New GigaOM Pro Report on Web-to-TV Video Predicts 100 Million Web-Connected TVs by 2011
With the success of Hulu, Netflix streaming and other online video offerings, the giants of PayTV are taking notice. Incumbent TV operators, including Time Warner and Comcast, are preparing to launch new authentication systems to enable cable TV programs to be viewed online. This move, called TV Everywhere and Online On Demand respectively, is a response to the rapid growth in viewership of online TV programs, movies and other long-form content, a trend that will only accelerate as 100 million households have web-connected TVs by 2011.
“While the consumer has historically been locked into incumbent PayTV operators due to a lack of choice and the appeal of bundled services, this is no longer the case,” said Colin Dixon, Senior Partner with TDG and author of the report. “With adoption of higher-speed broadband, network-connected HDTVs and the availability of premium content services on the web, all the necessary components to deliver online video directly to the living room will be in place, thus loosening the longstanding operator lock on the consumer.”
All indications are the consumer is taking advantage of the greater choice in online video entertainment. According to a recent survey by TDG, 70 percent of 18-24 year olds watch some form of video online every week. Such a high incidence among an upwardly mobile demographic is alarming, particularly since 49 percent of the same group have indicated they would be interested in replacing their existing PayTV package with a broadband video alternative.
“We are witnessing an alignment of supply- and demand-side vectors that is undeniable,” notes Dixon. “When broadband-based video services arrive to the TV, consumers will respond. Keep in mind that this is not about simply stumbling around the open Internet on your TV; but about legitimate broadband-based TV services at first supplementing and ultimately replacing one’s primary TV provider.”
The report, entitled “Evolution of Over-the-Top Video,” examines the evolving world of over-the-top (OTT) video in both open and closed delivery networks. It covers trends in OTT, current plans of the PayTV providers, the rise of virtual operators, current consumer attitudes surrounding OTT and several of the platforms that will enable delivery. It is available online (http://om.bit.ly/LFuir) to GigaOM Pro subscribers.
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About TDG
TDG is the leading voice in the digital video ecosystem providing market planning and research services to keep our clients In Front of the Curve™. Since 2004, TDG has helped more than 250 technology leaders, media companies, and service providers to master the quantum shifts impacting how consumers access, navigate, distribute, and consume broadband media — whenever and wherever they may be.
