Embrace premium OTT TV as the fuel for your biggest current and future profit center: high-speed internet access. And tell the world that you’re the best at bringing a universe of incredible web-delivered entertainment into the living room and on the go. Internet access is almost certainly the most profitable line ofbusiness for any multi-play operator.
Many users go online via mobile connections, furthering the business case for wireless operators to enable web-based viewing even as those service providers sell world-class pay TV.
Embracing premier web-delivered programming will also require infrastructure owners (fiber, wireless, etc.) to reevaluate current broadband internet pricing, which is cost-prohibitive for hundreds of millions of users. Indeed, laying fiber, installing wireless towers and buildout requires untold billions of dollars of investment and there is understandable pressure to recoup those costs in short order.
But the reality is that in most parts of the world with existing or growing connectivity, VOD and live streaming video are the chief drivers of demand for premium online access on practically device.
However, many mobile and home internet plans include stringent bandwidth limits that allow users to do little more than surf the web, connect socially and check email.
Given the appetite for broadband access that web-basedvideo is stirring, operators should experiment with increasing bandwidth usage limits which would enable mobile users to enjoy more video programming while preserving healthy profit margins.
Obviously, an operator’s most ideal customer subscribes across mobile, internet and IPTV. But embracing premier OTT video services (which are often complementary to pay TV packages), by loosening broadband caps even as you offer quality IPTV, will drive adoption of your most profitable products.