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The Real Disruption in Pay-TV? The Audience
To a large extent, the disruption experienced by the pay-TV industry comes from the ground up: the audiences.
With the arrival of new technologies like the Internet of Things (IoT), which includes devices such as smart TVs, smartphones, connected cars, and other interconnected devices, content consumption patterns have changed radically.
Audiences are no longer tied to the living room. And they’re certainly not waiting around for a 9:00 p.m. timeslot. Media consumption is now mobile, on-demand, and entirely user-driven.
And that shift? It changes everything.
But it’s not only a technological change but also an evolution in how operators engage with their audiences.
And this is where the real tension begins.
In this article, I’ll set the context for OTT transformation by looking at how audience behavior has redefined expectations, and why many traditional operating models are still struggling to catch up.
Understanding these consumption patterns is no longer about identifying a trend. It’s about aligning technology and operations with realities that are already in place — to improve user experience, streamline decision-making, and remain competitive in an increasingly flexible, personalized media landscape.
From Channel-Zapping to Choice-First (Traditional TV vs. OTT)
For decades, cable and satellite television were the primary source of entertainment in households. They dominated the market, offering services limited by programming schedules and content restrictions. However, these limitations soon ceased to meet the growing demands of consumers, who sought more freedom and flexibility in their entertainment options.
OTT platforms arrived, offering users the ability to access on-demand content, at any time and from any place.
Here’s what the numbers say:
- By the end of 2025, 99% of Americans reported paying for at least one streaming service, with the average household subscribing to nearly 3 platforms (Forbes)
- Traditional pay-TV adoption has been in decline for nearly a decade, with household penetration falling from over 80% in 2011 to just 34.4% by the end of 2024 – underscoring a decisive shift toward streaming (S&P). In 2020 alone, cable/satellite cancellations jumped by 7% (Variety).
- And in Latin America, 70% of households now have streaming access (PwC)
The takeaway? The era of linear, one-size-fits-all TV is over.
Why Audiences Fell in Love with OTT
Let’s break it down. Today’s viewers expect three things:
- Flexibility – Watch anytime, anywhere
- Personalization – Content that adapts to you
- Immediate access to content – no waiting, no setup
Streaming platforms nailed this.
They have led this revolution by offering massive libraries of on-demand content – series, movies, and TV shows that users can watch anytime, on any device. But it’s not just about binge-watching. Today’s platforms also stream live channels, including sports and news, giving users real-time access alongside on-demand flexibility. The result? Viewers can choose what to watch, when to watch it, and where to watch it—breaking every barrier traditional TV used to impose.
Moreover, content has become more personalized. Online video platforms use algorithms to recommend content based on the user’s viewing habits, creating an experience much more tailored to individual preferences. In fact, according to McKinsey, 80% of what users watch on Netflix comes from their recommendation engine, highlighting the importance of personalization.
For audiences, this has become normal.
For operators, it introduces new complexity across data, content management, and decision-making.
The Role of Mobile Devices
Add mobile devices to the equation, and the shift accelerates. Today, consumers are no longer limited to watching their favorite shows on fixed TVs at home. In 2023, more than 50% of online video views happened on smartphones and tablets (Statista).
This isn’t just a change in format. It’s a change in relationship—between people and their media.
As a result it has created a demand for video platforms that offer multi-screen viewing experiences, capable of adapting to a variety of devices: from smart TVs to mobile phones, tablets, and laptops.
Social Media Turned Viewers Into Participants
Then, there’s social media.
It played a crucial role in changing content consumption patterns. Platforms like YouTube, TikTok, and Facebook not only allow users to watch content but also offer opportunities for creating and sharing user-generated content.
Social media has turned content consumption into an interactive and social experience. According to Pew Research, 73% of U.S. adults use social media, and of those, 63% actively follow and share video content.
Users can share, comment, and react to videos they watch, which fosters an active community around specific shows, videos, and events. This has led to a greater diversity of content, where viral and user-generated content have become just as relevant as professionally produced content.
Consumers are no longer just passive viewers; they also become creators, distributors, and commentators of content.
So, where does that leave traditional operators?
