AMG Services and Movie Favorites team up to create a mobile virtual network that will bring HD movies to mobiles and tablets. The network will mimic Netflix, but will be focused on mobiles.
The last few years have witnessed an explosive growth in the numbers and types of "over the top" or OTT content providers. Skype, WhatsApp, NetFlix, Viber, Hulu, and IPTV are some of the examples of OTT services being offered today. Sensing the opportunity, AMG Services and entertainment website Movie Favorites have announced plans to enter the lucrative OTT market.
"On-demand video and OTT are poised for some jaw-dropping growth. Streaming OTT videos are projected to surpass DVD consumption by 2016. The associated advertising revenues are also going to go through the roof. It's not an opportunity we'd want to miss," Jack Somerset, AMG Services' Chief Technical Officer says.
Over-the-top content is distributed over the Internet in the form of data packages that mobile operators have little control over. OTT voice, video and text services are usually offered free-of-cost to the consumers, which makes these services much more popular than those offered by mobile service providers.
Talking about the details of the joint venture, Movie Favorites' CEO Martha Steinbeck revealed that the new service will focus specifically on mobile. "In 2013, the US Mobile Internet advertising revenue jumped to more than $7 billion, achieving 110% growth in just one year. There's no reason to think that the growth is going to dampen anytime soon," she said.
AMG Services is already negotiating with OTT hardware manufacturers for procuring the equipment required to set up a Mobile Virtual Network (MVN). "We are not ruling out the option of partnering with an existing MVN operator or a Telco for the venture," AMG's Jack Somerset said.
AMG Services will handle the technology side of the new video network, while Movie Favorites will take care of the media side. The new OTT video service is expected to be available in the US early next year.
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Movie Favorites is a blog about evergreen movies that still inspire viewers around the world. Featuring reviews, previews, dialogues, plots, and celebrity information, the blog is visited by fans that need a refreshing dose of nostalgia.
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Name: Carlos Fields
Organization: Movie Favorites
Release ID: 51545