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This report examines the key trends stemming from the convergence of traditional pay TV and OTT video, and assesses the implications for network operators in 2019 as they grapple with the ongoing transformation of the video entertainment business.


  • Partnerships between traditional service providers and OTT players will expand, deepen, and evolve.
  • Operators' OTT services can help win over subscribers but will also dilute video ARPU.
  • Own-brand OTT video will offer a cost-effective alternative to M&A for operators looking to expand internationally.

Features and Benefits

  • Evaluates the evolving landscape for video partnerships between network operators and OTT players.
  • Weighs up the benefits and drawbacks of operators' diversification into own-branded OTT video services.
  • Contrasts own-branded OTT service penetration with changes in video ARPU among selected operators.
  • Examines the trend among pay-TV distributors toward international expansion.
  • Compares the M&A approach to territorial expansion with organic growth via OTT.

Key questions answered

  • What will the operator-OTT partnership landscape look like in 2019?
  • What are the implications for operators embarking on their own OTT video strategies?
  • How can operators combat the threat to ARPU levels that OTT video presents?
  • How will M&A impact the international pay-TV landscape in 2019?
  • Which operators are likely to grow internationally via own-brand OTT video?

Table of contents


  • Catalyst
  • Ovum view
  • Key messages


  • Recommendations for service providers and platforms
  • Recommendations for technology vendors

OTT partnerships will deepen in 2019

  • STB integrations and carrier billing continue apace, as hard bundling gains a foothold
  • Expect closer and deeper operator-OTT alliances next year

Skinny bundling will dilute video ARPU

  • Operator-OTT services will gain ground – but at what cost?
  • Operators have a range of measures to sustain video ARPU

Operators will use OTT to enter new geographies

  • Foreign pay-TV acquisitions will remain sporadic and patchy
  • Own-brand OTT video will offer growth opportunities abroad


  • Methodology
  • Further reading
  • Author