Monday, January 7, 2013

OTT Video Will Remain 10X to 100X Smaller Than Subscription TV, Near Term

Technologists often think that because Internet-based tools can change the way people watch cable TV, such changes naturally will occur. Business issues, though are the issue, specifically the scores of billions content owners and video distributors make from the current business model. 

Consumers likely want to be able to buy only what they want, when they want it. But it is asking too much for a big industry to destroy itself. Over the top video revenues will grow, of course, but will remain a small fraction of the overall video subscription business, which might represent $170 billion just in subscription revenues (irrespective of advertising and commerce revenue) by 2016. 







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