the year ahead business today
over the past 12 months, offering over "A key reason why many OTT efforts equipment and features that
14,000 hours of premium content, up have failed (and will continue to do so) manufacturers provide to service
from 5600 hours at the end of 2008. is their dependence on proprietary providers to handle video delivery.
Over the year 130 content partners single-function hardware paid for by “Increasing usage of OTT Internet video
were added, now totaling over 200, consumers," explained Colin Dixon, is driving traditional TV service
including the key addition of managing partner at TDG. "In order to
Research
providers to launch TV Everywhere
Disney/ABC. In addition Hulu reported grow a profitable base of service users,
released by
initiatives,” said In-Stat analyst Gerry
that 6.4 million video players were OTT operators must either give the the The Kaufhold. “The data centre approach
embedded across the web in 2009, a hardware away for little to nothing -
Diffusion
promises more flexibility to manage
237% rise from 2008 levels and that something start-ups cannot afford to do
Group (TDG)
content for delivery to multiple device
by 30 December 2009 Hulu players - or leverage other Internet-enabled
had been embedded on over 207,000 platforms as a conduit to the living
in January
types, enabling service providers to
offer any content, on any platform, in
websites. Significantly, the number of room. The latter approach is preferable,
2010 predicts
any location.”
advertisers/marketers served had yet its success hinges on the rate at that by 2014 In-Stat added that such moves
grown in a year from 166 to 408. which these Internet-enabled platforms
more than
would have a direct impact on
Hulu’s success will likely be repeated diffuse - a factor over which OTT
360 million
equipment vendors, service providers
by many such concerns across the providers have little control."
world in 2010. Research released by TDG’s report noted that already
households
and content owners. Next-generation
on demand approaches will increase
the The Diffusion Group (TDG) in Netflix and the BBC had been
worldwide
content owner influence, and greatly
January 2010 predicts that by 2014 embedding their service software in a
will own the
expand the delivery options. Among
more than 360 million households variety of retail video platforms and are components other impacts, content owners and
worldwide will own the components enjoying early success, like Hulu. But
necessary to
service providers will also likely need
necessary to enjoy Over-the-Top (OTT) this is not all that is necessary:
enjoy Over-
to renegotiate licensing agreements
video services on their TV, with more providers will also have to invest in
than half actively receiving OTT more network efficient technologies in
the-Top (OTT)
that will reflect more flexibility and
responsiveness to consumer demands.
services. Over the next five years, TDG order to make sure that viewers’
video
And there’s the rub. There are now
expects that the number of households quality of experience is not services on a number of potential innovative
with at least one Internet-enabled compromised. In a briefing announced
their TV, with
disruptive technologies and services -
living room video platform will grow at the end of 2009, In-Stat commented
more than
such as TV Everywhere, 3D TV and, to
rapidly and that the number of that video-on-demand services and
half actively
an extent, mobile TV - that can deliver
broadband-enabled TV households traditional video services were operators and service providers with
with the basic infrastructure to enjoy currently based on a great deal of
receiving OTT
the competitive advantages that they
OTT video services will grow from 130 proprietary, or industry-specific,
services.
seek in satisfying value-driven
million in 2009 to more than 360 equipment. The firm predicted that customers. But to accumulate,
million in 2014. More to the point, TDG providers would have to migrate to operators are going to have to find a
sees that the number of active OTT more efficient content delivery way of speculating; no easy task in
households that put this infrastructure networks (CDNs) and data centre these times but a vital one none the
to use, and so offer a chance for models based on server virtualisation in less. Those with the capability to
monetisation, will grow from 40 order to enable content portability, that invest now may be able to achieve a
million in 2009 to 170 million in 2014. supporting concepts such as TV huge early mover advantage and be
There are, however, some very Everywhere. It predicted that the CDN well set up to have that prosperous
important caveats and success criteria. trend would drive a shift in the type of new year.
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www.ibeweb.com l january/february 2010 l ibe l 7
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