Even though Hulu CEO Jason Kilar calls his service “incremental and complementary” to cable, the online video hub’s potential fall IPO is a testimony to the transition of TV across screens and the rapid growth of OTT (over-the-top) services.
OTT delivers IP video to end-users over third-party broadband using gaming consoles, set-top boxes, and other devices to connect the Internet and TV. The upshot: the “cord is cut” on cable.
BIA/Kelsey projects that OTT will surpass cable within three years, reaching 62 million homes by 2013 as consumers demand greater customization and control of their content. Hulu is the most watched OTT service, with 53 percent of all OTT users accessing it. Notably, 42 percent of those viewers already watch at least some Hulu programming on their TVs.