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Apps Driving OTT Over Cable 19 January 2016

Cord-cutters and cord-nevers are on the rise. According to a recent Forrester study, 20 percent of adults over age 32 don’t have cable — but that number rises to 35 percent for those under 32. While the pace may be debatable, the fact that cable households are declining is not. By 2025, only half of adults under 32 will have cable, according to the Forrester study.

At the same time, over-the-top (OTT) device makers, such as Roku and Apple, are moving millions of units. Apple has sold 20 million Apple TV units, while Roku has sold 10 million devices and Amazon has sold 5 million Fire TV’s to date. With the ascendance of Netflix and new standalone subscription products from HBO and Showtime, we’re in the early stages of subscription VOD services (SVOD).

While SVOD services will drive more interest in over-the-top devices, the real game-changer will be the arrival of tvOS from Apple. An app store on television will bring an intuitive experience into millions of homes that has been lacking since the medium was created. Hundreds of millions of consumers already spend hours a day accessing the internet through native apps on their desktop and mobile devices. That instant, one-click experience will soon extend from the smallest screen in the house to the biggest. For the first time, the social universe of Snapchat, Meerkat, and Periscope may be readily available on television sets — along with games that have millions of fans, like Angry Birds and Candy Crush.

Source : iMediaConnection

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