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OTT Whisper

OTT Whisper
 

Research Question: Can MSOs stave off the growing population of cord-cutters amid rapid increases in high-speed Internet adoption?

Companies Covered: Apple (AAPL), Amazon (AMZN), AT&T (T), CBS Corp (CBS), Comcast (CMCSA), Coinstar (CSTR), Cablevision Systems Corp (CVC), Netflix (NFLX), Time Warner Cable (TWC), Time Warner Inc (TWX), Verizon (VZ), Viacom (VIA)

Report Available: December 18, 2013

 

Blueshift’s initial research shows consumers increasing their use of Over the Top (OTT) services to satiate their content needs, while also upgrading Internet services to higher speeds to support the increased streaming, though the effect on MSOs and their subsequent response remains unclear.

 

Observations

  1. The landscape of television viewing is changing as OTT services encourage more use by offering original content, like Netflix’s upcoming Daredevil series, Amazon’s recently released original programs, and streaming devices giving access to popular channels, like Roku’s recent agreement to offer WatchESPN and Disney channels. With so many OTT services available to cord-cutters and those reducing pay-TV packages, consumers are not settling for only one viewing option. In fact, Blueshift found, in its October Netflix report, that Netflix subscribers use an average of 3.33 additional entrainment viewing options.
  2. Cord-cutting is at an all-time high, as cable operators lost 687,000 subscribers in Q3 due in part to rising prices, including 300,000 subscribers from Time Warner Cable. Aereo, a start-up streaming TV service that targets consumers who would never adopt a cord in the first place, is creating an environment where consumers can stream TV channels without paying high prices for MSO offerings.
  3. High-speed Internet access allows consumers to seamlessly stream, download, or upload content for movies, videos, and pictures through OTT and other Internet services, making OTT services more viable for uninterrupted TV watching. More consumers are upgrading to high-speed Internet, benefiting providers like AT&T, which saw high-speed subscribers grow to 60% of its total Internet subscribers during Q3 compared to 43% in Q3 2012. It is yet to be determined if MSOs will increase prices on high-speed internet services to counteract falling cable subscriptions.

 

In order to find the effects of cord-cutting and the proliferation of high-speed internet on MSOs and OTT services, Blueshift will gather data and issue a market research report from independent sources in the following areas: cable operators, studio executives, TV executives, pay-TV providers, content creators, customers, and industry specialists.

 

To see other ideas Blueshift Research is currently working on, please click here.