AT&T, Verizon make moves toward OTT

AT&T and Verizon are both making moves toward over-the-top streaming video business. AT&T’s CEO announced plans to launch a new OTT service that will eventually result in “software-based” video delivery rather than satellite. The service is being framed as a scaled-up version of DirecTV Now, which has been available for less than a year and was itself designed to entice streaming cord-cutters.

Verizon’s CEO recently said OTT video platforms are “critical” for the company, and added the company will decide how to deliver an online service in the next six months. At the same time, Verizon’s investment arm is looking to develop video streaming technologies.

The moves make sense. Almost half of TV viewership now goes to streaming video, according to a 2016 study. About  65 percent of OTT viewers watch a subscription service like Netflix, 30 percent watch a free service like YouTube, and five percent use a transaction service like iTunes. Netflix was by far the most popular streaming service with 70 percent of respondents watching.

Links:

AT&T CEO: Bye-Bye DirecTV, Hello AT&T OTT Video (Telecompetitor, Sept. 12, 2017)

Verizon CEO Sees Decision on Online TV Service in 6 Months (Bloomberg, Sept. 13, 2017)

Verizon Invests in Content Delivery Tech Startup Streamroot (CED Magazine, Sept. 11, 2017)

Does AT&T’s new DirecTV Now service violate net neutrality? (Speed Matters, Dec. 2, 2016)

Almost half of TV viewership now goes to streaming video (Speed Matters, Apr. 22, 2016)