OTT Threat Spawns On-Demand Opportunity

According to IMS Research, on-demand services from pay TV operators are becoming more robust each year with more free content and integration of over-the-top (OTT) services. IMS projects that in 2011, 72% of VOD requests via pay TV platforms will be free transactions. OTT content delivered via set-tops is expected to account for a fair share of free transactions, as well as generating a forecast $48 million for pay-TV operators this year.In response to the OTT threat, pay TV operators increasingly offer free on-demand content and catch-up TV services via set-tops or online, as well as integrating OTT services into set-top boxes. IMS Research forecasts that in 2016, OTT services delivered via pay TV set-tops will generate $436 million in worldwide operator revenues.