According to The Diffusion Group white paper "Online Video – Threats and Opportunities for PayTV Operators," cable and satellite companies must work aggressively to both protect against emerging over-the-top TV providers and leverage their extensive content relationships and entertainment-oriented brands to establish a strong online presence … and soon.

With the proliferation of ancillary Web-enabled TV platforms including game consoles, DVRs, and Blu-ray players, the pay TV set-top box is no longer the only networked platform connected to the TV set. 2010 could be the year Web-to-TV video reaches mainstream media platforms.

The white paper says more than half of adult Internet users are interested in an over-the-top broadband TV service. Some intend to use it as a supplement to their existing pay TV service while others regard it as a replacement. The paper goes on to argue that incumbent pay TV operators need to establish their own branded online video properties.

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