More People Moving Toward OTT Services and Away From Traditional Media Outlets

With Internet video on the edge of some possible tipping points, viewers may get even more choices to pick from.

According to the estimates from Pricewaterhousecoopers, a consulting firm, the amount of money to deliver digital video – through downloads and streaming – is still rising and is anticipated to surpass the Hollywood box office in 2017 when its electronic home video reaches $12 billion.

Demand for on-the-go and at home video is causing traditional media networks like HBO, ESPN, Showtime and more are seeking to establish a connection with people who despite paying for TV every month.

PwC analyst Joe Atkinson said consumers are no longer making the distinction, regardless of where they get their content.  They only want easy methods to attain that content. For most people, the living room is still the easiest way to get the content.

With more people spending their money on over-the-top Internet video services – Amazon, Netflix and Hulu, for example, the destinations of where the content is delivered is more diverse and deep.  Netflix is certainly a market leader, adding in its original programming (Between, Orange is the New Black and Grace and Frankie) and attaining rights to other shows such as Degrassi, a cancelled teen drama and War Machine, a Brad Pitt movie.

Amazon Prime subscribes can attain freely stream movies and shows, with the company recently signing a deal that will offer Music Box films sometime during the summer.

The lesser known services like Warner Archive Instant makes it easy for subscribers to locate the classic films that are difficult to find like Daktari or Beyond a Reasonable Doubt.

Fandor, which is another subscription service for a $10 a month fee, offers movies from the Criterion Collection – The 47 Ronin and The 400 Blows. According to Chris Kelley, Fandor’s interim CEO, said the service is benefiting from the rising approval of OTT video.

Research firm Parks Associates said that 57 percent of the $120 million-plus U.S. broadband homes have some type of subscription to an OTT service.

Brett Sappington, Park’s research director, said during the 80s and 90s, cable programming was the rage. Today, OTT services are developing services that need certain consumer segments like people who have unique interests, families who have young children and more.


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