Home > Uncategorized > Connected Consumer 2011: Rise of the Virtual Video Operator

Connected Consumer 2011: Rise of the Virtual Video Operator


Michael Wolf | Monday, December 20, 2010

© 2010Giga Omni Media.

While overall drops in cable subscribers have been relatively small, there’s no avoiding that they did in fact drop in 2010. Blame cord cutting for at least part of the problem, as popular providers like Netflix and Hulu satiate consumers’ premium video appetites. Looking towards 2011, we expect this trend could gather further steam with bundled subscription offerings from platform players like Microsoft and Apple, and we expect a remake of the media guide as social media wraps its tentacles around entertainment recommendation.

The Rise of the Virtual Video Operator

If 2010 was the year of cord cutting, 2011 will be the year of the virtual video operator. After all, online video bundling of popular shows through Netflix Watch Instantly and ad-supported Hulu has been extremely popular, so imagine if consumers could get their favorite cable networks bundled together in an over-the-top in a subscription package.

Rumor has it Apple and Microsoft have given the idea some thought, and Google, with the recent acquisition of Widevine, is a likely candidate to possibly go down a similar path.

Of all the living room giants, it appears Microsoft is one of the best-positioned to roll out a bundled video subscription package, given the company’s background in IPTV software, its leadership in the console video streaming market and large installed base relative to Apple and Google.

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