Video content is likely to be a major driver in consumer uptake of the Ultra Fast Broadband network, but New Zealand is behind overseas markets in developing OTT content, says a Commerce Commission study. The survey also shows most consumers were reluctant to pay an additional $10 per month for a high speed connection.

“Ultimately, consumer willingness to pay a greater amount for high speed broadband services will depend on the attractiveness of content and applications which are offered”, says telecommunications commissioner Ross Patterson.

“Video delivering over IP has the potential to change the shape of the video content sector. Overseas, new players are using high speed broadband connectivity to enter the video content sector and deliver new services,” the report says.

It says there is no “content differentiation in the New Zealand market”, noting that Orcon is the only major ISP not to resell Sky TV content.
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