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June 8, 2010

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Can Traditional TV Operators Embrace OTT Video as a Service?

As we head into summer, Internet TV remains a hot topic among network operators.  Over the next few weeks, we will explore the OTT opportunity, the challenges associated with Internet TV services, and how we think the adoption of more open standards can help bridge the gap between those challenges and opportunities. Read Post #1 The Latest OTT Opportunity: Connected TV here. Post #2:  Can Traditional TV Operators Embrace OTT Video as a Service? There is an assumption by many market pundits today that the service operators in the world of Internet TV services and that of traditional pay-TV are totally disjointed. We think this is rather too simplistic. Just like the world of e-commerce in the early generations of Internet, the shift of consumption did not totally upend the value of existing brands and consumer loyalties. A few new players emerged for sure, but by and large, the brick and mortar brands have become just as prominent on the Internet as they are on Main Street – the power of branding transcends the medium. When you apply this logic to video, the service operators that make the leap to multi-screen delivery can indeed be the same names that dominate the pay-TV market in cable, satellite and IPTV today. They have the content, the subscriber relationships and the scale to make service delivery compelling whatever the physical distribution network, and in many cases they also provide Internet connectivity. The challenge for existing operators is that this requires a fundamental shift in the way they think. Progressive digital TV operators may have to embrace novel technologies that have been designed to effectively scale and solve IP video issues and apply them over their delivery networks. By integrating OTT and adaptive rate streaming technology with pay-TV services, operators can enhance ARPU, subscriber loyalty and lure incremental advertising dollars. This convergence of technologies also must encompass a proactive revenue protection and enhancement approach that enables digital TV operators to cast a much wider net with their service offerings. This shifts the central value proposition for the digital video enterprise beyond that of content protection alone, towards the broader perspective of revenue security. Download our white paper, Pay-TV at an Inflection Point, and let us know if you agree.

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