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Strategy, not original content, will be the key to winning the OTT race, says TDG analyst

Flatscreen TV "Video On Demand"

Online video streaming sites from Netflix  to Amazon to Yahoo are scurrying to create original that will poach viewers away from their rivals. But an analyst with The Diffusion Group says that pouring money into scripted entertainment is a that is destined to fail. “Business strategies do not work forever, as the most effective schemes are copied and augmented by competitors,” wrote TDG analyst Joel Espelien in a blog post. “As this happens, they lose their capacity for competitive differentiation.” Another problem is that online video-on-demand platforms aren’t growing a viewing audience; they’re simply competing for a bigger slice of the “same viewing pie,” because total TV viewing in the U.S. has remained flat, he explained.

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