Broadband TV Sees Growing and Interesting Momentum

[Commentary] Over the top (OTT) video delivers video content over the open and unmanaged Internet directly to a consumer’s home. With broadband TV, service providers are delivering video over their closed and managed broadband network to that same home.

Many content owners continue to demand a closed facilities based broadband network to distribute their content. In some regards, broadband TV is the new IPTV, albeit with some very distinct differences, namely it requires a dramatically less expensive video headend. But traditional IPTV still delivers robust channel line-ups with access to all the content that most consumers still demand -- a channel line-up that broadband TV does not. Then again, that’s exactly the point.

For now, broadband TV is setting itself up as an alternative to cable and IPTV for consumers who do not want or need a traditional channel line-up. That may change over time. The broadband TV momentum is also shaped by a very interesting announcement from DISH. The traditional DBS provider has been spreading its wings for some time now, including stocking up on considerable wireless spectrum assets, and recently announced a distribution deal with Disney that they claim gives them Internet distribution rights for Disney owned content, including ABC and ESPN. DISH may be on a path to offer some form of a virtual cable MSO type offering, where they can offer a channel line-up delivered via the Internet to any broadband home. I would characterize this as a broadband TV/OTT hybrid. In my opinion, this type of offer still needs local broadcast to be compelling enough.