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User Experience Strategies
OTT Subscription based Video-on-Demand becomes a Threat to TV Service Providers
In just a few years, OTT subscription on-demand services (e.g. Netflix) have developed from supplementary sources to services that are top-of-mind among consumers for on-demand content. Fundamental to this transition has been the vast improvement in the availability of content on OTT services to the point where they are almost considered to be on-par with broadcast offerings (with the exception of real-time content (e.g. news, sports and 'event TV')). Moreover, OTT SVOD services have additional benefits over broadcast services including portability, more intuitive UIs, better functionality and of course, a lower price. For these reasons, consumers are increasingly scaling back services from their TV service providers in favor of OTT. Strategy Analytics believes that traditional providers must react quickly if they are to retain customer loyalty and revenues.