Scaling OTT Part 2: The channel conundrum

January 24, 2013  | Subscribers Only

Maria Rua Aguete Maria Rua Aguete Principal Analyst, Television Media
Need more Information?

Our recent analysis of the scaling costs for OTT concluded that platform-agnostic OTT services cannot be scaled to deliver simultaneous mass-audience television at the current cost base. The same scaling issues also apply to single mass-audience channels, but for channels with a low to medium viewing share, scaling for OTT may not be such an issue. OTT streaming can work out cheaper than broadcast for individual low-medium consumption channels. But the current economics of the television business mean that OTT remains an incremental cost rather than a substitutive one. Nonetheless, the cost analysis highlights the potential importance of OTT Unicast streaming as a potential substitute for broadcast once the distribution and installed user base scales. By extension, it highlights a potential new business role for IP infrastructure owners in the channel distribution market.

Tables and charts included:

  • The Multichannel value chain;CDN Unicast Streaming calculation;BARB-rated channels ranked by satellite broadcast cost as a multiple of equivalent streaming costs;Number of channels at each multiple category (against satellite costs);Channels by weekly cost range for CDN delivery;UK BARB rated channels with a terrestrial feed

Pages: 17

Tables and charts: 12

Maria Rua Aguete

Principal Analyst, Television Media

Maria Rua Aguete is a principal analyst with IHS. She has more than 12 years research experience covering the global television markets. Maria specializes in developing different...

Geography
UK
Share facebook Twitter Google Plus Linked In Add This Contact Us