In the video streaming segment to demand over the top (OTT), which popularized the U.S. Netflix and Hulu, we find competition among: Telcos, pay TV operators, signal producers and Internet companies, device manufacturers (as LG, with its NetCast platform) and up to supermarkets (like Walmart that launched this year its Vudu service in Mexico), among others.
Along with enthusiasm there are uncertainties about OTT in relation to a sustainable monetization model, countries do not have connectivity infrastructure for sufficient scale, and a limitation in electronic payments. In addition, new platforms have difficulty accessing appropriate content for each of its audiences. This shortcoming is its main disadvantage.
Offer. In general, all these platforms offer a mixed service that combines a monthly fee of around US$ 8 to US$ 10 to access content within a core library (between 1,000 and 4,000 movies to be renewed), with the ability to rent premiers for a special fee. Other services, like the Argentina Vesvi, add free content, and there are those who still opt for advertising, as the model of YouTube, to share profits with content owners.
OTTs can be part of defensive strategies, as is the case of pay TV operators seeking to retain their audience; of added value, as is the situation of telcos, who want to push broadband contracts; of disintermediation, as in the case of content producers, or participation in a growing and profitable business in the case of Internet companies or other economic sectors.
The set top box universe follows the business line developed in the U.S. by Apple TV, Boxee and Roku. A segment Google that wants to enter, with its previously failed Google TV platform, developed by the Internet giant with Sony and Logitech, which would be embedded in Smart TVs. Another focus of the competition is service availability across multiple platforms, from PCs to Smart phones and TVs, through tablets and gaming consoles (PlayStation, Wii and Xbox). The more evolved in this respect is Netflix, which claims could be used in more than 800 devices from dozens of brands.
(Yearbook’s Article of ITCs 2012)