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Report: Broadband TV doesn’t mean viewers will cut cord

Fri, 07/17/2009 - 8:20am
Mike Robuck

Viewers of over-the-top video content aren’t necessarily looking to dump their TV services in favor of just broadband video, according to a recent report.

The Diffusion Group’s (TDG) new research said there are three different segments for over-top-enthusiasts (OTT), with “cord cutters” or “replacers” being one segment.

"While over-the-top video delivery is widely discussed, it remains poorly understood," said Michael Greeson, founding partner and author of TDG's latest report. "The dominant understanding of OTT is based on a conceptual error, a category mistake, which conflates cord cutting with the more general concept of OTT."

Greeson said industry experts have been overly eager to use cord cutting's failures to dismiss or write down the long-term potential of OTT.

"To fall victim to this confused logic is a dangerous mistake for both incumbents and competitors,” he said. “The long-term prospects for OTT video delivery are solid and have little to do with the current trend of cord cutting. In fact, the most immediate opportunity for OTT providers is as a supplement to existing pay-TV services, not a replacement for them."

More Broadband Direct 07/17/09:
•  Dish, 46 states settle deceptive practices charges
•  Comcast adds more HD in Garden State
•  Cisco announces 1% layoff
•  Data for federal broadband grants now online
•  Missouri to build statewide optical network
•  Bel Fuse adds HomePlug transceiver modules
•  Intel closes strategic acquisition of Wind River
•  Report: Broadband TV doesn't mean viewers will cut cord
•  Google's slowing ad sales trump record Q2 profit
•  IBM raises guidance, profit blows past forecasts
•  Gains in tech stocks extend Wall Street's rally
•  Broadband Briefs for 07/17/09
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