Light Reading
OTT services are giving service providers sleepless nights, according to the early results of a poll.

Who’s Afraid of OTT?

Dennis Mendyk
5/19/2014
50%
50%

OTT specialists such as Netflix pose the greatest competitive threat to traditional communications service providers, according to about half of the respondents to a new industry survey.

About half of the Light Reading community that responded to the ongoing 2014 BTE Preview poll during its initial 48 hours said OTT service providers such as WhatsApp and Netflix pose the biggest outside competitive threat to network operators -- an even bigger threat than the 800-ton fiber-wielding overbuilding gorilla known as Google.

Much less scary are actual on-the-ground (or over-the-airwave) competitors like other telcos, mobile service providers, or cable operators.

We're still in the early stage of data collection for the poll, so these numbers could change. You could register your two cents (or pence, or fraction of a bitcoin) by taking the survey here (two minutes is all you need):

2014 BTE Preview Survey

Everyone who takes the survey will get a report with full results following our Big Telecom Event in June. We'll also be sharing results with attendees at BTE.

So let us know -- are you really that scared of OTT? Does the thought of Reed Hastings cause you to break out in night sweats? Or is that monster under your bed something else?

— Dennis Mendyk, Managing Director, Heavy Reading


Check out the agenda for Light Reading's Big Telecom Event (BTE), which will take place on June 17 and 18 at the Sheraton Chicago Hotel and Towers. The event combines the educational power of interactive conference sessions devised and hosted by Heavy Reading's experienced industry analysts with multi-vendor interoperability and proof-of-concept networking and application showcases. For more on the event, the topics, and the stellar service provider speaker lineup, see Telecommunication Luminaries to Discuss the Hottest Industry Trends at Light Reading's Big Telecom Event in June.


(19)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
5/23/2014 | 8:37:41 AM
Re: Is it a surprise it isn't >50%?
Maybe there's a Light Reading story or three in this?
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/22/2014 | 7:55:42 PM
Re: Is it a surprise it isn't >50%?
Exactly, so. Why do service providers see OTT players as a threat? People have to sign up with a service provider in order to get Netflix. Netflix brings them business. 

It's like a real estate developer feeling threatened by a school and shopping opening nearby. 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
5/20/2014 | 10:32:19 AM
Re: Indie Makers
Thanks, seven. Based on my experiences (ranging from startups to Fortune 500 media giants), marketing and distribution are among the most important and most overlooked parts of a successful business plan. I know too many creative types who've learned the lesson of DIY the hard way, and they'd like nothing better than to go back to the good old days when greedy middlemen made them a lot of money.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
5/20/2014 | 10:24:58 AM
Re: Indie Makers
Dennis,

I do a lot of small business consulting nowadays.  I find small businesses have (and here is a bunch of stereotyping) to be pretty primitive in understanding the issues of being a business in Sales/Marketing/Distribution.  I have a few clients who came out of creative businesses and they have essentially no clue about it at all.  

I think anyone who is a creative and wants to self-publish should read Michael Gerber's "E-Myth Revisited".  I think the best thing about it is that it tries to point out that being an author/director/video person is very different than running an independent studio (it uses a different example business, but it is the same point).

seven

 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
5/20/2014 | 10:11:13 AM
Re: Indie Makers
As reprehensible as media conglomerates can be, they serve some useful purposes. The same goes for content aggregators like video service providers. Most people don't want to sift through thousands of possibilities for time-killing entertainment. The irony about self-publishing is the goal of hitting the jackpot through a more lucrative channel. As you say, sales, marketing, and distribution are the real drivers. 
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
5/20/2014 | 10:09:51 AM
Re: Indie Makers
Dennis,

I do think that OTT video makers will become important challenges for the carriers over time.

By that I mean Disney, Universal, Sony, etc.  Netflix as an aggregator is not a challenge.  But the actual studios have enough marketing power and money to require the telcos/cablecos/satcos to do things that cost the delivery service money.

I wonder if there some analogy that will come of this whole thing like the old movie theater problem from the 30s or 40s where eventually structural separation was enforced.

seven

 
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
5/20/2014 | 10:07:50 AM
Re: Indie Makers
Yes, but Star Wars was made in 1977.  (I know because I went to see it the first week it opened the day that my friends and I got out of class from junior year in high school.   We took the train to Manhattan and got in before the "mania" hit so we didn't even have to wait in line! )

But with Star Wars Lucas was able, as an entreprenuer, to establish a whole bunch of marketing channels for the peripherals like action figures.   His contract gave him the rights to all the paraphrenalia and made him a very rich man.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
5/20/2014 | 9:55:42 AM
Re: Indie Makers
Star Wars became a franchise because of conventional mass-market distribution.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
5/20/2014 | 9:53:48 AM
Re: Indie Makers
Dennis,

I think what will happen is similar what is already happening in self-publishing of books/e-books.

Lots of people will do it to no avail.  They will realise that marketing and sales are actual functions and that the "studios" actually perform a function here.  There will be some very popular folks that are able to self-publish and make more money.  Finally, there will be the vast majority that stick with a middle man.  The production value is interesting, but more important is the sales and marketing platform.

There used to be statistics that 80% of Youtube videos had 5 or less hits and a significant chunk had 0.

seven

 
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
5/20/2014 | 9:51:39 AM
Re: Indie Makers
Yes and Radiohead!

To me it's inevitable that the portals will be challenged by those who already have fans.

The biggest barrier is the payment mechanism.

Who wants to sign up for a thousand sites when you can one-click at Amazon, or just pull up Netflix on your Android tablet and Chromecast it to the LCD?

So you'd have to have a "cloud marketplace" where someone can mix and match web services like payment but still be an independent site.

 
Page 1 / 2   >   >>
More Blogs from Heavy Lifting Analyst Notes
Enterprises increasingly realize that in order to run their businesses economically they need to fundamentally change ways in which they operate their businesses in the connected IP world.
There's plenty of activity in the emerging G.fast broadband technology sector, but will it come to anything?
Here are some steps that service providers could take to boost the reach, awareness and success of their multiscreen video ventures.
Telecom operators are deploying new technologies in their data center environments to reduce costs and increase revenues.
The cloud debate has moved on to the network capabilities needed to meet customers' demands, with SDN and NFV at the heart of discussions.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed