. Verizon is the next US operator to target this dual-pronged approach, based on their Redbox Instant partnership. European providers, including ViaSat’s Viaplay offering and Sky’s recently launched NOW TV are also looking at lightweight Pay TV offerings.
“While many OTT services focus on movies, the goal of lightweight Pay TV packages should be to introduce customers to the brand and tease customers with premium content offerings,” says Sam Rosen practice director, TV and video.
In contrast, the study also notes a larger longer-term opportunity – 30% of online consumers that have PayTV and the foundation in place for OTT services – but doesn’t yet see the value proposition for online video. This group is ripe for building and positioning services.
These findings are part of ABI Research’s Technology Barometer Research Service which includes additional survey analysis, and survey data.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.