Escaping from the OTTs’ stranglehold

Data-consuming OTTs such as Netflix and Spotify challenge both internet service providers and traditional media with their new online streaming offers. Telecommunication companies complain that they are investing into modern networks while OTTs are making the profit. However, the new study by Arthur D. Little and Exane BNP Paribas predicts that the upcoming OTT boom will provide opportunities for internet service providers as well. ADL and Exane experts expect demand for fast broadband connections to grow more quickly, enabling providers to develop new offerings to make larger profits. OTTs will also challenge traditional media such as radio, TV and Pay TV. Arthur D. Little projects that prices for content will increase. Traditional TV channels may react by developing their own OTT offerings. In Austria the convergence between media and telcos has just started: market leader ORF has acquired Flimmit, and T-Mobile has partnered with Netflix.

Data-consuming OTTs such as Netflix and Spotify challenge both internet service providers and traditional media with their new online streaming offers. Telecommunication companies complain that they are investing into modern networks while OTTs are making the profit. However, the new study by Arthur D. Little and Exane BNP Paribas predicts that the upcoming OTT boom will provide opportunities for internet service providers as well. ADL and Exane experts expect demand for fast broadband connections to grow more quickly, enabling providers to develop new offerings to make larger profits. OTTs will also challenge traditional media such as radio, TV and Pay TV. Arthur D. Little projects that prices for content will increase. Traditional TV channels may react by developing their own OTT offerings. In Austria the convergence between media and telcos has just started: market leader ORF has acquired Flimmit, and T-Mobile has partnered with Netflix.