TDG – Early Over-the-Top Market Will be Driven By Supplementers, Not “Cord Cutters”
New Report and White Paper Offer Unique Glimpse into the Early Market for Broadband TV Services
Dallas, TX (July 16, 2009) – According to new research from The Diffusion Group, the nation’s leading research advisory for the broadband video ecosystem, demand for Over-the-Top (OTT) broadband video services is more heterogeneous than widely believed and comprised of distinct consumer segments driven by very different needs. TDG’s latest digital media analysis, Over-the-Top Video Enthusiasts – Who are They, What Drives Them, and What Do They Want?, mines the firm’s most recent primary consumer research to identify and characterize three separate OTT enthusiast segments of which “cord cutters” or “Replacers” are but one segment.
According to Greeson, pundits have been overly eager to use cord cutting’s failures to dismiss or write-down the long-term potential of OTT. “To fall victim to this confused logic is a dangerous mistake for both incumbents and competitors. The long-term prospects for OTT video delivery are solid and have little to do with the current trend of cord cutting. In fact, the most immediate opportunity for OTT providers is as a supplement to existing PayTV services, not as replacement for them.”
TDG’s new report, Over-the-Top Video Enthusiasts – Who are They, What Drives Them, and What Do They Want?, identifies four non-overlapping OTT-related segments (Replacers, Supplementers, Optimals, and Non-OTT Consumers) and identifies distinguishing attributes for each segment including demographics, psychographics, TV viewing and subscription habits, technology dispositions, interest in alternative TV services, and a host of other characteristics. The data reveals an emerging market comprised of very different consumer segments with different motivations and service expectations.
For those interested in learning more about TDG’s new segmentation and the OTT-as-replacement or “cord cutting” segment, TDG is offering a new Market dBrief™, Over-the-Top Video, Cord-Cutting, and the Consumer for free download.
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