The increasing popularity of Internet-ready devices, including TVs, Blu-ray players, gaming consoles and over-the-top boxes like Roku, is fueling consumers' appetite for OTT content, which could reach a 60 percent penetration rate by 2014, new research posits.
The Bain & Company study, presented today at Forum d'Avignon in Paris, found that a "majority of consumers expressed an interest in Internet video at the expense of traditional TV channels." But, Bain cautioned, "media and entertainment companies must pursue aggressive content development and diversification strategies to unlock new consumer spending."
Bain surveyed 3,000 consumers in France, the United Kingdom, the United States, China and India.
Bain also found that social TV would become increasingly relevant to viewers as they search for content. A third of respondents in the U.S. and U.K. say they plan to use their network of friends to choose their favorite "must see TV." The latter figure jumps to 45 percent for consumers in India and China. Search remains an important component of content discovery in the U.S. and U.K., with more than half of respondents saying they'll rely more on search engines to find video content.
"Significant change lies ahead for the media and entertainment industry as content platforms, new entrants and incumbents battle for profits and market share," said Patrick Behar, head of Bain's Media & Entertainment Practice in Europe and lead author of the study.
- see this release
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