Product Category: Broadband Media
Price: $1495
Release Date: Q2 2009
Author: Michael Greeson
Pages: 69
Tables: 8
Figures: 36

 
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Summary    
TDG’s quantum theory of media suggests that, as open broadband connections reach deeper into our lives and establish new points of contact, consumers will enjoy greater choice and exert more influence over media. This premise has fueled the “any content, anywhere, anytime, any device” mantra which characterizes the “digital home” and “connected consumer” market spaces.The emergence of alternative home video services such as Over-the-Top (OTT) are early examples of quantum media in action. With a broadband connection to the TV (either direct or via a home network), consumers will have access to the growing array of online video services today enjoyed on a PC monitor.

An all-too-frequent mistake made by both OTT enthusiasts and detractors is casting the model strictly as a “Cord Cutting” phenomenon and thus directly competitive with basic PayTV services. Yes, OTT-as-replacement services are aimed squarely at the undermining the base PayTV service relationship. OTT-as-supplement services, however, can either be competitive or collaborative. They can be competitive in the sense that they can steal high-margin value-added service revenue from incumbents (e.g., Vudu offers a much better video-on-demand service than most cable operators) and collaborative in the sense that can expand an incumbents service offerings (e.g., Vudu provides an excellent way for smaller cable operators to add VOD to their service mix).

This report identifies four non-overlapping OTT-dependent segments (Replacers, Supplementers, Optimals, and Non-OTT Consumers) and analyzes the characteristics that define and distinguish 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.

 
Table of Contents
  Key Findings

  1.0    Introduction
  1.1    Preliminary Comments
  1.2    Methodology   

  2.0    Identifying OTT Intenders
  2.1    Segmenting the market by OTT Status
           
 3.0    OTT Segment Profile - Consumer Electronic Ownership
 3.1    Home TVs
           3.1.1    Types of TVs in Use
           3.1.2    Proclivity to Purchase New HDTV Set
           3.1.3    Proclivity to Spend More for Internet-Enabled HDTV Set
  3.2    Home Theater Ownership
  3.3    Current Generation Game Console Ownership

  4.0    OTT Segment Profiles – PayTV Services
  4.1    Primary Home PayTV Service
  4.2    Service Tenure
  4.3    Number of Channels to Which Consumers Subscribe
  4.4    Hours per Week Spent Viewing TV
  4.5    Subscription to Value-Added PayTV Services
  4.6    Monthly PayTV Expenses
  4.7    Satisfaction with and Value Perception of Current PayTV Service
  4.8    Likelihood of Service Churn
  4.9    Likelihood of Service Downgrade
  4.10  Satisfaction with Forced Program Tiers or Packages/Lack of A La Carte

  5.0    OTT Segment Profiles – Broadband and Home Network Usage
  5.1    Broadband Service Subscriptions
  5.2    Home Network Usage
  5.3    Ancillary Video Platforms Connected to the Home Network
  
  6.0    OTT Segment Profiles - Web Video Usage
  6.1    Hours per Week Spent Using the Web
  6.2    Online Video Viewing
          6.2.1 Generally 
          6.2.2 Frequency of Viewing Online Video

  7.0   OTT Segment Profile – Video Content Preferences 
  7.1   Interest in Specific Web-to-TV Content Delivery 
  7.2   Price Sensitivity towards Web-to-TV Video Access 
  7.3   “Desert Island 10” – Most Desirable Channels for a Broadband TV Service

  8.0   OTT Profile – Demographics 
  8.1   Gender 
  8.2   Age 
  8.3   Ethnicity 
  8.4   Income  
  8.5   Education 
  8.6   Residential Status 
  8.7   Residential Setting 
  8.8   Number of Occupants per Household 
  8.9   Technological Dispositions 
         8.9.1 PC Skills 
         8.9.2 Tech Adopter Status

 
List of Tables
  Table 1 – Number of Channels Included in Current PayTV Subscription 
  Table 2 – Number of Channels Which Consumers Watch A Couple Times per Week 
  Table 3 – Weekly TV Viewing
  Table 4 – Hours per Week Spent Using the Web
  Table 5 – Personal Hours per Week Spent Viewing Online Video
  Table 6 – OTT Status and Web-to-TV Content Preferences 
  Table 7 – OTT Status and Top 1-13 Linear Channels Preferred for OTT Service
  Table 8 – OTT Status and Top 14-36 Linear Channels Preferred for OTT Service

List of Figures
  Figure 1 – Sony’s Digital Video Service Rollout Strategy 
  Figure 2 – The Connected Multi-Source Television – an In-Home Topology 
  Figure 3 – Evolution of OTT Video Revenue Sources 
  Figure 4 – Segmentation by OTT Status 
  Figure 5 – Ownership of Various Types of TVs 
  Figure 6 – Proclivity to Purchase New HDTV Set 
  Figure 7 – Additional Amount HDTV Intenders Would Spend for TV-Based Internet Access 
  Figure 8 – Home Theater Ownership 
  Figure 9 – Current Generation Game Console Ownership 
  Figure 10 – Primary PayTV Service in Use 
  Figure 11 – PayTV Service Tenure 
  Figure 12 – Light, Moderate, and Heavy TV Viewing 
  Figure 13 – Subscription to Value-Added PayTV Services 
  Figure 14 – Current Monthly PayTV Expenses 
  Figure 15 --  Satisfaction with PayTV Service
  Figure 16 – Perceived Value of PayTV Service 
  Figure 17 – Proclivity to Change PayTV Providers in Next Six Months  
  Figure 18 – Primary Reason for Wanting to Switch PayTV Provider
  Figure 19 – Proclivity to Downgrade Level of Service in Next Six Months 
  Figure 20 -- Primary Reason for Wanting to Downgrade PayTV Service 
  Figure 21 – View of Current Prepackaged Content Tiers 
  Figure 22 – Type of Residential Broadband Service in Use
  Figure 23 – Home Network Familiarity and Use among Broadband Households 
  Figure 24 – Networked Video Platforms among OTT Segments 
  Figure 25 – Online Video Viewing by Segment 
  Figure 26 – Online TV Viewing by Segment 
  Figure 27 – Price Sensitivity towards Web-to-TV Video Access
  Figure 28 – OTT Status and Gender
  Figure 29 – OTT Status and Age 
  Figure 30 – OTT Status and Education  
  Figure 31 – OTT Status and Income 
  Figure 32 – OTT Status and Residential Status 
  Figure 33 – OTT Status and Residential Setting 
  Figure 34 – OTT Status and Number of Home Occupants
  Figure 35 – OTT Status and PCs Skills
  Figure 36 – OTT Status and Tech Adopter Status