& cplSiteName &

HR Survey: OTT Experience Could Drive ISP Choice

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        ADD A COMMENT
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
It's clear that virtualization will play a huge role in the development of IoT – so it's time to become acquainted with Virtuapedia.
A dedicated cloud-hosted core is important to making the mobile network commercially attractive to Internet of Things (IoT) service providers.
Huawei has announced a new approach to measuring the quality of a user's gaming experience.
Heavy Reading has identified four use cases that are key to cable virtualization and that prove cable is ready to turn concepts into action.
The next iteration of cloud deployment will deliver considerable benefit, but also impose new requirements and create new challenges for even existing virtualized products.
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 Interviews
Fixing IoT Security Is an Ecosystem Challenge

12|9|16   |   05:34   |   (0) comments


Level 3 Communications' Chief Security Officer Dale Drew says service providers, manufacturers and even consumers must combine to halt massive DDoS attacks using IoT devices in botnets. The solution he has in mind includes reputation-based routing by the service provider but also more secure endpoint devices and greater consumer awareness.
LRTV Interviews
Cox Clears $2B in Business Revenue

12|8|16   |     |   (0) comments


Cox's Jeff Breaux discusses how the third-largest US MSO will reach the $2 billion revenue mark this year and plans to hit $3 billion by 2021
LRTV Interviews
Can Cable Climb Upmarket?

12|7|16   |     |   (0) comments


Carol Wilson and Alan Breznick assess cable's prospects for winning more enterprises in a landscape rocked by corporate M&A activity.
Women in Comms Introduction Videos
TalkTalk Exec: Find Your North Star at Work

12|7|16   |   3:38   |   (1) comment


Women need to find their purpose, a professional North Star, and create a personal board for themselves, according to Alex Tempest, director of partners at TalkTalk Business.
LRTV Interviews
Verizon: Beware Unknown Unknowns

12|7|16   |   04:58   |   (0) comments


Chris Novak, director of the Verizon Enterprise Solutions Risk Team, explains that enterprises who don't conduct a thorough audit of their assets often leave some things unprotected because they don't know they exist. Many times these unprotected assets are part of corporate M&A activity but left unshielded they can become a hacker's playground, he tells Light ...
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (2) comments


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
Upcoming Live Events
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
WiCipedia: After-School Coding, Salary Probing & Pro-Parenthood Companies
Eryn Leavens, Special Features & Copy Editor, 12/2/2016
Consolidated Snaps Up Fairpoint for $1.5B
Iain Morris, News Editor, 12/5/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
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.
Animals with Phones
A Mobile Safari Click Here
Literally.
Latest Comment
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.