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LOS ANGELES, CA, July 16, 2012 /24-7PressRelease/ -- OTT seems prepared to completely transform the cable industry. At the present time, internet video is user-generated and low-quality, such as YouTube. Still, YouTube is fantastically popular, with fans numbering in the millions. Imagine YouTube and Facebook with hi-def quality videos. The growth in numbers would be exponential. OTT is poised to dramatically alter the video landscape by transforming existing digital TVs into Smart TVs, along with video conferencing and video support for tablets, Smart Phones, gaming consoles, and DVD players.
Due to increasing accessibility to broadband, the competition for programming has already begun. The big boys, companies such as Google (GOOG), Microsoft (MSFT), and Apple (AAPL) have committed vast amounts of time, energy and resources to internet television. In an effort to get a jump on the competition, Apple is rumored to be studying the pros and cons of purchasing Netflix (NFLX).
Though still in its infancy, analysts predict explosive growth for OTT in the next few years. Multmedia Research Group (MRG) projects subscriber growth to over 81 million in 2013, up from 26.9 million in 2009. In terms of revenue, the market which was $6.7 billion in 2009, is expected to reach $19.9 billion in 2013, a compound annual growth rate of 31%. OTT's potential has cable providers biting their nails nervously. Having invested large amounts of money on their traditionally packaged video services, they are worried that OTT providers will capture the lion's share of the marketplace.
The worst-case scenario leaves cable operators functioning solely as pipelines. Others, however, believe that OTT providers have their work cut out for them. Unless they can find a way to add live programming and sports, cable will remain a viable choice for consumers.
At the present juncture, Netflix (NFLX), Hulu, and Vudu are the most recognizable names among OTT providers. But the ranks are swelling every day. Digidev (DIDG), the innovative, cutting-edge company, is in position to deliver a broad spectrum of content to many different platforms without having to spend vast amounts of money constructing, introducing, and maintaining their own IP network. Instead, Digidev (DIDG) provides software architecture that supports a variety of connected applications.
The upside to OTT is more content and higher-quality content delivered to more devices at a more reasonable cost. End users the consumer need not worry about additional hardware, wiring or technical expertise to enjoy high-definition video.
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