Cablefax The Magazine - March 2015 - 15
2. OTT
Sure, OTT may be the traditional pay-TV industry's
biggest competitor du jour-but it's also
one of its best opportunities to make wads of
cash in the future. For operators, the integration
of Netfl ix, Hulu and others into the set-top box
could end up far more lucrative than efforts to
keep them off. That's because customers want
convenience, and only traditional distributors
currently sport the proper infrastructure and
know-how to bring OTT together with linear content
in a way that preserves the TV ecosystem
and satisfi es consumers who want content anywhere
and anytime they choose. For programmers,
OTT has become a huge new market for
intellectual property that otherwise might have
sat on a shelf earning little or nothing-and it's
yet another buyer for new content during crucial
windows following its linear debut. The decline
of the DVD market means OTT's your friend,
content owners, especially with big brands like
HBO testing the OTT waters. Meanwhile, the rise
of virtual MSOs from DISH, Verizon and perhaps
soon even Comcast's Xfi nity and others means
that OTT may eventually make more money
for the industry than all that traditional stuff
combined. Dumb pipes... Smart pipes... Who
knows? But those old classifi cations may soon
not matter anymore. It's all just content. And
everyone can make money at it.
1. Video on Demand
What? VOD at the top of the list? What is this,
1993? Let's break it down. While VOD may seem
like an old technology that will soon fade away
like the 8-track tape, it's really just a matter of
perception-and of course how we choose to
defi ne VOD in the 21st century. If you take all
the content-related hot innovations on this list
and mash them together, you would essentially
have some form of VOD living in the set top, the
smartphone, the tablet, the computer or even
the VR headset. VOD is really any content that's
not linear, and if you defi ne it this broadly than no
other hot area of the business presents as much
opportunity in the next few years. One major
reason is dynamic ad insertion, which has fi nally
started turning VOD from a customer retention
tool into a new revenue-generating powerhouse
that over time could rival the kind of revenue
seen today on linear TV. We're not there yet, to
be sure. But better measurement, combined
with better targeting based on customers' VOD
preferences across devices, could truly become
this industry's ultimate Holy Grail. In addition,
electronic sell-through also offers some pretty
exciting new ways to bring in extra bucks. We
don't deny that VOD's got a boring reputation.
So let's redefi ne it as a sexy beast-and one that
could help drive big revenue in the years ahead.
Cablefax: The Magazine
March 2015
cablefaxmag.com
15
http://www.cablefaxmag.com
Cablefax The Magazine - March 2015
Table of Contents for the Digital Edition of Cablefax The Magazine - March 2015
Contents
Cablefax The Magazine - March 2015 - Cover1
Cablefax The Magazine - March 2015 - Cover2
Cablefax The Magazine - March 2015 - Contents
Cablefax The Magazine - March 2015 - 4
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Cablefax The Magazine - March 2015 - Cover3
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