Get ready for next revolution to hit the TV screen

OTT stands for Over the top television. No, they don't mean it's particularly outrageous, it stands for going over the top of conventional TV services.

In layman's terms, it simply refers to downloading TV from the internet – with BBC's iPlayer service being one of the most obvious examples.

And here lies the rub. Have you tried watching the missed episode of your favourite programme on iPlayer?

If you have you'll know it's not a patch on sitting down in front of the TV.

Firstly, it feels like you're at work sitting at your PC and secondly the TV quality is pretty dreadful.

While much has been made of TV via the internet, it hasn't lived up to its first promise.

As we saw in October when England's friendly match against Ukraine was screened only on the internet, fans complained about the poor quality, lack of atmosphere and slow streaming speeds.

However, as technology improves experts believe OTT TV is soon to become commonplace in the home.

Andrew Moyler, director of broadcast consultancy BCi-Endurance, believes that OTT TV is the natural evolution of how we watch TV at home.

"Whilst traditional linear TV will still continue to provide the backbone of home viewing for some time, it is likely to be increasingly demoted in the home in favour of Over the top TV services as the primary means to watch your favourite content," he says.

However he believes it won't all be plain sailing.

"Over the top television represents a fundamental shift in TV consumption and whilst it brings many opportunities it will also carry many challenges," he warns.

BCi-Endurance believes that OTT TV faces four main challenges – lack of internet connections to TV sets, bandwidth-limited video quality, lack of business models and the challenge of navigating through millions of video programmes and content clips.

Saltaire-based set-top box maker Pace is more than aware of these challenges.

The company believes that rather than being a rival, OTT TV can be merged with subscription TV services.

If you listen to the pundits, there are two options in this battle – stick with the satellite/cable package where you are looked after with five star service but have no access to the internet, or go down the OTT route whereby you have access to the internet but you have to do all the work yourself. Pace chief executive Neil Gaydon believes that there is a middle way.

"We are already integrating OTT into our set top boxes," he says. "Consumers won't go to the internet to find out what to watch, people like to be advertised to. They also want a man with a van to come round and fix problems. Will Dixons, or whoever you buy your internet TV from, be able to do that?"

Gaydon believes that consumers prefer subscription to pay per view. People like to know that they will pay a monthly bill with no hidden extras.

"We think most people would like someone else to deal with the technology. With OTT TV you have to hunt for it on the internet and then pay for it when you find it. People won't want to do that when they come home from work and the kids are screaming.

"People want a managed service and now that comes with OTT TV."

While Gaydon doesn't believe OTT will create a seismic shift in the way we watch TV, Pace is embracing the challenge and getting ready for the time when consumers do start demanding more internet services. "OTT is not a threat to us, it's an additional way to access content."

What is OTT television?

Over the top Television literally means going over the top of conventional TV services which are delivered by satellite, cable or set-top box.

OTT TV allows subscribers to watch programmes or view content available over the internet.

It is delivered via a broadband connection, allowing it to bypass the traditional providers of TV services – hence the term Over the top television.

Popular Over the top TV services include video hosting services such as YouTube and blockbuster films delivered direct from the studios.

To view the content, sub-scribers need either a PC or an Over the top TV enabled set top box or television.