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OTT Video

  • November 2014
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All major operators are involved in TV/video delivery. For linear services, multicast technology is very widely deployed by most ISPs for IPTV solutions using unique source systems. Some also use substitute delivery for telco-managed services (non-IPTV eligible households), mainly via satellite.
Non-linear service strategies depend on the ISP, from total control of distribution with rights acquisition, billing and packaging to pure pipe solution with costs savings and total externalisation (viz Telecom Italia).

Nevertheless, the majority of players provide linear TV and non-linear services through managed services, mainly for two reasons:
• Video (notably high-quality) leverages subscriptions, especially for fibre in the USA
• By using multicast for linear TV in their core network, they can save the bandwidth they need to carry
through unicast (given the more bandwidth-hungry architecture)

Telcos are directly competing with large OTTs in some of the VoD markets. They offer relatively similar services around VoD, despite the smaller catalogues of the telcos. This is indeed the main market on which they are competing so far, with telcos being real leaders and fighting mainly against Apple. SVoD can nonetheless be seen as a competitive offering compared to VoD, despite the different catalogues. Therefore, although telcos are very limited on SVoD (indirectly as distributors/resellers), telcos and large OTTs are clearly direct competitors for all forms of on-demand paid video, with OTT players like Netflix, Apple and, to a lesser extent, Amazon leading the market. Telcos with some form of own ad-funded free video services are relatively rare regarding user-generated content. On the other hand, most telcos do offer managed distribution of catch-up TV solutions from major TV channels compared to large OTTs which do not really offer such services.

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