Press Release (ePRNews.com) - LAS VEGAS - Apr 25, 2017 - NAB 2017 — The rapid rise of over-the-top (OTT) providers of video content, such as Netflix and Hulu present significant challenges to established network service providers in North America, including the mid-sized and rural operators. In a podcast interview for journalists, Jim Brake, Senior Vice President of Technicolor’s Connected Home Division, says there are several strategies mid-sized operators can pursue to address the challenge posed by the disruptive entry of OTT services.
“There is a lot changing for the small and medium operator, and how they deal with this change will determine the nature of their relationship with subscribers, content providers, as well as their financial fortunes going forward,” Brake says. “They can either embrace the migration to OTT, they can resist the migration, or they can come up with a hybrid approach.”
If they opt for the hybrid approach, he says a good understanding of customers will be essential.
“Operators will need to understand which customers are going to migrate to OTT and which customers want to stay with the traditional method of delivery of content. They would then need to find a happy medium to maximize the revenues for their company and maximize subscriber numbers for both types of customers, because in today’s world one size does not fit all.”
But the upside would be an expansion of their addressable market.
“With OTT, all you need is an access medium, and that opens the opportunity for a service provider to expand beyond their traditional geographic footprint and offer services in other parts of the country,” Brake says.
He adds that Technicolor is ready to help service providers make this transition.
“We have very strong relationships with Google around Android TV and we have a number of products on the market or in development that enable the small and medium operator to customize the look and feel of their services.”
“When the user first turns on their OTT product it can have the look and feel that the end customer has experienced in the past. It can have the splash screen and the navigation they have come to expect from their provider. This means the operator gets to create and maintain the customer relationship, the common look and feel and ease of use and at the same time offer new content and new avenues of content for the end subscriber.”
Brake says there is huge upside for operators that can successfully make the transition. “There is an estimate from ITBusinessEdge that the OTT market in the US will exceed $18 billion by the end of 2018. The operators as a whole are very excited by the growth in this area.”
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