Traditional TV is losing viewership steadily. The numbers don’t lie: cable and satellite TV subscriptions are decreasing year after year, while content consumption on OTT platforms is growing rapidly.
But let’s be clear: this is not just about streaming.
It’s about a fundamental change in expectations.
Consumers want a personalized experience, where they can choose what to watch, when to watch it, and on which device.
This phenomenon is driven by streaming platforms like Netflix, Disney+, and YouTube, which offer a wide variety of content that can be watched anytime and anywhere. In addition to this accessible content, platforms that allow users to create, share, and discover user-generated content are increasing the diversity and competition in the media market.
The rigid schedules of traditional TV no longer meet these demands. Therefore, operators need to adapt by offering not only on-demand content but also interactive and personalized experiences that cater to the individual preferences of each user.
And here’s the uncomfortable truth: adapting isn’t optional anymore. The longer the delay, the harder it is to meet modern audience expectations.
That said, traditional operators aren’t out of the game—far from it. If anything, they’re uniquely positioned to deliver an exceptional streaming experience. Why? Because they control the last mile. Unlike pure OTT players, cable operators and ISPs can guarantee network quality all the way to the viewer’s screen. That gives them a real edge—not just for smoother delivery, but for building richer, more personalized services on top of that infrastructure.
The Need for Technological Transformation
Some folks still think OTT is just “TV over the internet.”
In reality, it’s a whole new paradigm for content delivery, platform integration, UX design, data analytics, and yes—revenue models.
Changes in viewer consumption habits, driven by the demand for on-demand content accessible on any device and anywhere, require a shift in the technological infrastructure of operators. To stay competitive, traditional operators must adopt OTT solutions that allow them to:
- Deliver on-demand and live content to any device
- Offer personalized recommendations
- Gather real-time user behavior data
- Scale globally without spinning up new hardware
In Latin America, especially, we’re seeing massive acceleration. Over 80% of ISPs and cable operators now offer OTT services of their own (Business Insider). Why? Because the market demands it, and it’s a strategic necessity for them to stay competitive. They have integrated OTT platforms as part of their value proposition to offer not just traditional TV services but also on-demand video (VOD) and live streaming content. Leveraging the infrastructure they already have, they can diversify their revenue streams and improve their relationship with consumers, who now expect an uninterrupted, personalized, and flexible viewing experience.
Adopting OTT technologies is not just about modernizing infrastructure; it’s about ensuring that operators can maintain the agility required to keep innovating and responding to audience changes effectively.
What Comes Next?
This article is the first in my three-part series on OTT Transformation.
In Part 2 — Transformation Without Collapse, I’ll move into the practical side of the journey: how to assess legacy infrastructure honestly, where existing systems help or hold you back, and how to build a migration plan that fits your reality – not just a textbook.
The goal of this series is to give operators a clear, experience-based view of what OTT transformation really involves — beyond buzzwords and idealized roadmaps.
Because this isn’t just a technical transition. It’s an opportunity to rethink how we deliver content, connect with audiences, and stay relevant in a rapidly evolving media landscape.
Considering the Move to OTT?
OTT transformation is no longer a theoretical roadmap.
For many operators, this is a defining moment — moving from discussion to real decisions about how to evolve beyond traditional TV environments and into modern online video services, without disrupting what already works.
The perspectives shared in this series are shaped by hands-on transformation projects at Setplex, where we’ve worked closely with video providers, service operators, and broadcasters, navigating this transition under real constraints: existing infrastructure, live operations, limited budgets, and teams adapting as they go.
If you’re currently evaluating your next steps toward OTT, this series reflects practical insights shaped by real transformation experience.
Connect with Nelson on LinkedIn.
Attending Andina Link or NAB?
The Setplex team will be in Cartagena (March 9-12, Hotel Las Américas, Stand P02), and later in Las Vegas (April 18-22, Las Vegas Convention Center, Booth W3042 – West Hall).
If you’re attending, we’d be happy to talk through real OTT transformation challenges. Book a meeting for Andina Link or NAB, or reach out at [email protected] to meet the team on-site.
