Despite the recent trend of cord shaving—the process by which consumers stop paying for television altogether, or at least some of its services in favor of over-the-top (OTT) content—a considerable majority of media firms don’t believe that broadcasters have to worry about completely overhauling their business model.
According to a recent survey, nearly 80 percent of firms polled indicated they didn’t feel as though OTT content would kill pay television. About the same number of firms indicated, however, that broadcasters need to revamp their user interfaces in order to remain ahead of their streaming competitors as the dominant force in the market.
Perhaps more intriguing, however, is the fact that two-thirds of survey respondents indicated that they felt as though the reign of Netflix as the dominant OTT provider will come to an end within five years. The firms indicated that they felt as though Apple (42 percent), Amazon (40 percent) and Google (17 percent) would hold the top three spots in that field, pushing the popular streaming provider out of medal contention.
“It is rare to see experts agreeing to such an extent, for instance 95 percent see cloud TV as a reality in the move towards true TV everywhere business models,” explains Joanna Jones of TV Connect. “The research also highlighted that the broadcast community sees cord shaving and OTT as threats.”
Jones says that broadcasters will rely on expanding their TV Everywhere offerings while creating attractive user interfaces in order to remain ahead of OTT providers in terms of market share.
As OTT content becomes increasingly popular, broadcasters must be creative in order to remain viable. What does that all mean? No one can predict the future, but it looks as though consumers will continue to reap the benefits of competition.