Streaming video is a new programming category on pay TV set-top boxes.
Pay TV set-tops have traditionally been used to provide viewers with access to linear TV and VOD. Recently, operators have begun deploying new set-tops that include support for ad-supported, Internet-delivered streaming video. We estimate streaming-enabled set-tops in U.S. homes will grow to reach +50 million TVs by the end of 2015. The value proposition is:
- The quality and popularity of “made-for-digital”, streaming video rivals the quality of traditional, made-for-TV content (e.g. Amazon, Netflix Win Big at Golden Globes).
- Video producers and operators earn high-CPMs from new advertising inventory created by the delivery of streaming video to pay TV STBs.
- Audiences are attracted by the simplicity of being able to watch linear, VOD and streaming through a single STB and remote control.
The numbers tell the story — scale & revenue — for streaming video on pay TV: