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Video: What is Causing Fragmentation in the OTT Video Market?

In this excerpt from a panel discussion at Live Streaming Summit, LG Electronics Director, Smart TV Content Matthew Durgin identifies a shift in the causes of fragmentation in the OTT market from device OS to codec support and DRM.

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Read a complete transcript of Durgin's remarks in this clip:

Matthew Durgin: In 2015, there were 33 new OTT video services in the US alone. That's amazing because that's in addition to all the ones we all know about that are in all these devices, and we still haven't even hit the point where the traditional companies are just going to fly into the TV with a direct consumer model, which is coming. The number of new services that are coming in is high and none of them want to do their business the same way as the other 50 that came in before them. They all want to have something new, some different type of angle.

Then you look at things like live TV streaming and you have to switch between an advertisement and the main video feed instantly. There are a number of challenges when it comes to how much content is coming into a smart TV ecosystem, and that's fragmentation.

Everyone thinks that fragmentation is the operating system on the device. It's not. I don't think it is anymore. I think it's that you can talk about it as the format support. You can talk about it in terms of the DRM support, but it's not about the operating system anymore because all that has just kind of melted away into an HTML5 application that triggers a media player on a device. There's nothing magical about that. To me, it's about the codec support. It's about the DRM. It's about the media player more than it is the UI presentation layer.

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