Operators are increasingly seeing the value of delivering video content direct to consumers. Some industry leaders have already been providing video services for years, while others are looking to launch their first video-centric service. Even for the incumbents, increasing competition from large media providers is putting pressure on them and also making it hard in some cases for them to get content rights from those providers.
OTT video services have been gaining popularity in recent years and luring viewers in from more traditional operator services. Operators are realizing that the only way to remain relevant in this new TV landscape is by launching their own OTT services to complement a linear channel lineup. If done well, not only can these services compete, but they can become the central hub for consumers to access all of their video content. Getting the right platform strategy in place is crucial to being able to do that effectively.
According to Analysys Mason, the role of operators and pay- TV providers indirectly distributing content via OTT services will increase during the next 5 years. The analyst predicts operator OTT video users will double from 57 million in 2020 to 110 million worldwide in 2025. However, this will still only represent about 7.2% of the total OTT revenue worldwide. New entrants and incumbents alike will need to rethink their go-to-market strategy to make sure they are truly maximizing the potential of OTT video.
There are four major Platform OS that should be part of anyone’s evaluation when considering the next generation of their video service: Android TV, Android AOSP, Comcast RDK and Apple TV. Each of those platforms have the technical credibility to ensure a solid foundation of the home platform strategy which is the key pillar of the operator video strategy, but they are contributing to the four metrics in different ways. Over the next four chapters, we will explore how operators can confidently choose the right platform strategy for their OTT offering.