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