& cplSiteName &

HR Survey: OTT Experience Could Drive ISP Choice

Aditya Kishore

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        ADD A COMMENT
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
Fixed wireless broadband is the flavor of the month &ndash again &ndash but with a number of not-insignificant number of hurdles still to be overcome.
The Internet of Things (IoT) is building excitement, but still finding some barriers hard to overcome – specifically the need for very low-cost, power-frugal and ubiquitous networking. Enter low-power, wide-area (LPWA) networking, making powerful and inexpensive long-range networks for the IoT a reality.
AT&T and Amazon Web Services have planted flags in the ground that will shape the new landscape of collaborative partnerships for many years to come.
Huawei CEO Eric Xu finds inspiration in an unlikely place -- Harley-Davidson's drive to transform itself into a digital enterprise for the 21st century.
The ability to holistically analyze, in real time, any network data impacting customer experience is one reason why big data and analytics (BDA) will become a key network element in the near future.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
Friday, October 21, 1:00PM EDT
Security: Evolving the Data Center
Rasool Kareem Irfan, Head, Telecom & Infrastructure Security Practice, Tata Communications Transformation Services Ltd (TCTS)
Wednesday, October 26, 1:00PM EDT
Security: Tackling DDoS
Gary Sockrider, Principal Security Technologist, Arbor Networks
Friday, October 28, 1:00PM EDT
Security: The Plusses and Minuses of Open Source Software
Nick Feamster, Acting Director, Center for Information Technology Policy, Princeton University
Wednesday, November 16, 1:00PM EST
SDN 101
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Next-Generation Technology Beyond DOCSIS 3.1

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Hybrid Video Solutions to Change TV, Change Future

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei Future-Oriented Giga Coax Network

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei at SCTE 2016

10|20|16   |     |   (0) comments

Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
LRTV Custom TV
Assuring Network Quality in a Rapidly Changing Environment

10|20|16   |     |   (0) comments

As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
Telecom Innovators Video Showcase
A10 Networks on Service Providers' Industry Needs

10|20|16   |     |   (0) comments

Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
LRTV Custom TV
New NFV Use Cases for Cable TV

10|19|16   |     |   (0) comments

A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
Women in Comms Introduction Videos
Meet the Future Workforce: New Faces, Expectations & Motivations

10|19|16   |   5:33   |   (1) comment

Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
LRTV Custom TV
ZTE Global Services User Congress 2016 Highlights

10|19|16   |     |   (0) comments

ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
LRTV Custom TV
Cliff Grossner on Cloud & Network Synergy From Carrier Service

10|18|16   |     |   (0) comments

Local carriers offer the collaborated cloud and network service that benefits from their understanding of the regulations operating in different vertical markets.
In this interview, Cliff Grossner from IHS Technology talks about how this advanced service can support business agility and flexibility.
LRTV Custom TV
VeEX's Plan for DOCSIS Deployment

10|17|16   |     |   (0) comments

Join VeEX's CEO Cyrille Morelle and Light Reading's Alan Breznick as they discuss VeEX's new products at SCTE 2016 at Philadelphia.
LRTV Custom TV
Smith Micro's Carrier-Grade WiFi Component

10|17|16   |     |   (0) comments

Join Carol Wilson of Light Reading as she interviews the CTO of Smith Micro, Dave Sperling.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Amazon Unlimited, Alexa, AI & How to Cut Off Google at Its Knees
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/14/2016
WiCipedia: Following Women on Twitter... and on Stage
Eryn Leavens, Special Features & Copy Editor, 10/14/2016
US Issues Total Flight Ban on Samsung Note 7
Dan Jones, Mobile Editor, 10/15/2016
Oh Snap! Qualcomm Unveils X50, Its First 5G Modem
Dan Jones, Mobile Editor, 10/17/2016
Verizon Wants More Data on Yahoo Breach
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.