Light Reading

HR Survey: OTT Experience Could Drive ISP Choice

Aditya Kishore
Heavy Lifting Analyst Notes
Aditya Kishore
10/17/2011
50%
50%

As in previous years, Heavy Reading conducted a survey of U.S. consumers in September 2011 to gauge opinions on video consumption, provider perceptions and satisfaction levels. The findings of this survey will be released at the tenth annual TelcoTV show. In particular, this year we focused on the impact and role of over-the-top (OTT) video on consumers.

Based on the survey, OTT video has become a mainstream activity, with the vast majority of respondents having viewed online video, and more than one in five viewing video several times a week. This growth is a concern for service providers for two reasons.

Firstly, most service providers are also ISPs, which means they have to cope with the increased traffic generated by OTT video. The bad news for service providers is that high-bandwidth, professionally produced content is increasingly popular, marking a significant shift from user-generated content (UGC). In fact, almost half of all respondents to the Heavy Reading survey picked some kind of non-UGC content as their most viewed genre of online video. A poor experience viewing this kind of video could affect ISP selection. Almost one in five respondents saw a poor Internet video experience as a reason to switch ISPs, while approximately the same percentage was “much more likely” to pick a provider that integrated OTT services into the pay-TV lineup.

The second concern for service providers is “cord-cutting” – that they could lose pay-TV subscribers to OTT services, and their substantial investment in IPTV would be pointless.

On this front the news is more encouraging. Opinions on cord-cutting are very mixed and few have done it to date. However, OTT services could well affect premium pay-TV options. This “cord-shaving” is much more likely than a complete termination of pay TV, but would still affect service providers since the margins on these premium services do help drive the pay-TV business model.

What can operators do? Well, there are some options. They can look at network solutions like transparent caching to handle the traffic increases on their networks, or even launch a commercial CDN and perhaps generate new revenue from delivering OTT traffic. They can extend their pay-TV services to additional platforms to cater to consumers who are looking at OTT today. They can also look for ways to integrate Web content on their TV lineup, as well as add interactive features to bring some of the more attractive features of OTT video to the TV experience. (See What's Holding Back the SuperCDNs?.}

I’d be the first to acknowledge that implementing this is considerably more difficult in practice. In fact, even identifying which of these approaches makes sense for any individual service provider would be a challenge as all options won’t work for all operators. However, we will attempt to get a little deeper into these issues during the various sessions at Telco TV. Specifically, we at Heavy Reading will be presenting our survey findings on Oct. 26 at 9.35 a.m., and we hope we can help move this discussion a small step further.

— Aditya Kishore, Senior Analyst, Heavy Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
kelliott14
50%
50%
kelliott14,
User Rank: Light Beer
12/5/2012 | 4:51:05 PM
re: HR Survey: OTT Experience Could Drive ISP Choice


This increase in OTT traffic and poor user experience in viewing non user-generated content, is no doubt giving respondents of the HR survey reason to switch ISPs. Newly formed, Connexus Ecosystem brings together solution vendors, enabling service providers to increase their relevance in the OTT video value chain, and strategically partner with content aggregators and advertisers. Learn more about the exponential bandwidth demand and shallow revenue growth, at www.connexus-ecosystem.com and how ISPs could be building QoE-differentiated video subscription services which sets the stage for content monetization and ad revenue.

More Blogs from Heavy Lifting Analyst Notes
Join our fireside chat at Mobile World Congress in Barcelona as we discuss the operational implications of NFV with Justin Paul, head of OSS marketing at Amdocs.
The race to deliver gigabit broadband services is accelerating, and G.fast is a key technology that telecom service providers can deploy to compete successfully.
If NFV is to progress, proofs of concept and trials need to come out of the lab and into live networks in 2015.
This year is expected to be a year of great market evolution across most telecom sectors, specifically in virtualization and Long Term Evolution (LTE).
Bring your own device (BYOD) is flourishing, creating the need for better security on shared personal/workplace mobile devices.
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Cyber Security Expert Warns: You're Doing It Wrong
Sarah Thomas, Editorial Operations Director, 2/23/2015
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
MWC: Let the Madness Begin
Ray Le Maistre, Editor-in-chief, 2/23/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.