Living room disconnect
Of course, OTT web video has been a pipe dream for some time, and while the media and networking standards are in place, semiconductors have the power to keep up with media performance demands and fast, reliable connectivity are available, the concept of the "digital living room" still has serious obstacles to overcome, says Selburn.
"There are many boxes, it's true - each connected to the ultimate consumption device of the display - but only rarely are the boxes connected to one another," Selburn says. "Sure, the 'connected home' is connected to the outside world, but the idea of seamless access remains far from the ideal paradigm of ubiquitous access to content."
It doesn't help that online video content has discoverability issues that can be complicated by content deals going sour, such as the time that Viacom-owned Comedy Central removed content from Hulu.com. Linear broadcasters, in contrast, have built their success on programming schedules that are comparatively more predictable.
Selburn says content owners and service providers need to establish business models that provide sufficient return while still offering customers value, to include helping them find the content they want.
OTT cash-in
And interestingly, that can include OTT video content as well. In fact, says Bernd Matejek, head of IPTV at Nokia Siemens Networks, IPTV service providers and OTT players have more to gain from working together than against one another.
"OTT content addresses one segment of a full TV experience - it can't provide and distribute for example all premium content to the end-user," Matejek says. "The best approach for operators is an easy integration of OTT content offering into their own service and content offering."
By using a single-platform approach, operators can offer recommendations and personalization, and the end-user doesn't need to switch to different platforms to access content, he adds.
"Flexibility in integration of upcoming new OTT is key for these service provider platforms," he says.
Dario Choi, from Ericsson Television, agrees, saying that OTT content is an opportunity, not a threat, to telcos.
"Telcos have unduplicatable assets that broadcasters, CE manufacturers and internet TV providers need for their service to succeed," he says. "QoS, billing, CRM and the possibility of multi-screen bundled offerings to the home are items that are critical for OTT players, and we believe that a managed OTT proposition is win-win for both OTT and telcos."
In any case, he adds, telcos might as well support OTT content access because one way or another, their customers are going to expect it.
"Consumer behavior will, and is already starting to, change to a world where viewers demand content whenever they want it," Choi says. "The increase in the number of connected devices will drive this forward, and therefore OTT services will play a major role in this change in consumption."