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Address 'Sacred Cows' in New Ways Via OTT, Web, Parks Counsels MVPDs

Disruption in the video industry requires traditional pay-TV providers address “sacred cows” in a new way, Parks Associates reported last week. MVPDs that rely exclusively on video services through their managed network “will be left behind,” it said. AT&T, Sky…

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and Orange launched online offerings to stay ahead of the market, but service bundle elements also need to evolve, said the researcher. Data services are a critical component of over-the-top video services, said Parks. Operators often bundle OTT services with broadband, giving them an advantage over pure-play OTT services. The mobile bundle needs to expand beyond data, with mobile video being a differentiator and incremental revenue generator, it said. Cord cutters look for a branded OTT video-on-demand experience beyond live TV, making new bundles of separate live and on-demand OTT services compelling opportunities, it said. Traditional MVPDs need flexibility and adaptability of OTT video services to “remain relevant,” offering new features and quickly improving where needed, the firm said. Friday, the American Cable Association and NCTA didn't comment.