Over-the-top TV finds a business model

Over-the-top television has been predicted to cause video cord-cutting, but not typically to make money doing it. That could change as revenue from the delivery of Internet video to the TV will grow nearly six-fold in the next five years, from only $1 billion in 2009 to $5.7 billion in 2014, according to The Diffusion Group. Driving this growth is the ongoing shift to broadband-enabled TVs and devices and the evolution from pay-per-view to subscription. TDG found that in 2009, pay-per-view accounted for 96% of global OTT revenue, while subscription only captured 4%. By 2014, however, it is forecasting annual OTT subscription revenue to have grown 50-fold to 31% of OTT's global revenue.