why ott tv is superseding iptv

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Page 1: Why OTT TV Is Superseding IPTV

There's never been a better time to be involved in internet-connected television broadcasting.

Page 2: Why OTT TV Is Superseding IPTV

By 2015, 350 million internet-connected TVs will have been sold, and there will be one billion web-enabled, stationary, consumer devices like set-top boxes and Blu-ray players in

use around the world.

Page 3: Why OTT TV Is Superseding IPTV

This huge growth in internet-connected devices has heralded a new era for broadcasting and consumer tv and

will have a massive impact on our industry.

Page 4: Why OTT TV Is Superseding IPTV

I believe we're seeing a true evolution in terms of a worldwide broadcasting channel providing an online video

platform.

Page 5: Why OTT TV Is Superseding IPTV

Consumers are constantly viewing live and catch-up TV or video on demand via internet-connected television sets,

smartphones, gaming consoles and blue-ray players - anywhere they can access a web browser, in what has

become known as OTT or 'over-the-top' TV.

Page 6: Why OTT TV Is Superseding IPTV

OTT TV is the next generation for broadcasting, and presents an exciting opportunity for broadcasters and

content owners to reach new audiences over a variety of devices, without the traditional costs associated with

setting up a channel.

Page 7: Why OTT TV Is Superseding IPTV

Broadcasters and content owners themselves no longer face those traditional geographical and operator-imposed

barriers. They are now free to deliver their content directly to their audiences.

Page 8: Why OTT TV Is Superseding IPTV

For the last 15 years, IPTV (Internet Protocol Television - or TV delivered over the Internet) has been the industry

buzzword with traditional networks - such as telcos and ISPs - licensing and packaging content for captive

audiences.

Page 9: Why OTT TV Is Superseding IPTV

That's been an expensive business - both for the networks, who face significant financial outlay in providing consumer devices and acquiring content, and for the consumer, who

needed to buy a branded device (usually a set-top box) from the network to access channels.

Page 10: Why OTT TV Is Superseding IPTV

At the same time User Generated Content sites such as YouTube demonstrated consumers' increasing appetite for sharing and watching video online, while the likes of BBC iPlayer, Hulu, Netflix and iTunes have given audiences the

freedom to watch on demand.

Page 11: Why OTT TV Is Superseding IPTV

This has led to traditional broadcasters and network operators having to reassess their approach, understand

how audiences are migrating from IPTV to OTT TV and find quick, easy solutions to capitalise on it.

Page 12: Why OTT TV Is Superseding IPTV

Reaching new audiences at low cost

Page 13: Why OTT TV Is Superseding IPTV

OTT TV represents an 'open market' broadcasting platform where small or large content owners can broadcast, not

just existing channels or network owners. The low start-up costs for IP delivery and growing broadband reach remove

most barriers.

Page 14: Why OTT TV Is Superseding IPTV

OTT content can be accessed via browsers or native apps on devices, and over networks which are purchased

independently by viewers. Devices like the Roku Set-Top Box connect to the internet and allow access to any

content for which an app has been created.

Page 15: Why OTT TV Is Superseding IPTV

Operator independent internet set-top boxes are showing fast growth as a relatively cheap and quick way to access

these new OTT services. Over two million Apple TV devices have already been sold while Roku expects to have sold

over three million boxes by the end of 2011.

Page 16: Why OTT TV Is Superseding IPTV

And while the barriers to entering the TV market are being removed by OTT, traditional revenue streams remain and

new opportunities arise - from pay-TV and subscription, to paid-for supplementary VoD, archive access and niche

advertising. IMS Research forecasts that pay OTT subscription services will generate a cumulative $32 billion

in revenues over the next five years.

Page 17: Why OTT TV Is Superseding IPTV

OTT internet also enhances the social and interactive side of watching TV. In a world of too much choice, being able

to have content 'socially filtered' by integrating friend recommendations into Electronic Programme Guides can

help create a better 'lean-back' TV experience for the viewer.

Page 18: Why OTT TV Is Superseding IPTV

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