OTT continues to vex TV

The reign of pay-TV and television networks as the most stable, predictable and highest-margin segments of the US media industry is rapidly eroding, Moody’s Investors Service states in a new report.

OTT services and digital ad platforms such as Netflix, Amazon Prime, Hulu, Facebook, Apple, YouTube and Sling TV are breaking down the long-standing practice of contractual aggregating and bundling content for distribution through closed-system set-top boxes. This shift from traditionally-scheduled, linear TV to time-shifted, digital, mobile and SVoD streaming platforms reflects dramatically changing habits for consumers, Moody’s says in its report.

“The success of these OTTs has in large part been fueled by content licensed from the very industry heavyweights they are challenging,” says Neil Begley, Moody’s senior vice president.

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