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OTT Tsunami

Posted by tomwiles at 10:28 PM on September 28, 2010

We’ve been hearing quite a lot about Internet-delivered video content lately. Trends sometimes seem to advance slowly over a long period of time but then tumultuous market shifts seem to happen overnight.

Blockbuster just filed for bankruptcy. Blockbuster was unable to reconfigure their business structure to compete effectively with Netflix. It seems that Netflix has won the ongoing war.

Streaming video and video podcasts have been around for several years – these are not new ideas. However, what is new is the proliferation and increasing popularity of set-top boxes.

Back in the 1980’s backyard satellite TV dishes were a hobby among people that were looking for something different and as many choices as possible. That quest for choice ended up going mainstream in the form of commercial cable and satellite providers offering hundreds of channels.

Starting in 2004 people began experimenting with Internet-delivered content in the form of podcasts. I believe that podcasting happened as a direct result of broadband availability getting to a certain critical mass, combining the existing elements of RSS, MP3’s, etc. into a new form of communication. This new form of communication offered something very different along with unprecedented levels of choice.

Internet-delivered content of all kinds is rapidly becoming mainstream.

I believe 2010 is the year of the app. Apps suddenly seemed to have come out of nowhere to seeming to pop up on every device imaginable. Why the sudden popularity of apps? Desktop and laptop computers have been around for a long time, along with full-blown applications. What has really happened is that computers have now shrunk down to the point where they not only are in our pockets in the form of smartphones, but they are also showing up in HDTV sets and plenty of other devices. These devices we are running these apps on are actually quite powerful computers in their own rights.

There is now a wide variety of content that is heading for every computer-enabled screen you own, especially your HDTV.