Is OTT TV’s Death Knell?
Television pundits have been claiming the death knell for television has been ringing for years. Yet, new research from Vimeo indicates that the future of video is already here and that OTT (over-the-top) streaming video is how video content is now shared, viewed by ever larger audiences.
The Vimeo survey is based on 3.6 million OTT subscribers spanning 230 countries but is still somewhat US centric as well as being geared towards the kind of relatively niche content hosted by Vimeo.
Nevertheless, the principle insights are common to most OTT markets and service categories, even if to varying degrees. For example, the underlying premise of the survey is that consumers are ditching cable TV en masse. While that may be true in many countries, the extent of the churn is much greater in the US. Research firm eMarketer estimates that by the end of last year some 22.2 million Americans cut the cord on their cable, satellite, or telco TV service. That represents a 33% increase from 16.7 million the previous year, which is higher than almost any other major developed country.