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| source: Vindicia |
Though the challenge is greater than in many other markets that are both large and linguistically unified, over the top entertainment video remains a logical area for ISP participation, either as equity owners or partners in distribution and marketing.
Not least among the attractions is the fact that customer demand and proven business models already exist. ISPs and mobile operators do not have to guess about the extent of demand, or create viable revenue models. The value of scale is obvious, as is the role of distribution partners, which is well established.
The challenges include the need for some reasonably consistent amount and quality of mobile Internet bandwidth, as well as the cost of buying or using such bandwidth. In many markets, the supply of bandwidth is an issue. In many areas the cost of using the bandwidth is an issue, while in many markets both problems exist.
The challenges include the need for some reasonably consistent amount and quality of mobile Internet bandwidth, as well as the cost of buying or using such bandwidth. In many markets, the supply of bandwidth is an issue. In many areas the cost of using the bandwidth is an issue, while in many markets both problems exist.
Still, OTT entertainment video services are a promising area for collaboration between ISPs and content providers.
In the U.S. market, for example, Verizon, AT&T and T-Mobile US already have invested capital and marketing attention to the specific value of over the top content as a business value contributor.
As a region, Asia Pacific is characterised by very high levels of linguistic diversity, making it harder for local OTT entertainment video services to expand from their home market across the region, unless they focus solely on international audiences, Vindicia says.
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| source: Vindicia |
Countries across the region have widely varying and distinctive national cultures, with many consumers exhibiting strong preference for local content. The clear implication is that it is harder to build large content businesses--linear or over the top--that can win viewers and customers on a wider scale.
On the other hand, many “mobile-first markets” also are prime candidates for mobile-delivered OTT content, for the simple reason is that, by definition, a mobile-first market provides the base of potential users for an application that often or typically relies on scale for business success.
That said, most markets now have potential mobile audiences that can challenge existing screen formats.
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