4G networks boosting OTT video growth

Staff writer
11 Nov 2015
Daily News

Best practices from Asia-Pacific providers are highlighting the importance of hybrid models for success in OTT video, according to Pyramid Research.

The research firm said in a report OTT providers in markets that score lower on the Readiness and Intensity sections of the Pyramid Research OTT Video Market Attractiveness Index should consider focusing on AVoD before introducing SVoD and TVoD services.

In South Korea and Singapore, where smartphone and pay-TV penetration rates exceed 80%, there are OTT services that function as linear and SVoD TV-everywhere complements to traditional pay-TV services.

These have evolved either through telecom operators or pay-TV providers offering an OTT service themselves, for example Hooq from Singtel, or through broadcasters leveraging their assets on the Internet, like Pooq from South Korea's terrestrial broadcasters or Toggle from FTA providers in Singapore.

OTT services in both markets see heavy traffic from mobile networks. Markets with low pay-TV penetration, low broadband penetration or low smartphone penetration see lower levels of OTT adoption and simpler services.

Also, the importance of mobile service in Asia-Pacific should not be underestimated. In emerging Asia, mobile networks offer a way to expand the addressable OTT market, while Wi-Fi represents a key enabler technology for nomadic usage in developed Asia.

Further, pure-play OTT players and telecom operators should seek to partner in order to create value. Operators can differentiate themselves better and increase customer loyalty by using an OTT service.

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