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2013 Online Video Executive Prediction: Verimatrix

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Over-the-top video will “grow up” in 2013. A significant signpost of this maturity is that OTT video services are becoming increasingly similar to traditional pay-TV—Live and on-demand premium content services, delivered with high quality of experience.

In fact, it can be argued that the most successful OTT video deployments today are from cable, telco and satellite operators embracing OTT elements into a holistic multi-network strategy. They have a huge advantage with already having access to premium content, subscriber relationships and ability to scale.

A strong technology case exists for operators to upgrade to a multi-network configuration. For example, we have deployed our multi-network revenue security solution that unifies rights management across native DRM schemes on a wide range of devices, implementing subscriber super-domains.

The consumer demand is clear. They expect to watch their favorite show any time on any device they like. And mounting evidence says they are willing to pay for it. (A recent Nielson report found 51% of tablet owners paid for movies and 41% paid for TV shows in the U.S.)

What will significantly progress in 2013 is the business case for OTT video. Business models are being defined and refined on how to best monetize the multi-screen experience. Content licensing and security requirements will open potentially new models for cloud streaming and early release windows, for example. Fortunately studios are streamlining their business models and usage rules to offer choices of legal TV Everywhere content consumption without confusion.

We look forward to helping our customers navigate these multi-network and multi-screen business issues.

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