The pay TV industry is facing increasing competition from new entrants to the digital TV market using IP delivered content to boost viewers’ access to entertainment services. High profile launches of services such as YouView and GoogleTV have attracted attention and are helping to establish the concept of Over the Top (OTT) with mainstream audiences. While it is debatable whether these services can challenge premium pay TV to become a dominant force in the living room, OTT does potentially open up additional revenue windows for both pay TV companies and new entrants alike.
There’s no doubt that IP delivered content in a lean back context will increasingly become a standard part of consumers’ viewing habits, the question is who will manage the user’s access to this programming? The company that “owns” the remote psychologically takes ownership of the whole viewing experience and that brand becomes synonymous with what is typically a major component of the viewers’ leisure time.