Press Release

Over-the-top (OTT) video service providers face a "gathering storm"


March 11th, 2010

Global Information would like to present a new market research report, "OTT Video: Service Providers Face a Gathering Storm" by Heavy Reading.

In a October 2009 Heavy Reading study of U.S. consumers, virtually 40% of respondents said they watched more online video in 2009 compared with respondents in the previous year, which indicates a considerable year-by-year percentage increase in online video viewers. In fact, streaming video now comprises the majority of Internet traffic. Users are transitioning beyond watching shot, low-quality clips of user-generated content on YouTube and increasingly in search of films, TV shows, and other high-quality, professionally created video content on the Internet.

Over-the-top (OTT) video provides consumers with a broader selection of content than pay TV and on-demand access in addition to no associated monthly subscription fees. Over the past few years, improved video compression techniques, faster average connection speeds, and increased broadband penetration have also dramatically improved user experience. However, as high-bitrate video streams use up an increasing amount of bandwidth, service providers must confront the greater challenge of managing their networks, which is much greater than what they have previously faced with P2P traffic. The struggle to manage video traffic on service provider networks is projected to increase exponentially over the next five years.

This report by Heavy Reading should interest investors, telecom service providers, telecom equipment vendors, and media content owners. Some questions this report analyzes include:

  • How will the popularity of OTT video impact future network and business models?
  • How will the evolving regulatory picture influence the delivery of online video and shape service providers future business models?
  • What new technologies and content distribution models are service providers investigating to deal with OTT video?


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Product Code : 115409