Friday, January 24, 2014

Does OTT Video, Messaging, Cannibalize Linear TV, Text Messaging?

<p>Some common rules of thumb about changes in application demand are so entrenched it is hard to envision other outcomes. Consider the impact of over the top video on linear video subscriptions, or the impact of over the top messaging services on text messaging.</p><p>The conventional wisdom is that over the top video (Netflix, YouTube and others) is cannibalizing linear video subscriptions. The conventional wisdom is that OTT messaging is eroding text messaging revenues.</p><p>Both those characterizations are true, to some extent. The issue is how much impact the upstarts are having on legacy services. And there, the data is more nuanced than you might suppose.</p><p>Deloitte predicts that by the end of 2014, up to 50 million homes around the world will have two or more separate television subscriptions, with the additional subscriptions generating about $5 billion in revenues. Perhaps another 10 million homes will get video as part of their subscription to another service.</p><p><a href="http://www.techzone360.com/topics/techzone/articles/2014/01/24/367991-does-ott-video-messaging-cannibalize-linear-tv-text.htm">Keep reading...</a></p>

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