Putting the OTT video threat into context | Telecompetitor

The over-the-top video threat, in which consumers bypass local video service providers (cable, IPTV, and DBS) for Internet based content, is well documented. Service providers fear their significant investment in broadband networks that deliver subscription based video services is at risk if enough consumers cut the video cord in favor of these ‘free’ Internet content offerings.

When studying this issue, it is important to put it into context. Nielsen recently released some interesting data with their A2/M2™ Three Screen Report. Probably the most glaring finding of this report is that 99% of all video viewing in the U.S. still happens on a traditional television. That finding seems to suggest that subscription video services are far from any immediate danger of bypass...