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OTT’s impact encompasses how consumers interact with content; what they expect in terms of choice, flexibility, and navigation; and the competitive context in which incumbents and upstarts now operate across the value chain.

We have extensively detailed the history of these changes and the technology advances that have enabled them.

(See , BCG report published with Liberty Global, March 2016.) However, in order to address the fundamental focus of this study—the impact of OTT on global and individual countries’ domestic content production—it is important to assess the current state and likely future direction of OTT’s impact at both the global and the domestic level.

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As the VOD abbreviation indicates, these services are not tied to a linear television schedule in which the TV company sets the time of viewing.

However, there are an emerging number of OTT players that now offer content but are not tethered to traditional, facilities-based distribution infrastructure such as cable or telco.

Some $570 billion in annual market value—in content creation, aggregation, and distribution—is at stake.

OTT television—representing some $25 billion in annual revenues worldwide and generated mostly by a handful of big US-based global players, including Netflix, Amazon, and Google’s You Tube—is at the center of this revolution.

Before that conclusion can be confirmed, it’s necessary to weigh the degree to which OTT has unlocked global audiences’ access to locally produced content—across genres and across the spectrum of traditional professional, pro-am, and amateur participants.

In the past, the online value chain has included three primary video-on-demand (VOD) business models, known as AVOD (advertising-based VOD), TVOD (transaction-based VOD), and SVOD (subscription-based VOD).

Finally, OTT and traditional TV are further differentiated by the content creators that participate in the space.

By eliminating constraints on content distribution and space, OTT has introduced new types of content creators to the market.

Its impact on traditional networks (broadcast and pay TV) and video distributors (cable, telco, and satellite) has been extensively examined.

To date, however, there has been little study of the impact of OTT and the changing TV landscape on the various domestic production ecosystems around the world.

OTT encompasses the distribution of video content “over the top” of traditional distribution technologies.

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