OTT Reached Fever Pitch – Dilution of Content = Dilution of Revenue

With the announcement of access to a VOD Portal via the Sony PS3 as well as various other deals of the same ilk in the market place we now see the news arriving at fever pitch regarding “Over the Top” services available to the general public – But who is that public;  who is that consumer?  Who actually has the time to watch “Linerar TV, PayTV, OTT TV and PVR stored TV” as well as DVD Box sets and Blu-ray disks.  Who on earth can consume so much TV that the Broadcasters think that there is a viable market?   Furthermore what is the business model for the OTT route which appears to cannibalise on the mainstream delivery mechanism.  Is the industry really going down this route so it can actually close down its Terrestrial committments and in the future stream-line the business in terms of cash flow and investment by a full remodelling that offers InternetTV and no other form?   Has the mathematics been done in terms of TVHH coverage which clearly DTT can beat hands down as a distribution mechanism?   Aren’t the advertisers who are supposed to be the funders of the DTT Broadcasters asking about the dilution of their target audience?  I ask this as most people I know in my private life (across several countries and continents) do not have the time to watch catch-up TV or OTT services.  Most of them have a job and go to an office where they spend all day doing email (as is the modern malaise).   Then on return to the family abode they actually meet their family and have family time and an evening meal before being able to relax.  A lot go to some sort of sport training and some even play pool and darts in competitions which eats into the availbale TV hours that are on offer.

I know that I keep repeating this but it is exactly how the Music industry saw the business (rush to go on-line) and it was badly damaged at the time.  Granted Broadband speeds are different today but the business model is not about the speed and quality of the product delivery – MP3 is a testament to that…It is about monetizing the content.  The music industry business model now favours the “connected” and I can assure you that this is a smaller percentage than you can ever reach via the “airwaves” in Radio &  TV.


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