Direct to consumer OTT is now cheaper

According to a research by Ampere Analysis presented at the Connected TV Summit in London, it was revealed that it is becoming economical to distribute videos directly to consumer over the internet than to broadcast traditionally.

Guy Bisson, their Research Director, says “We’re now in a position where DTC is actually an option, either as a supplement to an existing business or – in certain markets – as the business itself.”

“firstly the up-front costs to get a channel on air are considerably lower. So with a satellite you’re going to take your yearly transponder, but with an OTT service you don’t have that significant up-front cost. But what you do have is a scaling cost, CDN delivery, that grows with your customer base.”

Source: v-net