Parks Associates Blog

Tuesday, April 20, 2010

Service Providers Being Repositioned As Media Companies

The popularity of online video consumption is forcing service providers to reposition as media companies with new offerings such as TV Everywhere, according to this report, Online Video and Broadband Provider Strategies.

The number of U.S. broadband households watching premium online content doubled in the last year. Over 25 million U.S. broadband households regularly watch full-length TV shows online, and over 20 million watch movies online.

Connected CE devices are affecting the competitive ecosystem of the television industry, and while the current number of cord cutters isn’t substantial, service providers are concerned about these developments. Pay-TV providers are working to head off a possible shift that might devalue their services by offering TV Everywhere. These services supplement their traditional offerings, which might not dissuade anyone determined to cut the cord, but providers could use them as models for future business strategies.

Online Video and Service Provider Strategies also reports that consumers have yet to establish strong preferences on whether they get video and other value-added services from broadband service providers or over-the-top providers such as Hulu. Service providers can leverage this consumer neutrality and reposition themselves as media companies.

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