OTT and Mobile Viewing Continue Growth


While traditional TV remains the primary medium for video entertainment, innovation from companies such as Netflix is convincing more and more viewers that OTT and/or mobile viewing is the way to go.  Netflix recently announced that starting in August it will provide different user profiles for the same account, which will allow users to receive personalized TV or movie recommendations without having to sift through unwanted material provided for other users on the same account.

Such innovations are the driving force behind the growth of Internet and OTT video, which has grown by 54%, while a Nielsen report says the average daily viewing of live TV in the U.S. decreased from 4 hours and 47 minutes in 2009 to 4 hours and39 minutes in 2013.


Substituting OTT viewing for one’s traditional cable subscription, or cord-cutting, is becoming popular enough to threaten TV viewing, according to Jim O’Neill:



“Five years ago, a common mantra in the industry was that cord cutting among pay-TV subscribers was just a blip, caused by woeful economic conditions exacerbated, perhaps, by the rising cost of subscriptions to premium and basic services.


Last month, one of the analysts that had long held that view…released a report that not only acknowledged cord cutting was real, but also said it could morph into a significant threat.”


While OTT providers such as Netflix, Hulu, and Amazon clearly cannot compete with traditional TV on events such as major sports competitions or the evening news, they are threatening to wrest the day-to-day viewing market from the grip of live television.


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