OTT is Dead; Long Live OTT

[Commentary] With each new announcement of a service going “over the top” of traditional cable systems, investors and consumers, persuaded by the national media, start to believe the breathless confirmation that this time we are witnessing nothing short of a TV revolution -- a new way to buy and watch the medium. The reality is much more mundane, and if the cable industry doesn’t make strategic missteps, the bundle will continue to dominate the pay TV-buying public’s appetite for years.

The hopeful fantasy that somehow consumers can one day choose to buy channels on their own at an affordable price is just that -- a fantasy. It’s not a real business that will rival cable operators.

Here are five reasons: 1) OTT offerings will always be weaker. 2) An OTT a la carte service would cost too much. 3) Robust network OTT services would destroy the very bundle programmers have worked so hard to create. 4) OTT a la carte would be too complicated. 50 OTT a la carte might mean higher broadband prices and more regulation.