TV operators have several options for differentiation. In this brief, we focus on differentiation based on the content portfolio. Over-the-top (OTT) is explored as a content source. True integration of broadcast and broadband content could be a logical next step for OTT to evolve towards, which would be of interest to the incumbents on the broadcast market. OTT content is offered through an evolved media player device, which may ultimately become the central home Media Gateway, as a hub between multiple content sources on the one hand, and a variety of screens on the other. OTT is primarily a threat to incumbent broadcast operators, as it migrates viewers away from broadcast TV and at the same time facilitates newcomers to enter the video market. While the threat does not appear massive in the short term, the new generation of internet-enabled boxes does address many of the issues that rendered older versions a typical 'geek' product. Since OTT box manufacturers experience certain difficulties in establishing a strong market foothold, there is an opportunity for them to team up with platform operators. In exchange for a revenue share (or service fee), CATV and IPTV operators could become hardware distribution partners. In our research brief 'Connected TV allows operators to benefit from OTT content' (November 2009) we first explored over-the-top (OTT) content and the consequences it has for TV operators. In this brief we look at the issue from a different angle. We propose a scenario for operators, CATV and IPTV alike, enabling them to benefit from OTT.
