The growth of internet video
Internet video is growing at an exponential pace as users change their viewing habits; selecting to watch video on a variety of computer & mobile devices versus their living room TV set. In fact, The Diffusion Group (TDG) predicts that by 2020 the consumption of Internet video content stored and distributed over an open IP architecture will surpass the consumption of broadcast TV programming.
The advent of tablet PCs, smartphones and reliable broadband networks have manifested the connected lifestyle – always on, anywhere, anytime. In order to support these multi-screen viewing trends, adaptive bitrate (ABR) video technologies such as Apple’s HLS, Microsoft’s HSS and the new MPEG-DASH standard were created. In unpredictable network environments, which may provide low or fluctuating bandwidth, ABR technologies effectively package video content to ensure smooth and consistent video quality. Using ABR in conjunction with Content Delivery Networks (CDN) and progressive download mechanisms enables smooth video viewing over various internet network infrastructures and changing conditions.
Identifying the opportunity created by the technological developments, OTT providers like Netflix, Hulu and LoveFiLM, are providing premium video content over the Internet (OTT). This poses a challenge, which Pay TV service providers must now face. There is no longer a question if Internet video will be successful, only how providers can avoid losses and learn to profit from it.
Over-the-top (OTT) TV is premium video services delivered over the Internet to all connected devices including smartphones, tablets, PCs, game consoles and smart TVs. OTT provides a powerful experience by combining premium video viewing, with the convenience of a selecting from a variety of viewing devices and the internet’s interactivity and breadth of content.
The potential target audience for OTT services extends beyond the content service provider’s ‘walled-garden’. While the OTT strategy is critical to combating subscriber churn, it can be leveraged to gain new revenue streams, proactively seek new customers.
Viaccess-Orca OTT TV solution is designed to help content service providers effectively respond to the growing competition posed by OTT players like Netflix, Hulu etc. By delivering a compelling OTT offering, providers can enhance customer loyalty and reduce the number of ‘cord-cutters’ and ‘cord-shavers’ from their subscriber base.
With VO OTT TV, content service providers can reuse their premium content to generate additional revenues. The content is prepared and seamlessly delivered to multiple types of screens and devices through the service delivery platform. With built-in DRM support for multiple device types, the solution provides security and flexibility.
VO OTT TV solution creates a proactive online presence for content service providers enabling them to reach a wider target audience, outside their existing subscriber base. The solution help providers achieve this goal with recommendations that are integrated into the leading social media platforms, such as Facebook, facilitating users’ sharing and word-of-mouth (WOM) marketing. By leveraging the open Internet playing field, content service providers can expand beyond their subscriber base reaching out to non-subscriber, engaging them on an occasional basis and ultimately turning them into loyal subscribers.
The solution offers new business models for occasional users using direct online payments options through the online portal. Using VO’s powerful content discovery solution, personalized recommendations are created for each occasional user extending their engagement and generating incremental revenue streams.