OTT services like Netflix, NOW TV, BBC iPlayer, etc are becoming increasingly popular in the recent years. Traditional linear TV is facing heat from new connected devices that offer on-demand video streaming at all times. Pay TV is one of the most resilient businesses in the industry. High customer retention, good margins and other factors have contributed to it being a conservative business that is too careful to change.
While OTT is still not a full replacement for live TV, things are changing, and fast for the younger lot. Pay-TV has to adapt to newer consumption models. A hybrid model (live-TV plus VOD) is being predicted to be good investment for pay-TV operators over the traditional STB, thus gaining the best of both worlds.
Source: V-Net TV