Delivering these services comes with many technical challenges. Developing robust content management systems, video transcoding and storage pipelines, application ecosystems, and piecing together adequate video distribution networks are just the beginning. Quality of service assurance, network congestion management, content protection including analytics-based protection, such as modules which limit password sharing, and business analytics are some of the technical challenges to offer mobile OTT services. As mobile video consumption increases, mobile operators are exploring policy-based approaches to meet customer expectations and manage the effects of video services on mobile data caps.
The technical challenges are so significant that many operators made significant investments in technology platforms. AT&T/DirecTV purchased Quickplay Technologies to gain better control of its OTT launch. Even so, some outages occurred as the platform scaled. Disney took an equity stake in BAMTech (formerly MLB Advanced Media) to have better strategic control over its syndication platform.
"Despite the technical challenges, OTT services help pay-TV operators attract cord-cutters with a cheaper pay-TV alternative, as well as next-generation customers who never planned to subscribe to a traditional pay-TV service," says Khin Sandi Lynn, Industry Analyst at ABI Research. "Live OTT services, particularly sports packages, continue to gain the most traction, as they allow customers to watch the same live programs that they receive through pay-TV services at a fraction of the cost."
These findings are from ABI Research's Service Provider OTT Services & OTT Set-Top Boxes (https://www.abiresearch.com/market-research/product/1026664-service-provider-ott-services-ott-set-top-/) report.
About ABI Research
ABI Research stands at the forefront of technology market research, providing business leaders with comprehensive research and consulting services to help them implement informed, transformative technology decisions. Founded more than 25 years ago, the company's global team of senior and long-tenured analysts delivers deep market data forecasts, analyses, and teardown services. ABI Research is an industry pioneer, proactively uncovering ground-breaking business cycles and publishing research 18 to 36 months in advance of other organizations. For more information, visit www.abiresearch.com.
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SOURCE ABI Research