Over-the-Top a hit for all ages

Over-the-top (OTT) delivery is becoming increasingly popular for watching video content across a broadening range of connected devices. A survey carried out by Accenture shows that a growing number of consumers are choosing to watch video content over-the-top, on their TVs, smart-phones as well as PCs.

And it seems that viewers of all ages are increasingly accessing on-demand OTT content. It isn’t just the younger viewers who are driving this trend. The survey showed that 82% of participants aged 35-44 and 64% of participants over the age of 65 are also accessing OTT content.

Broadcasters and operators need to look to find ways to deliver the next generation of TV content, that will enable the viewer to engage and interact with the programmes they watch, not just on the TV but across other devices as well. Consumers are looking for a unified viewing experience across their connected devices.

TV Web surfing

Another interesting statistic from the report was consumers’ desire for Web browsing on the TV, just 14% wish to use this feature – an opinion we’ve supported many times in the past. Web services must be tailored for the TV viewing experience.

Is cable subscription model under threat?

At the Adage Digital Conference this year, high profile speakers including Verizon’s Chief Marketing Officer John Stratton discussed how IPTV is affecting the cable TV subscription model. Although the view was largely taken from a US TV market point of view, John Stratton acknowledged that IPTV is indeed forcing viewers to cancel their cable TV subscriptions and explore online alternatives such as Hulu, iTunes, Amazon Video and TV.com. These fast growing online services are all based on non-subscription based models including transactional, premium, ad-supported models.

John says that the cable subscription model will continue to exist for certain distributors as long as content providers keep their costs down. On the whole, the general trend suggests that the subscription model for TV is being challenged by rapidly evolving online content providers, but forces are already at work for content providers, distributors and advertisers to start offering IPTV services that are built on simple and flexible model.

You can watch the full speech in below 3Minute AdAge video.

MySpaceTV Launches

MySpace has launched a TV service intended to take-on YouTube in the online video world.

MySpace has a pressing reason to take on YouTube more directly. Just as MySpaceTV is being fashioned to compete with YouTube, engineers at YouTube are busy developing social-networking features including enabling users to chat while they watch the same clip and share their favorite videos. So, the social networking site has some heavy competition on its hands.

This announcement, coupled with the Sony/Honda announcement about minisodes (edited four-to-six minute versions of thirty-to-sixty minute television shows) a few weeks ago, is a real sign that the industry is maturing beyond the niche, experimental stages. In fact, there are three key things worth noting which underline a new and exciting time for online video:

1/ Online video is now multi-country and multi-language – a classic sign of

maturation in the technology sector

2/ Users/viewers are now demanding higher quality (professional in

MySpaceTV’s case) content which is helping move the perception of online

video from niche to mainstream

3/ The Honda/Sony partnership shows inventiveness and a willingness to

experiment with the revenue models that will be essential for the industry’s
long-term self-sustainability. It also illustrates how players can make money

from the “long tail”