TV operators and content owners are favoring the hybrid OTT model over more traditional solutions, according to new research from MPP Global.
To accommodate increasing demand for mobile online video content and compete with Netflix’s dominance of the market, an increasing number of TV operators and broadcasters have launched or are planning to launch OTT services this year.
The research found that hybrid models are the most popular, with 60% of operators stating this particular OTT model is the best fit for their business.
The hybrid OTT model enables content owners to offer different price packages to its customers. Pricing packages can range from paying on a TVOD (transactional video on demand) basis to signing up for a subscription (SVOD).
Operators with a hybrid model can reach a range of customers, from those only willing to pay on a pay-per-view basis to those who want unlimited access to all content by purchasing a subscription.
The hybrid model has already been adopted internationally by Amazon for its Amazon Instant Video service, as well as by Hulu for its online streaming service in the United States.
The research also found that operators are favoring three emerging OTT pricing models—personalized or “skinny” bundles of content and channels, set time period passes, and video metering.