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This analysis identifies the key trends driving the most fundamental changes across visual entertainment distribution in 2018, as epoch-defining issues impact business from traditional pay TV, commercial broadcast, and linear TV, to OTT distribution and IP networks.


  • The proliferation of OTT direct-to-consumer (D2C) services will fragment market share and challenge growth strategies across the market.
  • D2C and TV platforms driven by linear OTT service launches are likely to result in disappointment for the majority of service providers.
  • Traditional pay TV will stagnate, rather than stagger.

Features and Benefits

  • Evaluates how pay-TV service providers should proceed regarding the positioning and go-to-market strategies for all the types and tiers of services they offer.
  • Assesses how content owners can learn to effectively evaluate the viability of new types of licensee, particularly from digital media, social networking, and technology.
  • Advises technology vendors to enable partner companies to automate workflows, and implement and improve evolved advertising and data infrastructures.
  • Recommends that broadcasters evolve their on-demand OTT experiences and their advertising infrastructure to effectively target digital and, ultimately, linear TV audiences.

Key questions answered

  • Will D2C platforms compensate for pay TV's slowing growth in affected markets?
  • How will rights valuations be affected by content rights fragmentation across new types of licensee?

Table of contents


  • Catalyst
  • Ovum view
  • Key messages


  • Recommendations for TV subscription-service providers
  • Recommendations for OTT subscription-service providers
  • Recommendations for content owners
  • Recommendations for broadcasters and channel owners
  • Recommendations for telcos and mobile operators
  • Recommendations for technology vendors

OTT D2C services are fragmenting market shares and challenging growth strategies across the market

  • Pay TV's big bet in 2018

2018 will see even more focus on managing subscriber churn

  • Historically critical for pay TV, OTT services must address spiraling churn rates

Pay-TV OTT has the potential to grow in 2018 but the outlook remains highly uncertain

  • Purchasing and viewing habits are evolving rapidly

Content: Divide and conquer

  • Content valuations for the most desirable rights will rise


  • Methodology
  • Further reading
  • Author

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